NEW YORK (CNNMoney.com) - Following the roughest year of his presidency, President Bush on Tuesday evening used his State of the Union address to reiterate some of his key economic proposals: making tax-cuts permanent and making healthcare coverage more affordable and portable.

The president also spotlighted the high price of fuel, characterizing the United States as "addicted to oil." To reach a goal of replacing more than 75 percent of oil imports from the Middle East by 2025, Bush proposed increasing funding for clean-energy research in two areas: power for homes and businesses and fuel for automobiles. (more)

More... • New limits on 401(k)s and IRAs • When pensions freeze... • Understandng pension reform

His address also focused heavily on the war against terrorism, and the need to boost competitiveness by, among other things, providing a stronger foundation for children in the math and sciences. (See more at CNN.com.)

President Bush called on lawmakers to reduce non-security discretionary spending, noting that his 2007 budget will reduce or eliminate more than 140 programs. And he called for a commission to look at the full impact of Baby Boomer retirements on Social Security, Medicare and Medicaid, the spending for which is projected to balloon in the coming decades.

President Bush's proposals come amid heavy partisan fighting, concerns over record deficits, and mid-term election fears. And they follow a year in which some of his key initiatives -- notably Social Security reform and tax reform -- were derailed. What will come of his proposals this year is a big question given stiff Democratic opposition and cracks in the Republican base over the deficit not to mention the several controversies buffeting the White House from the handling of Hurricane Katrina to, most recently, allegations of illegal wiretapping.

Below is a more detailed look at some of President Bush's economic proposals that, should they become law, will affect your wallet.

The president once again called on lawmakers to make permanent his 2001 and 2003 tax cuts -- which are scheduled to expire between now and 2010. When it comes to reducing the deficit, the president has said repeatedly that he prefers to rein in spending and keep the tax cuts in place because they have aided economic growth.

"(O)ur economy grows when Americans have more of their own money to spend, save and invest. ... (T)hey have used it to help produce more than four years of uninterrupted economic growth," the president said. "Because America needs more than a temporary expansion, we need more than temporary tax relief."

In other speeches, President Bush has noted, too, that tax-cut permanency can aid small business owners, who create about 70 percent of all new jobs, since many of them pay taxes on their profits at individual income tax rates, all of which have been lowered by the President's tax-relief measures.

But deficit hawks on both sides of the aisle have expressed opposition to across-the-board tax-cut permanency. According to the latest budget outlook from the Congressional Budget Office, if the tax cuts are extended, the $67 billion surplus the agency projects for 2016 would change to a $584 billion deficit and the debt held by the public at the end of 2016 would increase from a projected 28.1 percent of GDP to 44.3 percent.

Beyond the cost of the tax cuts -- and the interest to pay off debt-financed spending -- the CBO has said that economic growth alone (whether spurred by tax cuts or other measures) won't alleviate the budgetary pressures that will be brought to bear in the coming decades by the growth in Social Security and Medicare spending.

To make healthcare coverage more affordable and accessible, President Bush said he wants to make health savings accounts (HSAs) more attractive.

He proposed doing so by making more out-of-pocket medical expenses tax advantaged and leveling the playing field for uninsured workers, freelancers and small businesses, who don't currently enjoy the same discounts and tax advantages when purchasing health coverage as do those working for large companies.

HSAs, created in 2003 but not yet widely offered by employers, are accounts to which you and your employer may make tax-free contributions up to a cap. Money in the account may be used to pay for eligible out-of-pocket medical expenses that you would incur to meet your health insurance plan deductible. Money invested in the account that you don't use may remain in the account and grow tax-free.

In order to have an HSA, you must sign on to a high-deductible health insurance plan that covers you in the event of a serious medical condition or catastrophe. Premiums for high-deductible plans typically are lower than they are with more traditional plans.

Currently, the federal cap on HSA contributions is $2,700 for individuals and $5,450 for families, or the level of the deductible in your health insurance plan, whichever is lower. President Bush proposes eliminating that cap altogether, so that account holders may contribute as much tax-free as they need to pay all of their out-of-pocket medical expenses up to their plan's out-of-pocket maximum.

So, for instance, if you have a plan with a $1,200 deductible, an 80-20 coinsurance, and an out-of-pocket maximum limit of $3,000 before your insurance plan covers 100 percent of your expenses, you may contribute up to $3,000 to your HSA. Your out-of-pocket maximum, however, may not exceed federal limits on that maximium, which this year are $5,250 for individuals and $10,500 for families, said the president's National Economic Council Director Allan Hubbard on Wednesday.

President Bush also proposes making the premiums paid for HSA-compatible insurance plans deductible when the plans are purchased outside of work. Typically, when you pay your premium through a work-based plan you do so with pre-tax money.

For those who open HSAs outside of work, the president also wants lawmakers to offer a tax credit for any payroll taxes owed on HSA contributions.

Supporters of HSAs say they put more control of healthcare spending in consumers' hands and make healthcare more affordable. Premiums are lower, and consumers, they contend, are likely to be more cost-conscious in how they spend their healthcare money, for instance opting for generic drugs instead of more expensive brand-name prescriptions.

Supporters also like that the tax advantages of healthcare coverage will be available more widely, not just to those working for a large company.

Critics of HSAs contend they won't reduce healthcare costs and may discourage people from getting the care they need because of the expense. They also express concerns about what the federal costs of such plans will do to the deficit.

Given how new the accounts are, arguments for and against them are not borne out yet by much hard data. But a recent study by the Employee Benefit Research Institute found that those with HSAs spend more money out-of-pocket on healthcare expenses than those in more traditional healthcare plans.

It also found that those with HSAs are more cost conscious, but also more likely to avoid, skip or delay healthcare.

Paul Fronstin, director of EBRI's health research program, questions whether HSAs will reduce costs as much as supporters believe. Among workers, he noted, 20 percent of the population accounts for 80 percent of the spending on healthcare. That is, those with chronic medical conditions spend an average of $4,000 to $6,000 a year on medical costs. And it's unlikely they will have incentive to reduce their spending, since they need care on an ongoing basis.

And while eliminating the cap on how much one may contribute in tax-free dollars to an HSA will benefit some people, it is most likely to benefit people of means, Fronstin said. Given that only 4 percent of workers max out their 401(k)s, "I don't see how (higher HSA limits) will increase the savings among people who have other tax-advantaged vehicles that they're not taking advantage of," he said.

President Bush also proposed allowing employers to make larger contributions to the HSAs of chronically ill employees. Under current law, what employers contribute for one employee, they must contribute for all.

Among the president's other health-related proposals, he promised greater use of electronic medical records to control costs and reduce errors, and he called on lawmakers to pass medical liability reform.

He also called on lawmakers to allow small businesses to create Association Health Plans, so that they may buy health coverage as a group and get similar discounts on pricing that larger companies have.