President Bush today pushed back against Democratic objections to three pending free trade agreements, arguing that the deals would create jobs and raise wages for American workers.

"Free trade means jobs for Americans. Free trade means good paying jobs for Americans. And so Congress needs to pass these agreements for the sake of economic vitality," Mr. Bush said after touring a helicopter-manufacturing company in Torrance, Calif., with Gov. Arnold Schwarzenegger.

Mr. Bush's remarks came just hours after the chairman of the Senate Finance Committee said that he would oppose any of the pending FTAs until "robust" reforms are passed to help U.S. workers who lose their jobs as a result of globalization.

Sen. Max Baucus, Montana Democrat, told a lunchtime audience at the Peterson Institute for International Economics that Trade Adjustment Assistance (TAA) must be "our nation's trade policy priority."

"Until we accomplish it, other issues on today's trade agenda must take the back seat," he said.

Mr. Bush did not indicate whether he was responding to Mr. Baucus' comments, but his remarks were some of the most extensive he has given on the matter of free trade.

"You got people in this country saying, 'Oh, trade doesn't matter.' I'm telling you it matters: It matters to our economy," Mr. Bush said.

"As a matter of fact, it is estimated that our growth last year, a third of that growth was caused by exports. When people are selling something overseas, it means somebody is working. And there's a lot of customers overseas," he said.

Mr. Bush, while expressing gratitude to Congress for passing an FTA with Peru in the fall, has made forceful calls for the Democrat-controlled body to approve pending FTAs with Colombia, Panama and South Korea.

You can read more about the reforms Mr. Baucus wants passed in an earlier post.

Mr. Bush cited the Robinson Helicopter Co. to illustrate his point.

"People are working, and 70 percent of what you make gets sold overseas," Mr. Bush said.

But the president said that currently, there is a 15 percent tax on items sold into Panama.

"A free trade agreement will reduce that tax, which means it's more likely you're going to sell a helicopter into Panama," Mr. Bush said. "And when you're more likely to sell a helicopter to Panama, it means you're more likely to keep work, that's what that means."

Mr. Bush did touch on the issue of Trade Adjustment Assistance, which helps workers who lose their jobs because of FTAs, but did not make any specific commitments on reforms or changes.

Mr. Bush said TAA is a "vital" program and outlined two possible approaches to the problem of workers losing jobs.

"One response is, 'OK, let's just don't trade at all,' which would be bad in my judgment," Mr. Bush said. "The other response is, 'Let's have job training to help somebody get the skills necessary to fill the jobs of the 21st century.' "

— Jon Ward, White House correspondent, The Washington Times

These numbers didn't get in to my story today on President Bush's faith-based initiative, but I thought they were important.

Mr. Bush, during a visit to a prisoner re-entry program yesterday, said that his faith-based program has made it easier for religiously based groups "to compete for billions of dollars in federal grants."

The White House provided numbers that said funding for faith-based programs slowly has increased from 2003, when those groups received $1.2 billion in federal funds, to 2006, when faith-based programs received $2.2 billion.

Funding for secular nonprofits is much higher but fell from $12.8 billion to $12.4 billion from 2005 to 2006, according to the White House, which only began tracking federal funding for secular nonprofits in 2005.

— Jon Ward, White House correspondent, The Washington Times

The chairman of the Senate Finance Committee today said that he will oppose any new free trade agreements until "robust" reforms are passed to take care of U.S. workers who lose their jobs as a result of globalization.

Sen. Max Baucus, Montana Democrat, told a lunchtime audience at the Peterson Institute for International Economics that Trade Adjustment Assistance (TAA) must be "our nation's trade policy priority."

"Until we accomplish it, other issues on today's trade agenda must take the back seat," he said.

"Without TAA it's impossible to get these free trade agreements passed," Mr. Baucus said. "Frankly, I'm not going to bring them up until I see very significant progress on trade adjustment assistance."

President Bush, while expressing gratitude to Congress for passing an FTA with Peru in the fall, has made forceful calls for the Democratic-controlled body to approve pending FTA's with Columbia, Panama and South Korea.

In his final State of the Union address Monday night, Mr. Bush said that if Congress fails to approve an FTA with Columbia, they will "embolden the purveyors of false populism in our hemisphere," referring to Venezuelan President Hugo Chavez.

"We must come together, pass this agreement, and show our neighbors in the region that democracy leads to a better life," Mr. Bush said.

But Mr. Baucus today was unmoved.

"Trade policy is not just about economics," he said. "It is as much about the workers that drive our economy."

Mr. Bush has been the first Republican president to support TAA reform, drawing praise from Democrats. But it is not likely he will support all the reforms listed by Mr. Baucus.

Mr. Baucus listed four key reforms that should take place.

The Democratic senator wants to double the amount of federal funding for training displaced workers for new jobs from $220 million per year to $440 million a year. He also wants TAA to cover service workers and workers whose companies have moved their operations to countries that are not free trade partners.

And Mr. Baucus wants to expand the TAA health care tax credit from 65 percent to 85 percent of a healthcare premium.

Mr. Baucus said he is "open" to the idea of passing TAA reform in conjunction with approval of FTA's, but also said he wants more than "vague false promises."

"I'm also not a sucker," he said.

— Jon Ward, White House correspondent, The Washington Times

We were here for a president's speech, but much of our attention was on the two Democrats dueling for the right to give this speech next year, and on the senior statesman who gave one of them a huge boost today.

As soon as Sen. Barack Obama walked down the center aisle of the packed House chamber at 8:38 p.m., all the attention in the room centered in on the Democrat from Illinois.

Just behind Mr. Obama was Sen. Edward M. Kennedy, civil rights pioneer, lion of the Senate, senior member of the grandest Democratic dynasty, who earlier today endorsed Mr. Obama for president despite entreaties from President Bill Clinton not to do so.

Mr. Obama worked both sides of the aisle, and got so much attention -- from both sides -- that he caused a backup behind him.

As he neared the front of the chamber, Mr. Obama leaned in and whispered in the ear of Rep. Jesse Jackson Jr. Mr. Clinton dismissively compared Mr. Obama to Jesse Jackson after the Illinois senator won the South Carolina primary, a state won by the elder Jackson in presidential races in 1984 and 1988.

The younger Mr. Jackson gave Mr. Obama a hearty handshake, a few strong words, and Mr. Obama moved on to shake the hands of the Joint Chiefs of Staff others.

Then Sen. Hillary Clinton, New York Democrat and Mr. Obama's rival, entered the chamber, hard to miss in a bright red suit.

Mrs. Clinton also spoke to Mr. Jackson on her way down the middle row, but Mr. Jackson's demeanor was one of someone hearing assurances, not the confidential, almost conspiratorial pose he struck with Mr. Obama.

Mrs. Clinton also got a lot of hugs and reassuring nods and looks from other female lawmakers, not the kind of treatment usually reserved for a front runner.

I did not personally see this, but photographers said that at one point before Mr. Bush entered the chamber, Mrs. Clinton leaned across an aisle to shake Mr. Kennedy's hand, but that Mr. Obama turned his back at the same time she was doing this.

I did see Mr. Obama take the unusual step of walking over to the president's cabinet just before Mr. Bush's entrance, to shake hands with Secretary of State Condoleezza Rice, and to whisper something in the ear of Treasury Secretary Henry Paulson.

Mr. Obama then moved over to shake hands with the four U.S. Supreme Court Justices who attended: Chief Justice John Roberts, and Justices Anthony Kennedy, Stephen Breyer and Samuel Alito.

When Mr. Bush entered the House chamber at 9:05, Mrs. Clinton stopped clapping after a few moments. Mr. Obama, however, clapped for almost the entire four minutes that Mr. Bush took to walk down the aisle.

One of the few policy lines on which the two senators differed came when Mr. Bush said that Al Qaeda is "on the run" in Iraq. Mrs. Clinton stood and clapped, while Mr. Obama did not.

On his way out of the chamber after his speech, Mr. Bush shook Mr. Obama's hand and then Mr. Kennedy's, and made a few quick remarks to both, drawing a smile from Mr. Obama.

And now for some other details of interest.

White House advisors Kevin Sullivan and Barry Jackson, and White House spokesman Scott Stanzel were seen standing against the wall to the president's left at the back of the chamber.

Ed Gillespie, the president's counselor, was seated among Senate Republicans, in the same row as Sen. Arlen Specter, Pennsylvania Republican.

And National Security Advisor Stephen Hadley was seated in the gallery, but they must have run out of seats in First Lady Laura Bush's box, because Mr. Hadley was sitting on the stairs.

Mr. Bush's daughters, Jenna and Barbara, both attended and sat on either side of their mom. Jenna, who is set to be married this spring, got so excited at one point that she broke out into applause all by herself.

When her father said that "people, when given the chance, will choose a future of freedom and peace," Jenna clapped twice loud enough to be heard in the press gallery, but she was the only one in the chamber clapping. She shot a slightly embarrassed look at Lynne Cheney, the vice president's wife, who was sitting to her right and nodded but did not smile.

Sen. Olympia Snowe was not as certain about applauding. The Maine Republican was wearing some sort of cast on her right hand (Mr. Bush asked her, "What happened to you?" on his way down the aisle), and when Mr. Bush mentioned judicial nominees, Mrs. Snowe rose uncertainly and then looked a few times as if she was about to tap her right hand softly with her good hand, but never actually got around to it.

The other notable moments of interest included Democrats hissing when Mr. Bush said telecommunications companies should receive immunity from prosecution for giving information to the government, and audibly protesting when Mr. Bush said the No Child Left Behind law has reaped results that "no one can deny."

Overall, the mood on the Republican side was pretty loud and supportive of the president, but there were plenty of looks that said the GOP knows their chances of being in power next year are slim.

The Democrats, on the other hand, mocked Republican support for spending discipline and appeared, at one point, to be cheering the fact that tonight was Mr. Bush's last State of the Union address.

Normally when walking through Statuary Hall in the U.S. Capitol, you see tour groups standing on a special tile on one side of the room whispering to a spot on the other side of the room.

There is a special acoustical trick that allows a whisperer to be heard loud and clear.

But there won't be any whispering in the former House chamber tonight. Instead, there will only be the shouting of TV correspondents trying to be heard above the din of all the other outlets around them.

There are close to 50 news outlets set up with TV cameras and bright lights in front of the many statues of former state leaders.

After the president's State of the Union speech, lawmakers flock here to talk to reporters.

Here's some pictures that don't really do it much justice, but I tried.

President Bush's seventh State of the Union speech tonight will be the first time that none of the three men who wrote most of Mr. Bush's speeches for much of his presidency — former chief speechwriter Michael Gerson and his two deputies, Matthew Scully and John McConnell — will have played a major role in crafting the annual address.

Mr. Gerson left the White House in the summer of 2006. But last year, under the direction of Mr. Gerson's replacement, William McGurn, Mr. McConnell and Mr. Scully both worked on the speech.

Mr. McConnell still works at the White House, as Vice President Dick Cheney's head speech writer, and Mr. Scully left in 2004 but was pulled back in on an interim basis last year.

This year, however, sources say that Mr. McGurn has relied chiefly on his two favorite deputies, Marc Thiessen and Christopher Michel.

Mr. McGurn, who joined the White House in 2005, is resigning after tonight's speech and will be replaced by Mr. Thiessen.

CBS News' Mark Knoller has a good inside look today at how the new trio of speechwriters came up with this year's address.

Also, a former Bush speechwriter told me last week that the president has said in the past that he enjoys giving the State of the Union speech almost more than any other annual event, because of the closeness of the audience in the House chamber, and the acoustics.

"I heard him say it's his best venue," the former scribe said. "You don't really appreciate on TV how close everybody is. It feels like a fairly small group, and he's very good at it."

UPDATE - 1:30 p.m. - It's important to note that Mr. Bush's 2001 speech to a joint session of Congress was given in February, not January, and was not technically a State of the Union speech.

The speech is referred to by the administration as a budget speech.

A former Bush speechwriter described it as an address that "had all the trappings of a State of the Union, but wasn't."

And also, here is a link to the transcript of Mr. Bush's interview with USA Today reporters Susan Page and Richard Wolf yesterday in the Oval, where the president talked about what he'll say Monday.

______________

In anticipation of President Bush's final State of the Union address Monday, I've reviewed each of his seven previous speeches.

I've written a summary below of broad themes and trends leading up to the current speech, but first, here are very short summaries of all of Mr. Bush's previous SOTU speeches.

2001 - The Case for Tax Cuts - The president outlined his first budget and the need for tax cuts because of recession, laid groundwork for attempts to reform social security, education and other issues, and did mention the threat of "terrorists...with bombs."

2002 - Responding to 9/11 - Mr. Bush said the "nation is at war" and outlined actions in Afghanistan as well as further possible domestic targets of terror, called for an economic stimulus packaged, named the "axis of evil," and described needs for homeland security and for "a new culture of responsibility."

2003 - The Case for Invading Iraq - The president made his first mention of "energy independence" in a SOTU, announced Africa HIV/AIDS initiative, but spent most of the speech making the case that allowing Saddam Hussein to stay in power could "bring a day of horror like none we have ever known."

2004 - Defending the Invasion - Mr. Bush justified the invasion as the removal of a brutal tyrant and a bolstering of diplomacy ("words must be credible"), pointed to Libya's disarmarment, and sought to persuade that the U.S. was still under threat of attack and still "at war," also called for a temporary worker program, social security personal retirement accounts, and bashed professional athletes for using steroids.

2005 - The Freedom Agenda - Feeling his oats after reelection, Mr. Bush crowed about the growing economy, repeated calls for reform of social security and immigration, and said he supported a constitutional amendment to define marriage as between one man and one woman, then launched into freedom agenda speech: called for $350 million for Palestinian government, called on Saudi Arabia and Egypt to reform, and threatened Syria and Iran, while praising Iraq for holding elections and saying that U.S. forces in Iraq were transitioning into a "supporting role."

2006 - Anti-Isolationism - After another year in Iraq, Mr. Bush said the U.S. was in "a long war" and railed against isolationism in foreign policy and protectionism in trade, saying "we cannot find security by abandoning our commitments and retreating within our borders," he also called on a newly elected Hamas to recognize Israel and renounce terrorism, admitted the existence of the warrantless domestic spying program and defended its legality and usefulness, said America is "addicted to oil" and called for more alternative sources of fuel and energy, and made brief mention of aid to Katrina victims.

2007 - Stay with Me - Mr. Bush recognized the Democratic takeover of Congress, criticized the use of earmarks in Congress, talked healthcare reform, teed up his immigration reform plan, called for a reduction of gasoline usage by 20 percent over the next 10 years and for increased domestic oil production, asked for $1.2 billion for malaria aid in Africa, and addressed the slips backward in Lebanon, Afghanistan and Iraq, saying that "every one of us wishes this war were over and won," but that "nothing is more important at this point in our history than for America to succeed in the Middle East" and asked Congress to bear with his recently announced surge.

That leads us to this year's speech. Mr. Bush, in his final State of the Union address Monday, will inevitably run up against questions of his legacy, whether he references it or not, but he will also circle back to themes he has not made central in his annual speech since the beginning of his first term.

For the first time since his inaugural SOTU in 2001, the central focus of Mr. Bush's speech will probably not be terrorism or Iraq. Or at least, those topics will have to share the spotlight with domestic concerns over the economy.

One year after Mr. Bush said the economy was "on the move," the country is facing a recession, and the Bush administration has scrambled to reach an economic stimulus deal with Congress.

In 2001, the central plank of Mr. Bush's first SOTU was an argument for his tax cuts, which were passed that year.

But in 2002, the president understandably focused on responding to the Sept. 11, 2001 attacks, in 2003 he made the case for invading Iraq, and every speech since then has in some way revolved around the need to stay the course in Iraq and the broader Middle East.

Violence in Iraq has decreased over the last year, in large part due to the president's surge of 30,000 troops. And while Mr. Bush may strut a tiny bit over that fact, he'll still acknowledge that the situation there is "fragile."

White House press secretary Dana Perino yesterday said that the speech will be "forward-looking, not retrospective in any way," and said Mr. Bush is spending "an hour here or there" this week running through the speech.

Mrs. Perino also pointed out that presidents do have the ability to call Congress together for an additional SOTU at the end of their presidency.

Presidents Johnson and Ford are the only two U.S. presidents to do this.

Mrs. Perino said that next week's speech "will likely be the last" for Mr. Bush.

That's not closing the door.

— Jon Ward, White House correspondent, The Washington Times

The White House this morning announced that President Bush and First Lady Laura Bush will travel to five African countries from Feb. 15th to Feb. 21st.

The countries are, in order: Benin, Tanzania, Rwanda, Ghana, and Liberia.

"This trip will be an opportunity for the President to review firsthand the significant progress since his last visit in 2003 in efforts to increase economic development and fight HIV/AIDS, malaria, and other treatable diseases, as a result of the United States robust programs in these areas," said White House press secretary Dana Perino, in a statement.

Mr. Bush, in Monday's State of the Union address, will renew his call from Dec. 1 for Congress to double their current aid package to Africa, from $15 billion over five years to $30 billion over the next five years.

The White House just postponed the 12:15 p.m. press briefing to give themselves time as negotiators hammer out the final details of a financial stimulus package.

House Speaker Nancy Pelosi, California Democrat, also postponed her noon presser a little while ago.

— Jon Ward, White House correspondent, The Washington Times

This is on all the wires, but I was standing there when Dana Perino told reporters outside her office, so this is the official White House line on economic stimulus as of now, in response to reports from the Hill that a deal has been reached.

"Our understanding is there is no final deal yet, but they are making progress," Mrs. Perino said.

— Jon Ward, White House correspondent, The Washington Times

The New York medical examiner's office says it will take 10 to 14 days to get the results from an autopsy performed today on 28-year-old actor Heath Ledger, who was found dead yesterday in his Manhattan apartment. Until then, we can only speculate about whether the actor's untimely passing was an accident, a suicide attempt or, as some are suggesting, a drug overdose.

This much is clear, though: Emerging details about Mr. Ledger's recent life paint the picture of a deeply troubled and increasingly isolated individual. Perhaps this deteriorating mental state was entirely biological, although past interviews and new information coming out lead us to believe that the actor's intense portrayals of late took a toll on him. It would be ludicrous to suggest that acting killed Mr. Ledger, although it seems reasonable to ask whether the pressure he felt to perform and the places he went in order to give his best contributed to his demise.

In an interview published in the New York Times in November, Mr. Ledger said he "stressed out a little too much" while playing one of six Bob Dylans in Todd Haynes' "I'm Not There." When I spoke with the director that same month, he told us that Heath "was so hard on himself."

In that same New York Times interview, Mr. Ledger spoke about his upcoming role as the Joker in the "Batman Begins" sequel, "The Dark Knight." He described his character as a "psychopathic, mass-murdering, schizophrenic clown with zero empathy," then mentioned how he'd had trouble sleeping of late. His mind wouldn't stop racing, even when he took an Ambien, he said.

Not long before this, people had begun to notice a change in Mr. Ledger, observing that he'd grown reclusive, erratic and unkempt following his split with actress Michelle Williams (the mother of his 2-year-old daughter, Matilda) in September. It's entirely possible that Mr. Ledger's sleepless nights were related to the loss of this relationship, which, being a star, he did not get to mourn privately. Yet, his comments do leave one to wonder about the impact that going so deeply into such dark places on screen might have had.

One particularly dark place Mr. Ledger went in recent years was in "Candy," a 2006 film that had him playing a heroin addict. I spoke with the actor in November of that year, and in between yawns (he said he was tired), he told us how he and co-star Abbie Cornish had gone to a rehab clinic to prepare for the role, learning the proper techniques for shooting up and the way the drug might effect the body at various times. Those of who've seen the film know what an emotional ride "Candy" must have been for the star. On screen, Mr. Ledger realistically took us through every injection, every ache, every impulse of a drug addict.

When I asked if he drew from his own experiences, the actor said, "Not really. I can certainly understand addiction. I've been addicted to tobacco; I know what it is to crave something, to be thirsty. I've certainly smoked a joint, so I know what it's like to be high."

He made no mention of ever having shot up, but several reports now claim that prior to Mr. Ledger's death, he was battling a heroin addiction and other substance abuse problems. A source told London's Daily Mail that "he had a stint in rehab last year when he was treated for heroin."

Supposing Mr. Ledger had been addicted to heroin before "Candy," it's obvious why he wouldn't divulge that information in an interview. But if we take his words at face value, one could reasonably infer that this particular film may have introduced him to a destructive and potentially deadly behavior.

Much has been made about how watching sex and violence on TV and film may encourage such behaviors, and it would stand to reason that watching scenes about drug abuse might have a similar effect. Now just think about the compounding effect that not just seeing but actually emotionally inhabiting and recreating these scenes might have. Look at the life of River Phoenix, for example, a similarly intense actor whose role as a drug-using street hustler in 1991's "My Own Private Idaho" left some people wondering if it hadn't contributed to his eventual heroin and cocaine overdose two years later.

We'll find out in the coming days just how credible the reports about Mr. Ledger's drug abuse are, and we'll also find out more about the circumstances surrounding his death. But perhaps we shouldn't wait any longer to start thinking about this: Acting is a wonderful thing that brings joy to many and a life's work to others, but role research and preparation may — when taken to a literal-minded extreme — be hazardous to young stars' health. Maybe it throws them into a mental state they find it hard to get out of. Maybe it introduces them to a damaging new behavior. And maybe we should start listening for the warning signs — for those times when actors start to reveal just how sleepless their nights are becoming.

— Jenny Mayo, arts and entertainment writer, The Washington Times

House Minority Leader John Boehner said today that he favors long-term economic stimulus ideas floated by GOP fiscal hawks yesterday, which we blogged about yesterday.

"This package contains essential components to ensure long-term U.S. economic growth, not just this quarter or this year, but for many years to come," said the Ohio Republican.

Mr. Boehner and House Speaker Nancy Pelosi, California Democrat, are the chief congressional negotiators working with Treasury Secretary Henry Paulson to reach a deal within the next few weeks.

Mr. Boehner said the RSC package "will be an impetus for a discussion in the coming weeks and months about our long-term economic future."

The legislation, when agreed upon, will start in the House and move to the Senate.

— Jon Ward, White House correspondent, The Washington Times

From a release put out this afternoon: "As President Bush prepares his final State of the Union address, House Democratic Caucus Chairman Rahm Emanuel will hold a media availability to discuss the Bush legacy."

It's scheduled for 1 p.m. in the House Radio/TV Gallery.

— Jon Ward, White House correspondent, The Washington Times

"And as you begin your march, I'm proud to be standing with you." — President Bush, to participants in today's "March for Life," by phone

UPDATE — An RSC spokesman correctly points out that House Republicans are still calling for the tax cuts to be made permanent, and have not dropped that as a priority issue.

The tax cuts have been dropped from the current negotiations over the stimulus package.

On Friday, Mr. Hensarling, in a statement on the economic stimulus package, said that "nothing would help our economy more than making permanent the tax relief that is soon to expire."

The stimulus package released by the RSC today did not include the tax cuts, but the original post should have made clear that permanent tax cuts are still a top priority for GOP fiscal hawks.

_____

The Republican Study Committee today issued their own economic stimulus package, in which they dropped demands that President Bush's tax cuts be made permanent.

Also today, House Republican leaders indicated which Democratic demands will be sticking points in negotiations.

A House Republican source said that Democratic desires to increase Medicaid funding, aid to states and infrastructure funding are all "nonstarters."

Democrats also are pushing for including non-income taxpayers in any tax rebate.

The RSC, a group of more than 100 fiscally conservative House Republicans led by Rep. Jeb Hensarling of Texas, said last week that any stimulus package needed to make the president's 2001 tax cuts permanent beyond 2010.

But in the proposal released today, the tax cut demand was dropped.

"The Democrats took it off the table," said a source inside the RSC.

The RSC is still calling for four specific business-friendly measures: full, immediate expensing of assets; a reduction in the corporate tax rate, from 35 percent to 25 percent; elimination of the capital gains tax on inflation; and reduction of the capital gains rate, from 35 percent to 15 percent.

"The best way to encourage an economic turnaround, help preserve jobs, and spur widespread economic growth is to ensure that job-creators face a lower tax and regulatory burden," said Hensarling spokesman Brad Dayspring.

The Club for Growth is calling for similar measures.

Here is a summary of the RSC's measure, which they're calling the "Economic Growth Act."

1) Full, Immediate Expensing. The bill would allow all businesses to immediately expense—or deduct on their tax returns—the costs of assets (including buildings) they purchase for their business in the year that they buy such assets (“Section 179” expensing). Under current law, businesses can only take such deductions in pieces, over several years. This provision, by accelerating the expensing, would encourage the purchase of assets with which to grow a business.

2) Significant Reduction in the Top Corporate Tax Rate. The bill would immediately cut the top corporate income tax rate from 35% to 25%, aligning it with the average rate in the European Union. This provision, by allowing businesses to keep more of the money they earn, would encourage the expansion of businesses, the hiring of more workers, and an acceleration of investment, while making American companies more competitive internationally.

3) End the Capital Gains Tax on Inflation. The bill would index for inflation the cost basis used when calculating the capital gains tax on assets acquired before the end of 2008. Under current law, the capital gains tax is based on the difference in the original purchase price of the asset and the sale price of the asset. However, some of this difference, or “gain,” can be attributed to inflation. This provision, by effectively reducing the amount of a gain that is taxable, would encourage the movement of capital in 2008 and spur voluminous economic investment.

4) Sharp Reduction in the Capital Gains Rate for Corporations. The bill would allow corporations to benefit from the 15% capital gains rate. Under current law, individuals pay a top capital gains rate of 15%, but corporations are subject to a 35% top rate. This provision, by encouraging corporations to sell unwanted assets, would unleash funds and materials with which to create jobs and grow the economy.

— Jon Ward, White House correspondent, The Washington Times

House Speaker Nancy Pelosi this morning sought to reassure the nation that the Democrat-led Congress is "working as quickly as possible" to jump-start the sputtering economy.

"Today's emergency rate cut by the Federal Reserve Board indicates a commitment across all levels of government to revitalize the economy, restore confidence in the markets, and help Americans struggling with soaring bills for gasoline, groceries, housing and home heating," the California Democat said.

"Congress is also taking action — working as quickly as possible in a bipartisan way with the Bush administration to stimulate the economy by putting money into the hands of people who will spend it," Mrs. Pelosi said. "Any stimulus package will be timely, targeted, and temporary, and we are working with great speed to get this done and get relief to Americans."

— S.A. Miller, Capitol Hill correspondent, The Washington Times

The White House this morning said that they want to reach an agreement with Congress on a financial stimulus package within a few weeks.

"We're certainly talking weeks, not months," said White House press secretary Dana Perino.

As Mrs. Perino briefed reporters at the daily, off-camera gaggle, the Dow Jones Industrial Average opened the day by falling more than 400 points, before rallying about 200 points. But Mrs. Perino was mum on the subject.

"We don't comment on daily fluctuations in the market," she said. "We are not forecasting a recession. Clearly there is a slowdown."

Mrs. Perino said that Treasury Secretary Henry M. Paulson briefed the president by phone yesterday on the global economy, where markets around the world plummeted due to fears of a U.S. recession.

Mr. Paulson is acting as the president's negotiator with Congress to hammer out a financial stimulus package to put cash in consumers' hands quickly. Such a deal could include tax rebates of up to $800 a person and $1,600 per family, according to media reports.

Mr. Bush will meet this afternoon at the White House with congressional leaders from both parties, to brief them on his recent trip to the Middle East and discuss the stimulus package.

Mrs. Perino could not say how quickly money will actually funnel to taxpayers, but White House spokesman Tony Fratto said that they "are looking at ways to best deliver relief as quickly as possible."

— Jon Ward, White House correspondent, The Washington Times

In a radio ad for Hillary Clinton, Magic Johnson is implying that Barack Obama is untested, lacking the requisite experience for the presidency. The campaign hopes the fright message — Don't roll the dice on a rookie! — from the beloved Lakers legend will stop the hemorrhaging of Clinton's support among blacks in South Carolina.

But if there is one figure in American sports who should NOT be making the argument that you can't rely on a rookie, it is Magic Johnson.

Anyone out there remember Magic's own rookie season (1979-80) in the NBA?

I do.

After being selected as an All-Star game starter, he went on to lead the Lakers to the NBA finals against Dr. J's Phildadelphia 76ers. With a 3-2 lead in the series, the Lakers' great center Kareem Abdul-Jabbar was sidelined with a sprained ankle.

Lakers coach Paul Westhead boldly decided to start Magic, a 6-9 point guard, at center for game 6. In that game — in Philly — the rookie scored 42 points, snagged 15 rebounds, dished out 7 assists and topped it all off with 3 steals.

The Lakers won the game (123-107) and the NBA championship. The rookie was named the NBA Fnals MVP. His game 6 tour de force is widely acclaimed as among the greatest individual performances in league history.

— Daniel Wattenberg, arts and entertainment editor, The Washington Times

President Bush went into a meeting this morning with former U.S. and Soviet officials this morning, including former Secretary of State Henry Kissinger and former Soviet Prime Minister Yevgeny Primakov.

The White House announced the meeting this morning, and originally said it would take place this afternoon.

White House spokesman Tony Fratto said that the stated reason for the meeting was that it is "an opportunity for the president to hear the views of these respected statesmen on a number of issues important to the United States and Russia."

But Mr. Kissinger and Mr. Primakov head up a working group on U.S.-Russian relations made up of former officials in both governments. The group was formed in April after both leaders met in Moscow with Russian President Vladimir Putin, who supported the idea.

Sarah Mendelson, a Russia expert at the Center for Strategic and International Studies, said the group is a way for Mr. Putin to maintain contact with the Bush administration while continuing to close off contact with the U.S. inside his country.

"Putin wants a funnel system where he has contact with a very few senior folks repeatedly and that's where he’s getting his idea of what policy is going to be, and then he wants to cut off contact for everybody else," Ms. Mendelson said.

It's interesting to point out that with this group, Mr. Putin is operating independently of the Bush White House. He can initiate contact, through this group, with any of the presidential candidates and pick right up with the next president where he left off with Mr. Bush.

The reason the Kremlin is cutting off contact with outsiders for normal Russian citizens, Ms. Mendelson said, is because Mr. Putin is "actively fostering anti-American sentiment and anti-British sentiment."

"It's an old tactic to divert attention away from the fact that institutions at home barely function," Ms. Mendelson said.

— Jon Ward, White House correspondent, The Washington Times

UPDATE: The White House said this morning that President Bush will "not get into details" during his statement on the economy, but will rather "give principles to guide the discussion."

"The long-term prospects for this economy are sound," said White House spokesman Tony Fratto. "[Mr. Bush] thinks Americans should have confidence for the long-term prospects."

___________

Treasury Secretary Henry Paulson and Ed Lazear, chairman of the president's council of economic advisers, will brief reporters at the White House at 12:15.

President Bush makes a statement on an economic stimulus package at 11:50 a.m.

Mr. Paulson said on "The Today Show" this morning that the economic outlook is "not an emergency," but admitted there is an "urgent need" for government action.

— Jon Ward, White House correspondent, The Washington Times

It's about time. As AP reports, "Four paparazzi have been arrested for reckless driving while chasing Britney Spears' car."

Celebrities have been complaining about aggressive photographers for years now. I, like many other critics, haven't been particularly sympathetic to the stars. But after seeing paparazzi actually stop the ambulance carrying Britney Spears to the hospital last week, I had a wake-up call. It seems Los Angeles police had one, too. As I wrote in my On the Edge piece on Friday,

after dealing with the paparazzi on a daily basis, some of these stars obviously figured out something we bystanders hadn't fully absorbed — these single-minded photographers are, quite simply, dangerous.

Hello? Car chases are dangerous. That's why police departments — especially in densely populated cities and suburbs — have strict policies for officers governing when such chases are permissible.

As superstars like George Clooney and Julia Roberts have tried to tell us recently, what's at stake here goes far beyond the privacy of a handful of pampered celebs. What's at stake is public safety: the safety of pedestrians out for a stroll in a residential zone, the safety of children being dropped off or picked up in school zones, the safety of the stars and, yes, the safety of the paparazzi themselves.

MarketWatch's Jon Friedman, writing a few days after me, made a similar point: "I'm beginning to envision a tragic conclusion to the whole Britney Spears media circus: The Hollywood paparazzi seem determined to hound her until she is dead."

— Kelly Jane Torrance, arts and entertainment writer, The Washington Times

Before leaving Egypt, I e-mailed some experts on the region to ask them how they thought President Bush's trip came off.

I was able to post a few responses before we boarded the White House press corps plane for the 13-hour flight home. We're now on the ground, and I've received a few more responses.

David Mack, of the Middle East Institute, was the second guy to actually hand out marks. I love it.

He graded the president tardy for his attendance, incomplete on containing Iran, and gave him an A for effort on the peace process "considering the steep odds against success," and a B for his democracy agenda.

"[He] should have done something like this in 2002 or at least 2003, after the road map speech, rather than assuming that all we had to do was overthrow Saddam and then everything else -- taming Iran, peace and security for Israel, security of oil and gas, democracy, etc -- would fall into place," Mr. Mack said.

Mr. Mack's take on the democracy and freedom agenda was interesting. Steven Lee Myers piece in the New York Times today addresses Mr. Bush's praise for Egyptian President Hosni Mubarak, in spite of Mr. Mubarak's long track record of crushing dissent and opposition.

But Mr. Mack doesn't necessarily see hypocrisy there.

"I see signs that the Bush is getting a more nuanced and realistic notion of what constitutes democratic progress in these countries," Mr. Mack said, adding that perhaps the president is "redefining" democracy "to come closer to our strategic needs and
the realities of the region."

Mr. Mack said the president's trip has "bolstered the moderate Arab states for now," but "how long that will last depends on his follow through, not just with security cooperation but with energetic promotion of an Israeli-Palestinian peace."

Tom Lippman, a fellow Middle East Instituter, was far less impressed.

"I guess I would say he did as well as could be expected, given that I didn't expect anything. I was surprised he didn't go to meet with some troops in Iraq; he should have. I was disappointed at his pathetic attempts to jawbone the Saudis on oil prices -- he knows, or should know, that oil supply is not the problem and that any additional Saudi production would be high-sulfur heavy crude anyway and thus would do nothing for the gasoline market," Mr. Lippman said.

"And he really ought to have said something in Egypt about [Egyptian opposition leader] Ayman Nour. Still, he didn't make things worse, and that's a blessing."

Lastly, Jim Phillips of the Heritage Foundation was impressed with the president's main speech over the weekend in Abu Dhabi (most of the press were not).

"I think the high point was his speech in the UAE on his vision of a freedom agenda for the Middle East. Many of the small gulf states have made significant progress in recent years on democratic reforms that have been overshadowed by news about the continuing conflict in Iraq, the rising power of Iran, and chronic Israeli-Palestinian tensions," Mr. Phillips said.

— Jon Ward, White House correspondent, The Washington Times

I asked some Middle East experts to grade President Bush's trip, and then I've got some pictures to close out this memorable trip.

Patrick Clawson of the Washington Institute for Near East Policy was kind enough to provide actual grades for the president's trip.

He gave Mr. Bush a B+ for the Israeli/Palestinian issue, and a B+ for his Gulf State diplomacy.

Mr. Bush showed "lots of empathy for the Palestinians, which matters for Arab and European audiences," Mr. Clawson said, despite the lack of policy change.

"He actually raised oil with the Saudis, which was good to see, though he would have done better to emphasize that Saudi interests are not well-served when oil prices are so high that America decides to spend billions on alternative energy sources and on conservation," Mr. Clawson said.

"[He] has found a way to express support for reform which does not frighten regimes or evoke cynicism from reformers. But he mostly stopped the erosion regarding Iran by showing that he still will press Iran on many fronts," Mr. Clawson said.

Jon Alterman, director of the Middle East program at the Center for Strategic and International Studies, said the "most interesting part of the trip was the down time he scheduled with regional leaders."

"Relaxing at home, he's in constant motion as he clears brush and rides mountain bikes, but in the Gulf he settled into leisurely meals and falcon hunting as he sought to build relationships with rulers. His past inclination was to refer to them as 'tyrants,' but now he referred to them as 'leaders,'" Mr. Alterman said.

Mr. Alterman's CSIS colleague, Anthony Cordesman, said that "while few believe that an Israeli-Palestinian peace is possible in 2008, the president took on the issue that does most to build Arab anger at the US, showed the US would reach out to the Palestinians, and established a legacy for continuing negotiations by the next Administration."

"He also showed how important the US feels the region is in an area where personal contact at the highest levels is absolutely critical to good relations. He did not abandon 'democratization,' but he did focus focusing on good security and economic relations and made it clear that 'democratization' did not mean 'regime change,'" Mr. Cordesman said.

Despite all the pessimism surrounding the president's trip, those are actually fairly positive assessments.

Now for some final pics.

When we arrived in Egypt this morning, there were guys standing guard out in the desert, and they stood there for several hours. All I can say to these guys is many thanks.

Here's a picture of the president and Egyptian President Hosni Mubarak striding to the mics.

And they're literally rushing us to the buses as I post this: the coast at sunset. We didn't get to spend much time down on the Red Sea, but every moment was sweet. See you at home.

— Jon Ward, White House correspondent, The Washington Times

My story on Saudi blogs, "Freedom agenda confronts Saudi reality," is up on the site this morning. I wanted to make sure there were links to the relevant blogs and a few other things.

Ahmed al-Omran, who is leading an online movement to free imprisoned blogger Ahmed al-Farhan, blogs at saudijeans.org.

Carol Fleming, a former U.S. diplomat now married to a Saudi national, blogs at delhi4cats.wordpress.com, and has a fantastic blog roll on her page of other Saudi blogs.

In addition, I found this post at Global Voices about Mr. al-Farhan very interesting. Mr. al-Farhan, the jailed Saudi blogger, appears to have said in 2005 that he hates President Bush (the grammar is a little confusing).

You can also read an interesting interview of Mr. al-Farhan by Mr. al-Omran here.

I certainly found this concept of Saudi blogs fascinating. Mrs. Fleming said she thinks blogs are "opening up new worlds and new dimensions to Saudi nationals."

"I personally believe this new openness is facilitating reforms and with Saudi nationals becoming more expressive," she said.

On another topic, I was asked to do an interview with Saudi state television last night. They originally told me it would only be a short interview of a few minutes, but they then walked me to a full blown set in our hotel, and promptly informed me that it would be only 10 to 15 minutes.

It ended up being a 30-minute spot with no commercial breaks, which meant I was stuck there. But the interview ended up being both fun and a learning experience for me.

Here's a picture of me and another guest on the show.

And I can't resist putting in this picture of the Chicago Tribune's Mark Silva, sandwiched between Saudis and pecking away on his computer at a press conference here today with the Saudi oil minister.

And here is a picture of the pretty impressive stage they set up for the press conference.

-- Jon Ward, White House correspondent, The Washington Times

I forgot to mention this: another slice of life in Saudi Arabia.

From the Agence France Presse yesterday:

Saudi Arabia beheads man for murder

RIYADH (AFP) -- A Saudi man convicted of murder was beheaded by the sword on Monday in the northern city of Hail, the interior ministry said.

Abdullah bin Mashari was executed for shooting dead Mansour al Kharir following an argument caused by "family differences", the ministry said in a statement carried by the official SPA news agency.

It was the third execution announced in Saudi Arabia this year, after a record 153 people were put to death in 2007. That figure compared with 37 beheaded in 2006, and the previous record number of 113 executions in 2000.

Rape, murder, apostasy, armed robbery and drug trafficking can all carry the death penalty in the ultra-conservative Gulf country, where executions are usually carried out in public.

-- Jon Ward, White House correspondent, The Washington Times

When liberals like Michael Moore and Al Gore make documentaries, they're on Leno, Letterman, Oprah, "60 Minutes," etc., and the premieres are red-carpet affairs at Hollywood, Sundance, Cannes, etc.

The Washington DC premiere of "Hillary: The Movie" is at a multiplex in Georgetown, and they're not even allowed to advertise:

A legal battle over advertisements for a new documentary about Sen. Hillary Rodham Clinton illustrates the folly of current campaign-finance laws, says the attorney for the producers of the film, which premieres tonight in Washington.

"Hillary: The Movie" is "a political documentary like Michael Moore or Al Gore has made," said James Bopp, who went to federal court last week to represent the movie's producers. Yet the conservative group Citizens United, which produced the Clinton film, must "go to court to get permission to advertise the film... because of McCain-Feingold," he said.

Known by the names of its chief Senate sponsors, Sen. John McCain, Arizona Republican, and Sen. Russ Feingold, Wisconsin Democrat, the 2002 law that regulates campaign advertising could require the film's producers to disclose the names of their donors and to insert a disclaimer in ads for the movie. (MORE ...)

-- Robert Stacy McCain, assistant national editor, The Washington Times

Few things warm the heart of a Redskins fan more than the sight of a Cowboys fan crying:

Hat tip: Ace of Spades.

-- Robert Stacy McCain, assistant national editor, The Washington Times

RIYADH, SAUDI ARABIA — Air Force one touched down around 4:25 p.m. local time (8:25 Eastern time), and about 10 minutes later, President Bush descended the steps to greet Saudi King Abdullah.

This might be the desert, but it was absolutely freezing cold at the airport. Several people have actually told me that they could get snow tomorrow, which would be the first time in a long time, just like Bagdhad last week.

The two leaders walked to a reviewing stand and looked over an honor guard about 200 strong, while the military band played the U.S. and then Saudi national anthems.

After greeting numerous officials and dignitaries inside the airfield terminal, Mr. Bush and his motorcade then left Riyadh-King Khaled International Airport and headed to his hotel.

Mr. Bush will go to a dinner at the king's palace at 8:15 p.m. here, which is 12:15 back home, and then meet with King Abdullah formally after dinner.

Mr. Bush and King Abdullah have a lot of time scheduled together — Mr. Bush is spending all day tomorrow here. He'll do several events during the day, ending with a tour of the king's Al Janadriyah horse ranch, and then a second dinner.

On Wednesday, Mr. Bush leaves for a short visit to Egypt, and will return to Washington that night.

-- Jon Ward, White House correspondent, The Washington Times

The White House said President Bush's speech yesterday in Abu Dhabi was the centerpiece address of his six-country, eight-day trip through the Middle East.

So, having dispatched with the news of the speech, which related mostly to Iran, I thought I'd take a look at reaction to the speech.

My own impression was that the president was not as animated as he usually is when talking about the war against terrorism and his freedom agenda. He often raises his voice a notch and gestures strongly when talking about "the ideological struggle of our time," as he puts it.

Mr. Bush spoke inside an enormous auditorium, the Palace Conference Center, at the $3 billion Emirates Palace Hotel. One thought I had was that Mr. Bush, who thrives on crowd interaction, may have felt like his voice and his presence was being swallowed up by the huge space.

Apparently, singer Justin Timberlake didn't have any problems when he performed here last month.

The consensus among my colleagues in the press corp was pretty uniform: the speech was mediocre to terrible. Some faulted the speechwriting, others the delivery, others the substance.

I am no speechwriting expert, but the speech did seem to hop and skip from topic to topic, even if everything fell under the broad umbrella of democracy and freedom in the Middle East. That made it hard to follow, and also sapped the speech of a central thrust.

Enough punditry though. My colleague John McKinnon of the Wall Street Journal labeled the speech "cautious," which is a good way to look at it. The president's immediate audience was the UAE aristocracy, and he couldn't call too plainly for government accountability in a region where strong men rule.

In addition, Mr. Bush must tread carefully when talking about Iran, which is the neighbor to the east of the Gulf States--these smaller countries cannot simply thumb their noses at Iranian President Mahmoud Ahmadinejad.

Lastly, a note about the Emirates Palace hotel. I was in the president's motorcade when he arrived at the massive structure, and as we rolled down a wide avenue toward the hotel, we could see the front end of the motorcade going up a long ramp to the hotel's top level, which was a sight to take your breath away.

Steve Pike, the US embassy spokesman, said the hotel is one kilometer end to end, and has a white sand beach imported from Algeria. I saw the beach, however, and the sand looked kind of average.

Here are some pictures of the hotel, taken from the road:

-- Jon Ward, White House correspondent, The Washington Times

The White House press corps touched down in Saudi Arabia just before 10 a.m. local, which was 2 a.m. back on the east coast.

President Bush just touched down in Dubai, in the United Arab Emirates. He will spend less than five hours there before heading to Riyadh himself--only a pool of seven reporters and six camera crew are accompanying him to Dubai.

One detail to clue you in on the environment here in Saudi Arabia -- the civilian flight crew on the United Airlines plane carrying the press corps has been told that its female members should not leave their hotel rooms for the two days they are here.

Embassy personnel, who are not allowed to drive their own vehicles in part due to security concerns, are stationed here for only a year at a time, because of the "psychological toll" of living in Saudi Arabia, said a foreign service source.

One other detail of interest: French President Nicolas Sarkozy is still here -- he leaves for Quatar in a few hours.

-- Jon Ward, White House correspondent, The Washington Times

UPDATE 2:25 p.m.:

Here's Hillary saying Obama's record on the Iraq war is "fair game":

Hat tip: Robert Greenwald.

-- RSM

UPDATE 2:05 p.m.:

At least one pro-Clinton blogger scores today's "Meet the Press" session a win for Team Hillary. Christy Hardin Smith of Firedoglake:

Whatever anyone may think of Sen. Clinton, she clearly prepared for this interview. She had a command of facts and voting records, and managed to slip in a "you can't just vote present" zinger at Sen. Obama with a smile on her face. . . . Her ability to turn Russert's policy and political strategy questions right back at him made me laugh out loud more than once. And his frustration at not making inroads with any of his carefully edited gotcha attempt clips was visible in the crestfallen and constipated look on his face throughout.

UPDATE 2 p.m.:

Still looking for video. Meanwhile, Obama's firing back:

Obama said Clinton misrepresented his record of consistent opposition to the war.
"What we saw this morning was why the American people are tired of Washington politicians and the games they play, said Obama, during a conference call, as he accepted the endorsement of Sen. Claire McCaskill, D-Missouri. "She started this campaign saying that she wanted to make history and lately she has been spending some time rewriting it."

UPDATE 1:50 p.m.:

Jeremy Dibbell at the Moderate Voice:

Hillary Clinton's "Meet the Press" appearance this morning was one of the most overt displays of the old Clintonian attack politics I've seen in this campaign. Her blatant and transparent attempts to blame Obama's campaign for"deliberately distorting" unfortunate remarks she, her husband, and others associated with her campaign have been making in recent days were, frankly, sickening and unworthy of a candidate for high national office.

UPDATE 1:40 p.m.:

As predicted, the blogosphere goes wild.

-- RSM

UPDATE 1:30 p.m.:

Still hunting the video, but here's the Associated Press account:

Democrat Hillary Rodham Clinton suggested Sunday that Barack Obama's campaign had injected racial tension into the presidential contest, saying her comments about Martin Luther King's role in the civil rights movement had been "distorted" by Obama's supporters. . . .
Both New York Sen. Clinton and her husband, the former president, have engaged in damage control this week after black leaders criticized them for comments they made shortly before the New Hampshire primary last Tuesday.
The senator was quoted as saying King's dream of racial equality was realized only when President Lyndon B. Johnson signed the Civil Rights Act of 1964, while Bill Clinton said Illinois Sen. Obama was telling a "fairly tale" about his opposition to the Iraq war.
The former president since has appeared on several black radio programs to say he was referring to Obama's record on the Iraq war, not on his effort to become the nation's first black president.

EARLIER ...

Oops, I don't have the video yet. Sorry. That was terribly unfair -- which is what Sen. Hillary Rodham Clinton's campaign will likely say about Tim Russert's brutal pummeling of their candidate on "Meet the Press," today.

I've checked Hot Air, Memeorandum and YouTube and still haven't found video, but it was a hard-hitting interview. Hotline On Call has some excerpts:

HRC ... said a remark she made about Martin Luther King Jr.'s success turning on President Johnson's signing of the Civil Rights Act is also being mischaracterized.
"I think it such an unfair and unwarranted attempt to misinterpret and mischaracterize what I said," she told Russert.
She said that, "This is an unfortunate storyline that the Obama campaign has pushed very selectively." . . .
"If you are running for president based primarily on a speech you gave in 2002, and speeches you have given since most notably at the 2004 Democratic convention, then I think it is fair to say we need to know more beyond the words," she said.

Expect updates ...

-- Robert Stacy McCain, assistant national editor, The Washington Times