WASHINGTON - Listen to the presidential candidates talk about the nation's economic outlook, and you will hear two stunningly different versions of reality.
President Bush sees an economy - hobbled by the Sept. 11 terrorist attacks, the dot-com bust and corporate scandals - making a heroic comeback and adding jobs, thanks to three major tax cuts he has signed into law since taking office.
His rival John Kerry sees an economy in which low-paying jobs have replaced better ones lost during Bush's term, and workers struggle increasingly to make ends meet while the wealthy and businesses reap a windfall from tax breaks.
The contrasting views lead Bush and Kerry to two different prescriptions for job creation and economic growth - a top concern of voters this election year, especially among undecided voters who traditionally base their choice in large part on "pocketbook" issues.
Bush promises to add to the $2.6 billion in tax cuts he has signed into law during his term.
Democrat Kerry is pledging to roll back large portions of Bush's signature tax reductions - the parts that go to the wealthiest people - and steer the money to middle-class taxpayers, job-creation incentives and spending on health care and education.
Each candidate's tax plan stands as the centerpiece of his domestic agenda - the critical element that sets priorities and defines how much money is available for everything else. And Bush and Kerry both argue their economic proposals will create jobs in an economy whose anemic employment growth has become a central issue this election season.
Bush argues that keeping tax rates low will spur individual spending and investment, which he says will prompt businesses to hire more workers and produce more goods. The president wants to cut down on government regulations that he says hobble businesses' ability to compete and do away with "junk lawsuits" that drive up their costs. Kerry, on the other hand, wants to target tax cuts where he says they will have the greatest effect - for middle-class people and companies that are hiring workers - but raise taxes on wealthy people and businesses. He would use the money left over to make health insurance available to more people and improve education, Kerry says.
Supply-side approach
Bush credits his tax cuts with rescuing the nation from the jaws of a recession in the difficult months after Sept. 11. In the classic supply-side vein, Bush says that tax cuts for everyone boost the entire economy.
