Bush, Economic Team Gather at Texas Ranch

CRAWFORD, Texas - President Bush, upbeat about reports showing steady economic growth, is mapping out a fall agenda that includes reviving the debate over Social Security and pushing to overhaul the nation's tax code.



Bush and his economic advisers have good news to discuss Tuesday at the president's Texas ranch, including last Friday's report that the economy created 207,000 jobs in July — the best showing in three months. That followed reports that the economy expanded at a solid 3.4 percent rate in the April-June quarter.

Public opinion regarding Bush's handling of the economy is not as positive. An Associated Press-Ipsos poll conducted earlier this month showed his economic approval rating at 41 percent — his lowest rating yet on that poll.

Monday in New Mexico, where he signed energy legislation into law, Bush noted upticks in economic markers and said the tax cuts he orchestrated had helped turn the economy around.

"More Americans are working today than ever before in our nation's history," the president said. "Workers are ... taking home more of what they earn. Inflation is low. Mortgage rates are low. Home ownership in America is at an all-time high. In other words, this economy is moving."

There is concern, though, that the economic growth could be derailed by rising energy prices. Crude oil prices jumped to a new high Monday, near $64 a barrel, reflecting the market's persistent uneasiness about high demand, tight supplies and threats to production around the world.

Responding to solid economic growth, the Federal Reserve is widely expected to raise interest rates another quarter-point Tuesday. It would be the 10th hike since June 2004.

Treasury Secretary John Snow, who will be at the meeting in Crawford, said Monday that Social Security will be a key topic. Bush administration officials will restart discussion over changing Social Security when Congress returns in September, he said.

Bush's Social Security proposal is stalled in Congress. It faces widespread opposition from Democrats who object to Bush's plan to divert a portion of Social Security tax revenues to set up private investment accounts for workers under the age of 55.

While congressional Republicans have expressed doubts about getting Social Security legislation approved, Snow said: "I remain optimistic that we will get something done there. ... I think in the fall you will see us heavily engaged on the Social Security issue."

Snow said the administration also will be pushing forward to overhaul the U.S. tax code after a presidential panel issues recommendations in late September.

The President's Advisory Panel on Federal Tax Reform said last month that that the alternative minimum tax, designed to hit affluent tax dodgers but now hovering over the middle class, should be abolished. The consensus to repeal the tax, however, means the panel must replace the $1.2 trillion that the Treasury Department expected to collect through that tax over the coming decade.

Among others attending Tuesday's meeting: Labor Secretary Elaine Chao, Agriculture Secretary Mike Johanns, Commerce Secretary Carlos Gutierrez, Office of Management and Budget Director Joshua Bolten, Council of Economic Advisers Chairman Ben Bernanke and White House chief of staff Andy Card.