As Bush prepares for his State of the Union address on Tuesday which may give his “a second chance to defend his new Iraq strategy to a nation soured on the war and a Congress poised to vote against the plan,” we can all dream about what we’d like to hear him say…

We should be so lucky…

Deb Riechmann of AP News reports:

It will be the president’s last major opportunity to shape America’s legislative agenda before the fast-moving 2008 presidential campaign begins to drown out his message.

Bush is expected to strike a conciliatory tone on some domestic issues where he believes he can work with the first Democratic Congress in 12 years. On Iraq, he is expected to stand firm.

The nationally televised speech typically offers great political theater. This year, however, it comes just 13 days after the president’s prime-time announcement of his decision to send 21,500 more U.S. troops to Iraq

White House officials say that “the State of the Union will not be a repeat of the Iraq speech on Jan. 10.” Smart move since it got no traction. Instead they say that “Bush will speak broadly about the pressing challenges facing the United States at home and abroad.” Issues he has shown over the years to have little understanding of. We all get by now that he’s clueless, but they like to try anyway. Expect “terror” to be on the menu, linked to 9/11 once again, of course…

“President Bush will discuss his determination to defeat the terrorists who are part of a broader extremist movement that is now doing everything it can to defeat us in Iraq,” White House deputy press secretary Dana Perino said.

“If the extremists prevail in Iraq, the American people will be less safe and our enemies will be emboldened and more lethal,” Perino said.

Bush probably will try to link the war to the threat to America since the Sept. 11 attacks, said Bruce Riedel, a former official at the National Security Council and analyst at the liberal Brookings Institution.

“Who can be against terrorism?” Riedel asked. “Fear is a commodity that the administration has sold before, and right now they’re not having much success with the public or the Congress with the arguments they’ve trotted out on the (troop) surge.”

The costs of the war and the deficit are expected to preclude Bush from announcing expensive new programs.

On the domestic side, the president will propose a tax deduction of $7,500 for individuals and $15,000 for families regardless of whether they buy their own health insurance or receive medical coverage at work.

If passed by Congress, the proposal would be the first time that workers could get a tax break if they bought their own insurance. But it also would be the first time that some employer-provided health care benefits could be taxed. The first $15,000 in health benefits for a family would continue to be tax exempt for the employee, but any amount in excess of $15,000 would be subject to tax.

Health care benefits provided by companies are currently exempt from personal income and payroll taxes, no matter the amount.

He also plans to highlight immigration and urge Congress to renew the No Child Left Behind education law, preserve tax cuts, balance the budget within five years and work to make the costs of the war more transparent in the federal budget.

As in his previous State of the Union addresses, Bush probably will lament the U.S. reliance on foreign sources of energy and express support for alternative fuels. Auto industry officials expect the president to ask Congress once more for the power to change fuel economy standards for passenger cars.

The White House said Bush also will lay out his policy on global warming, but will not propose a mandate to cut greenhouse gases.

Bush has begun “rehearsing drafts of the speech” over the weekend at the Camp David.

UPDATE: The N.Y. Times reports on Bush’s healthcare plan concept. Wow, it’s a doozy!

The basic concept is that employer-provided health insurance, now treated as a fringe benefit exempt from taxation, would no longer be entirely tax-free. Workers could be taxed if their coverage exceeded limits set by the government. But the government would also offer a new tax deduction for people buying health insurance on their own.

That’s quite a slap in the face for folks who can barely afford healthcare in the first place. Just another screw the little people moment, brought to you by BushCo.

UPDATE 2: Ted Kennedy weighs in on Bush’s health care plan:

“I’m pleased the President is finally talking about the growing crisis in health care, however I am concerned that taxing health benefits may undermine the good coverage that many Americans already have, while inadequate credits will do little to make health care more affordable for those who are struggling to pay their premiums now. Americans need real solutions and effective action, so that quality affordable health care can be a reality for all, just as it is for the President and members of Congress. The bold health plans in Massachusetts, California, and other states have shown that when all sides work together, there is no limit to what we can accomplish.”

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