Hawai'i's all-Democratic congressional delegation reacted coolly to President Bush's speech, saying he offered little new. They were particularly critical — as they have been in the past — about Bush's stay-the-course approach to Iraq.

And they said his plan to tax employer-based health insurance benefits along with a tax credit for privately purchased insurance is a dangerous step back from the goal of universal coverage.

Rep. Neil Abercrombie said Bush's proposal was "stunning in its complete blindness to the realities in the working world."

"Certainly where Hawai'i is concerned, it's totally unacceptable," Abercrombie said. "What he proposed essentially was to say that healthcare benefits for every working blue-collar and white-collar person in Hawai'i is now going to be taxable income."

Under Bush's proposal, employer-financed healthcare benefits would be considered taxable income after a deduction of $15,000 for families and $7,500 for individuals. Those buying their own plan would get the same deductions on their taxes.

The White House said 80 percent of workers with health insurance through their jobs would see a tax cut. But about 20 percent would see a tax increase — those workers whose health insurance cost more than the standard deduction.

Rep. Mazie Hirono said that offering a tax incentive so people would buy health insurance on their own is a pointless gesture for the 46 million Americans who don't have health coverage.

"They don't have health insurance because they can't afford it," she said. "So having a tax incentive is not going to help at all."

Sen. Daniel Akaka said the Bush proposal goes in precisely the wrong direction.

"The administration wants to make significant changes to our current employer-based healthcare system," he said. "We need to strengthen our public-health safety net and build upon our employer-based system to help ensure that all Americans have health insurance."

Senior Sen. Daniel K. Inouye said Bush's list of goals and objectives, both domestic and foreign, "did not quite balance out.

"He started out talking about a balanced budget, which we all applauded, then he proceeded to increase our military by 92,000, sending 21,000 more to Baghdad," Inouye noted. "I hope he realizes that now the war in Baghdad and Afghanistan is going to exceed $100 billion a year. Increases in foreign aid, we applaud. We want to get rid of AIDS. We want to get rid of malaria.

"But somebody has to pay for that. You're not going to do it with tax cuts," Inouye said.

On Iraq, the delegation said the time for escalation is over; the time for an orderly withdrawal is upon us.

"He says we must not fail in Iraq," said Akaka, "but sending 21,000 more troops without setting measurable goals and a timetable for achieving those goals does not increase our chances for success."