Posted on Tue, Nov. 12, 2002 story:PUB_DESC

CHARLES HURT Observer Washington Bureau

WASHINGTON - Hitting on themes favored by Republicans, U.S. Sen. John Edwards, D-N.C., plans to deliver a speech on the economy today at a Washington event attended by some of the country's leading corporate officers.

Edwards, who is considering challenging President Bush in 2004, will call for making most of Bush's tax cuts permanent, increasing the estate tax exemption to $7 million per family and trimming the federal government by 10 percent, according to portions of the speech released by his office Monday.

"Both parties in Washington need to stop spending money we don't have and make real commitment to fiscal discipline," according to the speech.

Politicians must "get serious about controlling spending," he plans to say. "That means spending on pet projects and pet tax cuts."

The "pet tax cut" refers to the top rung of President Bush's tax cuts. Edwards will argue -- as he has in the past -- that the tax cuts for families earning $200,000 or more per year should not go into effect.

The Fortune Global Forum invited Edwards a spokesman for the moderate Democrats in the Senate. Forum officials say the speech will address such questions as what lessons should be learned from the Republican victories in last week's elections and what legislation will Democrats offer in opposition.

"It sounds like Edwards has gotten the message last Tuesday that the country is not ready for a liberal Democratic president," said Larry Sabato, a professor of politics at the University of Virginia. "His best chance is to present himself as Bush Light."

Furthermore, he said, Edwards is playing to his strengths as a Southerner. As the South moves further into the Republican column, Democrats are realizing they must capture at least one or two Southern states if they hope to win a national election.

"He's a Southerner who can carry a couple of Southern states," Sabato said.

The event will be attended by leaders of large corporations, including Frederick Smith of FedEx Corp. and Anne Mulcahy of Xerox Corp.

-- Anonymous, November 12, 2002