Bush expected to defend Iraq policy in address

Delivering his first State of the Union address to a Democratic-controlled Congress, US President George Bush hopes to balance a rebuke of his Iraq policy already promised by lawmakers with a high-profile invitation to cooperate on vexing domestic problems.

In tonight’s speech before a joint session of Congress, Bush plans to dangle ideas – some new, some recycled – on reducing America’s oil dependence and making health care more available, among others.

Aware that 2008 presidential contenders and new Democratic leaders present fierce competition for headlines, the president has a much-abbreviated topic list in an attempt to capture the public’s attention.

Bush is proposing to change how the tax code treats health insurance, by counting employer contributions toward health insurance as taxable income while establishing a standard deduction for anyone with insurance.

The White House says it would make coverage more affordable for the uninsured. “You can assume a lot of people are going to do the old ’it’s dead on arrival,”’

White House press secretary Tony Snow said on CBS television’s The Early Show. “It’s not,” he said. “This is a proposal that’s going to make health care cheaper for 100 million Americans or more.”