© 2004 WorldNetDaily.com

WASHINGTON – President Bush told the nation tonight the U.S. war on terror is "changing the world for the better" while the U.S. economy is improving due to his tax cuts.

"We have faced serious challenges together and now we face a choice," he said in his annual State of the Union Address. "We can go forward with confidence and resolve or we can turn back to the dangerous illusion that terrorists are not plotting and outlaw regimes are no threat to us. We can press on with economic growth, and reforms in education and Medicare or we can turn back to the old policies and old divisions."

Bush defended the war in Iraq by pointing out the results: "Had we failed to act, Security Council resolutions on Iraq would have been revealed as empty threats, weakening the United Nations and encouraging defiance by dictators around the world. Iraq's torture chambers would still be filled with victims terrified and innocent. The killing fields of Iraq where hundreds of thousands of men, women, and children vanished into the sands would still be known only to the killers. For all who love freedom and peace, the world without Saddam Hussein's regime is a better and safer place."

"America will never seek a permission slip to defend the security of our people" he said.

He promised the country, under his leadership, would continue to "lead the cause of freedom."

On the domestic economic front, Bush pointed out tax cuts have stimulated growth.

"You have doubled the child tax credit from $500 to $1,000, reduced the marriage penalty, begun to phase out the death tax, reduced taxes on capital gains and stock dividends, cut taxes on small businesses, and you have lowered taxes for every American who pays income taxes," he said. "Americans took those dollars and put them to work, driving this economy forward. The pace of economic growth in the third quarter of 2003 was the fastest in nearly 20 years. New home construction: the highest in almost 20 years. Home ownership rates: the highest ever. Manufacturing activity is increasing. Inflation is low. Interest rates are low. Exports are growing. Productivity is high. And jobs are on the rise."

Bush added, "These numbers confirm that the American people are using their money far better than government would have and you were right to return it."

He challenged the Congress to make the tax cuts permanent.

"Congress has some unfinished business on the issue of taxes," the president said. "The tax reductions you passed are set to expire. Unless you act, the unfair tax on marriage will go back up. Unless you act, millions of families will be charged 300 dollars more in federal taxes for every child. Unless you act, small businesses will pay higher taxes. Unless you act, the death tax will eventually come back to life. Unless you act, Americans face a tax increase. What the Congress has given, the Congress should not take away: For the sake of job growth, the tax cuts you passed should be permanent."

Bush defended his guest workers plan – one attacked by critics as a thinly disguised amnesty program for illegal aliens.

"Tonight I also ask you to reform our immigration laws, so they reflect our values and benefit our economy," he said. "I propose a new temporary worker program to match willing foreign workers with willing employers, when no Americans can be found to fill the job. This reform will be good for our economy because employers will find needed workers in an honest and orderly system. A temporary worker program will help protect our homeland allowing border patrol and law enforcement to focus on true threats to our national security. I oppose amnesty, because it would encourage further illegal immigration, and unfairly reward those who break our laws. My temporary worker program will preserve the citizenship path for those who respect the law, while bringing millions of hardworking men and women out from the shadows of American life."

Bush hinted he may support a constitutional provision to protect marriage if activist judges continue to challenge the institution.

"I believe we should respect individuals as we take a principled stand for one of the most fundamental, enduring institutions of our civilization," he said. "Congress has already taken a stand on this issue by passing the Defense of Marriage Act, signed in 1996 by President Clinton. That statute protects marriage under federal law as the union of a man and a woman, and declares that one state may not redefine marriage for other states. Activist judges, however, have begun redefining marriage by court order, without regard for the will of the people and their elected representatives. On an issue of such great consequence, the people's voice must be heard. If judges insist on forcing their arbitrary will upon the people, the only alternative left to the people would be the constitutional process. Our nation must defend the sanctity of marriage. The outcome of this debate is important, and so is the way we conduct it. The same moral tradition that defines marriage also teaches that each individual has dignity and value in God's sight."