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As far as I can tell, the primary difference is that Joe Lieberman supported the decision to invade Iraq, whereas Dean opposed that decision. Exactly how much Dean opposed the decision is open to debate -- some statements suggest that his primary objection was going in without UN support. Other statements suggest that he didn't view Iraq as an immediate threat and opposed any action at this time, whether unilateral or under UN auspices.
Lieberman and Dean also differ on tax cuts. Dean wants to repeal all of the Bush tax cuts. Lieberman wants to repeal most of the tax cuts, but wants to leave in place those tax cuts that benefit middle class taxpayers (e.g., the reduction in the rate on the lowest bracket and the expansion of the child tax credit).
Lieberman and Dean differ on trade, although exactly how much they differ is a bit unclear. After all, Dean supported NAFTA and the WTO. Now Dean says he'd oppose any trade agreement that doesn't incorporate international labor statements. At other times he's suggested he's oppose any trade agreement that doesn't impose on the other country labor and environmental statements identical to those in the U.S., a position that would probably mean no new trade agreements.
Lieberman and Dean differ on Israel, although this difference may be more rhetorical than substantive. Both support a two state solution. Dean, however, has called for Israel to begin withdrawing from the settlements. Lieberman has indicated that the issue of settlements should be the subject to negotiations between the parties, and has also indicated that Israel shouldn't be obligated to make any concessions until the Palestinian Authority shows that it is serious about ending terrorist attacks on Israel.
These are the biggest substantive differences I see, and frankly, they pale in comparison to the substantive differences each has with Bush. The simple truth is that Lieberman is perceived as being much more centrist than he really is, and Dean is perceived as being more left-wing than he really is. But perceptions can make a huge difference, especially in the general election.
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