-Caveat Lector- Saturday March 24, 3:29 pm Eastern Time Bush says budget reflects American values (UPDATE: adds Card comments, details, paras 7-9, 12-13) By Deborah Charles WASHINGTON, March 24 (Reuters) - President George W. Bush on Saturday urged Congress to approve his federal budget plan, which includes $1.6 trillion in tax cuts, saying it was a ``compassionate'' budget that reflected American values. As the House of Representatives prepared to vote on Bush's budget blueprint, approved by the House Budget Committee along party lines on Wednesday, the president spelled out what he said were the benefits of the plan for 2002. In his weekly radio address, Bush appeared to try to answer some of the main questions the Democrats have about the plan, which they say favors the wealthy in the tax cut and does not set aside enough for Social Security and Medicare. ``My budget is compassionate,'' Bush said. ``It dedicates $238 billion to Medicare next year alone, enough to fund all current programs and to begin a new prescription drug benefit for low- income seniors. It protects all $2.6 trillion of the Social Security surplus for Social Security and Social Security alone.'' Bush called his budget responsible, as it pays down the debt, sets up a contingency fund for unexpected needs and increases discretionary spending by a ``reasonable'' 4 percent. After than, the surplus can be used for a tax cut, he said. The Bush administration has been saying the economy was faltering, and the government needed to slow spending. It said the tax cut would help give life to the sputtering economy. White House Chief of Staff Andrew Card echoed the sentiment on Saturday, but denied the administration was trying to talk down the economy to get its measures passed. ``We know the economy is fragile, and we're not talking it down, in fact we want to talk it up,'' he said in a speech. ``And the way to talk it up is through action, not through rhetoric.'' ``We want the loudest voice of doing things right actually to come from Congress,'' he said. ``When they meet the responsibility of passing the budget that doesn't grow us into a problem. Four percent growth is plenty.'' TOUGH VOTE AHEAD Although the budget blueprint, very similar to Bush's fiscal plan, was expected to be approved by the Republican-led House in what will likely be another partisan vote next week, it faces a tougher challenge in the 50-50 split Senate. Senate Republicans admit they still lack votes to pass the measure as several moderate Republicans have joined Democrats in saying they fear the $1.6 trillion tax cut in Bush's plan over 10 years may be too large, and could bring back deficits. Bush has launched a campaign to convince senators to approve his budget and tax cut, traveling to about a dozen states to urge voters to use their influence with lawmakers. On Monday he leaves for a two-day trip to Montana, Missouri and Michigan to work on selling the plan. Democrats have said Republicans were focusing so much on passing a tax cut they were missing a chance to use surpluses to help prepare Social Security and Medicare for retiring baby boomers and meet other pressing needs. But Bush, who focused in his radio address on his plans to cut discretionary spending to 4 percent from 8 percent last year, insists that tax relief is what is needed. ``My budget plan doesn't slam the brake on spending, it slows the growth of spending,'' he said. ``It makes our increases in spending more realistic and reasonable. All in all, my budget will provide the government with $100 billion more to spend in 2002.'' ``Even by Washington standards, this is a lot of additional money, and it is enough,'' he said. ``This debate illustrates a point I've been making for a while -- when money is left in Washington, there is a tremendous temptation for the government to use it. The point is simple: if you send it, they will spend it.'' Instead, he said, it is important to have a balanced approach of moderate spending growth, debt reduction and ``meaningful'' tax relief. ----Sec. 107. 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