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Bush polishes his State of the Union speech

"At every stage of this endeavor, the president's policy toward Iraq has been marked by confusion and uncertainty."

Nancy Pelosi, Democratic leader in the House of Representatives

US President George W. Bush, in an election-year State of the Union speech next week, will offer a strong defense of the Iraq war and seek to assure the American people that his tax cuts are restoring job growth to the US economy, White House officials said on Friday.

On Tuesday night Bush will address a joint session of the US Congress and millions of Americans watching on television -- a big opportunity to command attention with a review of his plans and priorities as he gears up for his re-election drive.

The president edited his speech in the Oval Office on Friday and planned to work on it over the weekend.

Faced with Democratic criticism that he led America into the war in Iraq on faulty assumptions about its alleged weapons of mass destruction, Bush will say the war liberated millions from Saddam Hussein's rule and now offers a chance to bring democracy to the heart of the Middle East.

He will stand by his decisions on Iraq and say they were the right ones, a senior administration official said. "He'll be very clear to the American people about the reasoning behind it and how it's making a critically important part of the world more secure and safer."

The Democratic leader in the House of Representatives said Bush must explain how he plans to restore America's standing in the world after a "war of choice" that angered allies, making the US pay much of the cost of rebuilding Iraq.

"At every stage of this endeavor, the president's policy toward Iraq has been marked by confusion and uncertainty," said Representative Nancy Pelosi of California.

Bush will cite a recent string of positive economic indicators as evidence that his three tax cuts are spurring the US economic recovery.

"Our economy is at an important stage. It is continuing to grow strong but we need to continue to act to create as robust an environment for job creation as possible," said White House spokesman Scott McClellan.

Democrats seeking to deny Bush a second four-year term insist that job creation is still lagging and want him to take steps to reduce a budget deficit expected to top a record US$500 billion this year.

In contrast to Democratic presidential candidates who would peel back all or part of his tax cuts, Bush aides said the president will call for Congress to make his tax cuts permanent. At present, some will expire starting in 2005.

Bush will also revive his proposal for letting younger employees invest part of their Social Security retirement funds in the stock market. Democrats say that could be dangerous given the stock market bust in the last few years and the proposal is unlikely to pass in an election year.

The president will urge Congress to address the rising cost of health care and is expected to propose making health expenses tax deductible for poorer people.

Besides Iraq, Bush is also expected to tout the writing of a new Constitution in Afghanistan as evidence that his policies are working.

Bush enters his re-election drive in a strong position, with an approval rating of 56 percent.

A new poll by the Pew Research Center said he holds a 10-point lead (48 percent to 36 percent) over a generic Democratic opponent and 61 percent said they think he will win re-election.

But the poll found Bush had some convincing to do on the economy, the issue that sank his father's re-election bid in 1992. According to the poll, 79 percent of Americans place strengthening the economy as a top priority and only 27 percent say jobs are plentiful in their communities.

Bush is not expected to propose major new tax cuts, but aides are considering tax credits for businesses that hire new workers.

In a relatively modest initiative, Bush will propose new ways to help Americans save money. His proposals include lifetime savings accounts -- for any savings purpose such as a house or college tuition -- and retirement savings accounts.
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