CNN Today

What Does the Public Think of Bush Tax Cut Plan?

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

NATALIE ALLEN, CNN ANCHOR: President Bush was hoping his speech would boost public support for his policies. And it appears that has happened; 399 people who watched the speech participated in a CNN/"USA Today"/Gallup poll. And, not surprisingly, almost half of them were supporters of Mr. Bush's Republican Party.

Before the speech, 73 percent of the viewers in our sample said Mr. Bush is leading the country in the right direction. After the speech, that number grew to 84 percent; 68 percent favored Mr. Bush's tax cut proposals before the speech. Afterwards, the approval rose to 79 percent.

CNN's Chicago bureau chief Jeff Flock has been checking out reaction in his neck of the woods, like he likes to do. Right now, he's out shopping to see what folks think and how much money they're spending out there -- hi there, Jeff.

JEFF FLOCK, CNN CORRESPONDENT: Hi, Natalie, some big-ticket items on sale here at Abt Electronics. We're in the Chicago suburbs. This is Morton Grove, Illinois. And perhaps you can see some folks spending some big-ticket dollars, still feeling pretty good about the economy. And the question on our minds today -- and some others -- is this tax cut.

Too big a tax cut? We've heard both. Give me your sense.

UNIDENTIFIED FEMALE: No, I think the tax cut is fine.

FLOCK: Some have been concerned that if it gets too big and is not targeted at middle-class folks, that perhaps they won't benefit as much as folks who make more money will.

UNIDENTIFIED FEMALE: Well, I think everyone will benefit. And I think that the wealthy are the ones that pay the most tax.

FLOCK: And your daughter has a similar view -- or yes?

UNIDENTIFIED FEMALE: No, I have a very similar view. I'm a single mom with three young children -- and work part-time. And I could use an additional help by this tax cut.

FLOCK: Good deal. Appreciate it. Thanks much. We'll let you go back to shopping.

UNIDENTIFIED FEMALE: Thank you.

FLOCK: Another gentleman over here who said also that he would be happy to get a tax cut.

UNIDENTIFIED MALE: We sure would be happy to get a tax cut, because everybody could use a few extra dollars. And, as far as I know, President Bush proposed for us a huge tax cut.

FLOCK: And you support that?

UNIDENTIFIED MALE: I most certainly support it. And I also support, you know, if he takes the marriage tax off on us.

(LAUGHTER)

FLOCK: OK, you support that, too.

UNIDENTIFIED MALE: Yes.

FLOCK: Good deal sir. Thanks so much. Appreciate it.

We want to get one other gentlemen here who is something of an expert. Bob Walberg is an analyst who gives us a good sense of his opinion on a whole range of things at various times on CNN.

You think that there is some danger of squandering the surplus, though, if this tax cut is as big as it's proposed?

BOB WALBERG, TECH STOCK ANALYST, BRIEFING.COM: Yes, it's a combination of the tax cut plus deficit reduction, or debt reduction. If we get the combination Bush talked about last night, the potential is you'll squander our surplus very quickly.

And that is, right now you are seeing people losing jobs -- in addition to that, tax losses as opposed to the tax gains we've witnessed over the last few years. So tax receipts next year should be considerably lower, we think, than expected. If you add into that a huge tax cut, such as Bush is proposing now, the threat is that the surplus will be squandered quickly and we won't have the resources to fund the type of debt reduction that we think is more important right now.

FLOCK: Good deal. Appreciate the expert view, too.

WALBERG: Thank you.

FLOCK: Bob, thank you. Thanks to all of our guests out here at Abt Electronics.

As you can see, they feel pretty good about the economy: things still humming along pretty good out here as we consider the notion of perhaps even more dollars in their pockets.

I'm Jeff Flock, CNN, reporting live from Morton Grove, Illinois.

ALLEN: All right, Jeff, happy appliance-shopping to the folks there.

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