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Tax cuts still cornerstone of Bush's economic plan

Reuters, Washington
President George W Bush's speech on Thursday to the Republican convention offers him a chance to seize the initiative in an economic debate that polls show is being won by his Democratic rival, John Kerry.
Economists say that whatever mix of old and new he offers as his prescription for the economy, voter assessment of his economic stewardship will depend in large part on incoming data particularly this week's jobs report for August.
As he has on the stump, Bush is expected to outline his vision of an "ownership" society in which individuals more frequently own company shares and take greater responsibility for their retirement and health care.
To advance those policies, he is expected to reiterate calls for a partial privatization of the Social Security
retirement programme and expanded tax breaks so individuals can save for health care and retirement.
He is also expected to revisit his push for tort reform and an energy policy to boost oil and natural gas production.
But the centerpiece of his economic plans, as administration officials have made clear, will be a push to make permanent the tax cuts he has won since taking office.
"We have to create jobs for all Americans who are looking for work and to do that we have to keep taxes low," Treasury Secretary John Snow said in a radio interview on Friday.
While Bush will likely be "partly warming over an agenda," as economist Allen Sinai put it, he is also expected to throw in enough fresh ideas to claim a bold forward-looking plan.
"He has to show the public that he
has a plan, that he's got some ideas for a second term," said Greg Valliere, chief political strategist at Schwab Soundview Capital Markets.
The president, however, is handcuffed by record budget deficits which may limit how boldly he can move.
Like Kerry, Bush has pledged to halve the deficit over the next four years a vow he's likely to repeat in New York.
However, he will seek to differentiate himself as well. Some analysts think he will cast himself as a small-government Republican trying to keep a biggovernment Democrat from reaching into people's pocketbooks.