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Presidential Statements

George W. Bush - 2001

 

 

 

George W. Bush
 

INAUGURAL ADDRESS - January 20, 2001

REMARKS AT REPUBLICAN CONGRESSIONAL RETREAT - February 2, 2001

RADIO ADDRESS BY THE PRESIDENT TO THE NATION -- February 3, 2001

Remarks by the President at Meeting with Republican Members of the House and Senate Budget Committees -- February 15, 2001

Remarks by the President at Tax Family Event -- February 20, 2001

Remarks by the President to Teachers and Students -- February 21, 2001

Remarks by the President in Photo Opportunity at Cabinet Meeting -- February 26, 2001

ADDRESS TO JOINT SESSION OF CONGRESS -- February 27, 2001

PRESIDENT'S BUDGET BLUEPRINT -- February 28, 2001

Remarks by the President in Small Business Roundtable -- February 28, 2001

Remarks by the President at Nebraska Welcome -- February 28, 2001

Remarks by the President at Leadership Forum -- March 1, 2001

Remarks by the President at Welcome Event -- March 1, 2001

Remarks by the President to National Conference of State Legislatures -- March 2, 2001

RADIO ADDRESS OF THE PRESIDENT TO THE NATION-- March 3, 2001

Remarks by the President at Chicago Mercantile Exchange -- March 6, 2001

Remarks by the President at North Dakota Welcome Event North Dakota State University Bison Arena -- March 8, 2001

Remarks by the President in Sioux Falls, South Dakota Send Off -- March 9, 2001

Remarks by the President in Lafayette, Louisiana Send Off -- March 9, 2001

Remarks by the President to the Panama City Area Joint Rotary Club and Chamber of Commerce Meeting -- March 12, 2001

REMARKS BY THE PRESIDENT IN JOINT MEETING OF THE NEW JERSEY CHAMBER OF COMMERCE-- March 14, 2001

REMARKS BY THE PRESIDENT TO THE HISPANIC CHAMBER OF COMMERCE-- March 19, 2001

REMARKS BY THE PRESIDENT AND THE FIRST LADY TO WOMEN BUSINESS LEADERS--March 20, 2001

REMARKS BY THE PRESIDENT TO THE AMERICAN COLLEGE OF CARDIOLOGY ANNUAL CONVENTION--March 21, 2001

REMARKS BY THE PRESIDENT TO THE NATIONAL NEWSPAPER ASSOCIATION 40TH ANNUAL GOVERNMENT AFFAIRS CONFERENCE--March 22, 2001

REMARKS BY THE PRESIDENT TO THE GREATER PORTLAND CHAMBERS OF COMMERCE MEETING--March 23, 2001

RADIO ADDRESS BY THE PRESIDENT TO THE NATION--March 24, 2001

Remarks by the President to the Employees of Bajan Industries-- March 26, 2001

REMARKS BY THE PRESIDENT IN BILLINGS, MONTANA WELCOME EVENT--March 26, 2001

REMARKS BY THE PRESIDENT TO SOUTHWEST MICHIGAN FIRST COALITION/KALAMAZOO CHAMBER OF COMMERCE JOINT EVENT ON THE ECONOMY--March 27, 2001

Remarks by the President to African American Leaders -- March 29, 2001

Remarks by the President to the National Restaurant Association -- April 2, 2001

Remarks by the President at American Society of Newspaper Editors Annual Convention -- April 5, 2001

Remarks by the President in New Orleans, Louisiana Welcome-- April 25, 2001

Remarks by the President at Tim Hutchinson for Senate Reception -- April 25, 2001

REMARKS BY THE PRESIDENT IN SOCIAL SECURITY ANNOUNCEMENT-- May 2, 2001

Remarks by the President at RNC Gala -- May 22, 2001

Remarks by the President at Summit on the 21st Century Work Force -- June 20, 2001

REMARKS BY THE PRESIDENT ON MEDICARE-- July 12, 2001

Remarks by the President to Families Gathered at the Target Retail Store, Kansas City, Missouri-- August 21, 2001

President and Minority Leader Discuss Fall Priorities-- September 4, 2001

President Voices Concern Over Economy-- September 7, 2001

 

PRESIDENT'S 2002 STATEMENTS

PRESIDENT'S 2003 STATEMENTS

PRESIDENT'S 2004 STATEMENTS

PRESIDENT'S 2005 STATEMENTS
1st Quarter of 2005
Remainder of 2005

PRESIDENT'S 2006-2009 STATEMENTS

 

INAUGURAL ADDRESS-- January 20, 2001

This peaceful transfer of authority is rare in history, yet common in our country. With a simple oath, we affirm old traditions, and make new beginnings. As I begin, I thank President Clinton for his service to our nation. And I thank Vice President Gore for a contest conducted with spirit, and ended with grace.

I am honored and humbled to stand here, where so many of America's leaders have come before me, and so many will follow.

We have a place, all of us, in a long story; a story we continue, but whose end we will not see. It is the story of a new world that became a friend and liberator of the old. The story of a slave-holding society that became a servant of freedom. The story of a power that went into the world to protect but not possess, to defend but not to conquer. It is the American story; a story of flawed and fallible people, united across the generations by grand and enduring ideals.

The grandest of these ideals is an unfolding American promise: that everyone belongs, that everyone deserves a chance, that no insignificant person was ever born. Americans are called to enact this promise in our lives and in our laws. And though our nation has sometimes halted, and sometimes delayed, we must follow no other course.

Through much of the last century, America's faith in freedom and democracy was a rock in a raging sea. Now it is a seed upon the wind, taking root in many nations. Our democratic faith is more than the creed of our country, it is the inborn hope of our humanity; an ideal we carry but do not own, a trust we bear and pass along. And even after nearly 225 years, we have a long way yet to travel.

While many of our citizens prosper, others doubt the promise — even the justice — of our own country. The ambitions of some Americans are limited by failing schools, and hidden prejudice, and the circumstances of their birth. And sometimes our differences run so deep, it seems we share a continent, but not a country.

We do not accept this, and will not allow it. Our unity, our union, is the serious work of leaders and citizens in every generation. And this is my solemn pledge: I will work to build a single nation of justice and opportunity.

I know this is within our reach, because we are guided by a power larger than ourselves, Who creates us equal in His image.

And we are confident in principles that unite and lead us onward.

America has never been united by blood or birth or soil. We are bound by ideals that move us beyond our backgrounds, lift us above our interests, and teach us what it means to be citizens. Every child must be taught these principles. Every citizen must uphold them. And every immigrant, by embracing these ideals, makes our country more, not less, American.

Today we affirm a new commitment to live out our nation's promise through civility, courage, compassion and character.

America, at its best, matches a commitment to principle with a concern for civility. A civil society demands from each of us good will and respect, fair dealing and forgiveness.

Some seem to believe that our politics can afford to be petty because, in a time of peace, the stakes of our debates appear small. But the stakes, for America, are never small. If our country does not lead the cause of freedom, it will not be led. If we do not turn the hearts of children toward knowledge and character, we will lose their gifts and undermine their idealism. If we permit our economy to drift and decline, the vulnerable will suffer most.

We must live up to the calling we share. Civility is not a tactic or a sentiment. It is the determined choice of trust over cynicism, of community over chaos. And this commitment, if keep it, is a way to shared accomplishment.

America, at its best, is also courageous.

Our national courage has been clear in times of depression and war, when defending common dangers defined our common good. Now we must chose if the example of our fathers and mothers will inspire us or condemn us. We must show courage in a time of blessing, by confronting problems instead of passing them on to future generations.

Together, we will reclaim America's schools, before ignorance and apathy claim more young lives. We will reform Social Security and Medicare, sparing our children from struggles we have the power to prevent. We will reduce taxes, to recover the momentum of our economy and reward the effort and enterprise of working Americans. We will build our defenses beyond challenge, lest weakness invite challenge. We will confront weapons of mass destruction, so that a new century is spared new horrors.

The enemies of liberty and our country should make no mistake, American remains engaged in the world, by history and by choice, shaping a balance of power that favors freedom. We will defend our allies and our interests. We will show purpose without arrogance. We will meet aggression and bad faith with resolve and strength. And to all nations, we will speak for the values that gave our nation birth.

America, at its best, is compassionate.

In the quiet of American conscience, we know that deep, persistent poverty is unworthy of our nation's promise. And whatever our views of its cause, we can agree that children at risk are not at fault. Abandonment and abuse are not acts of God, the are failures of love. And the proliferation of prisons, however necessary, is no substitute for hope and order in our souls.

Where there is suffering, there is duty. Americans in need are not strangers, they are citizens; not problems, but priorities; and all of us are diminished when any are hopeless.

Government has great responsibilities, for public safety and public health, for civil rights and common schools. Yet compassion is the work of a nation, not just a government. And some needs and hurts are so deep they will only respond to a mentor's touch or a pastor's prayer. Church and charity, synagogue and mosque, lend our communities their humanity, and they will have an honored place in our plans and in our laws.

Many in our country do not know the pain of poverty. But we can listen to those who do. And I can pledge our nation to a goal: When we see that wounded traveler on the road to Jericho, we will not pass to the other side.

America, at its best, is a place where personal responsibility is valued and expected.

Encouraging responsibility is not a search for scapegoats, it is a call to conscience. And though it requires sacrifice, it brings a deeper fulfillment. We find the fullness of life, not only in options, but in commitments. And we find that children and community are the commitments that set us free.

Our public interest depends on private character; on civic duty and family bonds and basic fairness; on uncounted, unhonored acts of decency which give direction to our freedom.

Sometimes in life we are called to do great things. But as a saint of our times has said, every day we are called to do small things with great love. The most important tasks of a democracy are done by everyone.

I will live and lead by these principles: to advance my convictions with civility; to pursue the public interest with courage; to speak for greater justice and compassion; to call for responsibility, and try to live it as well. In all these ways, I will bring the values of our history to the care of our times.

What you do is as important as anything government does. I ask you to seek a common good beyond your comfort; to defend needed reforms against easy attacks; to serve your nation, beginning with your neighbor. I ask you to be citizens. Citizens, not spectators. Citizens, not subjects. Responsible citizens, building communities of service and a nation of character.

Americans are generous and strong and decent, not because we believe in ourselves, but because we hold beliefs beyond ourselves. When this spirit of citizenship is missing, no government program can replace it. When this spirit is present, no wrong can stand against it.

After the Declaration of Independence was signed, Virginia statesman John Page wrote to Thomas Jefferson: ``We know the race is not to the swift nor the Battle to the Strong. Do you not think an Angel rides in the Whirlwind and directs this Storm?''

Much time has passed since Jefferson arrived for his inauguration. The years and changes accumulate. But the themes of this day he would know: our nation's grand story of courage, and its simple dream of dignity.

We are not this story's author, who fills time and eternity with His purpose. Yet His purpose is achieved in our duty; and our duty is fulfilled in service to one another.

Never tiring, never yielding, never finishing, we renew that purpose today: to make our country more just and generous; to affirm the dignity of our lives and every life.

This work continues. This story goes on. And an angel still rides in the whirlwind and directs this storm.

God bless you all, and God bless America.


REMARKS BY THE PRESIDENT AT REPUBLICAN CONGRESSIONAL RETREAT--February 2, 2001

Kingsmill Resort Landing
Williamsburg, Virginia
12:55 P.M. EST

THE PRESIDENT:  Thank you all very much.  I like to give short speeches and I'm always on time.  (Laughter and applause.)  But, evidently, I didn't get the dress code.  (Laughter.)

I really appreciate you, Speaker, thanks for your friendship, thanks for your leadership.  These are two really good men.  (Applause.)  And I want to thank you, J.C. and Rick, as well, for your -- pretty darn eloquent guy for being from Oklahoma.  (Laughter.)  He can tell it.  I appreciate you, thank you very much.  I'm looking forward to welcoming the University of Oklahoma football team to the White House.  (Applause.)

I appreciate the Chairman of the Republican Party being here.  I chose a fellow governor -- or I asked a fellow governor to serve, and he's a good one.  He's a strong leader.  He's done a fabulous job for the Commonwealth of Virginia and I appreciate you being here, Jim, thank you very much. (Applause.)

I'm glad you get to see the Secretary of the Treasury, who's smart and capable.  He's surrounded by Senator Grassley and Congressman Thomas, good work.  (Laughter.)  It didn't take you long to transition from the private sector.  And Condi is here, Condi Rice; a capable Chief of Staff, Andy Card; Nick Calio, who's going to really head up our congressional affairs.

The reason I bring these people up is that they're here to serve America, they're here to work with you to make our jobs easier.  And I've assembled one of the finest staffs any President has ever done in the White House.  (Applause.)

I'm making my rounds to the various caucuses.  Senator Daschle invited me over this morning to the Library of Congress, and I was so honored he would, and it gave me a chance to come.  Many members of the Senate there had never seen me in person and had never had a chance to visit.  And we had a very good discussion, and I was grateful for his introduction. I'm going on to Pennsylvania Sunday afternoon, as well, thanks to the kind invitation of Congressman Gephardt.

And I want to go around and say a couple of things as clearly as I can.  First, here, I want to thank all the members who are here who I got to campaign with.  We had a lot of fun.  It was tiring at times, but I really, really appreciated the senators and House members for joining me and Laura on the campaign trail.  It really made it a lot easier to understand your districts, as well as to put up with all the long hours on the campaign trail.  So thanks from the bottom of my heart for your sacrifices.

It also gives me a chance to say how deadly earnest I am about using my position as your President to change the tone in the nation's capital. (Applause.)  To say to America that we'll have our disagreements, we'll fight over principle and we'll argue over detail -- but we'll do so in a way that respects one another.  I think it's so important for us as leaders, as people who have been given positions of responsibility, to understand that the way the process is conducted can set a good or bad tone for America.  I'm committed to setting a positive tone for the country, and I know you'll join me.

You're not going to agree with everything I say.  I probably won't agree with everything you say.  But I'll listen.  And I'll respect your opinion.  I'll try to understand why the position you've taken, I'll try and understand why you don't do everything I tell you to do.  (Laughter.)

But I'll do so in a way that tries to figure out where the other person comes from.  I think that's an important part of the Washington experience.  I'm absolutely convinced that we can change Washington for the better.  I believe we can have the dialogue so necessary that will inspire some youngster who's looking at Washington to say, I think I want to serve my country; I think I want to maybe go to the United States Senate or the United States House.

We have that responsibility to our citizens.  And I pledge to you that these first 14 days in office, or near 14 days in office -- the tone set in the first 14 days will be a consistent tone for however long I happen to be fortunate enough to be your President.  This is a message I want to say to all elected officials.  I love meeting with the members.  For those of you who have been to our office, thanks for coming.  For those of you that have not been to our office yet, you're coming.  Just don't take any silverware. (Laughter and applause.)

When you come, I look forward to hearing from you.  I look forward to having a frank discussion.  I look forward to hearing what's on your mind. I don't want you to -- I'm sure you won't be, but don't be looking around at the furnishings and say, gosh, oh, the meeting ended and I didn't say anything.  We expect to hear from you, and that's the best way to get things done, is to have a good, honest discussion.

I also want to remind members of both parties that I am able to stand before you as the President because of an agenda that I ran on.  I believe the fact that I took specific stands on important issues is the reason I was able to win.  The fact that I took on the Social Security issue in as clear language as I could be, with innovative thinking, I believe -- was part of the reasons why people came our way.

I'm going to take that same positions I took on Social Security and other issues, and try to get them on the floor of the House and the Senate and get something done.  (Applause.)  It's a positive agenda.  It's one that I believe, when we apply our principles to it, will make a huge difference for America.  The agenda is going to require a lot of patience and a lot of time and a lot of work.  But I want you to know, this is not a lot of items.  I believe I've got a limited amount of capital, and I'm going to spend it wisely and spend it in a focused way.      One item is Social Security, another is Medicare reform.  We have a fantastic opportunity to seize the initiatives to make sure that working with people like Chairman Thomas, to make sure that the Medicare system works.  Prescription drugs need to be an integral part of Medicare delivery system.  It will be a proud moment for all of us, Republicans and Democrats, to say we came together to modernize Medicare so that the seniors can retire in dignity.  (Applause.)

I see the respective chairmen of the committees dealing with our military.  I commit to you that our mission is going to be to make sure our military is strong and capable.  But it first requires the administration to act.  One, is to clarify the mission, to make it clear to those who wear our uniform that the mission is to be prepared and ready to fight and win war, and therefore prevent war from happening in the first place. (Applause.)

But we have an obligation to the members of Congress to present a strategic vision about what the military ought to look like.  We've got an unbelievable opportunity as we go into the 21st century to refashion how war is fought and won and, therefore, how the peace is kept.  It's a remarkable moment.  But it's incumbent upon those of us in the executive branch -- Secretary Rumsfeld and our policy team -- to present to you a blueprint about what the military ought to look like and where the priorities ought to be.

You may like it, you may not like it.  But before we -- good appropriations will really only occur if there is a strategic vision.  And we're the appropriate people to present the strategic vision.  So Secretary Rumsfeld is working on that.

We've had a lot of talk -- early talk about education.  I want to thank you all for your respective chairmen coming over and talking about education.  This is not a Republican issue or a Democrat issue; this is of national concern, to make sure our public schools function.  And we can apply some principles that I think we all agree with, which is high standards, expecting the best for every child, local control of schools, trusting local people to run the schools, and strong accountability systems.  (Applause.)

But as well, insist that there be results.  Guess what happens in systems when you don't measure?  Inner-city schools just get shuffled through the school systems.  Or in my case, in my state, sometimes children whose parents didn't speak English as a first language just got moved through.  Because you know why?  We didn't know.  And they come out at the end, and somebody says, oh, you can't read like you're supposed to.  That's because we didn't have the courage to insist upon measurement.  We didn't have the courage to insist upon results.  In order to make sure every child is educated, I mean every child, and no child is left behind, we've got to adopt a system that has high standards, local control of schools and the willingness to hold people accountable for results.  And an accountability system for which there is a consequence if there is success, and there is a consequence if there is failure. (Applause.)

Many members, Republican and Democrat alike, have said, are you going to give us a budget?  I said, of course -- just hope you don't kill it the minute it arrives.  It is our responsibility to do so, and working with the Speaker and the Leader to make sure it's there on a timely basis.  But we'll have a budget.  It's a budget that will set aside Social Security for one thing -- payroll taxes for Social Security and only Social Security. It's a budget that pays down national debt.  It's a budget that sets spending priorities.

But it's also a budget that recognizes we must provide tax relief to the people who pay the bills.  (Applause.)  I feel strongly about this issue.  And of course I hope you join me.  It is so important for us to understand some facts.  One, the economy is slowing down.  And it's important for us to combine good monetary policy with good fiscal policy. And good fiscal policy is a sound budget, coupled with giving people some of their own money back, to serve as a second wind to an economy.  I come from the school of thought that by cutting marginal rates for everybody who pays taxes is a good way to help ease the pain of what may be an economic slowdown.  I'm going to make that case over and over and over again until we get a bill through.  (Applause.)

It's important for us not to let the tax relief debate fall into a class warfare debate.  It seems like to me the fair way to do things is if people pay taxes, they ought to get tax relief.  (Applause.)

But I want to assure you that inherent in our plan is an understanding of how unfair the tax system is.  It's unfair to people at the bottom end of the economic ladder.  If you're a single -- one of these radio addresses for tomorrow -- and I talked about the single mom who is working hard to get ahead.  She's making $22,000 a year.  Many of you heard -- usually heard me use this example in the campaign.  I want to share it with you again, because it's an inherent part of our plan.

For every dollar she earns, because of the earned income tax phase-out and because she gets into the 15 percent bracket and because she pays payroll taxes, she pays a higher rate on the extra dollar earned than someone who is making $200,000 a year.  That's today's tax code.  And so part of our plan is not only to serve as an insurance policy against a severe economic downturn or a second wind for economic recovery, however you want to put it; but part of our vision addresses unfairness in the code by recognizing there are people struggling to get in the middle class.

This country must understand that by making the code more simple, by dropping the bottom rate from 15 to 10 percent, increasing the child credit we make that middle class, that dream of ownership so much more accessible, and that's what we ought to be representing in the great land called America.  (Applause.)

There is a lot of talk about debt, and we need to retire debt at the federal level.  Just remember -- lockboxing Social Security, a payroll tax is a pretty darn good step to relieving debt.  But there will be a glide path for debt repayment in our budget.  But during this debate, I want you all to remember that there is a huge consumer debt burdening many people working for a living in America, that there are 61 million Americans, I've been told, that have $10,000 or more of consumer debt.

Now think about that.  These are people working hard to get ahead. They've got a pretty high debt load.  And all of a sudden, energy prices start moving up on them.  And the combination of the two worries me, and I hope it worries members of Congress, regardless of their party.

So tax relief is important to help working people manage their own accounts, manage their own personal business.  And they say, well, that's not much money.  Well, if you're a family of four making $50,000 a year, under my plan, your taxes go from $4,000 to $2,000.  That's $2,000 extra dollars.  That's a lot for somebody struggling.  That's a lot for somebody who is on the margin.  And we must hear those voices on the margin.  So tax relief is not only good economic policy, it's good people policy. (Applause.)

We can talk about marginal rates.  We also need to talk about the death tax and the marriage penalty -- two important ingredients about making sure the code is more fair and more responsive to the needs of working Americans.  And that's my agenda.

I'm going to be asked to comment on a lot of issues; I'm confident about that.  And I'm sure I'll have an opinion.  (Laughter.)  But when it comes to spending capital, and staying focused, that's where this administration is going to be.  And I look forward to working with you.  I look forward to working with you to get things done for the people.  I can't think of a better cause then the people of America.  J.C. hit it right, this is a fabulous land, because the people are so great.

I think one of the most important initiatives that thus far we've discussed in the short time I've been here is the faith-based initiative. I want to make it clear to you, we understand the Constitution.  But I also want to make it clear that faith-based programs in many neighborhoods are really the solution to making sure we have a welcoming society. (Applause.)

My hope of hopes is that when it's all done, somebody will say, well, you know, President George W. Bush came -- number 43, by the way, as opposed to number 41 -- (laughter) -- but he came, along with his dad, and understood the office, helped change the tone, helped affect a cultural change that was a welcoming change and welcomed people into America; that didn't pit one group of people against another, but that helped people understand the greatness of America should apply to everybody; that the public policies that we passed together enforced that dream and vision; that this is the greatest country on the face of the Earth because of its people, because of our great people.

We have an obligation to the people of America to set a good tone, a good example, an example of the spirit of what's possible.  I'm confident it can happen.  And it's such a huge honor, huge honor, to play an important part.

God bless.  (Applause.)

END                 1:15 P.M. EST



RADIO ADDRESS BY THE PRESIDENT TO THE NATION -- February 3, 2001
Oval Office

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THE PRESIDENT: Good morning. This coming week I will send to Congress my tax relief plan. It is broad and responsible. It will help our economy, and it is the right thing to do.

Today many Americans are feeling squeezed. They work 40, 50, 60 hours a week, and still have trouble paying the electric bill and the grocery bill at the same time. At the end of a long week, they collect their paycheck, and what the federal government takes is often unfair.

Picture a diner in one of our cities. At the table is a lawyer with two children. She earns $250,000 a year. Carrying her coffee and toast is a waitress who has two children of her own. She earns $25,000 a year. If both the lawyer and the waitress get a raise, it is the waitress who winds up paying a higher marginal tax rate. She will give back almost half of every extra dollar she earns to the government.

Both of these women, the lawyer and the waitress, deserve a tax cut. Under my plan, both of these women, and all Americans who pay taxes will get one. For the waitress, our plan will wipe out her income tax bill entirely.

My plan does some important things for America. It reduces taxes for everyone who pays taxes. It lowers the lowest income tax rate from 15 percent to 10 percent. It cuts the highest rate to 33 percent, because I believe no one should pay more than a third of their income to the federal government. The average family of four will get about $1,600 of their own money returned back to them.

There's a lot of talk in Washington about paying down the national debt, and that's good, and that's important. And my budget will do that. But American families have debts to pay, as well. A tax cut now will stimulate our economy and create jobs.

The economic news these days is troubling -- rising energy prices, layoffs, falling consumer confidence. This is not a time for government to be taking more money than it needs away from the people who buy goods and create jobs.

My plan will keep all Social Security money in the Social Security system, where it belongs. We will eliminate the death tax, saving family farms and family-owned businesses. We'll reduce the maximum rate on small business income to 33 percent, so they can help create the jobs we need. Above all, my plan unlocks the door to the middle class for millions of hardworking Americans.

The country has prospered mightily over the past 20 years. But a lot of people feel as if they have been looking through the window at somebody else's party. It is time to fling those doors and windows open and invite everybody in. It is time to reward the work of people trying to enter the middle class and put some more money in their pockets at a time when they need it.

My tax reduction plan does all these things, and I hope you'll support it. Thank you for listening.


Remarks by the President at Meeting with Republican Members of the House and Senate Budget Committees -- February 15, 2001
The Cabinet Room


4:50 P.M. EST


THE PRESIDENT: It's my honor to welcome members of the United States Senate and members of the United States House up here in the Cabinet Room to discuss the budget.

I'll be submitting a budget to the Congress in short order, and I wanted to brief the members of the budget writing committees about our priorities, our intentions and, of course, get the feedback. I get to propose a budget and these folks get to write the budget. And we look forward to having a good discussion on it.

Inherent in the budget, of course, is our desire to make sure we protect Social Security, I think there is unanimity around the table for that; that we set clear priorities; that we fund the priorities. In our budget, we're going to prove to the American people that we can pay down debt, fund priorities, protect Social Security and there will be money left over -- which we strongly believe ought to be passed back to the taxpayers.

I look forward to the discussion with the Chairman, near-Chairman, and thank you all for coming.

I'll be glad to answer a few questions. Yes, Jim.

Q Mr. President, will you be telling the members of Congress that you hope to hold spending to below 4 percent, the increase in spending?

THE PRESIDENT: We're not going to give a specific number today, but we are going to argue, make the case that we can slow the rate of spending down; that our spending will be based upon priorities, the priorities I campaigned on; that we will meet the objectives that I talked about in the campaign, which is protecting Social Security, funding public education, strengthening the military, paying down debt -- and we'll be paying down debt; but that we believe the right number for the tax relief package is $1.6 trillion.

Q Mr. President, if the Senate were to vote today on your tax package, the vote would probably be 51-49 against you, given that there are two Republicans who have said they're not in favor of it as is.

What can you say to Democrats to try to bring more of them on board in the Senate?

THE PRESIDENT: I can say, wait until you see our budget. You'll see that it's well thought out, that we meet important priorities and I -- we've got a lot of work to do, I understand that. But this is a democracy, people have different opinions about the subjects.

The people I want to talk to, though -- first, before there is any vote -- is the American people. And I will, I'll take my case to the American people about why I think tax relief makes sense. I'll remind members of both the Senate and the House that there is a lot of debt at the federal level; but there is a lot of debt at the private level. We've got a lot of people struggling to pay off credit card consumer debt.

I'll tell people that if you're a family of four making $50,000, you get an additional $2,000 so you can decide what to do with your money. So I've got a lot of work to do, but I'm convinced that when the American people hear our plan they will support it. I think we've got a very good chance of getting the tax package through.

Q Mr. President, Congresswoman Cynthia McKinney, who serves on the Armed Services Committee in the House, feels that she was snubbed because she didn't go with you during your defense tour this week. What do you say to her, and some of the other members of the Congressional Black Caucus, especially after you met with them saying that you're into an inclusive era?

THE PRESIDENT: We had a very good meeting here, and discussed a wide range of issues. I'm glad their members came up, sat right here at this table and expressed their opinion. My administration certainly never attempts to leave anybody out. And to the extent that members -- any member -- feels left out, I'm sorry that that's the case. But we took the members on that trip and there will be other trips.

Q Mr. President, were you surprised to learn that there were civilians at the helm of the submarine that sank the Japanese fishing boat?

THE PRESIDENT: Well, I think what is going to be necessary is for Secretary Rumsfeld and the Defense Department to review all policy regarding civilian activity during military exercises. I look forward to the Defense Department review of the policies, their current policies, particularly in light of the recent tragedy that took place in Hawaii.

I want to reiterate what I said to the Prime Minister of Japan: I'm deeply sorry about the accident that took place; our nation is sorry that the accident happened and we will do everything we can to help recover the bodies.

END 4:55 P.M. EST


Remarks by the President at Tax Family Event -- February 20, 2001
Kirkwood Community Center
St. Louis, Missouri

Listen to the President's Remarks


5:50 P.M. CST


THE PRESIDENT: Thank you very much. Before I have a chance to say hello to you all and watch the Mighty Mights skate, I want to talk a little bit -- some public policy. Today I was in St. Louis talking about education. There is no more important subject as far as I'm concerned, to make sure every child is educated. I know the Yahngs feel the same way.

But I also want to talk about the budget, the budget of the United States government, and the budget of the people of the United States.

I'm going to submit a budget next week to the United States Congress. It is a budget that will set priorities, just like each family does in America -- set priorities. My priorities will make sure that we preserve and protect and strengthen Social Security, so that there's a Social Security system available for the Yahngs and their children, and for you, as well.

A priority in my budget will be to make sure that health care system in America is strong, for the elderly, for the uninsured, and for all of us concerned about health. A priority will be public education. Today I talked about a reading initiative which goal is to make sure the children can read by the 3rd grade. I can't think of a better priority. By the way, I also understand that local control of schools is the best way to achieve that priority.

Last week I spent time touring military bases. The defense of our nation is a priority, and in my budget I will submit, amongst other things, a pay raise for the men and women who wear the uniform. Restoring morale in the military not only means better pay, better housing, better health care, it also means having a commander in chief who will clarify the mission. The mission of the United States military to have a fighting forces trained and prepared to fight war, and therefore, prevent war from happening in the first place.

A priority of mine in my budget will be paying down national debt. And yet, after setting priorities, there's still money left over. And so while we're concerned about the federal budget, I'm also concerned about the budget of people such as the Yahngs, who are here standing next to me.


I think it makes sense to understand who pays the bills. I think it makes sense to understand who fills the coffers of the United States, and it's the working people. (Applause.) And so I'm going to ask Congress to pass a tax relief package, recognizing that we can meet priorities, but also help families meet their own priorities.

I'm deeply concerned about the high cost of energy. American families are paying more and more for energy these days. I'm concerned about consumer debt. There's a lot of discussion about national debt, and that's a concern. But I'm also concerned that a lot of working folks have got their own debt, and it seems wise to set priorities at the national level, and get people their own money so they can meet their own obligations, to meet their own debts.

I'm asking Congress to pass $1.6 trillion in tax relief, after we've met priorities. That's over a 10-year period of time. It's a fair plan. It's a plan that says, as opposed to pick and choose who the winners are, that everybody who pays taxes ought to get tax relief. It is a plan that significantly reduces taxes for people at the bottom end of the economic ladder. If you're a family of four making $35,000, you'll receive 100 percent tax cut. It's an average tax relief for families of $1,600. The Yahng family under the plan I submit will receive actually more than that. They now pay $2,000 in taxes to the federal government. If this plan is enacted by the United States Congress, they'll end up paying $150 of taxes. (Applause.) That's $1,850 more that they can decide what to do with.

It's your money. It will give you a chance to set your priorities for your family. It says that we in the federal government have a fundamental trust in the people of America, and that's where our faith should be -- in the people. The best government is that which trusts America, and there's no better way to make that trust explicit than to share your money with you.

I want to drop all rates and simplify the code. The reason this family will receive the tax relief they're going to get is because we've dropped the bottom rate from 15 percent to 10 percent, and doubled the child credit from $500 to $1,000 per child. (Applause.)

As well, I'm going to ask Congress to provide relief from the marriage tax. Our tax code ought to encourage family, ought to recognize marriage as a sacred institution. (Applause.) And I think we ought to listen to the voices of the farmers and small business people and eliminate the death tax, so that those who struggle -- (applause.)

This is a plan that's going to require the people to speak up. It's the beginning of trips around our great nation where I'm going to make my case, not to the folks in Congress or in Washington, D.C., but to the American people. I have an awesome responsibility to be the President of everyone. I assume that responsibility, and I'm going to be the President of everyone. And I believe this tax relief plan is fair for everyone who pays taxes in America. It is the right thing to do at this point in our history.

It also makes economic sense. I am concerned about our economy. I'm concerned about its -- that we've lost some wind in our sails. I believe good monetary policy, combined with good fiscal policy, will provide a needed second wind to economic growth. We must keep the pie growing, so that people who want to work can find a job, people who want to dream are able to realize their dreams in the entrepreneurial -- as a small business person or as an entrepreneur.

One of the great strengths of America is the entrepreneurial spirit of our country. Any President and the Congress must do everything in our power to create an environment where the entrepreneur can flourish, where people can realize their dreams. America is a land based upon dreams. It's a land where people should aim high, and the tax code ought to encourage capital formation and economic growth.

But most of all, America is made up of fine, decent, honorable citizens, citizens who work hard every day to provide for their families -- just like my friends here -- citizens who, once the nation meets our priorities, ought to keep their own money, so you can spend, and you can save, and you can dream. (Applause.)

I'm so thankful that you all came. I really appreciate you all standing up here today with me. I'm pinching myself every day. (Laughter.) It is an unimaginable honor to represent the great people of this country. It's the greatest country on the face of the Earth, and all my public policy will be designed to keep it great and to invigorate our people.

Thank you for coming and God bless.


END 6:00 P.M. CST

 


Remarks by the President to Teachers and Students -- February 21, 2001
Townsend Elementary School
Townsend, Tennessee


12:03 P.M. EST


THE PRESIDENT: Thank you all very much. Fred, thank you very much. I appreciate your invitation.

MR. GOINS: We appreciate your coming.


THE PRESIDENT: And I'm glad I accepted. It's a beautiful part of the world. I was touched by the number of your citizenry who came and lined the roads as we came in, to wave and say hello. And I thank them for that, as well. I wish I could thank them in person. I hope they realize my wave was a sincere wave of gratitude.

I want to thank Gary Pack, the Superintendent of Schools. Let me say a couple things about what I've learned -- I've learned this as a parent, I've learned it as a governor, I know it as the President, that a school is really only as good as its principal, and when you have a fine principal, you've got a fine school. And I appreciate your service. And the same with the superintendents.

But with -- the heart and soul of any education system, of course, are the teachers. And I want to thank those who are teaching. I'm sorry that my wife is not here with us today. If she were giving the speech -- and most of you, if you had heard both of us, would rather hear her -- (laughter) -- she would say that one of her missions will be to convince Americans who are coming up to be a teacher. There's nothing more noble than to teach. And so the teachers of this school and the teachers throughout all of Tennessee, we thank you from the bottom of our hearts.

I also want to thank my friend, the Governor of your state, Don Sundquist. He is a good man, and he married -- like me -- he married above himself. (Laughter.) But Laura and I love Don and Martha. They have been our friends for a long time, and I appreciate your hospitality.

I want to thank your Senator, Bill Frist. I'm particularly nice to Senator Frist these days, since much of what I'm proposing is going to need to be passed out of the United States Senate. But I've got a strong ally in Senator Frist, and a good friend.

I want to thank members of the Tennessee congressional delegation, Congressmen Duncan and Jenkins and Van Hilleary for being here, as well. I got to know these folks during the course of the campaign, and they were stalwarts.

I also want to thank my friend, the chairman of the Education Committee, from the state of Ohio, Congressman John Boehner. I am so thankful the chairman is here. I'm going to be discussing education policy today, the framework for good policy, and it's going to require the leadership of John and -- on the House side, and Frist and others on the Senate side to get this bill through.

So, Mr. Chairman, thank you very much for not only being here -- I'm surprised they didn't check you at the border coming in. (Laughter.) But I'll let you on the plane so we can fly back together and talk policy.

I'm also most appreciative of the Mayor of Knoxville, Tennessee for being here. I've know Mayor Ashe for years and years and years. And he has done a fabulous job of being a fine public servant in Knoxville. So, Victor, thank you for coming.

And finally, a former public servant, a distinguished Tennessee citizen, a man whose son is -- sees my daughter at the University of Texas, hopefully in the library -- (laughter) -- and that's Lamar Alexander.

I want to thank these distinguished officials. I want to thank the local officials. Senator, thank you, as well. Thank you for coming.

There's no more important subject than public education. We must get it right to make sure no child is left behind. My philosophy is this. First, all of us in positions of responsibility must set the highest of high standards for every child. I believe every child can learn. And that ought to be indelibly etched into our national conscience, that every single child in America has got the capacity to learn and we should accept nothing less. And we must set high expectations for every child. We must raise the bar.

I also strongly believe in local control of schools. I believe the best way to chart the path to excellence for every child in America is to insist that authority and responsibility be aligned at the local level. (Applause.)

So I look forward to working with the members of the House and the Senate to pass power out of Washington, to provide flexibility for the federal funds so that the governors, superintendents, principals can design programs that meet your specific needs. As the old adage, one size does not fit all in public education -- it is very true. It is very true. We had the same goal in Tennessee and Texas, and that is every child learn. But we've got different issues in Texas than you have in Tennessee, and that's why we need to have flexibility.

The cornerstone of reform, as far as I'm concerned, is not only high standards and maximum flexibility, but strong accountability systems. I think it's so important to measure. I think it's a legitimate thing -- I know it's a legitimate request from those of us in public life to say if you receive taxpayers' money, you measure, and you show us whether or not the children are learning.

And when I ask Congress to pass legislation that says, in return for federal help the state of Tennessee, local jurisdictions must develop accountability measures on an annual basis, 3 through 8, to determine whether or not our children are learning. It is essential we do so.

Now, I know there's some around who will say we can't measure, it's not the proper role of the government. Well, I believe the proper role of any government at any level is to insist upon results. There are some who will say, well, we can't have the test because all they'll do is teach the test. Well, I went to a writing class here in this school, and they were teaching the children to write, and therefore, they were able to pass the test.

You don't teach the test when it comes to literacy. We went to a Title 1 classroom -- or a classroom with Title 1 students in it, where the teacher was using some of the most advanced thought about teaching reading, a balanced approach including phonics. You teach a child to read and he or her will be able to pass a literacy test. I don't buy teaching the test as an excuse to have a system that doesn't hold people accountable for results.

Finally, there are some who will say you can't test because it is a matter of race to test. I think it is a matter of race not to test. I think it's racist not to test, because oftentimes in our school districts, those who are most easy to shuffle through are those who live in the inner cities or whose parents may not speak English as a first language. No, we must measure because we want to know. We want to know when there's success.

When a teacher told me in that classroom, she said, we're making great progress in our new reading program here; it's been in place for three years, we're making fine progress, we know because there's accountability. People should welcome accountability. It's a way to diagnose and to solve problems. It's a way to say that every single child matters in America, and not one child ought to be left behind. (Applause.)

I don't support, my friends in Congress don't support the design of a national test. All a national test will do is undermine local control of schools. But we look forward to working with states and local jurisdictions to develop accountability systems that meet your needs, so we achieve what we want. And that is an education system focused on each individual; an education system that diagnoses early and solves problems early.

Yesterday I also outlined some funding priorities of mine. I'm going to submit a budget next week to the United States Congress -- it's a budget that sets clear priorities. A priority is going to be to make sure that our Social Security system and the payroll taxes are saved for Social Security and the Social Security system is strong. A priority would be Medicare. A priority is going to be to make sure our troops are well-paid and well-housed and well-trained, so that we can keep the peace. A priority is going to be pay down debt. A priority is going to be tax relief, so hardworking Americans have got more money in their pocket to pay down their own debt and to cover the cost of high energy costs.

A priority is going to be public education, as well. As a matter of fact, in the budget I submit, the largest increase of any department will be for the Department of Education. (Applause.) Federal funding for the Elementary and Secondary School Act will go up by $1.6 billion, an 8 percent increase in funding.

I think it's so important for us to prioritize public education, at the same time, we prioritize -- make it a priority of making sure our money is spent well. A priority has got to be diligence when it comes to taxpayers' money. And that's why I'm confident the combination of an increase in spending coupled with education reform that holds people accountable is the right path for America to take.

And finally, yesterday I proposed additional spending for a national reading initiative that will set this goal: every child will be reading at the appropriate level by the 3rd grade. It's going to require schools, districts willing to challenge the status quo, if children are failing. It's going to mean we're going to have to think differently about Head Start. Head Start should remain, and will remain, a place where children are treated for disease and the Health and Human Service component to it. But I think Head Start ought to be moved to the Department of Education, to highlight the need to make sure that our youngsters get a head start on reading and math. (Applause.)

The billion-dollar a year additional money for the reading initiative will allow districts to access money for K through 2 diagnostic testing; for curriculum development; for teacher training, to make sure that the teacher I saw today, the skills that she has are given to all the teachers who are charged with teaching reading.

We've got an aggressive program for public ed. It's a program, though, that has deep faith in the ability of local folks to make sure the children are educated. It's a program, the philosophy of which says that the people that care most about the children in towns in Tennessee are the citizens of towns in Tennessee, are the parents in towns in Tennessee, are those concerned folks who every day try to figure out how to make your community a better place to live.

The great strength of America lies in the hearts and souls of our citizens. It lies in the classrooms. It lies in the after-school activities of Scout troops, run by local citizens. And our philosophy, the philosophy of the bill that I'm going to submit to the Congress incorporates that greatness of America in its core.

It's a thrill to be here in Townsend. It is a -- you're the heartbeat of America. And you're the future of America, by making sure every single child gets educated. God bless. (Applause.)

END 12:15 P.M. EST

 


Remarks by the President in Photo Opportunity at Cabinet Meeting -- February 26, 2001
The Cabinet Room


1:07 P.M. EST


THE PRESIDENT: I want to thank our Cabinet for coming in today. Amongst a variety of topics, one of which is going to be, we're going to talk about the budget and my speech tomorrow night to the Congress. And I want to thank all of the Cabinet officers for their hard work in helping us prepare a realistic budget that is going to enable our nation to meet its priorities, and at the same time not only set aside money for contingencies and pay down debt, but to leave enough money left over so that people can get a real, substantial tax relief package that they will feel.

I would be glad to answer some questions.

Q Mr. President, in your speech tomorrow night, what will be your message to the American people, and will you begin addressing reforms in the Social Security system?

THE PRESIDENT: Of course we'll be talking about Social Security. Secondly, I will be making the case as to why our budget makes sense for the country and for the people who pay the bills of our country. It is a common-sense approach to what our nation ought to do with the tax revenues that are coming into the Treasury.

Q Do you expect to propose Social Security reforms this year?

THE PRESIDENT: I will see.

Q Mr. President, what are your thoughts about the final Florida recount that put you over from the Vice President, and what do you say to those who now have to call you the legitimate president that didn't call you that? (Laughter.)

THE PRESIDENT: Good. (Laughter.) Hopefully, all the focus on the past is over with. It's time to move forward. And tomorrow night's speech is a part of moving forward. We've worked hard here in this administration to reach out to people that may not have supported me. I think we're making pretty good progress to say that the discussions that take place around this table, for example, are what's best for America; not what's best for a political party, but what's best for the country.

Q Sir, in your speech, will you have specific areas in the budget where spending will slow down, and will you specify those areas in your speech?

THE PRESIDENT: No. In my speech I will talk about the budget. And in the budget is where people will see all the particulars. If I tried to review every particular in the budget, I would set the all-time record for the amount of time in front of the Congress. And as you know, I'm the kind of person who likes to try to get to the point. I will spend enough time speaking so that people will understand where I'm coming from, but not too long so they go to sleep.

Q Mr. President, you've acknowledged that you're going to have to make cuts to the budget to some extent. What do you say to those who are saying that you're telling the American people essentially they can have their cake and eat it too?

THE PRESIDENT: What I'm going to say to the American people is that, had we kept spending at the rate we were spending last year, there would be no surplus, that the size of growth in the federal budget that -- and the budget we inherited was way too high, that we can meet our needs by slowing down the rate of growth in our budget. But it requires a president to set priorities. And I'm going to set clear priorities in the budget.

I readily concede some appropriators may not like the fact that we're asking for there to be fiscal sanity in the federal budget, but that's one of the reasons I became the President; because I said, give us a chance and we will have fiscal sanity in our budget. And I'll look forward to making the case.

The people are going to hear in plain spoken words why I believe, strongly believe, when we meet priorities, pay down debt, protect Social Security, and as importantly, make sure that people get some of their own money back, so to make sure that the economy is strong, help people pay for high energy bills, to help people manage their own personal debt, we need to have tax relief -- tax relief that the people can feel. And I will make the case tomorrow night that it's within our grasp to do so. And people will hear as plainly as I can say it what the facts are.

Q It sounds like your speech will be shorter than ones we're used to in the last eight years. (Laughter.)

THE PRESIDENT: I don't know. (Laughter.) It depends on how loud you clap.

END 1:12 P.M. EST

 


ADDRESS BEFORE A JOINT SESSION OF THE CONGRESS--February 27, 2001

photo of Bush addressing Congress Audio Clip From Speech:

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President Bush addressing Congress.

 

Mr. Speaker, Mr. Vice President, Members of Congress:

It is a great privilege to be here to outline a new budget and a new approach for governing our great country.

I thank you for your invitation to speak here tonight. I want to thank so many of you who have accepted my invitation to come to the White House to discuss important issues. We are off to a good start. I will continue to meet with you and ask for your input. You have been kind and candid, and I thank you for making a new President feel welcome.

The last time I visited the Capitol, I came to take an oath. On the steps of this building, I pledged to honor our Constitution and laws, and I asked you to join me in setting a tone of civility and respect in Washington. I hope America is noticing the difference. We are making progress. Together, we are changing the tone of our Nation's capital. And this spirit of respect and cooperation is vital -- because in the end, we will be judged not only by what we say or how we say it, but by what we are able to accomplish.

America today is a nation with great challenges -- but greater resources. An artist using statistics as a brush could paint two very different pictures of our country. One would have warning signs: increasing layoffs, rising energy prices, too many failing schools, persistent poverty, the stubborn vestiges of racism. Another picture would be full of blessings: a balanced budget, big surpluses, a military that is second to none, a country at peace with its neighbors, technology that is revolutionizing the world, and our greatest strength, concerned citizens who care for our country and for each other.

Neither picture is complete in and of itself. And tonight I challenge and invite Congress to work with me to use the resources of one picture to repaint the other -- to direct the advantages of our time to solve the problems of our people.

Some of these resources will come from government -- some, but not all. Year after year in Washington, budget debates seem to come down to an old, tired argument: on one side, those who want more government, regardless of the cost; on the other, those who want less government, regardless of the need.

We should leave those arguments to the last century and chart a different course. Government has a role, and an important one. Yet too much government crowds out initiative and hard work, private charity and the private economy. Our new governing vision says government should be active, but limited, engaged, but not overbearing.

My budget is based on that philosophy. It is reasonable and it is responsible. It meets our obligations and funds our growing needs. We increase spending next year for Social Security and Medicare and other entitlement programs by $81 billion. We have increased spending for discretionary programs by a very responsible 4 percent, above the rate of inflation. My plan pays down an unprecedented amount of our national debt, and then when money is still left over, my plan returns it to the people who earned it in the first place.

A budget's impact is counted in dollars, but measured in lives. Excellent schools, quality health care, a secure retirement, a cleaner environment, a stronger defense -- these are all important needs and we fund them. The highest percentage increase in our budget should go to our children's education. Education is my top priority and by supporting this budget, you will make it yours as well. Reading is the foundation of all learning, so during the next 5 years, we triple spending, adding another $5 billion to help every child in America learn to read. Values are important, so we have tripled funding for character education to teach our children not only reading and writing, but right from wrong.

We have increased funding to train and recruit teachers, because we know a good education starts with a good teacher. And I have a wonderful partner in this effort. I like teachers so much, I married one. Please help me salute our gracious First Lady, Laura Bush.

Laura has begun a new effort to recruit Americans to the profession that will shape our future: teaching. Laura will travel across America, to promote sound teaching practices and early reading skills in our schools and in programs such as Head Start.

When it comes to our schools, dollars alone do not always make the difference. Funding is important, and so is reform. So we must tie funding to higher standards and accountability for results.

I believe in local control of schools: we should not and we will not run our public schools from Washington. Yet when the Federal Government spends tax dollars, we must insist on results.

Children should be tested on basic reading and math skills every year, between grades three and eight. Measuring is the only way to know whether all our children are learning -- and I want to know, because I refuse to leave any child behind.

Critics of testing contend it distracts from learning. They talk about "teaching to the test." But let us put that logic to the test. If you test children on basic math and reading skills, and you are "teaching to the test," you are teaching ... math and reading. And that is the whole idea.

As standards rise, local schools will need more flexibility to meet them. So we must streamline the dozens of Federal education programs into five and let States spend money in those categories as they see fit.

Schools will be given a reasonable chance to improve, and the support to do so. Yet if they do not, if they continue to fail, we must give parents and students different options -- a better public school, a private school, tutoring, or a charter school. In the end, every child in a bad situation must be given a better choice, because when it comes to our children, failure is not an option.

Another priority in my budget is to keep the vital promises of Medicare and Social Security, and together we will do so. To meet the health care needs of all America's seniors, we double the Medicare budget over the next 10 years.

My budget 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. No senior in America should have to choose between buying food and buying prescriptions.

To make sure the retirement savings of America's seniors are not diverted to any other program -- my budget protects all $2.6 trillion of the Social Security surplus for Social Security and for Social Security alone.

My budget puts a priority on access to health care -- without telling Americans what doctor they have to see or what coverage they must choose.

Many working Americans do not have health care coverage. We will help them buy their own insurance with refundable tax credits. And to provide quality care in low-income neighborhoods, over the next 5 years we will double the number of people served at community health care centers.

And we will address the concerns of those who have health coverage yet worry their insurance company does not care and will not pay. Together, this Congress and this President will find common ground to make sure doctors make medical decisions and patients get the health care they deserve with a Patients' Bill of Rights.

When it comes to their health, people want to get the medical care they need, not be forced to go to court because they did not get it. We will ensure access to the courts for those with legitimate claims, but first, let us put in place a strong independent review so we promote quality health care, not frivolous lawsuits.

My budget also increases funding for medical research, which gives hope to many who struggle with serious disease. Our prayers tonight are with one of your own who is engaged in his own fight against cancer, a fine representative and a good man, Congressman Joe Moakley. God bless you, Joe. And I can think of no more appropriate tribute to Joe than to have the Congress finish the job of doubling the budget for the National Institutes of Health.

My New Freedom Initiative for Americans with Disabilities funds new technologies, expands opportunities to work, and makes our society more welcoming. For the more than 50 million Americans with disabilities, we must continue to break down barriers to equality.

The budget I propose to you also supports the people who keep our country strong and free, the men and women who serve in the United States military. I am requesting $5.7 billion in increased military pay and benefits, and health care and housing. Our men and women in uniform give America their best and we owe them our support.

America's veterans honored their commitment to our country through their military service. I will honor our commitment to them with a billion dollar increase to ensure better access to quality care and faster decisions on benefit claims.

My budget will improve our environment by accelerating the cleanup of toxic Brownfields. And I propose we make a major investment in conservation by fully funding the Land and Water Conservation Fund.

Our National Parks have a special place in our country's life. Our parks are places of great natural beauty and history. As good stewards, we must leave them better than we have found them, so I propose providing $4.9 billion in resources over 5 years for the upkeep of these national treasures.

And my budget adopts a hopeful new approach to help the poor and disadvantaged. We must encourage and support the work of charities and faith-based and community groups that offer help and love one person at a time. These groups are working in every neighborhood in America, to fight homelessness and addiction and domestic violence, to provide a hot meal or a mentor or a safe haven for our children. Government should welcome these groups to apply for funds, not discriminate against them.

Government cannot be replaced by charities or volunteers. And government should not fund religious activities. But our Nation should support the good works of these good people who are helping neighbors in need.

So I am proposing allowing all taxpayers, whether they itemize or not, to deduct their charitable contributions. Estimates show this could encourage as much as $14 billion a year in new charitable giving -- money that will save and change lives.

Our budget provides more than $700 million over the next 10 years for a Federal Compassion Capital Fund with a focused and noble mission: to provide a mentor to the more than 1 million children with a parent in prison, and to support other local efforts to fight illiteracy, teen pregnancy, drug addiction, and other difficult problems.

With us tonight is the Mayor of Philadelphia. Please help me welcome Mayor John Street. Mayor Street has encouraged faith-based and community organizations to make a difference in Philadelphia and he has invited me to his city this summer, to see compassion in action.

I am personally aware of just how effective the Mayor is. Mayor Street is a Democrat. Let the record show that I lost his city. But some things are bigger than politics. So I look forward to coming to your city to see your faith-based programs in action.

As government promotes compassion, it also must promote justice. Too many of our citizens have cause to doubt our Nation's justice when the law points a finger of suspicion at groups, instead of individuals. All our citizens are created equal and must be treated equally. Earlier today I asked Attorney General Ashcroft to develop specific recommendations to end racial profiling. It is wrong and we must end it.

In so doing, we will not hinder the work of our Nation's brave police officers. They protect us every day, often at great risk. But by stopping the abuses of a few, we will add to the public confidence our police officers earn and deserve.

My budget has funded a responsible increase in our ongoing operations, it has funded our Nation's important priorities, it has protected Social Security and Medicare, and our surpluses are big enough that there is still money left over.

Many of you have talked about the need to pay down our national debt. I have listened, and I agree.

My budget proposal pays down an unprecedented amount of public debt. We owe it to our children and grandchildren to act now, and I hope you will join me to pay down $2 trillion in debt during the next 10 years.

At the end of those 10 years, we will have paid down all the debt that is available to retire. That is more debt repaid more quickly than has ever been repaid by any nation at any time in history.

We should also prepare for the unexpected, for the uncertainties of the future. We should approach our Nation's budget as any prudent family would, with a contingency fund for emergencies or additional spending needs. For example, after a strategic review, we may need to increase defense spending, we may need additional money for our farmers, or additional money to reform Medicare. And so my budget sets aside almost a trillion dollars over 10 years for additional needs ... that is one trillion additional reasons you can feel comfortable supporting this budget.

We have increased our budget at a responsible 4 percent, we have funded our priorities, we have paid down all the available debt, we have prepared for contingencies -- and we still have money left over.

Yogi Berra once said: "When you come to a fork in the road, take it." Now we come to a fork in the road. We have two choices. Even though we have already met our needs, we could spend the money on more and bigger government. That is the road our Nation has traveled in recent years. Last year, government spending shot up 8 percent. That is far more than our economy grew, far more than personal income grew and far more than the rate of inflation. If you continue on that road, you will spend the surplus and have to dip into Social Security to pay other bills.

Unrestrained government spending is a dangerous road to deficits, so we must take a different path. The other choice is to let the American people spend their own money to meet their own needs, to fund their own priorities and pay down their own debts. I hope you will join me and stand firmly on the side of the people.

The growing surplus exists because taxes are too high and government is charging more than it needs. The people of America have been overcharged and on their behalf, I am here to ask for a refund.

Some say my tax plan is too big, others say it is too small. I respectfully disagree. This tax relief is just right.

I did not throw darts at a board to come up with a number for tax relief. I did not take a poll, or develop an arbitrary formula that might sound good. I looked at problems in the tax code and calculated the cost to fix them.

A tax rate of 15 percent is too high for those who earn low wages, so we lowered the rate to 10 percent. No one should pay more than a third of the money they earn in Federal income taxes, so we lowered the top rate to 33 percent. This reform will be welcome relief for America's small businesses, which often pay taxes at the highest rate, and help for small business means jobs for Americans.

We simplified the tax code by reducing the number of tax rates from the current five rates to four lower ones: 10, 15, 25, and 33 percent. In my plan, no one is targeted in or targeted out ... everyone who pays income taxes will get tax relief.

Our government should not tax, and thereby discourage marriage, so we reduced the marriage penalty. I want to help families rear and support their children, so we doubled the child credit to $1,000 per child. It is not fair to tax the same earnings twice -- once when you earn them, and again when you die, so we must repeal the death tax.

These changes add up to significant help. A typical family with two children will save $1,600 a year on their Federal income taxes. Sixteen hundred dollars may not sound like a lot to some, but it means a lot to many families. Sixteen hundred dollars buys gas for two cars for an entire year, it pays tuition for a year at a community college, it pays the average family grocery bill for 3 months. That is real money.

With us tonight, representing many American families, are Steven and Josefina Ramos. Please help me welcome them. The Ramoses are from Pennsylvania, but they could be from any one of your districts. Steven is a network administrator for a school district, Josefina is a Spanish teacher at a charter school, and they have a 2-year-old daughter, Lianna. Steven and Josefina tell me they pay almost $8,000 a year in Federal income taxes; my plan will save them more than $2,000. Let me tell you what Steven says: "Two thousand dollars a year means a lot to my family. If we had this money, it would help us reach our goal of paying off our personal debt in two years." After that, Steven and Josefina want to start saving for Lianna's college education. Government should never stand in the way of families achieving their dreams. The surplus is not the government's money, the surplus is the people's money.

For lower-income families, my tax relief plan restores basic fairness. Right now, complicated tax rules punish hard work. A waitress supporting two children on $25,000 a year can lose nearly half of every additional dollar she earns. Her overtime, her hardest hours, are taxed at nearly 50 percent. This sends a terrible message: You will never get ahead. But America's message must be different: We must honor hard work, never punish it.

With tax relief, overtime will no longer be overtax time for the waitress. People with the smallest incomes will get the highest percentage reductions. And millions of additional American families will be removed from the income tax rolls entirely.

Tax relief is right and tax relief is urgent. The long economic expansion that began almost 10 years ago is faltering. Lower interest rates will eventually help, but we cannot assume they will do the job all by themselves.

Forty years ago and then twenty years ago, two Presidents, one Democrat and one Republican, John F. Kennedy and Ronald Reagan, advocated tax cuts to -- in President Kennedy's words -- "get this country moving again."

They knew then, what we must do now: To create economic growth and opportunity, we must put money back into the hands of the people who buy goods and create jobs.

We must act quickly. The Chairman of the Federal Reserve has testified before Congress that tax cuts often come too late to stimulate economic recovery. So I want to work with you to give our economy an important jump start by making tax relief retroactive.

We must act now because it is the right thing to do. We must also act now because we have other things to do. We must show courage to confront and resolve tough challenges: to restructure our Nation's defenses, to meet our growing need for energy, and to reform Medicare and Social Security.

America has a window of opportunity to extend and secure our present peace by promoting a distinctly American inter-nationalism. We will work with our allies and friends to be a force for good and a champion of freedom. We will work for free markets and free trade and freedom from oppression. Nations making progress toward freedom will find America is their friend.

We will promote our values, and we will promote peace. And we need a strong military to keep the peace. But our military was shaped to confront the challenges of the past. So I have asked the Secretary of Defense to review America's armed forces and prepare to transform them to meet emerging threats. My budget makes a downpayment on the research and development that will be required. Yet, in our broader transformation effort, we must put strategy first, then spending. Our defense vision will drive our defense budget, not the other way around.

Our Nation also needs a clear strategy to confront the threats of the 21st century, threats that are more widespread and less certain. They range from terrorists who threaten with bombs to tyrants and rogue nations intent on developing weapons of mass destruction. To protect our own people, our allies and friends, we must develop and we must deploy effective missile defenses.

And as we transform our military, we can discard Cold War relics, and reduce our own nuclear forces to reflect today's needs.

A strong America is the world's best hope for peace and freedom. Yet the cause of freedom rests on more than our ability to defend ourselves and our allies. Freedom is exported every day, as we ship goods and products that improve the lives of millions of people. Free trade brings greater political and personal freedom.

Each of the previous five Presidents has had the ability to negotiate far-reaching trade agreements. Tonight I ask you to give me the strong hand of presidential trade promotion authority, and to do so quickly.

As we meet tonight, many citizens are struggling with the high costs of energy. We have a serious energy problem that demands a national energy policy. The West is confronting a major energy shortage that has resulted in high prices and uncertainty. I have asked Federal agencies to work with California officials to help speed construction of new energy sources. And I have directed Vice President Cheney, Commerce Secretary Evans, Energy Secretary Abraham, and other senior members of my Administration to recommend a national energy policy.

Our energy demand outstrips our supply. We can produce more energy at home while protecting our environment, and we must. We can produce more electricity to meet demand, and we must. We can promote alternative energy sources and conservation, and we must. America must become more energy independent.

Perhaps the biggest test of our foresight and courage will be reforming Medicare and Social Security.

Medicare's finances are strained and its coverage is outdated. Ninety-nine percent of employer-provided health plans offer some form of prescription drug coverage ... Medicare does not. The framework for reform has been developed by Senators Frist and Breaux and Congressman Thomas, and now, it is time to act. Medicare must be modernized. And we must make sure that every senior on Medicare can choose a health plan that offers prescription drugs.

Seven years from now, the baby boom generation will begin to claim Social Security benefits. Everyone in this chamber knows that Social Security is not prepared to fully fund their retirement. And we only have a couple of years to get prepared. Without reform, this country will one day awaken to a stark choice: either a drastic rise in payroll taxes, or a radical cut in retirement benefits. There is a better way.

This spring I will form a presidential commission to reform Social Security. The commission will make its recommendations by next fall. Reform should be based on these principles: It must preserve the benefits of all current retirees and those nearing retirement. It must return Social Security to sound financial footing. And it must offer personal savings accounts to younger workers who want them.

Social Security now offers workers a return of less than 2 percent on the money they pay into the system. To save the system, we must increase that by allowing younger workers to make safe, sound investments at a higher rate of return.

Ownership, access to wealth, and independence should not be the privilege of a few. They are the hope of every American ... and we must make them the foundation of Social Security.

By confronting the tough challenge of reform, by being responsible with our budget, we can earn the trust of the American people. And, we can add to that trust by enacting fair and balanced election and campaign finance reforms.

The agenda I have set before you tonight is worthy of a great country. America is a nation at peace, but not a nation at rest. Much has been given to us, and much is expected. Let us agree to bridge old divides. But let us also agree that our good will must be dedicated to great goals. Bipartisanship is more than minding our manners, it is doing our duty.

No one can speak in this Capitol and not be awed by its history. At so many turning points, debates in these chambers have reflected the collected or divided conscience of our country. And when we walk through Statuary Hall, and see those men and women of marble, we are reminded of their courage and achievement.

Yet America's purpose is never found only in statues or history. America's purpose always stands before us.

Our generation must show courage in a time of blessing, as our Nation has always shown in times of crisis. And our courage, issue by issue, can gather to greatness, and serve our country. This is the privilege, and responsibility, we share. And if we work together, we can prove that public service is noble.

We all came here for a reason. We all have things we want to accomplish, and promises to keep. Juntos podemos, together we can. We can make Americans proud of their government. Together, we can share in the credit of making our country more prosperous and generous and just -- and earn from our conscience and from our fellow citizens, the highest possible praise: well done, good and faithful servants.

Thank you. Good night. And God Bless America.


PRESIDENT'S BUDGET PLAN: "A BLUEPRINT FOR NEW BEGINNINGS"--February 28, 2001

I. PRESIDENT'S MESSAGE

To the Congress of the United States:

With a great sense of purpose, I present to the Congress my budget. It offers more than a plan for funding the Government for the next year; it offers a new vision for governing the Nation for a new generation.

For too long, politics in Washington has been divided between those who wanted big Government without regard to cost and those who wanted small Government without regard to need. Too often the result has been too few needs met at too high a cost. This budget offers a new approach—a different approach for an era that expects a Federal Government that is both active to promote opportunity and limited to preserve freedom.

Our new approach is compassionate:

It will revitalize our public schools by testing for achievement, rewarding schools that succeed, and giving more flexibility to parents of children in schools that persistently fail.

It will reinvigorate our civil society by putting Government on the side of faith-based and other local initiatives that work—that actually help Americans escape drugs, lives of crime, poverty, and despair.

It will meet our Nation's commitments to seniors. We will strengthen Social Security, modernize Medicare, and provide prescription drugs to low-income seniors.

This new approach is also responsible:

It will retire nearly $1 trillion in debt over the next four years. This will be the largest debt reduction ever achieved by any nation at any time. It achieves the maximum amount of debt reduction possible without payment of wasteful premiums. It will reduce the indebtedness of the United States, relative to our national income, to the lowest level since early in the 20th Century and to the lowest level of any of the largest industrial economies.

It will provide reasonable spending increases to meet needs while slowing the recent explosive growth that could threaten future prosperity. It moderates the growth of discretionary spending from the recent trend of more than six percent to four percent, while allowing Medicare and Social Security to grow to meet the Nation's commitments to its retirees.

It will deliver tax relief to everyone who pays income taxes, giving the most dramatic reductions to the least affluent taxpayers. It will also give our economy a timely second wind and reduce the tax burden—now at the highest level as a percentage of Gross Domestic Product since World War II.

Finally, this new approach begins to confront great challenges from which Government has too long flinched. Social Security as it now exists will provide future beneficiaries with the equivalent of a dismal two percent real rate of return on their investment, yet the system is headed for insolvency. Our new approach honors our commitment to Social Security by reserving every dollar of the Social Security payroll tax for Social Security, strengthening the system by making further necessary reform feasible.

Medicare as it exists does not adequately care for our seniors in many ways, including the lack of prescription drug coverage. Yet Medicare spending already exceeds Medicare taxes and premiums by $66 billion this year, and Medicare will spend $900 billion more than it takes in over the next 10 years. Reform is urgently needed. Our new approach will safeguard Medicare by ensuring that the resources for reform will be available.

New threats to our national security are proliferating. They demand a rethinking of our defense priorities, our force structure, and our military technology. This new approach begins the work of restoring our military, putting investments in our people first to recognize their importance to the military of the future.

It is not hard to see the difficulties that may lie ahead if we fail to act promptly. The economic outlook is uncertain. Unemployment is rising, and consumer confidence is falling. Excessive taxation is corroding our prosperity. Government spending has risen too quickly, while essential reforms, especially for our schools, have been neglected. And we have little time before the demographic challenge of Social Security and Medicare becomes a crisis.

We cannot afford to delay action to meet these challenges. And we will not. It will demand political courage to face these problems now, but I am convinced that we are prepared to work together to begin a new era of shared purposes and common principles. This budget begins the work of refining those purposes and those principles into policy—a compassionate, responsible, and courageous policy worthy of a compassionate, responsible, and courageous Nation.

George W. Bush
February 28, 2001   
        


(EXCERPTS FROM BUDGET)

4. MODERNIZE AND REFORM SOCIAL SECURITY

For 65 years, Social Security has provided retirement security for tens of millions of Americans. Four generations of Americans have relied on the Government to keep the promises it made to them during their working years. As demographics change and costs increase, the challenge we face is ensuring that the Social Security system is strengthened for tomorrow's retirees.

The Need for Reform

Social Security's spending path is unsustainable in the long run, driven largely by demographic trends.

First, longer life spans mean more benefit payments. In 1940, during the early years of the program, life expectancy at age 65 was an additional 12 years for men and 13 years for women. By 2075, the remaining life expectancy at age 65 is projected to be 20 years for men and 23 years for women. As a result, people are spending a growing proportion of their lives in retirement. While longer life spans are clearly desirable, they also mean additional years of benefit payments, and a dramatic long-term increase in Government obligations.

In addition, a long-term decline in fertility rates means there will be fewer workers available to support each retiree once the baby boom generation starts to retire. As a result of declining birth rates and increasing life expectancy, the ratio of workers to Social Security beneficiaries is expected to shrink from 5.1 in 1960 to 3.4 today to 2.1 in 2030. These demographic trends will strain our ability to make benefit payments at current payroll tax rates.

The Social Security system faces a long-term unfunded liability of $8.7 trillion. In addition, the structure of Social Security leads to substantial generational inequities in average rate of return. (See Chart 4–1.)

graph of Social Security rates of return

Old Solutions and a New Approach

Without new thinking on Social Security reform, two old choices will soon present themselves. We can further reduce future retirees' returns from Social Security through benefit cuts or through tax increases. Or we can do nothing—inaction would simply mean leaving this problem for our children and grandchildren instead of addressing it for them now.

There is a better way to address both the long-term financial crisis and the generational inequities. Allowing individuals to keep some of their payroll taxes in personal retirement accounts to provide for their own retirement security can reduce the need for a rapidly growing Government outlay by creating opportunities for younger workers to enjoy the fruits of higher rates of return in private equity markets.

Principles for Reform

Modernization must not change existing benefits for current retirees or near-retirees, and it must preserve the disability and survivors' components. The promises made to current retirees must be kept.

The Social Security surplus must be preserved only for Social Security. For 30 years, Social Security surpluses have been used to mask spending increases in programs unrelated to Social Security. Surpluses in the Social Security Trust Funds will total $2.6 trillion over the next 10 years. These surpluses will be saved for Social Security reform and will be used to reduce debt held by the public until Social Security reform is enacted.

Social Security payroll taxes must not be increased, as they have been 20 times since the program began in 1937.

The Government itself must not invest Social Security funds in the private economy.

Successful Social Security reform, which addresses both the long-term unfunded liability and the generational inequities, must be built upon a core of individually controlled, voluntary personal retirement accounts that will augment the Social Security safety net.

The Benefits of Personal Retirement Accounts

Personal retirement accounts, which would be voluntary, would enable individuals to build financial wealth and security in a way that the current Social Security system does not. Personal accounts invested in safe private financial markets will earn higher rates of return than the traditional system and help workers enhance their personal savings and their freedom to retire. Ownership of a real financial asset without the political risk of future changes would mean more security for working Americans to build their own retirement assets, and to pass those assets on to their children.

A balanced portfolio of stocks and bonds can, in the long run, yield almost a 5.5 percent real rate of return. Even a portfolio of inflation-adjusted Government bonds yields a 3.0 percent real rate of return. Both are significantly better investments than those implicit in the current Social Security system, which, for many younger workers, could ultimately result in a negative rate of return.

This higher rate of return, through individually controlled investments in private debt and equity markets, is the key to the success of personal accounts. A two to four percentage point differential, compounded over time, means greater retirement security than under current law.

The long-term fiscal challenge facing the Social Security system, and the generational inequities inherent in that system, drive the need for reform. Reform is significantly easier to implement if done far in advance, so that individuals and families have time to adjust their retirement plans, and so that changes can be phased in slowly over time. Reform based on personal accounts presents a tremendous new opportunity to enable individuals to build financial wealth and security, while reducing the twin problems of fiscal imbalance and generational inequity.

5. MODERNIZE AND REFORM MEDICARE

Like Social Security, Medicare represents a promise that the Nation has made to its senior citizens—a promise that we have an enduring obligation to keep.

With this Congress, the executive and legislative branches and both political parties will take a first step towards restoring the strength of this promise not just for years to come, but for generations to come.

Modernizing and saving Medicare must rank among the most urgent priorities in an era of common purpose.

Promises to Restore

Following Congressional passage of Medicare in 1965, President Lyndon Johnson said: "No longer will older Americans be denied the healing miracle of modern medicine." Yet today, in many ways, Medicare no longer keeps pace with modern medical advances. Although Medicare coverage of preventive care services has been significantly expanded over the past five years, Medicare still offers a benefit package based on the most popular Blue Cross/Blue Shield package of President Johnson's era—a standard of excellence at the time that is inadequate today. And for many seniors, Medicare does not offer coverage choices that many of the privately insured have become accustomed to receiving.

One of the largest flaws in Medicare coverage today is its failure to cover outpatient prescription drugs. Approximately 98 percent of private health insurance plans offer a prescription drug benefit or a cap on out-of-pocket expenses as an integral part of the benefit package. Private health insurers recognize the important role of drug therapy in medical care. Drugs can often be cost-effective therapies preventing the need for more expensive hospitalizations or other intensive therapies.

The need for Medicare reform does not relate only to the financial condition of Medicare or the lack of adequate coverage. Of perhaps equal concern is the complexity and inflexibility of the Medicare bureaucracy itself. The current system, with ever increasing pages of regulations, administrative guidelines and other endless directives issued on a monthly basis, leaves providers and beneficiaries often bewildered and frustrated. The current system is too complex, too centralized, and becoming more so each year. Burdensome regulations and other central directives force providers to take time away from patients to comply with excessive and complex paperwork.

Excessive administrative complexity also makes Medicare prone to fraud and abuse. In 1999, the HHS Inspector General determined that Medicare made more than $13 billion in improper payments. Given the complexity of Medicare, it is often difficult to determine where honest mistakes end and fraud begins. The GAO concluded as recently as January 2001 in its High-Risk Update that the Health Care Financing Administration (HCFA) "lacks sufficient information on newly designed payment systems to determine whether providers are being paid appropriately for the services they deliver."

Sustaining the Medicare program for future generations of beneficiaries will require an honest and forthright effort by the Federal Government to address these problems. Reforming Medicare will also require reforming HCFA. This will include employing every strategy appropriate to enhance quality health care options for beneficiaries rather than relying on increasingly punitive regulations, arbitrary and multiple pricing systems, and delays to maintain the status quo.

How Outmoded Has Medicare Become?

Today, Medicare covers only 53 percent of the average senior's annual medical expenses. The current Medicare program is burdened by horrific bureaucratic complexity and operates in a non-competitive, inefficient manner. In addition, the program lacks the flexibility to operate differently.

Medicare fails today's elderly patients in other ways:

  • The preventive care services offered under Medicare, while greatly expanded, are still insufficient to help seniors remain healthy, and therefore avoid more expensive care later;
  • Routine services such as annual physicals, vision tests and hearing aids are not covered;
  • It is not coordinated with the employment-based health insurance system, providing disincentives to continued work;
  • It has a fee-for-service cost-sharing structure that still leaves seniors vulnerable to high costs, and is less effective than necessary in ensuring good use of care; and
  • It currently maintains separate trust funds, one for inpatient hospital and post-acute care, and one for physician fees and other outpatient costs. This separation may lead to misleading assessments of Medicare's financing and reflects a different era of medicine.

Financial Reasons for Reform

In addition to the way Medicare fails to provide the care seniors deserve, there is irrefutable evidence that Medicare's finances are headed for bankruptcy.

Like Social Security, Medicare's long term financing is driven by the significant demographic trends that will begin taking shape in about 10 years. (See Chart 5–1.)

graph of aging of population

  • Between 2010 and 2030, the number of persons age 65 and older will increase from 39.7 million to 69.1 million. That's an average of one and a half million more seniors per year for 20 years.
  • During that same period, the Medicare actuaries project Medicare spending will increase from $324 billion to $694 billion, in constant 2000 dollars.
  • This shift in demographics will begin with retirement of the baby boom, but it will not end there.
  • The great advances in health and well-being of the 20th Century will lead to significant increases in the average life span in the 21st Century.
  • Demographers now project that persons born in 2000 will live, on average, to age 76, up almost six years compared to people born in 1970.
  • As a result, there is projected to be a permanent shift in the ratio of workers to Medicare beneficiaries, from 4.0 workers today to 2.3 in 2030 and 2.0 in 2070.

These demographic trends will dramatically change spending for both Social Security and Medicare, but the problem is likely to be even more pronounced in Medicare due to the expected increases in health care costs per beneficiary. Medicare per capita spending is projected to vastly outpace the consumer price index for the next 25 years.

These demographic trends are impacting the Medicare program as a whole, making it critical to focus on the solvency of Medicare in its entirety.

While it is true that the Hospital Insurance Trust Fund is projected to have a surplus over the next ten years, it is misleading to focus so much attention on only one of the program's two trust funds representing only 60 percent of total Medicare spending.

A full assessment of Medicare's finances reveals spending exceeds the total of tax receipts and premiums dedicated to Medicare today, and that "financing gap" is projected to widen dramatically. This gap is $51 billion in 2000, growing to $216 billion (using constant dollars) in 2020, and $368 billion in 2030. Not only is there no surplus in Medicare today, there is a large deficit. (See Chart 5–2.)

Even without the large financing problem, Medicare modernization would be necessary to ensure beneficiaries get high quality health care. But the looming financial shortfall makes reform even more urgent. To be successful, reform must substantially improve Medicare's long-term financing.

The President's Approach to Improving and Strengthening Medicare

Coupled with a systematic effort to change the outmoded Medicare program and its administration, the budget will devote $156 billion this year and over 10 years for urgently needed Medicare modernization, including providing for an integrated prescription drug plan.

The President plans to reform Medicare based on the following principles:

    Medicare's current guarantee of access to seniors must be preserved;

    Every Medicare recipient must have a choice of health plans, including the option of purchasing a plan that covers prescription drugs;

    Medicare must cover expenses for low-income seniors;

    Reform must provide streamlined access to the latest medical technologies;

    Medicare payroll taxes must not be increased; and

    Reform must establish an accurate measure of the solvency of Medicare.

Medicare Outlays vs. Medicare Tax Receipts and Premiums

The President's Proposal: Immediate Helping Hand

Until Medicare reform is enacted and implemented, the President is proposing a program to give immediate help to our neediest seniors.

The President believes it is essential to get help to seniors now. He believes it is equally essential for the Administration and both parties in Congress to work together to make certain that Medicare reform produces a better program that is financially sound.

The President's program includes:

  • Immediate Helping Hand funds that will go to States to offer quick, short-term assistance for low income seniors to cover all or part of the cost of prescription drugs, and catastrophic drug coverage for all seniors;
  • Prescription drug coverage to seniors whose incomes are at or below 135 percent of the poverty line for no premium and nominal co-payments. The President's proposal also provides partial coverage for those with incomes between 135 percent and 175 percent of poverty; and
  • Funds for States to provide catastrophic coverage for all seniors with over $6,000 in out-of-pocket drug costs per year. (See Chapter 13, "Invest in Health Care" for a more detailed description.)


(SELECTED BUDGET TABLES)

Table S–3. Budget Summary 1

(In billions of dollars)


Estimate

Total
2002-
2011












2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011


Outlays:

  Discretionary

649

692

708

727

751

769

787

811

834

861

880

7,819

  Mandatory:

    Social Security

430

451

474

498

524

553

584

618

656

698

744

5,800

    Medicare

216

226

239

252

279

292

314

336

358

384

419

3,100

    Medicaid

129

142

153

166

181

196

214

232

253

275

298

2,109

    Other mandatory

226

259

263

267

285

284

296

312

323

336

349

2,973

 

  Subtotal, mandatory

1,001

1,079

1,128

1,183

1,269

1,325

1,407

1,498

1,591

1,693

1,810

13,982

  Net interest

206

188

175

161

144

127

108

90

69

45

20

1,127

 

Total outlays

1,856

1,959

2,012

2,071

2,164

2,221

2,302

2,398

2,493

2,600

2,709

22,929

Receipts

2,137

2,190

2,258

2,339

2,436

2,528

2,643

2,770

2,905

3,059

3,233

26,362

 

  Unified surplus

281

231

246

268

273

307

341

372

412

459

524

3,433

  On-budget surplus/contingency

124

60

53

57

36

55

71

84

109

136

181

842

  Off-budget surplus

157

171

193

211

237

252

270

287

303

323

343

2,591


  1 The actual amount of annual debt retirement will vary depending upon the availability of eligible redeemable debt, and the use, if any, of the contingency reserve.


Remarks by the President in Small Business Roundtable -- February 28, 2001
Control Concepts
Pittsburgh, Pennsylvania


9:35 A.M. EST


Q What a distinct honor and privilege to have you here today.

I guess I have to open up with a tough question. I have a four-year-old daughter and a two-year-old daughter who are out here in the crowd. My four-year-old wants to know the name of your puppies. (Laughter.)

THE PRESIDENT: Let me see if I can get it right. (Laughter.)

We're the proud owner of Spot. She was born in the White House in 1989 to Millie. (Applause.) On November the 4th, I was campaigning in New Jersey. It happened to be my wife's birthday. And the then governor of New Jersey said, well, Governor, what did you buy your wife for her birthday. I said, nothing, which wasn't the right answer. (Laughter.) Certainly not politically correct, as they say.

It then happened that Laura and Christie Todd started talking about the fact that Christie Todd raises Scottish terriers. It turns out I did buy my wife something for her birthday, a Scottish terrier named Barney, who is having a heck of a time on the carpet upstairs in the White House, by the way.

I think the answer is Spot and Barney -- (laughter) -- and one cat named India.

Q Thank you, sir.

I would like to say a little bit about Control Concepts, who we are and what we do. We are a manufacturer of industrial electrical switches for heavy-duty machinery. We have been in business since 1976, when the company was founded by my father in 1976. I am second generation in the business.

The electrical switches that we manufacture are used in things like food processing industry, the package industry, the machine tool industry, petrochem facilities, offshore oil rigs, et cetera, and they are used to basically start or stop a piece of equipment or have an indicator light on it that will indicate the status of what a machine is in.

We do something a little unique in our industry, especially for a small to medium-size company, where we actually manufacture every single thing here under one roof. Now, we don't make light bulbs and we don't make the raw materials, but we actually manufacture our own tools, dies and molds to do our own injection molding, do our own assembly. Everything, you name it, it is done here under this roof and we can control the quality of the product that way, we can control the quality of the service and the delivery of the product -- ship every order the same day we receive it 95 percent of the time. And we also control the cost and pass on a significant cost savings to our customers.

As a small to medium-size business, a capital intensive kind of business, we were very interested to hear your budget proposal in your tax plan last night. It appears that it is going to be of great benefit to Control Concepts and hopefully of great benefit to the rest of the nation and to small companies across the nation.

THE PRESIDENT: Well, thank you, sir.

I want to thank you all for having me. First, the greatness -- this country's greatness is because there are a lot of entrepreneurs in America, and you are an entrepreneur. And I'm honored to be sitting next to you and your son.

I love the concept of a family-owned business, the idea of a mom and her son working together to not only produce a product but, more importantly, to employ capital so people can find work. After all, small businesses are the main creators of jobs in America. And all public policy and tax policy must work to create an environment in which entrepreneurship can flourish.

So my speech last night was speaking not only about a budget, but was also talking about the entrepreneurial spirit in our country. And one of the reasons we came here is because the entrepreneurial spirit is alive and well here and I appreciate it very much. (Applause.)

It is important to remember the role of government is not to create wealth. The role of government is to create an environment in which businesses, small and large, can flourish. That's the role of government. (Applause.)

I want to thank my friend the governor of Pennsylvania for being here. We hosted the governors at the White House last Sunday night. It happened to be the first lady of Pennsylvania's birthday as well. And it was good to see you, Tom. Thanks for coming. (Applause.)

Pennsylvania is well represented in the United States Senate by two very capable, smart, concerned Pennsylvania citizens. So concerned we spent most of the flight from Washington to Pennsylvania talking about how to make the economy of Pennsylvania a better place. Senator Spector and Senator Santorum are not shrinking violets when it comes to making the case for the citizens of Pennsylvania and the country. I want to thank you all for traveling with me. (Applause.)

Finally, a freshman, just like me, Melissa Hart. And Melissa is an active soul -- (applause).

I appreciate you giving me the chance to explain the rationale behind my budget. It was very important for people to hear that what I think is -- what I know is true, and that is we've got a lot of cash flow coming into the U.S. Treasury. And the fundamental question is what to do with it. How best can we spend the people's money?

Last night I made the case that our nation can achieve the following priorities: One, set aside all payroll taxes that are designed for Social Security to be spent only on Social Security. That is $2.6 trillion over the next 10 years will be set aside to be spent only -- only -- on Social Security. I believe there's wide consensus on both sides of the aisle that that is prudent fiscal policy.

Secondly, I made the case that we can prioritize and fund Medicare for our senior citizens, that we're going to spend -- we're going to double the Medicare budget over the next 10 years. And if we have the right kind of leadership in the Congress, someone willing to -- people willing to work with the President to reform Medicare, we will not only have money to fund Medicare, we will have a Medicare system that will enable seniors to choose the health care plan that meets their needs, all of which will include prescription drugs.

I made the case that we can meet our needs by funding what's called discretionary spending at a 4 percent increase. Some says 4 percent sounds like a small number, but I want to remind you it's greater than the rate of inflation.

It is less than what Congress spent during the last three session, I readily concede. But we've got to be careful about over-spending in Washington, D.C. We shouldn't have bidding contests in Washington. What we ought to have is rewards for people who are concerned about over-spending, it seems like to me. And so I propose increasing the discretionary spending at 4 percent.

It means, for example, that public schools will get a significant increase in spending out of the federal government. Now, having said that, I promise you I will stand tough to the principle that we ought to run our schools locally -- that local control of the schools -- (applause.) We've got to run our schools locally in order to achieve excellence for every single child.

We need to pay our soldiers more money. (Applause.) But before we spend a lot of money on the Defense Department, it seems wise -- and I think business people will agree with this -- that we ought to have a strategy about what our military ought to look like in the long-term. We've got to make sure we have a proper strategy on how to prioritize our military spending before we do so.

There is still money left in the budget, after growing discretionary spending by 4 percent, after funding the entitlement programs, after meeting priorities. Over the next 10 years, we set aside a trillion dollars for what I call contingencies, a trillion dollars in case we need money for additional Medicare spending or military spending or spending on farmers in America. So there is money set aside for that and there is still money left over.

Now, the debate always seems to come out of Washington that if you have tax relief, somebody is not going to get their Medicare check. Or, if you have tax relief, somebody is not going to get a Social Security check. My point to you is that we set priorities and fund them. We protect Social Security and Medicare and fund them. We spend money on the military to keep the peace. We set aside contingencies, money for contingencies, and there's still money.

And what I want to do is to remind Americans -- this is why I've come to Western Pennsylvania -- remind Americans that the surplus is your money, it is not the government's money, and once -- (applause).

One reason Dave and Janet sit here is because I think it is very important for people to know that behind every statistic there are Americans who -- in whom we ought to place our trust. These good folks pay $4,400 in federal income taxes. Under the plan I proposed last night in the Congress -- which doubles the child credit from $500 to $1,000, reduces all rates for everybody who pays taxes, drops the top rate from 39 to 33, reduces the bottom rate from 15 to 10, reduces the effects of the marriage penalty, eliminates the death tax -- these good folks will save $1,980.

Now, for a lot of folks, they'll yawn and say, gosh, that's $1,980, that's really nothing. We disagree. We disagree -- $1,980 a year can make a big difference to people who are raising two lovely children, to people who want to set aside money for savings. It is so important for members of the Congress to realize what the average citizen is going through today.

When you couple high energy prices with consumer debt, there's a lot of good folks who struggle in America. And it seems like to me the right thing for Washington to do is, once we fund our priorities, enhance the cash flows of the people who pay the bill in the first place in America. (Applause.) In so doing, not only do we help working Americans, but we also will add a second wind to an economy that is slowing down.

I come from the school of thought, I know many of you do as well, that sound fiscal policy, coupled with sound monetary policy, is going to make a difference in this economy; that by giving people their own money back will be a part of sound fiscal policy. The more money you have to spend, the more money circulating, the more likely it is the economy will recover. And all of us in Washington must do everything we can to make sure that the economy is strong enough for people to be able to keep jobs and find work, if they're looking for work. That's the whole purpose of economic growth, is for people to be able to find work.

I'm so thankful that you gave me a chance to come to make my case. I can't think of a better place to make the case than in a business run by a family, a business run by entrepreneurs, a business who care more about their employees than they do about themselves because they recognize if the employee is happy, an employee can work, an employee is satisfied, that the business it self will run well.

It's my honor also to be here with Dave and Janet and Erin and Jonathan -- Americans who, under our plan, will receive real, tangible benefits. But that's not really the right way to say it, is it? It's your money to begin with. Americans under our plan will keep more of their own money so they can spend it where they see fit.

Thank you very much. (Applause.)

Q Thank you, Mr. President.

Dave, would you like to tell the President how you started here at Control Concept?

MR. BERGER: Yes, I would. About 10 and a half years ago, I was out on the golf course with the founder of the company, Glen Taylor. And he knew I went back to college recently. And he was always asking me when I was going, how is it going, and I'd say, oh, not too bad. I was 33 at the time. I was working at Westinghouse and got laid off, and really basically decided what are we going to do from here on in.

And after a while, I guess Glen was watching me for over a year or so -- he called me in after we got some things --- he says, I own a small business. He said, I'm thinking of adding a position down there that you could get into. He said, why don't you come down and take a look.

So I came down and looked around at Control Concepts. It was really small at the time. The dog ran out at you whenever you walked anywhere. (Laughter.) And barked at you. And I said, oh, boy. Walked in, talked to Glen, he gave me the tour. He showed me, and he asked, well, what did you think? And I had good feelings about this place. It was a homey feeling. Everybody stopped and said, hi, how are you doing, introduced themselves, showed me what they were doing, explained a little bit about their job. And I know they weren't told about it, they just naturally volunteered the information. And over the 10 and a half years since I've been here, the company has grown enormously. It's been a great 10 and a half years. I hope it's another 20 and a half years.

THE PRESIDENT: I'll give you a loaded question. Do you want some tax relief? (Laughter.)

MR. BERGER: All you can give. (Applause.)

THE PRESIDENT: You know, I'm constantly amazed that -- first of all, one of the things that happens when you talk about tax relief, people immediately go to the class warfare argument, the only the rich people will benefit, which obscures reality, and reality is, $1,980 is a lot of money. And I'm not going to ask you what you're going to do with it, because I trust you to do the right thing with it. Frankly, it's none of the government's business about what you decide to do with your own money. (Applause.) But I bet it may have something to do with your children's future education, for example.

MR. BERGER: Yes, it will. My wife would like to talk about her job, and also how that might affect her thoughts on that amount of money.

MRS. BERGER: I'm an administrative technician at Medical Center Beaver, and I've been there almost 20 years. And I worked in -- where we do all of the pre-op testing and patient education for patients having surgery in the near future. I get to talk a lot with patients on anything, and I'm very glad -- and they are very glad that -- especially senior citizens -- that you're discussing their health care needs.

THE PRESIDENT: Yes. Well, we're concerned, all of us are concerned about making sure that Medicare fulfills the promise to our seniors. It is a solemn obligation that the federal government has assumed, and it's a solemn obligation that the federal government will keep.

And there will be a lot of discussion, a lot of argument and we're going to end up with reform that will make the system solvent and give seniors a variety of options and a plan that meets their needs, all of which will include prescription drugs. And it's going to be a titanic struggle. But it's one that, with the right leadership and the right tone in Washington, D.C., people I think are going to be able to come together on, and I think we'll get something done.

Q And on a personal note, I'm glad to hear that your tax reform will refund almost $2,000 for our family for education and our needs.

THE PRESIDENT: Well, thanks. I -- let me talk about a couple of aspects of this tax relief plan that I want to explain to you.

First of all, I believe that the government should not decide, oh, you get tax relief and you don't get tax relief. To me, the best tax policy is to treat everybody fairly and to say if you pay taxes, you get relief. (Applause.)

Secondly, it is very important to understand that the tax code is unfair for people at the bottom end of the economic ladder. If you're say a single mom struggling to get ahead in life and you're making about $22,000 a year, as she begins to earn additional money, she loses earned income tax credit, she pays payroll taxes and she pays income taxes, which means that every additional dollar above a level of $22,000 is taxed at nearly 50 percent. That's the way this tax code is structured.

It means that folks who struggle to get to the middle class pay a higher marginal rate than someone who is successful, someone who has got quite a bit of cash flow, and that's not fair.

Part of the tax relief package has got to be aimed at making the code easy to understand and fair. One thing our country is known for is being a fair country. Another thing we ought to be known for is we want people to succeed and the code ought to reward success.

Secondly, a lot of small businesses, as I mentioned earlier, these small businesses provide, by far, the vast majority of new jobs in America. And dropping the top rate will serve as a catalyst to attract capital to small businesses. Many small businesses are unincorporated small businesses; many are what's called Subchapter S businesses, and they pay the high rate. And by dropping the rate it will provide capital for small business expansion. And that's very important for this country. And I know the rhetoric will be, oh, he's focused on the billionaires and all that business. That's called class warfare. The truth of the matter is, this plan is aimed at helping small businesses flourish and grow and succeed.

It is important for America that the small business person remain vital and healthy. And so this is a plan that is well-thought-out. It is -- I found it interesting during the course of the speech last night, I said, some think it's too big -- and of course, those who thought it was too big cheered -- and some think it's too little -- and they cheered. Of course, I thought it was just right. (Laughter and applause.)

Let me say that part of my job as President, as well -- I might as well be just very up-front -- is to travel the country ginning up support for this plan. And that's why I'm here. I would hope that you would not only contact your immediate representatives -- I don't think you need to in the case of the three here (laughter) -- but I would hope that if you find others that may be reluctant to listen to what we have to offer -- and I say "we" because this is a plan that really is aimed for people -- that you'd help, that you would write, that you would e-mail , that you would call folks to encourage them to be open-minded and to think about you when they cast votes.

And this is a plan that will benefit hard-working Americans. I find it such an honor to be your President, and I love traveling the country to go out and -- I'm going from here to Nebraska and Iowa and Arkansas and Georgia. And it is exciting because this is a great country, made great by the fact that it's got such wonderful people. And it's so important for all of us who have the honor of representing you to have public policy in mind that makes lives easier. And this series of initiatives that we're going to be debating over the next months will be aimed, if it's done right, at easing the burden of the working people in the country. And America will be even stronger as a result.

So it's an honor to be here. (Applause.)

Q As a business center, we couldn't agree more -- marginal tax rate is increased. Not only is it good for the economy now to give a jump-start again, it's good for the employees who are able to take that money and do with it as they please, whether it be in education, or back into the economy. But as a business owner, if the marginal tax rate can be decreased, we now have more positive cash flow. And as a result of that more positive cash flow, we can reinvest back into technology, into equipment, into product development, sales and marketing. All those things will help grow our business from a sales revenue standpoint.

And as our business grows, we're now able to have more jobs. Job employment will increase. As a result of that, there is going to be more money back into the economy. So not only does it help our business, it helps most small businesses across the country and the economy as a whole. So we are very thankful and we're looking forward to this plan.

The other thing, Mr. President, that we're interested in hearing about, too, and we're excited about is the long-term debt reduction. What a great thing for this economy, not just for the economy as a whole, but also for individuals and small businesses as well.

THE PRESIDENT: I appreciate you bringing that up. We have set aside $2 trillion over the next 10 years to pay down debt. Now, people say, well, why don't you pay all the debt off. The one reason why you don't pay all the debt off is because at the end of 10 years, a number of bonds will have not matured. It does not make economic sense to pre-pay American debt that will cost American taxpayers a premium to do so.

And so we pay down all available debt, all the debt that matures will be paid off. And it's going to ease the interest burden on the country. It makes fiscal sanity and sense to do so. And there's ample cash flow to be able to meet the debt requirements, and put aside a contingency fee, and provide tax relief.

I urge the Congress to be cautious about over-spending. The rate of spending increased last year by 8 percent. That is a significant number, particularly when you're talking in terms of trillions. And there was something like over 5,000 one-time expenditures in the budget at the end of the year. And so we're going to have to work with the appropriators to say, let's be reasonable about how we spend the people's money.

A sure way to make sure this economy gets drug down is to over-spend. A bloated federal government will affect economic vitality. And so it's going to require a lot of us working together to say, well, wait a minute, it's important to set priorities. One thing business owners learn how to do is how to prioritize and then have the discipline necessary to meet priorities.

So I appreciate you bringing up the debt retirement, and it's an issue that I'm confident we can work together on. It's just important for people to know that it's only wise to pay down a certain portion of the debt before it costs taxpayers an additional premium. And that doesn't make any sense. It doesn't make any sense to do that. (Applause.)

MR. BERGER: The education reform that you stated last night -- as a parent, Janet and I were very interested in that. We have two reasons sitting out in the audience right there. We were impressed that you were going to increase spending for children's reading.

THE PRESIDENT: I am. You all know I used to be a governor, and therefore, I'm a little suspect about federal involvement in any way, shape or form in education. I do, however, think that it is appropriate for the federal government to spend money, so long as it's spent wisely. I can't think of anything more important than to increase the amount of money available at the federal level for reading programs -- so long as the strategy makes sense.

And there has been a lot of thought and a lot of research about what works. A lot of programs in states, you know, abandoned the concept of phonics and, as a result, many children weren't learning to read.

The reason I bring that up is I want to reinvigorate the curriculum debate, all based upon -- the conclusion of which we based upon a simple concept: If it works, use it. So part of the reading initiative is to encourage people to analyze the facts about reading.

Secondly, I strongly believe in diagnosis. And I believe we've got to measure children. And I believe we've got to measure children to make sure that not any children get left behind. And that includes K through 2 little children. We ought to develop a reading diagnostic tool that can be easy to administer but point up where there are some reading deficiencies that need to be corrected early before it's too late. That is a very feasible and logical approach to reading.

Finally, I know we need to retrain teachers. Part of the failures in our society thus far have been that some teacher colleges -- I'm certainly not accusing any here in the state of Pennsylvania -- that have not taught teachers how to teach reading. And if that be the case, we need to retrain teachers in the science of reading, so they can teach reading. So I believe this makes sense, the initiative. (Applause).

I used to be a business person. As a matter of fact, I was in a business where the results were posted every day. It's called baseball. Generally, the results weren't all that good. (Laughter.)

So I understand when the president of a company says, what is the bottom line. It is a philosophy to which I adhere. I ask the question, are the children learning? And if we spend federal money, particularly on disadvantaged children, the debate ought to be not whether or not we ought to spend money on disadvantaged children; the debate ought to be, are we getting our money's worth?

I believe every child can learn. I refuse to accept excuses that there are certain children who can't learn; therefore, let's don't measure or let's just move them through the system.

And so therefore, I'm asking Congress to say -- to enact this reform. If you receive federal money, you the state of Pennsylvania or the state of Texas or any other state, must devise and implement an accountability system that determines whether or not children are learning basic English skills and math skills. That's what we want to know. Accountability becomes the whole cornerstone for reform.

Without measurement, we're just guessing. With measurement, it would enable policymakers and educators to devise programs that will meet needs. You don't know if you don't measure. And so the crux of the reform is that we do spend some more money, and that's fine. But money alone is simply not the answer. There must be reform. There must be a system in place that creates the incentive for people to change when there's failure and to address problems early before it's too late. It's the whole cornerstone of what we're trying to do.

The state of Pennsylvania can design the remedies. They can design what remedies will ultimately make a difference in terms of creating educational excellence. The federal government ought to be focused on some targeted spending, but also understanding that systemic reform will yield positive results for children from all walks of life. It is an incredibly important debate that is taking place in Washington.

You will hear much of the dialogue that will be all focused on dollars. That's an important part of the debate. But the truth of the matter is that federal government only funds about 7 percent of the education budgets in aggregate across the nation. Most funding, as you well know, in Pennsylvania comes from either state government or local property taxes. And that's where the power ought to be. It ought to be closest to the people who are paying the bills in order to make sure that schools chart the path to excellence necessary so every child learns.

But at the federal level, we can institute structural reform or insist upon changes that will eventually yield to structural reform, and that's what the whole educational debate is about, and it's an important debate in America and I'm really glad we've engaged early on that subject in the Senate and the House. We've got more than one. (Applause.)

MR. TAYLOR: Education is also very important to me. As I had mentioned earlier, I have two small children. And as they grow up, we need to have some type of accountability so that they are learning the reading and writing skills necessary.

THE PRESIDENT: It starts with you, however, as you know -- (applause).

MR. TAYLOR: By the way, just like you, I also married a teacher.

THE PRESIDENT: Did you? Good.

MR. TAYLOR: My wife's mother had started a reading program here in the local Beaver community several years ago. She passed away two years ago, unfortunately, but I think it does support greatly your idea that the local government and the state governor are the ones who should support. They know what's best for the children in the area.

THE PRESIDENT: Amen.

MR. TAYLOR: And it is still a thriving reading program.

Would you like to describe maybe how the company got started, so he has a little more background on Control Concepts?

MS. RENNINGER: Before I got into the company, I also was a former teacher. So I --

THE PRESIDENT: You did a pretty good job teaching this guy, didn't you?

MS. RENNINGER: Well, I have two other sons, I have to mention their names, Greg and Gary. And Gary is in the audience today. And I applaud you on this support that you have for the education. It's certainly an investment into the future.

Twenty-five years ago, my husband had a dream. He decided that he needed to start up his own company. Well, he was the visionary, he was the genius. I was the woman behind the man. And the plastic would go into the oven to dry before dinner could get ready. And then we would have dinner or I'd throw a load into the laundry -- but, believe me, we've come a long way since then. Back in 1996, my husband passed away suddenly. That left a business that needed to be taken care of, and employees that needed to be mothered and fathered at that point. We all needed to be nurtured. And that's what we've done. We are a family of employees. (Applause.)

My son and I pulled ourselves up by the bootstraps and within less than a week we were back in the office and assuming our positions, me as CEO and Jeffery in the position that he is now.

We've been able to continue. It's been a dynamic growing business. We are excited, and so are the employees. We try and return as much as we can to the employees because they are such an important part of our business. When we received last fall the entrepreneurial award for the county, this was due to my husband, my son, and also the employees, because Control Concepts is nothing without all of us working together.

And again, I applaud you on your plan for small business because this is how we have grown. It took a lot of risk, a lot of hard work, a lot of love for employees and their love for us. But we work together, and this is what we hoping to return -- because with that, they will not only return to the employee, but the community and to the nation. (Applause.)

THE PRESIDENT: Well, it looks like Jeff and I did a pretty good job in picking our own mothers. (Laughter and applause.)

Q Mr. President, thank you very much. Our business over the past 10 years has continued to grow, and it started when your father was in the position you are now. We are excited about it, excited that your budget plan, your economic plan is going to bring the wealth and keep the wealth here in the United States and bring prosperity to all Americans.

So thank you very much for being here. We have opened up our house to you, of all of our employees. So, thank you, everyone. (Applause.)

END 10:15 A.M. EST

 


Remarks by the President at Nebraska Welcome -- February 28, 2001
Omaha Civic Center
Omaha, Nebraska

Listen to the President's Remarks


1:46 P.M. CST


THE PRESIDENT: Thank you all. (Applause.) Thank you very much. (Applause.) I'm glad I came. (Applause.) I'm not saying I don't like my new address, I do. But it's good to get out in the countryside, too. (Applause.) It's good to get out so I can shake hands with the folks that make America work. (Applause.) It's good to get to the heartland. (Applause.) Where people proudly stand on values of faith and family. (Applause.)

I'm honored you'd invite me. I'm glad I came. Mr. Mayor, thank you for your friendship. It's great to be here with the Governor and First Lady of the state of Nebraska, two fine people. (Applause.) And two good friends of Laura and mine.

It's also a thrill to travel from Washington with two fine United States Senators. (Applause.) Senator Hagel -- (applause) -- and Senator Nelson. (Applause.) The good thing about these two Senators is this: I know I'm going to be able to count on them in the pinch. (Applause.) I know when it comes to doing the right thing, they'll listen to the people of Nebraska. (Applause.)

I'm also honored to be traveling with the Congressman Lee Terry. He's a good, solid man. (Applause.) I'm proud to be on the stage with three Iowa Congressmen. And I appreciate you relaxing your border standards to let them in. (Laughter.) The Lt. Governor is here. My fellow citizens, it is an honor to be your President. (Applause.)

I'm proud to call 1600 Pennsylvania Avenue home. And so is the First Lady. (Applause.) And I was proud to stand up in front of the United States Congress last night to bring a message of the American people, a common-sense message, a message of budgets and priorities. I truly felt like I was representing you when I talked about fiscal sanity and talked about the need for our government to set clear priorities.

One of our priorities in the budget and one of our national priorities must be to make sure that every child -- I mean every child -- gets educated in the great land called America. (Applause.) Even though I have a Washington, D.C., temporary address, I want you to know I strongly believe in local control of schools. (Applause.) I believe the people who care more about the children of Nebraska are the citizens of Nebraska -- (applause) -- and we must work together, the Congress and the Executive Branch must work together to pass power out of Washington to provide flexibility at the local level. One size does not fit all when it comes to educating the children of our country.

I want to insist that we spend more money on programs like reading initiatives, an initiative that will help all children learn to read, an initiative that will be based upon the fact that reading is a science and we must use curriculum that will work. Phonics needs to be an integral part of the curriculum. (Applause.)

We're going to raise the standards. You see, what we believe is that every child in America can learn. We're going to reject the thought that certain children can't learn, so we'll just move them through the system. That's got to end. It's got to end. And what we stand for, what the people know makes sense is that, in order to determine whether or not all children are learning, it's essential that we measure. It's essential that local folks develop strong accountability systems. So we ask the question, do you know how to read?

And if you do, we'll praise the teachers. And we always have got to praise the teachers. But if our accountability system shows that children are not learning to read, instead of sitting by and saying, oh, maybe something positive will happen, it will serve as a go-by, it will serve as an opportunity for us to say, let's solve the problems early before it's too late. There are no second-rate children in America and there are no second-rate dreams. (Applause.) So our budget prioritizes education with the understanding, however, that the schools should be run at the local level.

I set another priority, and that's to pay the men and women who wear our uniform better wages. (Applause.) I am proud to be the Commander in Chief. (Applause.) The mission of the United States military will be to train our troops to be prepared to fight and win war, and therefore, prevent war from happening in the first place. (Applause.)

A priority in the budget is to make sure the people who don't have health care insurance who work have health care insurance. A priority in the budget is to fulfill our promise to the seniors by funding Medicare. I want you to know you can hear all the rhetoric about the apologists for bigger government in Washington, but with the right priorities and the right focus, we will double the Medicare budget over the next 10 years, to make sure our seniors have got a Medicare system that we can be proud of; one that, by the way, includes prescription drugs. (Applause.)

Oh, I know you'll hear a lot of talk about Social Security, and we should talk about Social Security. But under our vision of what we ought to do with the budget, we set aside all $2.6 trillion of the payroll taxes that are heading into Social Security and spend them only on Social Security. (Applause.)

Now, some of the people in Washington aren't going to like my budget because we don't grow the budget quite as fast as they would like. The budget increased last year by 8 percent. That's significantly higher than the rate of inflation. That was higher than real income grew. I mean, they were growing that budget, it was like a bidding contest to see who could spend the most money got out of town first. Those days must end. (Applause.) The budget I submitted to the Congress is one that said we could meet our needs and grow our discretionary spending at a realistic and reasonable 4 percent. (Applause.)

There's a lot of talk in Washington about debt, and like you I'm concerned about debt. I want to remind you there's two types of debt; one is at the government level, and one is at the individual level. First let me talk about government debt. With the right kind of leadership and the right kind of focus, and working with members of both parties, we can pay down $2 trillion of the national debt over the next decade. (Applause.)

Somebody said, well, why don't you pay down more than that. Well, first of all, a lot of the bonds don't retire, aren't to be retired, they don't expire during the 10-year period. It makes absolutely no sense to prepay debt which will cost the taxpayers more money. That doesn't make any sense. We ought to pay debt as it comes due. And the only debt that comes due is $2 trillion over the next 10 years, and that's the debt we'll repay. (Applause.)

We paid down debt, we've met our priorities, there's still money left over. And like any wise -- any wise person who cares about budgets, we ought to set some aside for contingencies. So we set aside a trillion dollars over the next 10 years for contingencies.

And what might some of those contingencies be? Well, making sure we take care of the seniors. As you know, one of the things I'm going to do is have a full review of our military's capabilities and how we ought to restructure our forces to meet the future. (Applause.) And perhaps we'll need more money to fund those priorities.

I can assure you, we're going to worry about the agricultural sector here in the United States. (Applause.) And perhaps -- and perhaps we'll need to spend some of that contingency money on the ag sector as we transform our agriculture sector to one that is going to be able to trade freely around the world.

Let me say as an aside, I strongly support ethanol. Let me say as an aside -- (applause) -- we should not use food as a diplomatic weapon from this point forward. (Applause.) We shouldn't view agriculture as a stepchild when it comes to international trade negotiations. (Applause.)

So we've set priorities, we've paid down $2 trillion dollars of debt. We've got a trillion dollars of contingency set aside over the next 10 years and there's still money left over -- there's still money left over, and there's a fundamental choice -- do we spend it?

AUDIENCE: Nooo!

THE PRESIDENT: Or do we remember whose money it is in the first place? (Applause.)

The surplus is not the government's money. The surplus is the people's money. (Applause.) And I'm here to ask you to join me in making that case to any federal official you can find. I think we're in pretty good shape with the Nebraska delegation. (Applause.) I certainly hope so. I certainly hope so.

But this is a plan that hears the voices of thousands of working Americans, people who are struggling to get ahead. I'm keenly aware the energy bills are going up all across the country. We need an energy policy. We also must have a tax relief policy that understands working Americans are paying energy costs than ever before.

I'm keenly aware that many of our citizens have got a lot of consumer debt. There's a lot of talk about debt at the national level, and I'm worried about it. I'm also worried about consumer debt on individual families. I'm aware that this economy is beginning to sputter a little bit, and it makes sense to combine good monetary policy with good fiscal policy. I believe by giving people some of your own money back it will help kick-start this economy so people will be able to find work who's looking for a job. (Applause.)

In case anybody asks you, here's the plan. We're going to drop the bottom rate from 15 percent to 10 percent. (Applause.) We increase the child credit from $500 to $1,000. (Applause.) We drop all rates and simplify the code. We drop the top rate from 39.6 to 33 percent, and there's two primary reasons, two reasons I want to share with you. One is there ought to be some principle involved in the tax code, and one of the principles is the federal government should take no more than a third of anybody's check. (Applause.)

But there is a second principle. We must understand that there are thousands of unincorporated small businesses in America and thousands of sub-S corporations that pay the highest income tax rate. And in order to stimulate the entrepreneurial spirit of America, in order to encourage capital formation in small businesses, it makes sense to drop the top rate from 39.6 to 33 percent. (Applause.)

I know the advocates -- I can already hear some of the voices of the advocates for big government, the folks that want to keep your money in Washington to expand the size of the government. They're going to say, oh, this is only for the rich. Well, first of all, we're going to reject class warfare. (Applause.) Secondly, we don't believe in targeting some people in or some people out. We believe everybody who pays taxes ought to get tax relief. (Applause.)

Thirdly, ours is a philosophy that says we know government's role is not to create wealth, but to create an environment in which entrepreneurs and small businesses can realize their dreams in America. (Applause.) Fifthly, we understand the marriage penalty is unfair and we better do something about it. (Applause.) And those of us who have spent some time in the agricultural sector and in the heartland, understand how unfair the death penalty is -- the death tax is, and we need to get rid of it. (Applause.)

I don't want to get rid of the death penalty -- (laughter) -- just the death tax. (Applause.)

There is a lot of talk, there is a lot of talk about how this plan isn't really going to affect people. Today, the Ojedas are with us, Tony and Cynthia, and I want to thank you all for coming. And I appreciate the patience of your children. (Laughter.) As you can see, they are proud parents of three children. Right now, last year, they paid $3,170 in federal income taxes.

Under our plan, a plan that benefits everybody who pays taxes, a plan where the greatest percentage of tax relief goes to the people at the bottom end of the economic ladder, a plan that is eminently fair, a plan that doesn't affect the size of the federal government in a negative way, a plan that helps meet priorities -- these folks will save $2,120. (Applause.)

Oh, I know that doesn't sound like a lot of money to folks that are rolling in dough. But $2,120 means a lot to the Ojeda family. It means a lot when you're paying high energy bills. It means a lot when you are worried about the education of your three children. It means a lot when you want to save. It means a lot when you want to do your duty as a mom and a dad to prepare for your children's future. No, $2,120 is a significant amount of money. (Applause.) It's the right thing to do for America.

Now, we've submitted the people's budget to Congress. It's a budget that sets priorities, a budget that pays down debt, a budget that worries about the future. But a budget that keeps in mind that our people are overtaxed. And I am here asking Congress to give you a refund. (Applause.)

AUDIENCE: Re-fund! Re-fund!

THE PRESIDENT: I want to thank you all for coming out. It is so refreshing to travel the -- to travel your streets and to see people come out. I know there is an overflow room here of a thousand people and I want to thank you all for coming.

I want to tell you -- (applause) -- there is something bigger though than just a legislative agenda at hand. It is truly the greatness of the country. My job is to remind all of us that responsibility begins at home, that the biggest job, if you happen to be fortunate enough to be a mom or a dad, your biggest job is not your day job. Your biggest job is your 24-hour job of loving your children with all your heart and all your soul. (Applause.) That's the best thing all of us can do.

The best thing all of us can do in this nation, whether our job is President or Boy Scout leader or Sunday school teacher, or teacher, is to teach our youngsters the difference between right and wrong. Is to encourage them to be responsible for the decisions they make in life -- (applause) -- is to make sure that every child, regardless of how he or she are born, knows somebody cares for them, somebody loves them.

No, the great strength of this country, the great strength of this country can be found in the heartland of America, where neighbor turns to neighbor and says, what can I do to help you, neighbor, if you've got a problem, where there are thousands of people saying, I want to help somebody in need, coming out of our churches and synagogues and mosques.

My job -- my job is not only to argue and work to get a legislative agenda passed that will help Americans help themselves. My job is also to remind America how great we are, that we're a blessed nation, a nation indivisible under God, the greatest nation on the face of the earth. (Applause.)

Together, together we can help this nation fulfill its greatest promise, where every child realizes the American experience is meant for them, where every child can learn to read, where moms and dads understand the top priority is to love their children.

No, the greatness of this country is ahead of us. We've been great in the past, but the future has never been brighter. (Applause.) And the future has never been brighter. The future has never been brighter because the people of this country have never been greater. It is my honor to be your President.

Thank you for coming and God bless. (Applause.)


END 2:15 P.M. CST

 


Remarks by the President at Leadership Forum -- March 1, 2001
Egleston Children's Hospital
Atlanta, Georgia


3:17 P.M. EST


THE PRESIDENT: Thank you very much. And, Lydia, thank you for the tour. This is a hospital, but it's also -- it's a place full of love. And I was most touched by meeting the parents and the kids and the nurses and the docs, all of whom are working hard to save lives. I want to thank the moms who are here. Thank you very much for you hospitality. And, Tommy, I'll get to you in a minute. (Laughter.)

There's a lot of talk about budgets right now, and I'm here to talk about the budget. My job as the President is to submit a budget to the Congress and to set priorities, and one of the priorities that we've talked about is making sure the health care systems are funded. And Dr. Woods talked about our commitment -- and it's a joint commitment -- it's a commitment I'm confident the Congress will make with me to double the NIH funding by the year 2003. That's an important commitment of the federal government.

You know more than me about how effective those dollars can be, and it's a wise use of federal taxpayers' money. It means that the budget will be increased to $28 billion a year by the year 2003.

Secondly, I want to talk about two other aspects of health care before I get into how this all works. One is we're going to double Medicare over the next 10 years, from $216 billion to $549 billion. It's a significant increase of expenditures. It's $159 billion in new Medicare spending above and beyond that which was projected. It means that our country is going to make a firm commitment to those who rely upon Medicare dollars -- the elderly, the teaching hospitals. It is an important federal commitment.

By the way, with the expenditure of Medicare money, we also have got to have the courage to reform Medicare to make it a program where seniors have got more choices and more options from which to choose to match their particular needs. And all the reforms must insist that prescription drug coverage becomes an integral part of the Medicare package.

And finally, an interesting opportunity we have in the country as far as I'm concerned is to increase funding to community health centers. I'd like to increase the number of community health centers from 3,000 to 4,200 over the next five years, doubling the number of people who will be served.

Community health centers are good opportunities to take pressure off of hospital emergency room, for starters. They're opportunities for people to get primary care who are indigent poor, maybe newly arrived to America. It is a wise expenditure of taxpayers' money.

The point I'm trying to make to the people of Georgia and will make around the country is the first job of a President is to set priorities. Not only are these -- the items I just talked about priorities, so is public schools. It's a priority. As a matter of fact, the largest increase in my budget is for public education.

However, I'm mindful of the fact that the federal government is only a partial provider of funds and should never run the schools. I strongly advocate and strongly will fight for local control of schools. One size does not fit all when it comes to the education of children.

As an aside, one of the interesting reforms that I hope we get through the Congress says two things -- one, we're going to provide flexibility to local folks to run the schools. And secondly, if you receive federal money, you must measure -- you must show us whether or not children are learning to read and write and add and subtract and, if not, correct.

This is an interesting place to talk about diagnosing problems, right here in a hospital. Well, we need to do the same thing in education, particularly in early years. We must diagnose whether or not a child has deficiencies in reading, for example, and solve them early -- and solve them early. And that's the whole spirit of reform that we're proposing.

I want to pay the military more, folks. In my budget, we increase military pay by a billion dollars over the current pay. But having met all these -- and set aside all the payroll taxes for Social Security -- that's what we do, $2.6 trillion over 10 years will only be spent on Social Security. Now, that sounds like a lot of money, and it is. Except, we've got much more money than that available to figure out what to do with. And so $2 trillion will be spent to pay down debt over the next 10 years.

And people say, well, you need -- why not more? Why not 800 billion more, or maybe a trillion more? And the reason why is because the debt doesn't come due over -- the amount of debt that comes due in a 10-year period is $2 trillion. There is no need to pay a premium to retire debt early. It would cost taxpayers more money, and that doesn't make any sense.

We still have money left. We've got pretty good cash flows at the federal level. And what I want to do is set aside a trillion dollars for contingencies and with the remaining money, which amounts to $1.6 trillion over 10 years, remember who paid the money in the first place.

The point I want to make in this haven of love, a place of deep concern about children's health, is that we can fund priorities. If we're wise about how we budget money, we can set aside important priorities and we can give people some money back, and I think that's really important. I know it's important at this moment in today's -- in history, because, one, our economy is sputtering. And the money -- if we can accelerate a tax relief plan to people like Tommy and Cynthia and everybody else up here, it will put more money in people's pockets, which will cause them to spend, which will cause the economy to get a second wind, we hope.

Secondly, there are a lot of people paying higher energy bills than they paid in the past. It's like a tax. And I think it's wise if we're able to prioritize and realize we have more money to help people manage their own personal accounts, their own balance sheets. A lot of people have consumer debt that they're worried about. And there's a lot of focus on national debt; I focus on the people's balance sheets as well.

And so I'm confident that not only can we meet our priorities, but make sure a guy like Tommy Winfield and his family who pay $1,380 of federal income taxes gets relief. In his case, he will end up paying no federal income taxes under this plan. His tax burden will go from $1,380 to zero. Now, there are some sophisticates who will say that's not very much money. But it's plenty for him.

MR. WINFIELD: Mr. President, let them ask me.

THE PRESIDENT: Let the record note, this was not rehearsed. (Laughter.)

At any rate, I appreciate the chance to come and make my case for the budget, for the budget. And we had a great rally in DeKalb County and it gave me an opportunity to remind people that if you're concerned about the budget and you want there to be fiscal sanity in Washington with priorities set and funded, write your senators and your congressmen.

I have great faith in the people of America. And coming to this hospital and seeing and feeling the love on the floor we were on, knowing there's dedicated doctors, loving nurses, spending a lot of time trying to help kids renews my faith in the greatness of America.

I told the people earlier, the great strength of this country is not because of our government; it is because of our people. And this hospital is a living example of what I'm talking about.

So, Dr. Woods, thank you for giving me a chance to come and I'm looking forward to hearing from our other panelists.

* * * * *

THE PRESIDENT: Thanks, Tommy, I appreciate you saying that.

You triggered something in my mind when you said that. Again, I want everybody to understand we've set priorities and funded them. There's a fundamental issue at stake here. And that is, do you trust Tommy to spend his own money? That's really one of the issues, if you think about it.

And I want the people of Georgia to hear loud and clear my plan trusts the Tommys of the world to make the decisions. You see, I think he -- you can best decide what's best for your family, better than I can decide what's best for your family.

And I shouldn't be trying to decide what's best for your family, after we meet some common needs in the country. Defense is a common need, health care, health research is a common need. Education is a common need.

Again, I just want to repeat, please don't hope that the federal government is going to wave a magic wand and there will be educational excellence. As a matter of fact, it's less likely there will be educational excellence if there's power in Washington, D.C., because the schools in Georgia are different in many ways from the issues that face Texas schools. And so we should not try to federalize education, but there are some things we can do by spending money wisely, and insisting upon local control of schools and accountability.

After those needs are met, you're the person I want spending your own money. As a matter of fact, it's not the government's money; it's yours to begin with. And that's kind of what I'm trying to get changed, the whole attitude about the people's money.

As a matter of fact, we're not giving you any money back. As a matter of fact, I am trying to advocate that we're not going to take it in the first place, so you get to keep it. You know, we're spending on tax cuts. Well, that's kind of contradictory language because it's your money. And anyway, it's a mind set that I'm trying to get -- trying to impress upon the people.

And the best way to get this done, in my opinion, is to rally the will of the people. I've got great faith in the American people and that's what this is all about. And so I'm so honored that you all are giving me a chance. It's an educational experience for me, it's a heartening experience for me, and it's a chance for me to move around the country, to get outside of Washington and sit face to face with real Americans who are working hard for their families, love their kids, love their country.

And so it's an honor to be here, Bill. And thank you all very much, Lydia, thanks to the moms. I thank you for your courage and your love and God bless you all.

Q Thank you, Mr. President. God bless America.

THE PRESIDENT: Thank you. Thanks for coming. (Applause.)

END 3:46 P.M. EST

 


Remarks by the President at Welcome Event -- March 1, 2001
Fernbank Museum
Atlanta, Georgia


2:10 P.M. EST

THE PRESIDENT: Thank you all. Thank you very much. (Applause.) I'm glad I came to Georgia. (Applause.)

Thanks so much for that warm welcome, Vernon. It's great to be here in DeKalb County. It is great to be introduced by one of the rising stars in DeKalb County, one of the rising stars in the state of Georgia. (Applause.) Vernon Jones is a good man. He's a good man. And I'm proud -- I'm proud to have been introduced by him.

I'm also proud to share the stage with both Republican and Democrat elected officials here from Georgia, who are sending an interesting message. (Applause.) An interesting message, when the Georgia State Senate voted overwhelmingly to urge all the federal elected officials from the state of Georgia to support the tax relief package that I introduced yesterday -- (applause.)

I'm honored that Senators Starr, Dean and Johnson would be here with me today. Both Republicans and Democrats took a look at what I proposed and realized it's fair. And I'm honored that members of the General Assembly, Westmoreland and Buck, have joined as well, one Republican and one Democrat.

See, this is not a -- the budget I submitted wasn't a Republican budget, it wasn't a Democrat budget; it was the people's budget. (Applause.) Maybe one reason why the good folks of Georgia understand that it's a reasonable is it's a common -- it's a budget based on good, sound common sense. There are not a lot of things fancy about it. Maybe it's because I was raised in West Texas and I was taught some good common sense. (Applause.)

I'm so proud of members of the Georgia delegation who are here from the federal delegation, Kingston, Deal and Norwood, members of the United States Congress -- (applause). One member of your delegation wasn't able to be here, but I would like to read a letter from him, if you don't mind:

Dear Mr. President, welcome back to Georgia. I regret that I could not be with you today. I had to be in Washington for a meeting with the Department of Justice officials that was scheduled long ago, but I wanted you and my fellow Georgians to know that I am with you in spirit. I support your tax code proposal strongly, without any reservations. This is an overpayment of taxes and you are correct that those who paid it know better how to spend it than the Congress. As the old Elvis Presley song goes, we should return to sender. Zell Miller. (Applause.)

I can't tell you how much I appreciate Senator Zell Miller standing up side by side with the President. Oh, I know he's a Democrat and, of course, I'm a Republican. But both of us put America first -- (applause) -- and this budget is an American budget, because it sets priorities. It is a budget that sets important priorities, starting with the education of our children.

The largest increase of any department in my budget goes to the Department of Education. But, lest you become too concerned, I want you to hear loud and clear, the best schools are those that are run by the local people. We strongly believe in local control of schools. (Applause.)

We will spend more money but we will also insist upon reform. And the catalyst for reform, the agent for change is to insist that states and local jurisdictions develop strong accountability systems so that we know. We know when children are learning.

If you don't measure, how do you know? If you don't measure, how can you correct problems early before it's too late? The cornerstone of reform is local control of schools and strong accountability systems at the local level, so we can diagnose problems early, solve them early, so that not one single child in America is ever left behind. (Applause.)

Another priority in my budget is to pay the men and women who wear the uniform more money. (Applause.) It is to make sure there is a high morale in the military by having better pay, better housing. But also it's important to have a Commander-in-Chief who will clarify the mission of the military. (Applause.) And the mission in to be well prepared, to fight and win war and therefore prevent war from happening in the first place. (Applause.)

A priority in the budget -- a priority in the budget is to take all the payroll taxes that are supposed to go to Social Security and make sure they only go to Social Security. (Applause.) Oh, I know you've heard the talk -- I certainly have heard it -- about how any kind of tax relief that has got any meaning to it will mean somebody is not going to get their Social Security check. That's Washington talk for we want more of your money to stay in Washington. That's what that is.

Republicans and Democrats agree that we're going to set aside all the payroll taxes from Social Security, and that's what's going to happen. Another line you'll hear is that the elderly will suffer. Well, my budget doubles Medicare spending over 10 years. We're setting aside money to make sure we fulfill the promise to the elderly.

And we've got to not only set aside money for Medicare, we must reform the system so that our seniors have got more choices, more options, all of which will include prescription drug benefits. (Applause.)

No, we set aside money for priorities, and we fund them. The thing that's got some people concerned though, is we're not exploding the budget, like has happened in the past. The budget was skyrocketing at the end of last year. It was much higher than the rate of inflation and higher than disposable income.

Had we kept spending at that rate, we would not only have spent all the surplus, we would have had to have dipped into Social Security to meet the programs. What this government needs is a fiscal, responsible approach to the budgeting -- (applause) -- the kind of budgeting that you, yourselves, do with your families. That's what the government needs, and I'm willing to provide that kind of leadership.

So we meet priorities. We make sure Social Security is safe and secure, and we also pay down debt. There's a lot of discussion about debt at the national level, and there should be. So part of the budget that I've sent to the Congress sets aside $2 trillion to pay down debt over the next 10 years.

People say, why don't you pay it all off, all the national debt off? Well, that doesn't make any sense, because not all the debt retires -- comes due at the end of 10 years. We shouldn't prepay debt at a premium that will cost the taxpayers more money. Let's just retire the debt as it comes due. That's $2 trillion worth of debt.

And it also makes sense to set aside money for contingencies, which we have done. We set aside a trillion dollars for contingencies. People say, what kind of contingencies are you talking about? Well, we may need some contingencies for America's farmers. (Applause.)

Or, after we end up reviewing the military -- and remember in my speech, if you paid attention, or at least listened -- (laughter) -- I said we're going to have our defense vision drive the budgeting, and not the other way around. (Applause.) And we've got to make sure that we've got a plan. And we've got to figure out what systems make sense, as we head into the 21st century.

Instead of having military budget spending be based upon politics, let's have it be based upon a strategic vision of how best to keep the peace, not only today, but down the road. We may need money for that. And so we've got a trillion dollars set aside in contingencies.

As I tried to explain to the Congress, we increase spending, not nearly as much as they did the last time, but we increase it. We set aside money for Social Security and Medicare. We pay down debt. And we set aside contingency money. And you know what? There's still money left over. (Applause.) And the fundamental question is, what do we do with it? What do we do with it?

Guess what's going to happen. (Applause.) When you have more money than you need, it seems like somebody is getting overtaxed and overcharged. And what I am going to do is remind the Congress that if we've overcharged somebody, it's time for a refund. (Applause.)

It's time to remind people on a regular basis in Washington the surplus is not the government's money; the surplus is the people's money. (Applause.) And now is the time. Before this money gets all spent, now is the time to send some of it back.

But it's also the time to send it back because our economy is beginning to sputter. And one of the things we can do to make sure the economy gets a second wind is to let people have money in their pockets so they can spend it. (Applause.) One way to make sure that people can find work who want to find work is to set priorities, set contingencies, pay down debt, and give people some of their own money back. Or how about not taking it in the first place? (Applause.) So we reduce the rates on everybody who pays taxes.

There are some in Washington who say, well, some people need to be targeted in and some people need to be targeted out of tax relief.

THE AUDIENCE: No.

THE PRESIDENT: The fairest tax relief is to say if you pay taxes, you get relief. That's the fairest way to do something. (Applause.) We drop all rates. We dropped the bottom rate from 15 percent to 10 percent. We dropped the top rate from 39.6 to 33 percent. (Applause.) And one of the reasons why it is important to drop the top rate is to recognize the contributions that small businesses play in America. Small business -- (applause) -- small businesses are really the backbone of the capitalist system. The entrepreneur is a soul who dreams big and works hard to realize a dream and therefore ends up employing people. That's what the small business is all about. (Applause.)

What I hope Congress recognizes is that many small business folks are unincorporated and many of them are sub-chapter S, which means they pay the highest rate. And by dropping the rate, we increase the ability of small businesses to grow and to employ more Americans. (Applause.)

Our current tax code is unfair. It is unfair for folks who live on the outskirts of poverty, who are struggling to get ahead. It's unfair. It's unfair that if you're a single mother, working hard, and you're in the $22,000 range, for every additional dollar she earns, what's unfair is that's taxed at a higher rate then someone who is very successful.

I used to try to paint the picture during the campaign about the toll booth in the road to the middle class. It meant people on one side of the toll booth paid a lower marginal rate than those trying to get through. That's not what America's about, as far as I'm concerned, and I know it's not about what -- as far as you're concerned.

This is a country that says, the harder you work, the more you struggle, the more likely it should be you're able to realize your dreams. No, we need to drop the bottom rate, and we need to make sure that that hard working waitress is more likely to be able to save and dream and build. (Applause.)

We penalize marriage in the tax code, and that's not right. And the death tax is wrong. (Applause.) It taxes people assets-wise. Now, this is a tax plan that is well thought out. And it's fair. As I said in my speech, some folks will say it's too big. Some folks will say it's too small. We need to send the message to Republican and Democrat legislators and senators that it is just right. (Applause.)

And so I'm here to ask for your help. I'm here to ask for your help. You don't have to worry about Zell Miller. You don't have to worry about these three U.S. congressmen who are here. But there may be some other folks from the state of Georgia who might be a little nervous about the plan. I certainly hope not. We're not going to take anything for granted, though.

So if you find a member that you may have some influence with, or know an email address, or can figure out where to write a letter, and find out somebody isn't listening to you, to do what's right for the country, just drop them a line. I could use your help. (Applause.)

And if somebody argues with you, just remind them of these facts, that the average family will receive $1,600 in tax relief. That doesn't seem like a lot, to some of the folks who may be doing all right, but it's a lot to a lot of people. It's a lot to people whose energy bills have gone up because we don't have an energy policy in America. (Applause.) There's a lot of talk about national debt. And that's important. But there's a lot of credit card debt that are burdening people.

$1,600 can help a lot. $1,600 can help set money aside for a child. $1,600 is real money, and I'm going to remind those folks again whose money it is: It's the people's money, your money. (Applause.)

I haven't been your President for a long period of time, but I can report that it is a fantastic experience. (Applause.) I can't tell you what an honor it is. I can't tell you what a high honor it is to represent the American people in Washington. That's why it's important to come out and get my batteries charged, in places like DeKalb County, Georgia. (Applause.)

To be able to look my fellow citizens in the eye and say, I know you're counting on me, but I'm counting on you as well. I'm counting on you, when you find a neighbor in need, to reach out a hand, and say, what can I do, brother or sister, to help you? I'm counting on you to run a Boy Scout troop, and to teach our children right from wrong. (Applause.)

Our nation counts on people who have got good heart and good will to say, what can I do to make my neighborhood a better place, instead of hoping that the federal government, in its infinite wisdom, waves a magic wand and there's educational excellence in every school in Georgia. We need the good citizens of these communities to get involved with public education, to make sure our teachers are supported, excellence is demanded, accountability is in place so no children are left behind. No, I'm counting on you. (Applause.)

The reason I'm so optimistic about America, though, is that our land is full of loving people. The great strength of the country doesn't lie in the halls of our governments, it lies in the homes of our people. The great strength of America is the fact that America is full of caring and loving, God-fearing and decent souls, and I am proud to be your President. Thank you all for coming. God bless. And God bless America. (Applause.)

END 2:28 P.M. EST


Remarks by the President to National Conference of State Legislatures -- March 2, 2001
Presidential Hall
Dwight Eisenhower Office Building


10:20 A.M. EST


THE PRESIDENT: Mr. Secretary, thank you for the three introductions. (Laughter.) When I was looking for people to serve in the Cabinet, one of the places I looked was for fellow governors. Because I strongly believe that there needs to be appropriate balance between the federal government and the state governments. And I found a good one in Tommy Thompson. He's going to do a great job, and I'm so honored that you're here. (Applause.) I appreciate you all having me. I see some familiar faces -- Mr. Speaker. I'm glad you all are here. I want to thank Senator Costa and Senator Saland for inviting me. I've got something to say about the budget, and this is a pretty darn good forum to do so.

Before I begin, though, I want to thank the folks from Quebec who are here. And, where are you? There you are, sir. Thank you for being here. I'm looking forward to coming to Quebec City in April. I had a good visit with the Prime Minister of Canada the other day, and I'm confident our nations will continue our long friendship together -- work together for the good of our two countries and our hemisphere. I understand we've got some folks from South Africa as well.

Well, thank you all for coming. Welcome. I'm sure glad you're here. Any Texans here, speaking about foreign countries? (Laughter.) Darn it. (Laughter.) One of the things that I talked about with the governors, all of whom were here the other day, was a new federalism initiative. And my administration that's going to listen to people at the state and local level to make sure we clearly define the role of federal government and state governments. And then, have a -- by executive order, put a group together to make sure it actually happens.

A lot of times in Washington, as you know, we tend to talk; and sometimes, the talk isn't backed up by action. And so we're going to work hard to make sure that the new federalism becomes reality.

And it's important. Take a matter like education. One of my priorities as the Governor of Texas was education; one of my priorities as the President is to make sure every child gets educated. But I can assure you, this administration understands the importance of local control of schools. And we don't believe in the federalization of the public school system, that one size does not fit all when it comes to education. (Applause.)

And, of course, ours is an administration that doesn't care whether you're governor or you're speaker or you're leader of the Senate. As a Republican or a Democrat, if you believe in local control of schools, you do so in a nonpartisan way. So we look forward to working with the Congress to pass power out of Washington, to make those federal programs that are prescriptive in nature become supportive of local efforts to meet -- so that each local state and district can chart their own path to excellence for children.

One of the reforms that I think that is going to be crucial is to work with states and local jurisdictions to develop strong accountability systems, that in return for federal money that you must show us whether or not children are learning to read and write and add and subtract.

We will not have a national test. A test devised at the national level will undermine local control of schools. But I think it's a perfectly appropriate question to say, for example, with disadvantaged students, those with Title I money, that -- measure, measure on an annual basis. You develop the standards, you develop the test, but show not only the President, but show everybody else whether or not the schools are meeting the objectives.

And if they are, we'll praise teachers like we should, all across the country. But if not, instead of just accepting the status quo, if it's okay to shuffle kids through the system who can't read, it will serve as a catalyst to change.

And this is a substantial reform. On one side, you'll have people say, well this is not the proper role of the federal government, to insist that local jurisdictions show us whether or not children are learning. I reject that argument. We're a results-oriented nation. And there's no better -- no important place to find positive results than in our public schools, and no important place to find negative results, and correct them early than in our public schools.

And they're going to hear people say, well, it's racist to test. Listen, I went through this argument in the state of Texas. It is racist not to test. It is important to test, because we believe all children can learn, and therefore, when we find certain children not learning, let's correct it. See, the attitude is, if certain kids can't learn, let's just not hold people accountable; let's just quit and move them through the system.

That's unacceptable to me. I know it's unacceptable to you. I believe it's going to be unacceptable to both Republicans and Democrats in the Congress. The cornerstone of reform is flexibility at the local level, coupled with strong accountability measures. (Applause.)

Many of you all know the debates, oftentimes, on important matters like education, revolve around who spends the most money. And the truth of the matter is, the federal government's got a limited role when it comes to the expenditure of taxpayer's money in public schools. I mean, we fund about 7 percent of the total budgets across the nation.

But there is an important role for the federal government, particularly for disadvantaged children. And so we've increased our education budget by more than any other department in the federal government. The debate here of course will be, well, it's not enough. But for those who argue that, sometimes they're not -- they don't have to do what the Executive Branch does, which is to present an overall budget, to make it work. And that's what I want to explain to you all, how our overall budget works.

First, there was a contest at the end of the last session to figure out who could spend the most money. It didn't matter what your party was, it looked like. The budget grew by 8 percent. That's a substantial growth in federal expenditures. My budget slows discretionary spending down to 4 percent. That's more than the rate of inflation. It's a pretty high increase in the expenditures, but it's nothing close to what was happening over the last three years, on average, at the end of last year.

That's caused some consternation because in Washington, the definition of a cut is that you haven't increased the budget as much as anticipated. You may be actually increasing spending, but that's called a cut up here. We've had to learn new accounting. (Laughter.) But we grow the discretionary spending by 4 percent.

We protect entitlements. All of the payroll taxes will be set aside for Social Security and only Social Security. We double the Medicare budget over a 10-year period of time. We increase Medicare in the first year, to meet all needs, and including having a prescription drug program for poor seniors to be administered by the states.

It is a budget that meets needs. And, by the way, we pay our soldiers more money; we've got an increase in pay for the men and women who wear the uniform. As an aside, I think it's very important for my administration to send this message to Congress and to the country -- that we'll first develop a strategic vision of military spending, a strategic vision of the military, and then we'll figure out how to spend the money; as opposed to let's spend the money first and then maybe develop a strategic vision afterwards. It's called planning. And one of the things that Executive Branch folks must do is to help plan the proper expenditure of money, and that's what we're going to do.

But we do increase the military budget, starting with the personnel, to make sure folks are better housed, better paid and better trained.

And as an aside -- a second aside -- the Commander-In-Chief must set a clear mission for all departments, particularly the Department of Defense. And the mission is to be prepared to fight and win war, and therefore prevent war from happening in the first place. It's a clear mission and a clear statement of purpose. (Applause.)

There is a lot of discussion about paying down debt. And it's a healthy discussion. We pay down $2 trillion debt over a 10-year period of time in our budget. That's the largest amount of debt ever paid by a country in history. I think that's an accurate statement.

There is also debt at the local level. It's called consumer debt. And so, while a lot of us up here talk about federal debt, one of my jobs is to make sure the nation stays focused on the debt that burdens the working folks in America. People have got a lot of credit card debt. And when you couple that with high energy prices, some of the people that you know are in a pinch. And we'd better do something about it.

It's important for our economy to do something about that. It's important for the lives of people who struggle to get ahead to do something about it. And that's part of the basis for the tax relief package. But before I talk about the tax relief, I also want to tell you, we've set aside $1 trillion over 10 years for contingencies.

That can mean a lot of things. Contingencies can mean -- well, maybe the numbers weren't as good, or -- I think they're going to be better than they anticipate, by the way. It could be that we need money for emergencies, which we probably will. Maybe need a little more money for some of the agricultural sector around the country. There are contingencies set aside.

And finally, that leaves money left over. And the big debate here -- and you go through the debate every single budget session -- is what to do with it. And I am going to make the case, not only here in Washington, but traveling around the country, that we need to remember who paid the bills in the first place. (Applause.)

I'm trying to be as -- to bring as much common sense to Washington as I can. And the speech I gave the other night was an attempt to say, here's the priorities; there's money left over. Here's the debt repayment; there's money left over. There's a common-sensical way to budget by setting aside contingencies, and there's still money left over. And, by the way, these numbers are based upon conservative assumptions.

The first year, the budget is based upon a 2.4 percent growth. It averages a little more than a 3 percent growth over the next 10 years. We can do better than that in America. America can grow our economy -- we're too strong a nation; we're an entrepreneurial nation. We've just got some unbelievable productivity gains to be achieved in our economy.

People take a pessimistic view about how to project revenues, and that's fine. But I just want you to know I'm much more optimistic than the point of view here in Washington. People say, well, what happens if -- you know, gosh, what happens -- maybe we need a trigger mechanism, that's kind of the discussion. So, therefore, if the surpluses don't materialize, well, there's two reasons why surpluses won't materialize. One is that the revenues aren't quite as expected because the economy has slowed down, in which case we need to accelerate tax cuts.

You see, tax relief will put money in people's pockets, which will help give the economy a second wind. Or, a reason the surplus may not materialize is because Congress has overspent. So it seems like to me we need to be careful about any trigger mechanism that ought to be on spending to make sure that we don't overspend surpluses. (Applause.)

The tax relief package is well thought out and well designed. Of course, I would say that. (Laughter.) But we've spent a lot of time on it; as opposed to trying to figure out what number sounded like it made sense, we actually calculated the cost of fixing parts of the tax code that are unfair. For example, the death tax is unfair. Many of you come from agricultural states; you know exactly what I'm talking about.

The marriage penalty is unfair. The tax code itself is unfair, because it's like we erect, as I said in the campaign, a toll booth right in the middle of the road to the middle class. One on one side, people struggling to get to the toll booth pay a higher marginal rate on additional dollars earned than people who are successful.

If you're a single mom, like I said in my speech, and you're trying to get ahead, and you're making in the low $20,000 salary range, as you lose earned income tax credit, as you start paying the 15 percent bracket, as you pay payroll taxes, your marginal rate is nearly 50 percent on additional dollars earned; and that is not right. And that's not the America that we all want our country to be. It sends the wrong message.

And, therefore, we dropped the bottom rate from 15 percent to 10 percent and doubled the child credit, which will make the marginal rates on people starting to get ahead less, and that's important. Access to the middle class is a fundamental part of the American experience.

We also drop all rates. The temptation, of course, as you know, in tax policy is for people to say, well, I'll get to decide who gets the tax breaks; let me make those decisions. It's called targeting. I don't think we ought to try to figure out who is targeted in and targeted out. I think if you pay taxes, you ought to get relief. (Applause.)

Finally, there will be a lot of discussion about whether or not we ought to drop the top rate. Well, first of all, if everybody who pays taxes ought to get relief, then you ought to -- need to drop all rates. But secondly, I want to remind you all that when you drop the top rate from 39.6 percent to 33 percent, it enables small businesses and entrepreneurs to more likely be able to expand their businesses. Because if you inquire, you'll find a lot of the small businesses in your districts and in your states are unincorporated small businesses and/or sub-Chapter S businesses. And the top rate reduction I view as a way to create an environment in which the entrepreneurial spirit can continue to move in America.

One of the most hopeful statistics I heard was in the great state of California, where there are over 700,000 Latino-owned small businesses in that state. That's a fantastic statistic about the American dream and the American experience and the whole concept of owning something.

One of the things that distinguishes our great land is people can own their own business, or own their own home. And the idea of encouraging the entrepreneurial experience to flourish, particularly in the small business sector, is what I think good public policy is all about.

So tax relief is not only to -- as a way to kick-start the economy that is in fact slowing down, but tax relief is also an opportunity to achieve certain objectives, to make the code more fair, and to make the small business person more likely to employ additional folks. And that's my case. I think we're going to get it done. (Applause.)

And I'd like your help. I'm going to travel the country a lot, which I'm finding to be is important, not only to make the case; but it's important to remember where I came from. And I came from many of the neighborhoods that you all represent, just good, honorable, hard-working people. I cannot tell you what an honor it is to be the President, and to drive in those cars with the American flag flying, and to see people lining the roads, waving to the office. It reminds me of the greatness of the country.

And it's the people of America. You know that just as well as I do. The people of this great country is what makes this place so special, this land so special. And all public policy must recognize that, and work to empower people, so they can help themselves. My budget does so. That's what the budget is all about. And I want to thank you for giving me a chance to come by and make my case.

God bless.

END 10:36 A.M. EST

 


RADIO ADDRESS OF THE PRESIDENT TO THE NATION-- March 3, 2001


     THE PRESIDENT:  Good morning.  As I begin, I want to say a few words about the people of Washington state.  Earlier this week, that state was rocked by a powerful earthquake, which affected countless lives and caused billion dollars of damage.  The Director of the Federal Emergency Management Association, Joe Allbaugh, went immediately to Seattle.  And my administration is providing help.  Our prayers are with the people of Washington state.

     A few days ago, I had the honor of addressing a joint session of Congress.  I hope you had a chance to tune in and hear my plans for the federal budget and my priorities for the country.  After making my case to Congress, I headed out early the next morning on a swing through five states, to bring my case directly to you, the American people.

     I approach our budget as American families do.  First, we set priorities, and funded them.  My top priority is education reform.  And I have asked that the Department of Education receive the largest percentage increase of any federal agency.  We increase funding for our reading programs and character education and recruiting good teachers.    This time around, however, we won't be just spending more money.  We will be setting higher standards, and expecting real results for all our children.

     We're going to keep the promise of Social Security and keep the government from raiding the Social Security surplus.  And to safeguard the system against long-term threats, I will form a Presidential commission to reform Social Security, and place it on firm financial ground.

We will spend more on Medicare, as well, nearly doubling its budget in 10 years.  But just as important, we will modernize Medicare, to provide a prescription drug benefit for senior citizens.  We will also support and strengthen America's military, starting with a pay increase, and better housing for our troops.

     After meeting these national priorities, my budget pays down a record amount of national debt.  We will pay off $2 trillion of debt over the next decade.  That will be the largest debt reduction of any country, ever. Future generations shouldn't be forced to pay back money that we have borrowed.  We owe this kind of responsibility to our children and grandchildren.

     And in addition to funding our priorities, and reducing debt by a record amount, we set up a contingency fund of nearly $1 trillion, and we still have money left over.  The surplus money that remains will be used for a broad, fair tax relief.  A surplus, after all, is an over-charge of American tax payers.  And on your behalf, I am asking for a refund.

     My tax plan reduces income tax rates across the board, giving the largest percentage reductions to working families who need the most help. My plan reduces the marriage penalty, and gets rid of the death tax.  It will boost the economy, and help create new businesses, new jobs and new growth, at a time when we need all three.

     When the tax cut takes effect, the typical family of four will save $1,600 every year.  Some say that's not much.  But they ought to talk to people like Steven and Josefina Aramos, young parents trying to build a better life for their family.  Right now they pay about $8,000 a year in federal income taxes.  My plan will save this hard working family more than $2,000.  Steven says, "Two thousand dollars is a lot to my family.  If we had this money, it would help us reach our goal of paying off our personal debt in two years time."

     Well, I want the Aramos family and millions of others like them to meet their goals, and to live out their best hopes for themselves and their children.  Our federal budget must be good for the family budget.

That was my message to Congress on Tuesday.  And now, I hope you'll send a message in favor of tax relief to your congressman or your senator. After all, the surplus is your money.

     Thank you for listening.


Remarks by the President at Chicago Mercantile Exchange -- March 6, 2001
Chicago, Illinois


2:27 P.M. CST

Bush on floor of Exchange
White House photo


THE PRESIDENT: Well, thank you all. Thank you very much. Scott, thank you very much. I thought I had seen just about everything in life, until I came here. (Laughter.) It is an honor to be in entrepreneurial heaven. What an exciting place. Thanks for having me. I appreciate the hospitality, and I appreciate you giving me a chance to come and talk a little tax policy with you. (Applause.)


I've had quite a day here in Chicago. I got a Chicago political lesson for lunch. (Laughter.) I dined with the Mayor. It's the second political lesson I've had in recent weeks. (Laughter.) The first lesson I got was in early November -- (laughter) -- if you know what I mean. (Laughter.) I told the people of Illinois every time I came here, I said, I wish the Mayor were on my side. Because he's good.

But more importantly, he's a really good Mayor. He's a good Mayor of a big city. (Applause.) We've had our time for politics; now it's time to do what's right for our country and for the cities. The Mayor and I share something in common -- we're both problem solvers. We try to have a clear-eyed view and a common sense approach to solving problems. And so we're going to have a good relationship. And I'm so honored the Mayor was gracious in dining with me.

I'm also honored to be here with the Speaker of the House -- just happens to be from the state of Illinois. (Applause.) I'd like to describe the Speaker as a trustworthy man. He's the kind of fellow who says, when he gives you his word he means it. Sometimes that doesn't happen all the time in the political process. Sometimes they'll look you in the eye and not mean it. (Laughter.) The Speaker means it when he tells you something.

I look forward to working with you, Mr. Speaker. I'm honored to be traveling with your United States Senator Fitzgerald. We flew down on Air Force One today -- he's a good young leader. (Applause.) Congressman Lipinsky is with us. We're going to fly back from here to Washington. He and I will have a little quality time together. (Laughter.) I'm looking forward to it because he's a quality person. I appreciate the Lt. Governor coming as well. And thank you very much for your hospitality. (Applause.)

There's a lot of people here reminding me that they're from Texas, and I appreciate my fellow Texans who are here. A lot of Chicago folks thanking me for the Sammy Sosa trade. (Laughter.) I'm reminded about the truth when I come to a place like this -- the entrepreneurial spirit is what America is all about. That's what this country is about. (Applause.)

The job of government is not to try to create wealth. That's not the role of our government. The role of government is to create an environment in which the entrepreneur can realize his or her dreams, which the small business person can start a company and make it grow. So my job is not only to deal with problems; my job is to understand the philosophy that has made the country great -- and never forget it, never forget it -- and that is that we're going to have dreamers in America. (Applause.)

We're facing a problem. And the problem is our economy's slowing down. You all know that as well as anybody does. This kind of great boom is beginning to sputter a little bit. And the question you need to be asking the President is, what do you intend to do about it, Mr. President. And here it is.

One, have sound budgeting in the federal government. It's to say to the spenders in Washington, D.C., here are the priorities for our country. A priority is educating children. And let me -- as an aside, as I continue to praise the Mayor, he has done a good job of setting high standards, strong accountability in the schools of Chicago. So a priority of mine is public education. I believe every child -- every child -- ought to be educated, and not one child left behind.

A priority is to make sure we keep the peace by having a strong military. We need to pay the men and women who wear the uniform more money, to keep morale high. (Applause.) A priority is Social Security, to make sure the moms and dads of the World War II generation get the promises made. But it's also to be bold enough to reform the system, to let younger workers take some of your own payroll taxes and manage it for your own account. That's a priority of mine. (Applause.)

Medicare and health care is a priority. And we double the Medicare budget over 10 years; we pay down $2 trillion of debt. But guess what? There's still money left over. If you don't spend like they spent the last couple of years, if you're wise and set priorities, there's still money. And the fundamental question is, do we grow the government, or do we trust people with their own money? That's the fundamental question facing the United States Congress. (Applause.)

I had the honor of speaking to the Congress. I reminded them that when the government has a surplus, somebody is getting overcharged. And I'm here asking for a refund, I said. I want to reduce those taxes. (Applause.)

I think it is particularly appropriate to not only cut taxes to make sure there's fiscal discipline in Washington, but it's necessary to make sure this economy doesn't continue to sputter. When you give people some of their own money back, or don't take it in the first place, they will have money in their pockets to spend.

There's some debt, all right, at the national level, and there's plenty of debt on the consumers of America. I bet you've got friends, and maybe yourself, understand what it means to have credit card debt. And when you couple that with high energy bills, there are some people beginning to feel pinched.

It makes sense to take some of your money and pass it back to the people who pay the bills. And that's exactly what my tax relief plan does. It drops all rates. (Applause.) It dropped all rates on all payers. Sometimes in Washington, you hear the talk, we'll have targeted tax cuts. That means the elected officials get to decide who's targeted in and who's targeted out. That's not fair, and that's not the right way to do it. If you're going to have tax relief, everybody who pays taxes ought to get tax relief.

So we drop all the rates, and simplify the code. We drop the bottom rate from 15 percent to 10 percent, and increase the child credit from $500 to $1,000 to make the code more fair. The tax code's unfair for people at the bottom end of the economic ladder. The harder you struggle, the more -- higher marginal rate you pay in America. And that's not right. So we make the code more fair.

But we also drop that top rate, from 39.6 to 33 percent. And we do so for this reason: Much of the capital that accumulates in the private sector ends up being managed by small business owners. Small business is the backbone of the country. Many of you all are small business owners. Ninety-five percent of small business owners pay the highest marginal rate in our tax code. They're unincorporated businesses. They're what we call sole proprietors.

When we cut that top rate from 39.6 percent to 33 percent, we're saying a loud and clear message that the entrepreneurial spirit will be reinvigorated as we head into the 21st century. It's a way to pass capital formation in the small business sector in America. And it's the right thing to do.

It's the right thing to set priorities, it's the right thing to pay down $2 trillion of debt over 10 years, and it is the right thing not to grow the federal government bigger than it needs to be, and trust people with your own money. I like to tell people in Washington, the surplus isn't the government's money. The surplus is the people's money, and we need to share it with the people. (Applause.)

I like to move around the country. I like to get out of Washington, because you see a lot of interesting things and you hear a lot of wisdom from people who are just average, everyday people. And I want to tell you what a grandmother told the other day, in Council Bluffs, Iowa. She said, I have a lot of children and grandchildren go through my house. She said, and I know if there are cookies left on the table, they will be eaten. She said that in the context of your taxpayers -- of tax dollars. That's what she was talking about. And her point is this: If we leave the money up in Washington, and don't send it back to the people, it's, sure enough, going to be spent.

Now is the time, now is the time for meaningful, real tax relief. And as we're changing the tax code, by the way, we need to eliminate the death tax, too. We need to allow it so that you don't get taxed twice for your assets. (Applause.) And we need to do something about the marriage penalty. (Applause.) It doesn't make sense to tax marriage.

And so I'm here to ask for your help. See, I believe in the power of the people. I truly do. I do. I believe that when you email a congressman or a senator, it makes a difference. It makes a difference. And so that's why I'm traveling the country. And that's why I came here. I'd like for you to contact your congressman, and contact your senator, and tell them to come on the side of the people, when it comes to what to do with your money. We have a fundamental choice, and the right choice is to stand on the side of the people.

And let me conclude by telling you, the tax policy's important and there will be a lot of tax policy. And, of course, good health policy's important, and keeping the peace is important. But there's nothing more important than remembering that the most important job you'll ever have, if you happen to be a mom or a dad, is to love your children with all your heart and all your soul. (Applause.)

I was reminded of that when I walked through and saw the pictures that many of the entrepreneurs here in the Merc had of their children -- it's such a refreshing sight to know that priorities are kept all across America.

This is a fabulous nation we live in. It's a nation based upon great values. It's a nation based upon the principle that if you work hard, anybody, regardless of where you're from, can get ahead. But it's going to be made better when all of us understand that there are certain responsibilities in life. I have a responsibility as your President. And when I put my hand on the Bible, I swore to uphold that responsibility, and I will. And you have the responsibility to love a neighbor like you'd like to be loved yourself. But it all starts with loving your children.

Thank you for letting me come by. God bless. (Applause.)

END 2:40 P.M. CST


Remarks by the President at North Dakota Welcome Event North Dakota State University Bison Arena -- March 8, 2001
Fargo, North Dakota

5:18 P.M. CST

 

Pres. in chair talking to small group
White House photo

 

 

THE PRESIDENT: Thank you very much. The air may be cold, but the reception is unbelievably warm. (Applause.) Thank you all for that warm reception. Governor, thank you very much. I appreciate you and Mike meeting me at the airport. It's good to see public servants, such as your Governor, who are willing to do what they think is right. He follows the footsteps of a good friend of mine, a man who did a fine job as the governor of North Dakota over the past years, and that's Ed Schafer. It's good to see Ed here as well. (Applause.)

I don't want to jump the gun on my speech here, but I just got off the phone with the Speaker of the House. He informed me that the House of Representatives just took a major vote on -- a vote on a major portion of my tax relief package, and by the margin of 230 to 198, the tax rate cut passed the House of Representatives. (Applause.)

The American people -- the American people had a victory today. The American family had a victory today. The American entrepreneur had a victory today. One House down, and now the Senate to go. (Applause.)

I'm here for a lot of reasons; one is to ask for your help. I wasn't sure how many folks were going to show up to hear a budget speech. It seems like a lot of people are interested in the national budget, and more particularly, your own personal budgets. (Applause.)

And so I'm here to ask for you -- if you like what you hear today, to maybe e-mail some of the good folks from the United States Senate from your state. (Applause.) If you like what you hear, why don't you just give them a call or write them a letter and let them know that the people are speaking. You see, one of the important things for the President, if the truth be known, people who hold federal office, to make sure you get out of Washington, D.C., on a regular basis. (Applause.)

It is important to make sure you get outside the D.C. scene and listen to the people. I'll tell you, I love traveling our country. I'm so proud to be landing in Air Force One and getting off the airplane and driving into this hall and seeing people lining the streets, waving at the office of the President. It makes me proud to be your President. (Applause.)

No, they wave because they respect the office. And sometimes, at least in this state, it seems like the people like the occupant, too. (Applause.) It's a huge honor to be your President. It's a huge honor.

One of the things I hope the people figure out about me is that I like to bring common-sense approaches to our government. Take budgeting. It seems like we need to have a common-sense approach on how we spend the people's money, which means it's important to set priorities. You set priorities in your family budgets, the federal government ought to set priorities with your money. (Applause.)

Let me describe some of our priorities. Educating our children is a priority. (Applause.) But, lest you think I forgot where I came from, I want you to understand I firmly believe that the people who are best able to run the schools in North Dakota are the citizens of North Dakota. I believe in strong -- (applause) -- mine is an administration -- mine is an administration that strongly supports local control of schools.

But we also understand in Washington that we need to set high standards, that every child, regardless of his or her background, can learn, that we must have the highest of high expectations, and that we must work with states and local jurisdictions to measure so that we know whether or not we're leaving any child behind in America today.

Not only today do we have good news out of the House of Representatives, but the Senate Education Committee passed our education reform package 20-0. (Applause.) We're making progress because these pieces of legislation are right for America. These aren't political documents, this is public policy that's good for American families and American children. So education is one of our priorities.

We've increased spending for education, but we've also insisted upon more flexibility so governors and local folks can use federal dollars to meet their specific needs. One size does not fit all when it comes to the education of American children. (Applause.)

Secondly, a priority is to keep the peace. In order to keep the peace, our military must be well-paid and well-housed and well-trained. (Applause.) So my budget sets aside money for increasing military pay. But as importantly, it is important to have a commander-in-chief who sets a clear mission for the military. (Applause.) And the mission of the United States military must be well -- to be well-trained and well-prepared to fight and win war, and therefore prevent war from happening in the first place. (Applause.)

Another priority is the health care of our citizens. We've set aside money in the budget to make sure the working uninsured have got the capacity to purchase health insurance. We've set aside money in the budget to make sure we fulfill the promise to our senior citizens, by doubling the Medicare budget over the next 10 years.

We've set aside money in the budget to increase the number of community health centers around America, to make sure the poor have got access to primary care. We've set our priorities, and the health care of our citizenry is a priority.

Another priority is the retirement accounts of the U.S. citizens. We've set aside all the money -- all of the money aimed for Social Security will be spent on only one thing: Social Security. (Applause.)

The days of the Congress dipping into the Social Security trust for other programs are over. (Applause.) And, by the way, down the road, we're going to be thinking differently about Social Security. You see, the Social Security trust now only earns 2 percent on your money.

AUDIENCE: Booooo!

THE PRESIDENT: Yes. I'd be booing, too. (Laughter.) What we need to do is to give younger workers the option of taking some of your own money and managing it in personal savings accounts. (Applause.)

Ours is a budget that sets priorities. We've actually grown what they call the discretionary spending by 4 percent. That's greater than the rate of inflation. That's greater than the increase in disposable income. That's a significant increase in expenditures.

But the debate is, it's not as big as some of the big spenders in Washington would like it to be. You see, they're used to a different attitude out of the White House. The discretionary spending at the end of last year increased by 8 percent. So we're saying we're going to meet our needs, but we're just not going to spend the people's money quite as extravagantly as has been done in the past. (Applause.) That's called common-sense fiscal responsibility. (Applause.) That's the kind of message the people in North Dakota like to hear. (Applause.)

I was in Council Bluffs, Iowa, the other day, taking this message around to the people. And a grandmother gave a speech, or talked a little bit. And she said, she's had a lot of children go through her house, and a lot of grandchildren go through their house. And every time she has left cookies on the table, they got eaten. (Laughter.) That's kind of how I view the federal budget. If we leave money sitting around on the table, it will get spent. And so what we need to do is set priorities. (Applause.) And clear priorities, and work to achieve those priorities. (Applause.)

Another priority is to pay down debt. In our budget we've submitted, we've increased discretionary spending by 4 percent, but we've paid down $2 trillion of debt over 10 years. It's the biggest amount of debt that any nation has ever paid off that passed in history, in the history. (Applause.)

Increased spending, we've paid down debt and we set aside another $1 trillion over 10 years for contingencies. An important contingency could be making sure that we get money into the ag sector, like we've done in the past year. (Applause.) We certainly hope that's not the case, we hope that the ag economy recovers. We hope that we can increase demand for North Dakota products all around the world. (Applause.)

By the way, my attitude is this: If given a level playing field, if we have free trade, true free trade, North Dakota farmers can compete anywhere, any place, any time. I would like our farmers in America to be feeding the world. And therefore, I am going to work hard to open up markets. When it comes to international trade discussions, the American farmer is not going to be treated like a stepchild anymore. (Applause.) The American farmer -- the American farmer will be a primary concern. We shouldn't use food as a diplomatic weapon, from this point forward. We ought to implement the Food For Peace program. But if we have an emergency in the farm economy, we've set aside contingency money to do that. Contingency money.

There you go. (Laughter.) And guess what, though? By not overspending on the discretionary count, there's still money left over, and the fundamental debate in Washington is what do we do with it? What do we do with your money? (Applause.) The fundamental question is, do we increase the size of government?

AUDIENCE: Nooo!

THE PRESIDENT: Or do we remember that the surplus is not the government's money, it's the people's money? (Applause.) The other day, I noticed that the cash flow into the country -- the surplus for the first four months was $72 billion. That's significantly higher than the first four months of last year. It tells me that the American people are overtaxed. That's what that says. (Applause.)

When you're running surpluses that big -- when you're running surpluses that big, particularly with your economy beginning to sputter, it ought to say something loud and clear, if you take a common-sense approach to government. And that means the folks are overtaxed. And if you're overcharged for something, you ought to demand a refund. And I stepped in front of the Congress and demanded a refund on your behalf. (Applause.)

And so, as I mentioned -- so, as I mentioned, the United States House of Representatives began the process, the long, arduous process of providing tax relief for the American people. Today, they took a hold of our plan to reduce marginal rates on everybody who pays taxes and, as I mentioned, they passed that piece of legislation. I want you to hear some of the principles involved.

First of all, my administration did not believe in what they call targeted tax cuts, because I don't believe that the federal government ought to try to pick and choose winners in the tax code. Everybody who pays taxes ought to get tax relief. (Applause.)

So we cut all rates. We drop the top rate from 39.6 to 33 percent. And there is a lot of squawking about that. But let me explain to you the rationale. First of all, there ought to be some principles involved at the federal level, and a principle is the federal government should take no more than a third of anybody's check. (Applause.)

But, also, a principle is -- a second principle is the role of government is not to create wealth; the role of government is to create an environment in which the entrepreneur and the small business person and the dreamer and worker can realize his or her dreams. (Applause.) And the facts are, and the facts are, by far, the vast majority of small business people in America, the backbone of our economy, pay the highest rate possible, because most small businesses are unincorporated. Most are sub-chapter S -- many are sub-chapter S. And so by dropping the top rate from 39.6 percent to 33 percent, we're sending a clear message to America that the small business person, the entrepreneur is the backbone of the future of this country. (Applause.)

Our tax code is unfair. It's unfair to the small business people. It's unfair to people struggling to get into the middle class. You're on the outskirts of poverty, and you're working hard to get ahead, and you're trying to raise children -- and by the way, being a single mom, raising children, is the toughest job in America. That's the toughest job in this country. (Applause.) And we penalize those on the outskirts of poverty trying to get ahead, trying to get into the middle class.

If you're making $20,000 a year, and you're earning money, for every addition -- you're raising two kids. For every additional dollar you earn, the way they've got the earned income tax credit, and the way they've put you in the brackets, is that you pay a higher marginal rate on that dollar than someone who's successful. That's the facts in the tax code. For every additional dollar you earn, if you are making $22,000 a year raising two children as a single mom, you pay nearly 50 percent on that dollar. That's not right in America. That's not what this country stands for.

And so our tax code not only serves as a stimulus to foreign capital and the private sector for small business growth, ours also makes the tax code fair for people struggling to get ahead. We dropped the bottom rate from 15 percent to 10 percent. We doubled the child credit from $500 to $1,000, we made the code fair for people working to get ahead. (Applause.)

The marriage penalty is unfair. (Applause.) And the Congress will be taking that up pretty soon to make sure the marriage penalty is fixed. But let me tell you what else is unfair. And if anybody understands it, it's the good people of this state. The death tax is unfair. (Applause.) It is particularly unfair for American farmers and ranchers. That's particularly unfair.

There is a lot of talk about making sure that we have green spaces and open spaces, and that's good and that's important. But probably the best reform to make sure that happens is to eliminate the death tax so family farmers aren't forced to sell their farms before they want to. (Applause.)

With us today is the Wightman family. You probably -- maybe you know them, maybe you don't. But they're here for a reason. Because behind every tax relief plan are real Americans, Americans who will benefit. These good folks both work, they've got Melissa and Paige. Melissa's 14, Paige is 10. They right now pay $3,700 in federal income taxes. When our plan is fully implemented, these good folks will save $1,900. (Applause.)

The reason I bring up the Wighmtans is because I want America to know what our philosophy is when it comes to the people's money. Once we set priorities, once we pay down debt, once we set aside contingencies, it's important for Congress and the United States Senate to send this message to the American people: We trust you with your own money. It's your money to begin with. (Applause.)

Instead of figuring out new programs our new ways to get reelected, why don't we figure out ways to let the Wightmans plan for their future? No, I know some say, well $1,900 isn't a lot. Just ask them what it means. Ask the people who are paying higher energy bills what it means. Ask the people who are struggling under consumer, credit card debt what it means to have their own money back. As a matter of fact, we shouldn't take it in the first place. (Applause.)

I'm here with a message. My message is with fiscal discipline, with planning, with leadership, our nation can fund important priorities. We can pay down debt. We can meet emergencies or contingencies. But in order to make sure this economy gets a second wind, we better start passing money back quickly.

And so not only should we have tax relief, we need to make a lot of it retroactive. We need to get money in the pockets -- (applause) -- so the President gets to make some suggestions, gets to make some phone calls on occasion to members. But the best way I can garner support is to come to you and ask for your help. And to say, there is nothing more powerful than the voice of the people. There is nothing that will get anybody's attention more than good, hardworking people. Standing up, saying, let's have some common sense up in the Nation's Capitol about our money. (Applause.)

And it's so important to trust the American people, so important for our government to trust people, because the people are the strength of this country. This is a fabulous land, it's the greatest country on the face of the earth. (Applause.) Not only -- not only because of the fantastic principles -- we believe in freedom of religion, freedom of press, the freedoms to achieve your dream, regardless of where you're from, but it's the greatest land on the face of the earth because of our people, God-fearing, hardworking, neighborly citizens all across America. That's the true strength of the country. (Applause.)

I'll be involved a lot -- part of my job is to argue for fiscal sanity in Washington. Part of my job is to represent your interests when it comes to how your money is spent. A big part of my job will be to work to keep the peace by making sure our military is strong.

But a significant part of my job is to invigorate the American spirit, that spirit that says when a neighbor sees somebody in need, what can I do to help. You see, the strength of America, if it is in the hearts and souls of our citizens, it must be used to make sure people aren't left behind, that the downtrodden is lifted up, that people in need get help. Often times we turn to government. But the true love and true compassion in this country begins when neighbors help neighbors in need.

So if you've got a mentoring program in the state of North Dakota that needs some help, say, what can I do to help? If you've got a church program that's trying to help people that are hungry, take the extra step and see if you can't help. If you know some people that are wondering whether or not somebody loves them, take a little extra time, put your arm around them, and say, we do. I also want you all to remember that the most important job any of us will have, the most important job if you happen to be a mother or dad, isn't president or governor, is to love your children with all your heart, and all your soul, and all your mind. (Applause.)

No, we're a blessed nation. We can achieve anything we set our mind to. We can have sound fiscal policy. We'll work hard to keep the peace. But most of all, we can make sure this great American experience shines brightly for every citizen, everybody in this great country. People are willing to role up their sleeves and work, because we've got a country of people who are willing to roll up their sleeves and help.

I can't tell you what an honor it is to be your President. (Applause.) I am so grateful, I am so grateful that so many came out to say hello. God bless you all, and God bless America. (Applause.)

END

5:53 P.M. CST


Remarks by the President in Sioux Falls, South Dakota Send Off -- March 9, 2001
Joe Foss Field
National Guard Hangar
Sioux Falls, South Dakota

10:03 A.M. CST

THE PRESIDENT: Thank you all very much. I am glad to be here in South Dakota. (Applause.) I was telling the good Governor, the air may be a little chilly, but the people are awfully warm. (Applause.)

I want to thank your warm hospitality. I particularly want to thank those who were on the road, waving to us as we came in, and those who have lined up outside the hangar. It's really -- really makes me feel great to be here. Thank you for your hospitality.

I'm so proud to be able to call your Governor my friend. He's a good man, Janklow. (Applause.) He's kind of hard to settle down, sometimes. (Laughter.) But the thing I like about him is he married well -- (laughter) -- he's honest and he loves the people, and he loves the people. (Applause.)

Earlier today, we toured a community health center here in Sioux Falls. And I was honored and so pleased that the Minority Leader in the Senate, Tom Daschle, greeted me. It's very thoughtful of him to do so. I appreciate -- I appreciate the dialogues we have had. He treats me with respect; I will treat him with respect. (Applause.)

I'm also appreciative of the fact that we've got two United States Congressmen on the stage with me today. A very capable, strong, able man from South Dakota, John Thune. (Applause.) And I've noticed you've relaxed your border policy and allowed Congressman Mark Kennedy from Minnesota to come today, too. (Applause.) I appreciate these two men being here. It gives me a chance to personally thank them for casting an important vote on behalf of the American people yesterday, when they cast a vote to cut the taxes on the people who pay the bills. (Applause.) I want to thank you all.

I appreciate the Mayor, I appreciate the former Senator, I appreciate my fellow citizens. I appreciate the fact that you've given me a chance to get outside of Washington -- (laughter) -- remember where I came from, to come to the heartland of America. (Applause.) It's important for all of us in the federal government to continue to come to the heartland, because it's the land of good heart and the land of common-sense people. (Applause.)

And I am here to talk about a common sense way to budget in Washington, a common sense approach for what to do with your money. I want you to understand, first and foremost, all the talk about the surplus. The surplus is not the government's money. (Applause.) The surplus is the people's money, it's the hard-working people of America's money. (Applause.)

And I'm going to remind the good folks in the nation's capital, some of whom don't need reminding, some of whom may need to be occasionally reminded, that we work for you. And it's your money we're talking about when it comes to setting budgets. (Applause.)

It's important to be fiscally sound and fiscally responsible with your money, which starts with setting priorities, clear priorities. And so I want to share some of the priorities that I've set.

First, educating our children is an important priority for our nation. (Applause.) So we spend money on public education -- but I always remember where I came from. I hope you don't get too nervous, Governor, because I have always believed and will always believe in local control of schools. And so, while the government will spend money, we've got to trust you to run your schools. (Applause.)

We got a good vote out of the Senate Education Committee that passes power out of Washington, so the local folks can chart the path to excellence for every child. Education is a priority; but it must be a priority in the context of empowering local folks and strong accountability measures, and trusting parents, and always challenging failure. Because in our vision, there are no second-rate children in this great land of ours; and there are no second-rate dreams in America. (Applause.)

Health care is an issue, and it's a priority. I believe we ought to double the amount of patients we cover in community health centers, to make sure that the poor and those on the outskirts of poverty are able to find primary care.

I know we've got to make sure we take care of our elderly, and so we've doubled the Medicare budget in my budget. It says loud and clear to our seniors the promises that we have made to you will be a promise we will keep. But it also requires new thinking and new leadership. We must reform Medicare, to give seniors more options, more choices, more opportunities to tailor their health care programs to meet their needs, all of which ought to include prescription drug benefits for our seniors. (Applause.)

A priority is to work with states on important development projects. And the Lewis and Clark Rural Water Project is a project that will be in my budget, and something that we can work together on. (Applause.)

Our retirement systems are a priority in the budget. And so we've sent the clear message to the Congress -- and it's being well-received, by the way, by both Republicans and Democrats -- that the payroll taxes, all your hard-earned taxes, aiming for Social Security, will be only spent on one thing, and that's Social Security -- that we set aside, that money. (Applause.)

One of the biggest jobs I have is to serve as the Commander-in-Chief, and I do so proudly. (Applause.) I want to be the Commander-in-Chief of troops that have got high standing and high morale; people that have got a clear mission stated to them by the Commander-in-Chief, which is to make sure that our military is properly trained, ready to fight and win war and, therefore, prevent war from happening in the first place. (Applause.) So a priority is to make sure our military is better-paid, better-housed, and better-trained. (Applause.)

Those are priorities of ours. We grow what's called the discretionary part of the budget by 4 percent. That's greater than the rate of inflation. That's a lot of money, by the way, when you're talking in terms of billions. We grow the budget.

But if you listen to the voices of those who would rather keep your money in Washington, D.C., they say we can't meet the needs. I'm telling you, we can meet the needs with the right kind of priorities. We can meet the needs with the right kind of focus. (Applause.)

So we grow that budget. But the problem is, some of the folks in Washington are used to spending orgies. At the end of the last session, the discretionary spending grew at 8 percent. I mean, it's like, let's have a contest to see who can spend the most in order to get out of town. Those days are over. We're going to bring some fiscal sanity to the budget. (Applause.)

We can meet our priorities, and we can fund them. And we can also pay down debt. I know a lot of folks around America are worried about national debt, as am I. We pay down $2 trillion of debt over the next 10 years. That's all the debt that's available to be retired without having to pay a premium for prepaying debt. That's a lot of debt retirement. It will be the biggest repayment of debt in the history of the world. And so we pay down debt.

In order to make sure that the American people are comfortable with our plan, we also set aside a trillion dollars over 10 years for contingencies, emergencies, money for the unforeseen. So people say, what do you mean by that. Well, I'm concerned about the agricultural sector here in our country, the agricultural economy. (Applause.)

I want to increase demand for South Dakota products. (Applause.) I believe that the South Dakota farmer and rancher is the best in the world. (Applause.) And, if given the opportunity, they can compete with anybody in the world, so long as the opportunity is fair. So my administration will work hard to increase demand for South Dakota products. (Applause.)

When it comes time to negotiating trade agreements, we're not going to leave the farmer behind. We understand the significance. (Applause.) But we may need some contingency money to help the farmers transition from the old ways to the market-oriented approaches for agriculture.

And speaking about agriculture, let me reiterate my commitment to value-added processing, to making sure that ethanol is an integral part of the gasoline mixes in the United States. (Applause.) It makes common sense to set aside money for priorities and contingencies and debt. But there is still money left over.

The people are working so hard, and long hours, and are overtaxed -- that there's money left over. And the fundamental debate that's taking place in Washington, D.C. is what to do with the money. That's the fundamental debate. And I'm here to make my case: if the American people are overcharged, they deserve a refund. They deserve some money back. (Applause.)

It's really a matter of who you trust. It's a matter of trust. Once the priorities are met, once debt is repaid, once the money is set aside in case something goes wrong, it's who do you trust. And I want to make it clear to the people of South Dakota: I trust you, rather than the government, to spend your money. I trust you. (Applause.)

I also don't trust the Congress to pick winners and losers in the tax code. You're going to hear the words, "targeted tax cuts." That means a group of folks get to decide who is targeted in and who is targeted out. That's not my view of government. My attitude is, if you pay income taxes, you ought to get relief. Everybody who pays taxes ought to get relief. (Applause.)

And so, yesterday, the Congress did the right thing. They heard the call that if we're going to have tax relief, reduce all rates. And we have done so. We've made the code -- we're trying to make the code more simple. We dropped the bottom rate from 15 percent to 10 percent and increased the child credit from $500 to $1,000 per child. (Applause.)

And there is a reason, and the Congress must hear the reason. It's because we want the code to be more fair. That if you're living on the outskirts of poverty and you're struggling to get ahead, today's tax code penalizes hardworking people. I want you all to remind folks who need to be reminded, that if you're making about $22,000 a year and you're a single mom raising two kids -- which I know and many of you know is the toughest job in America, that's the hardest work in this country. (Applause.)

For every additional dollar under this code -- under this code that some label progressive, for every additional dollar, that hardworking lady earns, she pays nearly 50 percent tax. The way the code is structured, she loses part of her earned income tax credit. She pays the 15 percent bracket. She's paying her payroll taxes. She pays more on the margin than Wall Street bankers do. And that's not right. And that's not fair. And we're going to do something about it in the tax code. (Applause.)

We're also dropping the top rate from 39.6 percent to 33 percent. There's a lot of hollering about that. A lot of people -- you know, they like the targeted tax cut; we're going to try to pick and choose the winners. But I want you all to remember this: that an integral part of America is the small business owner. (Applause.) The small business owner not only provides many of the new jobs we create, but the entrepreneur and the small business owner represents the best of America. It talks about the American Dream and the American experience of starting and owning your own business. (Applause.)

There are a lot of folks who have come to this country, whether or not America is meant for them, and they start their business and they work hard, and they own a piece of the future. That's what America is about. And I want you to remind the skeptics and the naysayers and the doubters that many small businesses are unincorporated, many are what they call Sub-chapter S, and they pay the highest marginal rate in the tax code. And by dropping the top rate from 39.6 percent to 33 percent, we provide capital infusion into the small business sector of America. This is a plan that is good for the entrepreneur and small business people. It makes sense to be that way. (Applause.)

And, by the way, there is a need to make this happen quickly. We've got an issue with our economy. It's beginning to sputter. It's beginning to get a little shaky. And one way to make sure that we provide a second wind to the economy is to give people their own money back. That's called economic recovery. (Applause.)

And so I appreciate so very much the Congress working with the White House to make the tax relief retroactive. In other words, when we pass the bill, it will be as if it went into effect on January 1st of this year, to get money in your pockets quicker. (Applause.)

I also want to thank those 10 Democrats who voted with us yesterday. (Applause.) People are beginning to hear from the people. People are beginning to hear. The elected members are beginning to hear from the people. That's why I'm here. I want to remind you that you all have an incredibly positive effect. You can help a lot and I appreciate so very much -- (interruption). As I said, you can have a positive effect. (Laughter and applause.)

It's a sign from above. (Applause.) I'll keep an eye on it. (Laughter.)

Let me say one thing, quickly. I am concerned about our economy. And therefore, today, in order to make sure our transportation hubs continue to flourish and we continue to fly, I'm issuing an executive order to protect the flying public in a time when Northwest Airlines and the mechanics are having trouble resolving differences, and they need time to do so. This order that I signed today will prevent any disruption of air service for the next 60 days. (Applause.)

It is significant to the people living in South Dakota that I do this. Northwest is the first airline this year to reach a critical point in labor/management negotiations. Several other negotiations involving other national carriers face deadlines within the next few weeks and I am concerned about their impact, concerned about what it could mean to this economy. And I intend to take the necessary steps to prevent airline strikes from happening this year. (Applause.)

I urge the National Mediation Board to make sure that the parties work toward a solution and negotiate in good faith. It's important for our economy but, more important, it's important for the hardworking people of America to make sure air service is not disrupted. (Applause.)

I'm watching. And I'm winding down, but I want to do one other thing. I want to remind you that tax relief is good for families. It's good for our families. (Applause.) And it is going to be better for families when we do something about the marriage penalty in the tax code. (Applause.) The tax code is unfair to farmers and small business people. We need to get rid of the death tax in the tax code. (Applause.) There's a lot of talk about taxes. I want to put a face on taxes. I want people to understand that tax relief is real for people.

We've got the Hagen family here. You all stand up, Scott -- and their family, Tiffany and Christian and Austin and Kyler. This is a hard-working family. They're raising their three children. They now pay $1,500 in federal income taxes. When it's all said and done, after the Congress passes its plan and when it's all said and done, they'll end up paying zero in federal income taxes. (Applause.)

No, I know they're going to say, and you'll hear them say in some of the parlors around the country, you know, $1,500, that's not much. Just ask the Hagens. Just ask the working families who have energy bills that are high. Ask the people -- (applause) -- I want the skeptics to ask the question to people, what it's like to have huge consumer debt.

There's a lot of talk about debt at the national level. We need to worry about debt in the communities all around America. (Applause.) No, that $1,500 -- $1,500 may not mean a lot to some; it means a lot to the Hagens, and there's a principle involved. And the principle is, we trust them to spend the $1,500 the way they see fit. It's their money to begin with. (Applause.)

And so I'm here to thank you for your support, thank you for your friendship, and ask for your help. You're just an e-mail away from making a difference in somebody's attitude. (Applause.) It's the right thing to do. This is common-sense approach to your money. It's a common-sense approach. It requires some discipline. It requires reordering priorities. And the priority with your money is not to grow the federal government -- the priority of your money is so you can grow your own families and meet your own needs and meet your own responsibilities. (Applause.)

And that, after all, is what's important about America: responsibility. We have a responsibility. Those of us elected to office have a high responsibility -- responsibilities that I will keep. But it doesn't just start in Washington, D.C. It starts in neighborhoods. At the community health center today, I had the honor of meeting people who assume the responsibility of not only providing health care, but of saying to a neighbor in need, what can I do to help? They call it the heartland because people have got good hearts in this part of the world. People care about neighbors. (Applause.)

We can argue about budgets, but that's not the greatness of America. The greatness of America is our people, the fact that we've got people who care about somebody. And so I urge you, become a Boy Scout or Girl Scout leader to teach a youngster right from wrong. (Applause.) I urge you -- I urge you, don't hope that Washington fixes schools, don't hope that the federal government waves some magic wand to make the schools better. Get involved with your education systems at the local level. Thank a teacher, thank a principal for their hard work. (Applause.)

If your church, your synagogue or mosque, you're looking for something to do, find a program that will help mentor a child. Put your arm around somebody; it says, we love you. America is meant for -- you know, the greatness of this country lies in the hearts and souls of our citizens. My job will be to argue smart budgets. My job will be to represent you when it comes to making sure you've got your money back. My job will be to keep the peace.

But my job will also be to call upon the best of America, to lift this nation's spirits, to set our sights high, to call upon the goodness and kindness of America. (Applause.) To remind the moms and dads of our country, if you're fortunate to be a mom or dad, love your child every day, love them with all your heart and all your soul. (Applause.)

And that's why it's such an honor to be here, an honor to be your President. I'm so optimistic, with the right focus, the right attitude, the right approach, that this great nation can achieve anything we set our minds to.

Thanks for coming out today. God bless. God bless America. Thank you all. (Applause.)

END 10:33 A.M. CST


Remarks by the President in Lafayette, Louisiana Send Off -- March 9, 2001
Lafayette Regional Airport
Lafayette, Louisiana


4:30 P.M. CST


THE PRESIDENT: Thank you all very much. I'm sure glad I came here to Louisiana; thank you for coming. (Applause.) I want to thank you all for coming. I want to thank the thousands of people who lined the road on the way in here. I wish the hangar were ten times bigger, but thank you all so much for being here.

First, I want to thank my friend, and your Governor, Mike Foster. I appreciate his friendship. One thing you can say about him is, you know where he stands. (Applause.) And I know he stands as my friend, and I appreciate that so very much.

I appreciate John Cooksey, the Congressman who is here. (Applause.) I appreciate Susie Terrell, who is here. (Applause.) I want to thank Senator Michot for being here. (Applause.) Ernie Alexander, my friend, is here, I want to thank him. (Applause.) My friend, Ernest Johnson, who heads the Louisiana NAACP is with us today; and I want to thank you, Ernest, for coming. (Applause.)

There is one other fellow, a man who stuck his neck out in the course of the campaign. You see, he doesn't happen to have the Republican label by his name -- his name is Dan Morrish, he's a Democrat. (Applause.) He put party aside and did what he thought was right for the country. And, Dan, I'm honored to have your support, I thank you for your friendship. (Applause.)

And it's great to be here. I tell you, it is important for me to make sure I get outside the nation's capital on a regular basis. I love people in Louisiana. (Applause.) I like the idea of coming to bring my message to you. I hope by now the people of the country are beginning to realize that we all have adopted a common-sense message. It's a message of the people. It's a message that understands that the most important element of politics are the people of this country -- the hardworking Americans who make the country go. (Applause.)

I get proposed things in Washington -- I don't get to vote on them. I'm not a member of the legislative branch. But the biggest influence in our government is the people, and I know that. So I'm here today in Lafayette, Louisiana to explain a common-sense budget. And if you like what you hear, you might decide to maybe e-mail or call some of those who represent you and let them hear from you. (Applause.)

If you like the common-sense approach to how we spend your money, it may make sense to pick up the phone or drop a note to people who may not see it our way. That's what politics is all about, as far as I'm concerned -- it's the people's will. And I'm here to talk about the people's business. And the people's business is to bring some fiscal sanity to the budgeting process in Washington, D.C. (Applause.)

It starts with understanding this important principle: that the surplus is not the government's money. (Applause.) The surplus is the people's money. (Applause.) And so what makes sense? Well, what makes sense is to set priorities. That's what makes sense. Here's some of my priorities: education is a priority. (Applause.) Making sure children learn is a priority.

So we increase spending at the Education Department. It's a priority of the country, but in case you might think that I forgot where I came from, I'll understand that the people who can run the schools best in Louisiana are not people in Washington, D.C., but the folks of Louisiana. (Applause.)

So we're spending a little more at the federal level, but we're going to work with Congress to pass power out of Washington, to empower the local folks, to empower parents and teachers to make the right decision for the children of the great state of Louisiana. (Applause.)

The people's health is a priority. Today, I talked about expanding a number of community health centers around America to make sure that the poor are able to get primary care. I also want to make it crystal clear in the budget I submitted to the Congress that we have doubled Medicare spending over a 10-year period of time, that we're going to make the commitment that we have made to the elderly.

It not only requires more spending, which we will do, it also requires an attitude of reform that says we'll trust seniors to make choices for themselves, seniors to match their needs with a variety of programs, all of which include prescription drugs. (Applause.)

And I want to praise one of your senators from Louisiana. John Breaux and I are going to work on this issue. We will spend a lot of time making sure that Medicare is properly reformed, so that the promise we have made to our seniors will be a promise that will be kept. (Applause.)

There's a lot of talk about Social Security, as there should be. The message to the Congress is loud and clear: we're not going to spend payroll taxes on anything other than Social Security. We're not going to take the money aimed for Social Security and spend it on anything else. (Applause.)

There's money in my budget to make sure that we're able to keep the peace by making sure we pay our military folks a good wage. (Applause.) There's money in the budget for priorities. As a matter of fact, we increased what's called the discretionary spending by 4 percent. That's greater than the rate of inflation.

But it's not enough for some in Washington. Because, you see, they're used to spending a lot of money up there. The last session, they spent your money to the tune of 8 percent. It's like they had a bidding contest to see who could get out of town. Those days are over with. (Applause.)

We will set priorities and fund them. But we'll be wise about how we spend your money. We don't want the federal government exploding in growth. We want the federal government to be lean and efficient and focused with your money. And that's exactly what's going to happen with new leadership in Washington. (Applause.)

There's a lot of discussion about paying down debt. I want to remind you, there are two types of debt -- there are a lot of types of debt, but there are two types of debt that I worry about. One is debt at the national level. And under the plan I submitted to the Congress, we pay down $2 trillion in national debt over 10 years -- $2 trillion. It's the biggest amount of debt repayment ever.

There's also consumer debt, the credit card debt that burdens many of the working families in America. Yes, we talk about national debt, and we're paying a lot down. But you're fixing to hear me tell you part of the remedy for people who have got a lot of credit card debt is to make sure people get some of their own money back. (Applause.)

We have met priorities. We grew the budget at a reasonable rate; not this fantastic rates that exploded during the last session. We pay down debt, we protected Social Security. We have also set aside $1 trillion over 10 years for contingencies.

Who knows what will happen. And so, we put $1 trillion aside. That makes sense. That's common sense to do that, it seems like, to me. We may need money for our farmers. And I'm going to tell you something about agriculture in America. It is an incredibly important part of our economy. Who knows what we'll need money for.

So we set aside money to do so but, guess what? There's still money left over. The fundamental question is: what do we do with that money? The fundamental question that I want Congress to hear from you about is what to do with the money. Do we increase the size and scope of the federal government?

AUDIENCE: No!

THE PRESIDENT: Or do we trust you with your own money?

AUDIENCE: Yes! (Applause.)

THE PRESIDENT: There's a lot of discussion about how to get tax relief. I worry about what's called targeted tax cuts. I worry about people sitting around Washington saying, you're targeted in; but, oh, by the way, you're targeted out. It seems like to me the fairest way to handle the people's money is to say that everybody who pays taxes ought to get relief. (Applause.) The federal government ought not to try to play favorites. It's likely people in Louisiana may not be considered a favorite. You will be, as far as this President is concerned. (Applause.)

So the plan that was passed out of the House -- and, John, thank you for your support -- is fair. It reduces all rates on everybody that pays taxes, and it simplifies the code. It drops the bottom rate from 15 percent to 10 percent. It increases the child credit from $500 to $1,000 per child. And let me explain to you why. Let me explain to you why this tax code we have is unfair.

One of the things that the people must stand for is fairness in life. If you're a single mother in the state of Louisiana trying to raise two children, and you're making twenty-something thousand dollars a year, under the code that's written today, for every dollar you earn above $22,000, you pay a higher marginal rate on that dollar than someone who is successful. You pay nearly 50 percent on that dollar. And that's not right, and that's not what America is all about.

No, this country stands for rewarding hard work, not penalizing it. And we must understand -- (applause) -- and when we find people working the hardest job in America, which is the single moms in this country, and they're struggling to get ahead, we ought to have a tax code that welcomes hard work and says, you can access the middle class, and you can realize your dreams.

This plan that passed the House yesterday makes this code imminently more fair. It also reduces the top rate. And oh, I know there's a lot of discussion about that, dropping the top rate, but let me tell you why. First, there ought to be some principle involved in the tax code. And this principle is, the federal government ought to take no more than a third of anybody's check. (Applause.)

But there's another principle. And that is, our nation must understand that the small businessman and the small businesswoman is the backbone of job creation. Our nation must never forget. (Applause.) We must never forget that good public policy will encourage entrepreneurial spirit in America, encourage the growth of the small business owner.

And we must also realize that many small businesses are unincorporated. They're sole proprietorships. They're Sub-chapter S's. They pay the high marginal rate. And by cutting the rates from 39.6 percent to 33 percent, we send a clear signal that we encourage entrepreneurship and small business growth, that we understand. (Applause.)

That we send a loud message to Washington that the role of government is not to create wealth, but the role of government is to create an environment in which American risk-takers and dreamers and people willing to work for a dream have got a better opportunity to realize those dreams. (Applause.)

The plan that we've submitted to the United States Congress recognizes that the death tax is unfair to Louisiana farmers and small business owners, and we need to get rid of the death tax. (Applause.) The plan that I submitted to the United States Congress recognizes that when you penalize marriage, we send a bad signal about families and the role of families in our society. (Applause.)

We've submitted a good plan, and it's working its way through the system. It came -- a major portion came out of the House, and I want to thank the 10 Democrats that stood with a hundred percent of the Republicans that spoke on your behalf. (Applause.)

And now it's headed to the Senate, and it's time for your voices to be heard. Now, I want to give you some ammunition if you agree with what I'm saying. Not only have we got a common-sense budget -- in other words, we can afford what I'm telling you, we can afford it -- but that makes economic sense to give people their own money back. You see, our economy is beginning to sputter a little bit. There are some places around the country where people are beginning to get laid off; economic growth is slowing down.

It is important to act quickly to get people their own money back, so you can spend it and serve as a second wind for our economy. It makes sense. (Applause.) It makes sense. We need it now. And so I appreciate the fact that the plan that came out of the House will make some of the tax cut retroactive, which means when it passes, it's as if it took effect of January of this year. (Applause.)

But there's another reason why this tax plan is important -- because it sends a signal about the priorities of our government. And the priorities of our government is to trust people with their own money. We must send a clear message that once we meet our priorities, the people who can best handle the people's money is the people, themselves. (Applause.)

Today, I've asked the Anderson family to join us here from Lafayette. We've got Richard and Jenifer and first, I want to say to their teachers, and you can't thank teachers enough for being a teacher. (Applause.) And with Richard and Jenifer are Jane, Noah, and Sam, their three children, who they love more than life.

And the reason I've asked them to join us is to help make my point -- that when we're talking about taxes and budgets, it's more than numbers that we're talking about. We're talking about people's lives. We're talking about the fact that this is a plan that understands that there are a lot of folks working hard to get ahead.

Remember, we haven't had an energy policy for a while. And anybody that understands that is the people of this part of the world. (Applause.) There's a lot of people paying high energy bills in America now. It's like a new tax on American families. By the way, we're going to have an energy policy, and it starts with finding more energy here in America. (Applause.)

But I'm worried about hardworking folks like the Andersons. I'm worried about the fact that people all across America are paying high energy bills. I'm worried about the fact that a lot of folks have got credit card debt. I'm worried about the folks -- folks who are working longer hours. And it seems like to me that if you've got a little extra money in Washington, instead of spending it on programs, why don't we let people spend their own money. (Applause.)

And so, here are the facts -- here are the facts. These good folks now pay $4,300 in federal income taxes on an annual basis. Under our plan, they will save $2,600. (Applause.) Oh, that may not sound like a lot to some -- it's a lot to me, and it's a lot to the Andersons.

You see, the principle is, do we want that $2,600 that's their money to begin with to go to excess federal spending? Or do we think it's better spent by them? Would we rather have the government spend it, or would we rather have it for them to save for their children, to meet their priorities? (Applause.)

I want to tell you what a grandmother said the other day in Council Bluffs, Iowa -- you see, I've been moving around the country, making our case. And she said -- she's had a lot of children and grandchildren go through her house. And when you bake cookies and you leave them on the table, sure enough, they'll be eaten. (Laughter.) That's kind of how I view that $2,600. If you leave it on the table, sure enough, it will be spent. (Applause.)

The right thing to do, the fair thing to do, the thing to do that's based upon common sense, is to understand whose money it is to begin with, and to trust the good people of America to spend their own money to meet their own priorities. (Applause.)

I have great trust in the American people. I can't tell you what an honor it is to be your President, and to travel our land, and to see people come out and wave. It reinvigorates my spirit, because it helps me understand yet again the spirit of America. The true greatness of this country does not lie in the halls of our governments; the true greatness of our country lies in the hearts and souls of the American people. (Applause.)

My job is to represent the folks in Washington and to fight for sound budget and tax relief. But my job also is to call upon the spirit of this country, is to say to the moms and dads of America, your most important job is to love your children with all your heart and all your soul. (Applause.) It's to thank the Boy Scouts and Girl Scouts and Boys and Girls Club leaders who are teaching our children common-sense values, the difference between right and wrong. (Applause.) It's to thank those folks who, when they see a neighbor in need, put their arm around them and say, what can I do to help you, brother or sister? What can I do to help you on your walk?

No, the greatness of America is our people. It's important to trust the people. It's important to trust the people with their own money. But it's also important for our President to understand that by rallying the spirit of America, we can trust the people to make America a compassionate, decent place for all of us who are fortunate enough to live in this land.

I'm proud to be your President. Thank you for coming. God bless. (Applause.)


END 4:55 P.M. CST


Remarks by the President to the Panama City Area Joint Rotary Club and Chamber of Commerce Meeting -- March 12, 2001
Marina Civic Center
Panama City, Florida

1:38 P.M. CST

THE PRESIDENT: Thank you all. Sit down, Governor. (Laughter.) Well, I'm glad I came. Thank you for the invitation.

AUDIENCE: We're glad to have you. (Laughter.)

THE PRESIDENT: It's one of these responsive meetings. (Laughter.) Governor, what a good man he is. (Applause.) The key to our success is pretty simple, we listen to our mother. (Applause.) And she is still telling us what to do. I'm listening about half the time.

I appreciate the two United States Congressmen who are here. Joe, thank you very much and Allen, thank you very much, as well. I'm honored to have you both here. (Applause.)

I've had some good visits with both of the members. Sometimes we agree, sometimes we don't agree. But the thing about these two men is that we're going to agree to be respectful to each other. And that's what this country wants. (Applause.) I want to thank the members of the Rotary. I want to thank the members of the Chamber. I want to thank the economic development folks who gave me an opportunity to come and talk about what's on my mind. Walking in, the man from the Rotary said, our slogan: is create awareness and take action. And that's exactly why I'm here. I want to create awareness about a common-sense budget, and ask you to take action to help me get it passed. (Applause.)

It's good to see the leaders of the Florida legislature, members elected to the state wide on the ticket here in Florida. I want to thank you all for coming. I know there's a lot of local officials here. I always believe the government closest to the people is that which governs best. (Applause.)

So I appreciate you all being here. It was my honor to go to Tyndall today, to see the good folks who wear the uniform of the United States military. (Applause.) To tell them how much I appreciate their service to the country. I'm reminded today of how dangerous service can be. We lost some servicemen today in Kuwait, on a training accident. I hope you'll join me in a moment of silence for those soldiers and their families.

(A moment of silence was observed.)

THE PRESIDENT: God bless.

I'm here to talk about a budget. And there's a lot of talk in Washington about budgets. But here's what I believe. I believe the people who can best affect the budget are the people who pay the bills in the first place, the taxpayers of America. (Applause.)

Sometimes it seems like we tend to talk to ourselves in Washington. And that's why I like to travel around the country, talking to the people who have got most at stake in the budget negotiations that go on in the nation's capital.

First, let me tell you that good budgeting means setting priorities. And part of my travels around the country is to explain where I think our priorities are. It is a priority to make sure we pay the men and women who wear our uniform good wages. It's a priority in my budget to do so. (Applause.) It's a priority to make sure they're housed well. (Applause.)

But it's also a priority to make sure if we spend money, that we spend it wisely. That's why I've asked the Secretary of Defense to do a bottom-to-top review about missions and spending and research and development dollars, to come up with a strategic vision of our military, not only today, but what the military ought to look like tomorrow, to make sure that money is wisely spent when we spend your money on the military.

You see, I think we have a fantastic opportunity, not only to keep the peace today, but to redefine the terms of war, to use our new technologies to redefine how the battlefields are configured, so we have a better chance of keeping the peace. So we'll set priorities. The first priority is the people who wear the uniform. (Applause.)

The second priority is to make sure long-term objectives are clearly set, and as we spend money, to make sure we meet those objectives. But there's one priority of the Commander-in-Chief that requires no money, and that's to make it clear the mission of the military, to make clear the mission of those who wear our uniform, and it is this: to be well-trained, to be ready to fight and win war, and therefore prevent war from happening in the first place. (Applause.)

A second priority has been education. Now, we've increased the budget at the federal level but, Governor, don't be too nervous. I remember where I come from. I believe in local control of schools. I strongly believe we ought to pass power. (Applause.) I know your Secretary of Education is here. It's good to see you, Charlie. (Applause.)

The reason I mention Charlie is I believe that the people who care more about the education of the children who live in the Panhandle of Florida than anybody else are the citizens of this part of the state. I know the Governor understands that, I know Charlie understands that. (Applause.) And the people in Washington have got to understand that. And that's why I look forward to working with Congress to pass power out of Washington, to provide as much flexibility with federal money at the local level as needed, so that you all chart the path to excellence; so you figure out whether or not children are learning and, if not, make sure they do.

The temptation in Washington is to say, one-size-fits-all will work. But we know better than that. One size doesn't fit all when it comes to the education of our children. There needs to be local control of schools. There needs to be strong accountability measures. And when we find failure, we've got to free parents to make different choices for their children. (Applause.)

Social Security is a priority. I know there is a lot of talk, and there was during the campaign. I suspect there may be some, and for people who are trying to keep your money in Washington, they'll say, well, you can't have meaningful tax relief; otherwise the Social Security system will fail. You read these polls, they're saying, you know, do you want to take away somebody's Social Security check or do you want to have tax relief. But that's not the choice. That's not the choice that we have here, as we work on this budget.

Because we set aside every dime of payroll taxes for one thing, and that is to spend it on Social Security. All this business about threatening people's Social Security checks is just not real and it's not valid. The Congress and the White House agree that all the payroll taxes ought to be spent on only one thing, and that's the Social Security systems. (Applause.)

There's a lot of talk about health care and there should be. The budget I submitted to Congress doubles the Medicare budget, for example. The budget I submitted to Congress increases by two times the amount of people who will be taken care of in community health centers.

Now, we focus on health, and there is money in the budget to do so. And so we've set priorities. Education is a priority, keeping the peace is a priority, the health care of our citizens is a priority, retirement accounts are a priority. And there is still money left over.

But the difference between this administration and what happens in the past is that we grow discretionary spending by 4 percent. And I said, well, that seems like a reasonable number. But that's not what happened last time around. Last time, as the Congress was trying to get out of town, they had a bidding contest, and the discretionary spending increased by 8 percent. That's a huge amount of money. The baselines of the budget were that much higher, and we're adding on top of that.

And yet there are some saying, he doesn't want to meet basic needs. What we need in Washington is fiscal discipline; we need priorities. (Applause.) We need to set priorities and fund it, so our budget increases by 4 percent. And, by the way, just so you understand, the accounting talk there in the nation's capital, the definition of a budget cut is when numbers don't increase to expected levels.

So like, for example, if the baseline is one and the expected level is 1.5 and I propose 1.4, that's called a spending cut. It's the darnedest accounting system I've ever seen. (Laughter.) That's why I'm trying to bring some common sense into the budgeting of your money. (Applause.)

In the budget I submitted to the Congress, we pay down debt by $2 trillion. (Applause.) Over the next 10 years, we will reduce the amount of debt at the federal level by $2 trillion. But let me also remind you all, as we talk about numbers, remember there is a lot of debt around our society. There is debt at the federal level and we do a good job of paying down a lot. But there is also consumer debt, credit card debt, debt that burdens the working people.

So as we talk about budgets, I just want you all to also keep in mind the budgets of the families who live in your neighborhood, budgets of people struggling to get ahead. You bet we're going to pay down debt at the national level. But we need to be mindful of the debt that burdens those who are struggling to get ahead and get into the middle class, as well.

Then I set aside a trillion dollars for contingencies. That can mean money to help our farmers. And one of the things you'll find out about my administration is I respect and understand the importance of American agriculture, not only for our domestic consumption, but for international trade purposes as well. Farming is a very important part of our vision for the future. (Applause.)

And after setting priorities and growing the budget at what I believe is a reasonable rate of 4 percent and setting aside the payroll taxes, paying down debt and putting aside a trillion over 10 years for contingencies, there is still money left over. And that's the fundamental debate.

There's a lady in -- there's a lady in Iowa, western Iowa, a grandmother who stood up at an event I had. And she said, I've seen a lot of children and grandchildren go through my house. And every time I leave a plate of cookies on the table, they eat it. And that's how I view surpluses. That's what I'm afraid is going to happen if we don't have fiscal discipline, and are willing to say that the surplus is the people's money. It's not the government's money. (Applause.)

It's the people's money. And that's the important thing for the members of Congress and the Senate to keep in mind. It's not the government's money. It's your money to begin with. And oh, there are some priorities that need to be kept, and we're keeping them.

But there's another priority, as far as I'm concerned, and that is, how best to help American families to help themselves; how best to help people access the middle class. And there's another important priority. And that is, let people have money as quickly as possible, that otherwise would go to government, to provide a second wind to an economy that's slowing down. (Applause.)

One of the things that concerns me about tax relief is what they call targeted tax relief. That means federal officials get to decide who's targeted in, and who's targeted out. To me, that's not good public policy. I don't think we ought to try to pick winners and losers in Washington, D.C. I think everybody's a winner in America, and I think if you pay taxes, you ought to get tax relief. And so I submitted a plan that reduces all rates, on everybody who pays taxes. We simplified the code. (Applause.)

This tax code of ours is unfair. It is unfair to people who are struggling to get ahead. Incredibly enough, if somebody has -- a single mom, for example, raising two children, if she earns more money above $22,000, she pays a higher marginal rate on every additional dollar she earns than somebody who is successful. And she looses her earned income tax credit, goes into the 15 percent bracket for the first time, and pays payroll taxes. She's paying nearly 50 percent on every dollar. This is somebody struggling to get ahead. Somebody who's working the toughest job in America, by the way, and that's raising children on her own. (Applause.)

And yet, the tax code we have makes it unfair. And so we've reduced the bottom rate from 15 percent to 10 percent, and increased the child credit from $500 to $1,000, to make it easier for that person to realize her dreams. (Applause.) The message is, the harder you work, the more money you have in your pocket in America. The harder you work, the easier it is to get ahead, and not the other way around.

But we also drop the top rate from 39.6 to 33 percent. And I know that's created a lot of howling in Washington, but I think you can help remind people over whom you've got some influence that the whole notion of dropping the top rate is to stimulate growth in the small business sector of America. There are hundreds of small business owners who are unincorporated, who are sole proprietors, who may be organized along Subchapter S lines, that pay that high marginal rate. And by dropping the rate, we're sending a clear message to America, the role of government is not to create wealth; the role of government is to create an environment in which a small business owner can flourish, in which the entrepreneur can realize their dream. (Applause.)

The small business owner is a job creator. The small business owner also represents the best of America, which says if you dream big and work hard, you can own your own business. And, by the way, when it comes time to pass that business on to your heir, we need to get rid of the death tax to make sure you can do so. (Applause.)

The House moved out our cut on marginal rates. I look forward to working with them on the rest of the package, including doing something about the marriage penalty and the -- we send the wrong signal. (Applause.) Our tax code ought to encourage marriage. We ought to encourage families. We ought not to penalize people who said "I do" at the altar. (Applause.)

So there is a lot of work to be done and I am here to ask for your help. Instead of sending people your check, why don't you send them your check and send them an e-mail while you're at it. Why don't you let your senators know that you think tax relief is not only good for the economy, but you think tax relief is good for working families here in the state of Florida.

And let me talk about two such people, Darrell Calhoun and Andrea Calhoun. They're here with their children. Raise your hand, Darrell. Darrell is a small business owner. He owns a fence company. Today in America, he pays $1,200 in federal income taxes. When this plan is fully enacted, he will pay zero in federal income taxes. (Applause.) He and Andrea are raising Garrett and Madison.

Oh, I know some will say, well, $1,200 isn't all that much. It's a lot to them. It's a lot to people who are paying high energy bills today in America. It's a lot to people who struggle with their own personal debt. I think it makes sense to set priorities. I think it makes sense to pay down debt at the national level. I think it makes sense to make sure the retirement systems work.

But I think instead of spending on bigger government, I think we ought to trust people with their own money. I'd rather have these good people spend the $1,200 than the people in Washington, D.C. (Applause.)

And that's the fundamental debate that's taking place, and I'm glad we're discussing it. It's really what democracy is about. It would be better if they did everything the President said. (Laughter.)

Sometimes it doesn't work that way. But they darn sure better listen to the people. And the people can have a large say as to whether or not we want fiscally responsible government in Washington, D.C., or whether we're going to continue those spending orgies that spend your money on bigger and bigger and bigger baselines of budgets.

It's time to have fiscal sanity in our nation's capital, and it's time to remember who pays the bills. It's the working people of America who pay the bills. (Applause.) It's so important for those of us who hold the high honor of representing you to trust the people. After all, that's the strength of America, the people. But the great strength of the country is not our governments. The great strength of the country are the people. The people who will help to make this country the -- fulfil its promise for everyone who's lucky to live here.

I say that because the common acts of decency and courtesy that take place neighborhood to neighborhood are really part of the strength of America. The fact that there are moms and dads who become Boy Scouts, Girl Scouts, Boys and Girls Club leaders that take a child around the shoulders and say, somebody loves you, and somebody cares, that's the strength of America. (Applause.)

The fact that there are little centers of love that exist because somebody says, what can I do to help? What can I do to live that common call to love a neighbor like I'd like to be loved myself. Now that's the strength of America. The great strength of our country lie in the hearts and souls of the American citizens. My job is to lift the spirit of the country. I'll argue on your behalf, and I'm going to argue until I get a bill to sign. It's out of the House, come on out of the Senate, and I'll sign it. (Applause.) And I'll argue on your behalf.

We'll have our agreements, and we'll have our disagreements. But my pledge is to have those agreements and disagreements in a respectful way. But there's more to the job than just arguing on your behalf when it comes to fiscal sanity in Washington. The job really is to lift the spirit of the country, to call upon the best, to remind the moms and dads, your most important job is to love your children with all your heart and all your soul. To call upon the compassion of America, and by doing so, we as a nation can unite, and we as a nation can hold out that great beacon of hope we want it to be for every person who lives in our country.

What an honor it is to represent you all, and what an honor it is to be the President of the greatest country on the face of the earth. Write your Senators, let your Congressmen know, and God bless. Thank you all. (Applause.)


END 2:00 P.M. CST

 

 

 


REMARKS BY THE PRESIDENT IN JOINT MEETING OF THE NEW JERSEY CHAMBER OF COMMERCE-- March 14, 2001

East Brunswick Hilton
East Brunswick, New Jersey
12:35 P.M. EST

photo of Bush with others
White House photo

     THE PRESIDENT:  Well, Governor, thank you very much.  I appreciate your kind words, and I appreciate your friendship.  I got to know Donny and his wife, and I respect them a lot.  And I know the people of New Jersey do, as well.  (Applause.)

     It's good to see my friend, the Speaker.  (Applause.)  I had him down to the Governor's Mansion in Texas, and I want you to know he didn't spill. (Laughter.)

     I'm honored to be traveling with members of the New Jersey congressional delegation today.  We flew down on Air Force One.  I am thrilled that members of the House of Representatives came -- Rodney Frelinghuysen and Marge Roukema, Jim Saxton, Chris Smith, Rush Holt, and the newly elected Mike Ferguson.  And I want to thank you all very much. (Applause.)

     I'm also very pleased the Senator Corzine and Senator Torricelli came, as well.  (Applause.)  I have been most pleased with the comments Senator Torricelli has been making.  It shows that -- (applause) -- I don't want to single anybody out.  (Laughter.)  Not one vote is more important than any other vote.  But he has shown a lot of common sense as far as I'm concerned.  (Applause.)

     I am thankful they're here; it gives me a chance to sing the praises of those in Congress who are joining my administration in changing the tone in Washington.  We'll have a lot of debates on important issues.  And we're in the middle of one that I want to talk about today.  But we're going to show, Senator Torricelli and me, Senator Corzine and me, Senator Holt and me, that Republicans and -- I mean, Congressman Holt and me.  (Laughter.) Don't want to be rushing your career.  (Laughter.)  But we can show that Republicans and Democrats can differ, but we can do so in a civil way.  We can set a better example for people who look at our government than the example that had been set in the past; that we can have disagreements -- (applause.)

     So I like to tell people I'm beginning to see a culture of respect develop in our Nation's Capital, and also, by the way, a culture of achievement that I hope people will judge us based upon results, not how we say things.  And recently, the Congress has shown their willingness to focus on results.  The ergonomic regulation reform that took place shows a positive development and our willingness of people to get things done. (Applause.)

     We got a good piece of legislation moving out of the Senate in terms of education, which I'll talk about in a little while.  I mean, we're showing people around the country that it's possible to have a culture of positive achievement in the Nation's Capital.  And for that I'm grateful. And I want to thank the members of Congress who are willing to work together to get some positive things done on behalf of the people.

     Joan, I want to thank you very much for inviting me, and I want to thank all the folks who worked so hard to put this event on.  We didn't give you very much notice.  (Laughter.)  But you responded, and I appreciate your hard work.  And I appreciate those who spent hours over the weekend making sure that this event gave me a chance to come and talk about an incredibly important issue, and that's the people's budget.  (Applause.)

     I like to remind people it makes sense to have common sense in Washington.  Particularly when it comes to spending your money.  And the first principle involved with budgeting is for our government to remember whose money it is that we're spending.  (Applause.)  We're working with the taxpayers' money.  It's not the federal government's money.  I like to remind people that the surplus is the people's money, and we better be wise about how we spend it.

     And it means setting priorities.  It's important for  the President to set priorities, to set clear priorities so that Congress doesn't overspend or get exuberant in their attempts to get reelected with your money.  And so some of my priorities are these:  education is a priority.  I think it's incredibly important.  (Applause.)  So we've increased the education budget by a significant amount of money.

     But lest you forget where I came from, I also strongly believe in local control of schools.  I believe we've got to trust the people in New Jersey to run the schools of New Jersey.  (Applause.)  I also believe, though, in return for federal money, states and local jurisdictions should measure to determine whether or not children are learning to read and write and add and subtract.

     I believe the cornerstone of reform is not only to insist upon local control of schools -- which means flexibility and authority at the local level, when it comes to spending federal money -- but it also means that if you receive help, you and the citizens of New Jersey must devise accountability systems to show us all whether or not children are learning to read and write and add and subtract.  And, if so, the teachers need to be praised, and the principals and superintendents.  But if not, if our society finds children trapped in schools that will not teach and will not change, instead of standing by and saying it's okay, good public policy demands something to challenge the status quo.  (Applause.)

     Oh, I've heard all the arguments about accountability.  Some say, well, we can't measure; the federal government does not have a role in education and, therefore, should not insist upon results.  I disagree. We're results-oriented people in this country.  And in return for taxpayers' money, we ought to insist upon results.

     And I don't believe in a national test, nor do I believe the federal government ought to tell New Jersey how to test its students.  If you believe in local control of schools, you trust your governor, and you trust the local folks.  But I darn sure believe in asking the question, are the children learning.

     I'm told some say, well, it's racist to test.  It's racist not to test -- (applause) -- because the people who generally are left behind in a system that does not measure are those who it's so much easier to quit on. It's so much easier to say that an inner-city child can't learn, let's just move him through, let's have no accountability.  It's so much easier to quit on a child whose parents may not speak English as a first language.

     No, we need accountability in the public school system.  We need results.  And we'll herald success and we need to be bold enough to blow the whistle on failure by giving parents different options if their children are trapped in failing schools.  (Applause.)

     A priority of mine is to keep the peace.  And it starts with making sure the military is well-paid and well-housed.  (Applause.)  So in the budget I submitted to Congress we increased the pay of the people who wear the uniform.  (Applause.)  And we've got a housing initiative to make sure they're well-housed.

     It's one thing to pay people well; it's another thing to make sure the mission is clearly defined.  In order to increase morale in the military, we must have a clearly defined mission, which is to be able to fight and win war and, therefore, prevent war from happening in the first place.

     A priority of mine is to make sure the retirement systems in the country work well, which basically means that all the money going into the Social Security system be spent only on one thing -- and that is Social Security.  There is universal agreement with Republicans and Democrats in the Congress that we're not going to use the payroll taxes for anything other than Social Security.  And that makes sense.

     It not only makes sense, good fiscal sense, it also makes sense because a substantive reform that I look forward to working with Congress on is to make sure the Social Security system is vibrant and strong, particularly as we head into the 21st century -- which means not only will we guarantee payments to the seniors who rely upon Social Security today, but we need to think differently and let younger workers manage some of their own money in the private markets, to make sure there is a Social Security system around tomorrow.  (Applause.)

     Another priority is the health care system.  And as an example, the budget I submitted to Congress doubles the Medicare payments over the next 10 years -- got over hundred-and-something million new dollars of spending in Medicare.  And that makes sense, because we must fulfill the obligation to our seniors, meet the promise of a health care system that works for seniors.  It's one thing to spend money, but the system also needs to be reformed.  And we need to give seniors a variety of options from which to choose, all of which will include prescription drugs, in order to make sure the Medicare system works as we go into the 21st century.  (Applause.)

     So we're setting priorities.  Community health centers is an incredibly important part of the health care mix in America.  It's a place where the poor or near-poor can find primary care.  The budget I submitted doubles the number of people who will be served in community health centers over the next five years.

     It's also a budget that understands the great role of faith programs in our society.  I went to one today, run by Reverend LaVerne Ball of the Youth Entertainment Academy, housed in the basement of a church in Plainfield, New Jersey.  It's a place that is staffed by people who have heard the universal call to love a neighbor like they would like to be loved themselves.  I've expanded in my budget the amount of money for after-school programs and have said loud and clear, if you're a faith-based program you ought to be able to access that money in order to provide after-care programs for children who are looking for something other than just the standard old way of conducting after-school programs; who are looking for somebody to put their arm around them and say, I love you and I care.  (Applause.)

     Now, this is a budget that meets priorities.  We grow the discretionary spending in the budget by 4 percent.  Now, that's where the friction is coming in Washington, because the discretionary spending at the end of last year grew at 8 percent.  And when you're talking in terms of trillions, that's a huge amount of the increase of -- the role of federal government.

     So we say to the Congress, there are not many workers in America who got a 4 percent pay raise last year; surely, you can live within 4 percent discretionary spending.  By focusing on priorities, surely the members of Congress, both Republicans and Democrats, can live within a 4 percent increase of discretionary spending.  (Applause.)

     I have made it clear that debt reduction is a priority of this administration.  And so we pay down, in the budget I submitted, $2 trillion of debt over the next 10 years.  That's all the available debt.  That's all the debt that becomes available to pay off during that period of time. That's $2 trillion; that's the largest debt repayment of any nation at any time in any history.  (Applause.)

     So the budget sets priorities.  It grows discretionary spending at 4 percent, considerably less than the spending orgy that took place last year, but nevertheless, enough to meet the needs.  It pays down $2 trillion of debt.  It sets aside the payroll tax for Social Security.  It doubles the Medicare budget.  And there's also a trillion dollar contingency fund, so there's another trillion over 10 years that's set aside for contingencies.  It may be an agricultural issue that we need to deal with. We may need to bolster the payment of FEMA, the Federal Emergency Management Agency.  There's money set aside.  It makes common sense not to spend all the money, and so, therefore, we've got money set aside.  We pay down debt; we meet discretionary spending; and there's still money left over.  And that's where the battle is.

     And the fundamental question is what to do with it.  My belief is that once we meet priorities, instead of increasing the size and the scope of the federal government, we better remember who pays the bills in America. We better remember the working people.  (Applause.)  We better remember who created this surplus in the first place.

     And so I submitted a plan that says, instead of increasing discretionary spending, let's give people more of their own money back. And it makes sense to do so.  It makes sense to do so.  Our economy is beginning to sputter.  I believe -- I was asked about the markets today; I'm sorry people are losing value in their portfolios.  That worries me. But with the right policies, I'm confident our economy will recover.  The right policies -- fiscal policies.  And that means giving people money back, in plain language.  (Applause.)

     Or, better yet, don't take it in the first place.  (Applause.)  And we're making good progress on this issue.  We're making good progress -- the House passed the cut on marginal rates.  And I want to thank the members of the House who were with me on that.  It makes sense.

     Let me tell you the principles behind that part of the tax relief plan.  I don't believe the proper role of government is to try to pick and choose winners when it comes to tax relief.  See, I don't think there's a right American or wrong American when it comes to those who pay taxes.  I think if we're going to have tax relief all Americans ought to get tax relief.  (Applause.)

     So we reduced all the rates on everybody who pays taxes, and simplified the code.  Reduced the rates from 5 to 4; we dropped the bottom rate from 15 percent to 10 percent.  I'm asking Congress to increase the child credit from $500 to $1,000 per child.  And let me give you the benefits.

     The benefits of that are -- is this:  We have a tax code that is unfair for people who are trying to get ahead in life, people who are struggling on the outskirts of poverty.  If you're a single mom raising your children -- two children, for example, and you're making about $22,000 a year, for every additional dollar you earn in working the toughest job in America, raising those kids -- for every additional dollar you earn, you pay a higher marginal rate than a Wall Street banker.  And that's the facts.  As you begin to lose your earned income tax credit and go in the 15 percent bracket, and pay payroll taxes, the hardest dollar you earn is taxed at nearly 50 percent.

     And, folks, that isn't right.  That's not what the American experience should be.  It seems like to me the harder you work, the more money you ought to put in your pocket.  And our tax code ought to reflect that, and that's why we dropped the bottom rate from 15 to 10, and increased the child credit.

     But we also dropped the top rate, from 39.6 to 33 percent.  And I know there's a lot of people that are hollering about that part of the tax package.  First, if you pay taxes you ought to get relief.  But I want the members of Congress to understand that part of this plan is to stimulate the growth of small businesses and entrepreneurs, and that thousands of small business owners in America are unincorporated or sole proprietors, or sub-chapter S's, and pay taxes at the highest marginal rates.  And by cutting the top rate we stimulate the growth of small business in America. (Applause.)

     Those who would like to leave your money in Washington try to make us feel bad about cutting the top rate.  But I come from the school of thought that the American Dream must be alive and well.  The role of government is not to create wealth, but an environment in which the entrepreneur can realize his or her dreams; in which the small business owner can find capital in order to fuel an idea.  And cutting that top rate is an infusion of capital for the small business owner in America, and it makes good economic sense.  And it makes good sense to reenforce the American Dream through good tax policy.  (Applause.)

     This tax code is not only unfair to people struggling to get ahead at the bottom end of the economic ladder.  It sends the wrong signals -- it doesn't make sense and it's unfair to tax marriage in America.  We need to do something about the marriage penalty in the tax code.  And it's unfair to tax a person's assets twice, and we ought to get rid of the death tax in the tax code, as well.  (Applause.)

     This plan is fiscally sound.  It makes common sense.  We meet priorities; we pay down debt; we set aside money for Social Security.  But we also remember who pays the bills.  It makes sense for our economy to give people their money back, and that's why I look forward to working with Congress to make sure this tax relief package is retroactive.

     Senator Corzine and I on the plane talked about how we make sure money gets in the economy as quickly as possible.  And I appreciate his thoughts along those lines.  This is part of an economic recovery plan.  But this plan is also good for American families.  And the Dietrich family is with us today.  Where are you?  There you go.  Thank you for coming. (Applause.)

     Mark and Kim and Mark, Jr. and Christopher.  And I've asked them to come because oftentimes during the course of these tax debates and budgets, all you hear are numbers.  But it's important for me to remind people in America that there are lives affected by our discussions.

     And there's a lot of focus, for example, on debt at the national level, and that's fine, that makes sense.  But I also want the policymakers to understand there's debt at the local level, too.  That a lot of hardworking Americans have got credit card debt.  And when you couple credit card debt, for example, with high energy prices, it puts people in a bind.  And good public policy frees Americans to be able to make more decisions for their families.

     These good folks pay $5,700 in federal income taxes.  When our plan is fully implemented, they will save $2,000.  Now, that may not sound like a lot -- (applause.)  Oh, I know, in this land of big numbers, $2,000 may not sound like a lot.  But it's a lot to them.  It's a lot to a family who is worrying about high energy bills.  It's a lot to a family who wants to put aside money for their children.  It's a lot for moms and dads who are concerned about the future of their family.  It's a lot.  And my attitude is, once we made basic needs, I'd rather have these good people spending the $2,000 than the United States Congress spending it.  (Applause.)

It's a fundamental decision where we put our trust.  And that's what I want this debate to focus on, who do you trust.  Oh, I love dealing with the members of the Congress, and they're good folks, they care a lot about their country.  But we ought to trust the people of America.  We ought to trust them to spend their own money.  We ought to trust them to make the right decisions for their families.  We ought to have a limited and focused and energetic federal government that, when it's all said and done, holds the people up in our trust.

     And, after all, that's not only important for good economic policy, that's important to make sure America fulfills its promise for everybody who is fortunate enough to live here.  Because, you see, the great strength of the country really doesn't exist in the halls of our governments; the great strength of America is in the hearts and souls of the American citizens.  (Applause.)

     One of the biggest honors of my job is to be able to travel the country and say thanks to those social entrepreneurs who literally change America, one face at a time.  People who don't wait for government to act and who say to a neighbor in need, what can I do to help; what can I do, brother or sister, to help you on your walk.  I think of Catholic Charities, that provide such incredible service all around America.  I think about homeless shelters staffed by volunteers who feel the need to help somebody in need.  No, the great strength of this country, folks, exists in neighborhood after neighborhood after neighborhood, where people of religion and people who don't give a hoot about religion say, what can I do to help a neighbor in need.

     My job is not only to argue good policy on behalf of the people, and argue on your behalf to make sure your money ends up in your pocket after needs are met; my job is also to lift the spirit of the country and to call upon the best.  To work to unite our nation, but always remember that the true strength of America is our people and the hearts of our people and the compassion of America.

     I'm fortunate to the be President of the greatest land on the face of the Earth.  (Applause.)  It's an unimaginable honor.  And I want to thank you all for giving me the chance to come and talk about a common-sense policy for the budget, but to remind you that if you see somebody in need, put your arm around them, tell them God loves them.

     Godspeed to you all and God bless.  (Applause.)


END                          1:04 P.M. EST


REMARKS BY THE PRESIDENT TO THE HISPANIC CHAMBER OF COMMERCE-- March 19, 2001

Presidential Hall
Dwight D. Eisenhower Executive Office Building

1:15 P.M. EST

President Bush at lectern speaking
White House photo

     THE PRESIDENT:  Well, thank you very much, Abel.  I don't know what you said, but -- (laughter) -- it worked.

     I want to thank you very much for being here.  I appreciate Mitch and Margaret and Ruben and Mark to be here to talk to you all and brief you about what we're trying to do here in the administration.  And thank you all for your interest.

     Before I begin, I do want to say hello to Hector, who is the designated nominee to the Small Business Administration.  (Applause.)  And George Herrera, thank you very much, Jorge -- (laughter and applause.)  And thank you all for what you do to make America a unique and wonderful place.

     I don't think enough people in our country pay attention to the role of the small business person, the incredible impact the Hispanic small business person has on the country.  I remember campaigning in California and Hector said, you know, you've got an amazing statistic -- there are thousands of Hispanic-owned small businesses in our state.

     And I said, oh, really, by thousands, what do you mean?  He said, would you believe 600,000?  And I said, I do.  Because this is what America is all about, the idea of somebody having a dream.  It doesn't matter what your background is, where you're from.  If you work hard and dream big, you can realize your dream.

     And that's what good public policy is all about, too.   It firmly recognizes that the role of government is not to create wealth, but an environment in which the entrepreneurial spirit can flourish.  And I want to talk to you about that today in terms of the U.S. budget.

     But, first, I want to confirm our commitment to free trade in this administration.  I believe free trade is an incredibly important part of making sure the environment is hospitable to the formation of small businesses.  And trade with Mexico is an integral part of making sure that our hemisphere is safe, secure and prosperous.  (Applause.)

     I had a chance to reiterate that face to face with Vicente Fox, who is -- he's going to provide good, strong leadership for Mexico.  And I told him that a strong Mexico is in our nations' best interests -- in our nations' best interests that Mexico be prosperous and vibrant.  And the best way to do so is for there to be free and fair trade between our countries.  This is a message I hope the Congress hears.

     Our hemisphere, by the way, is not going to be an after thought for this administration.  It's one of the most important parts of our foreign policy, will be to promote prosperity and peace and freedom throughout this hemisphere.  (Applause.)

     And so part of making sure the environment is hospitable to a capital formation and the entrepreneurial spirit is trade.  But another part is to make sure the federal government does not squash opportunity by being -- over-spending taxpayer money.  It's important that we budget wisely.  And I want to talk a little bit about our budget and  I want to thank you all for paying attention to the debate in the budget, because it directly affects your lives.

     First, the fundamental question a lot of people ask is, are we spending enough money to meet the needs of the government.  And the answer is, yes, we are.  The budget I submitted to Congress increases discretionary spending by 4 percent.  Now, keep in mind, that's greater than the rate of inflation, it's greater than generally the pay raises that the people who are paying the bills have received.

     In other words, we're spending quite a bit of money.  And that 4 percent, when you look at the budget in terms of trillions, is a lot of money.  It's a lot of money.  It allows us to set priorities.  I mean, I have set priorities, which allows us to be fiscally responsible with your money.  Education is a priority.  Funding the defense budget, making sure our folks are paid better, who wear the uniform, is a priority.  Medicare and Social Security are priorities.  We doubled the Medicare budget. And we say to the Congress that the payroll taxes for Social Security will be only spent on Social Security.

     We've set priorities.  We've made it clear that education is important.  We made it clear that health care is important.  We made it clear that retirement systems are important.  And we grew the discretionary spending by 4 percent.  Now, the reason there is some hollering up here is because last year they grew the discretionary budget by 8 percent.  It's unbelievable how much money they spent on the way out of town.    And we're saying, let's be realistic with the people's money.  (Applause.)

     On the Medicare and Social Security issue, these are more than just spending issues.  These two are issues that are important for the future of the country and require the Congress and the President working together. Today, the trustees issued their reports on the financial status of Social Security and Medicare.  These nonpartisan reports underline and add an exclamation point to the need to reform and strengthen both.

     Social Security and Medicare are vital programs and they need major reforms.  We must act, and do so courageously.  And that's part of my message to the Congress.  These are issues that we need to work together on.  Today's report show health care costs are rising at a faster rate than was previously estimated.  By 2016, expenses in both Medicare Part A and Social Security will be greater than the payroll taxes coming in to support them. And 2016 isn't very far down the road.

     The financing deficit for the entire Medicare program, including Parts A and B, is larger than ever.  We must respond and act with courage to keep Medicare and Social Security benefits secure.  In the words of the board of trustees, both Social Security and Medicare need to be reformed and strengthened at the earliest opportunity.  And that's what I'm going to ask both Republicans and Democrats to do on the Hill.

     It's one thing to double the Medicare budget over 10 years.  We need to work together to make sure the Medicare system responds to the needs of the elderly, to give elderly more choices, including prescription drug benefits, so we can say -- firmly say, we're going to keep our promises to the elderly in America.

     This requires a sense that -- of urgency.  We have only so many years to get the systems back on track.  It's time to quit the posturing and time to reform the systems.  And I'm prepared to spend the political capital, along with both Republicans and Democrats, to do so.

     We have long term commitments, and we'll keep them.  And Medicare and Social Security have long term problems that we're going to solve. (Applause.)  Part of the Social Security reform must include allowing younger workers the option to take some of their own money and put it in the private markets, under safe conditions.  In order to make sure that there is a Social Security system around tomorrow, we've got to get a better rate of return on the money in the Social Security trust.  And that means trusting people with their own money, to make wise decisions as to how to get a better rate of return than the 2 percent in the Social Security trust.

     I fully recognize that reforming Medicare and Social Security are going to require a new way of thinking in Washington.  But it's time for there to be a new way of thinking in Washington.  (Applause.)

     There is also a lot of talk about paying down debt, as I'm sure the OMB Director will tell you.  We pay down a lot of debt.  We pay down $2 trillion of debt over the next 10 years.  And that's important.  It improves the balance sheet of our government.  But I want to remind the folks that there is more than just government debt in our society.  There is credit card debt that affects the ability of many of our citizens to be able to save, for example.

     And when you couple high energy prices with credit card debt, there are some of our families in this country beginning to strain.  And it seems wise and common sense policy to meet our needs at the federal level, pay down debt and always remember, if we have any money left over, whose it is to begin with.

     And so one of the things I'm asking Congress to do is to be fiscally sane with the people's money -- pay down debt, set aside some money for contingencies; but with that money left over, not try to spend it on bigger government, but let it be spent on bigger family -- on family needs.  It's to pass it back to the people who paid the bills.

     That's the fundamental debate taking place here in Washington.  It's a debate as to whether or not, after we meet needs, we grow the government or we trust people with their own money.  And this is an issue of trust.  And I want your help on the issue.

     As I've said, it directly affects you, and let me explain how, besides the fact that if you pay taxes you're going to get tax relief.  And that's one of the principles of this debate.  There are some in Washington who would like to have what they call targeted tax relief.  It means the federal government gets to pick and choose the winners and losers.  That's not the role of government.  The role of government, in my judgment, is to be fair and even-handed; and it says if you pay taxes, you get relief. That's what the role of government ought to be.  (Applause.)

     A lot of times in the rhetoric, people forget the facts.  And the facts are that thousands of small businesses -- Hispanically-owned or otherwise -- pay taxes at the highest marginal rate, because most small businesses are not incorporated, they're sole proprietorships, or they're sub-chapter S's.  And they're subject to the 39.6 percent income tax rate.

     And so when you hear us talking about dropping the top rate from 39.6 to 33 percent, I hope Americans understand the positive effect this will have on the small business communities.  (Applause.)

     It is the message that I hope Congress joins me on in saying we understand how small businesses grow, and they grow by being able to have more cash flow to reinvest in their own business.  The small business person is an integral part of new employment in America.  But more importantly, the small business owner represents the great dreams of Americans.  And the role of government is to create an environment that encourages Hispanic-owned businesses, women-owned businesses, anybody kind of owned businesses.  (Applause.)

     And the reduction of the top rate sends a clear message that we appreciate what you're doing, and we want you to continue to do it, and we want you to have some of your own money so that you can expand your businesses and more likely realize your dreams.  That's what tax relief is all about.

     We have met the needs of government; we have paid down debt; we've set aside money for health care; we have set aside the money -- the people's money for Social Security.  And what we're saying is, after we've grown the budget by 4 percent, let's remember who paid the bills, and remember what drives America.  And it's the small business community and the entrepreneur.

     And so I'd like your help.  I'd like your help by -- if you contact your senators, you might just put a word in for your own self.  (Laughter and applause.

     And there's one other aspect of tax reform that I think is important -- there's a lot of it, obviously.  We drop all rates; we simplify the code; we increase the child credit from $500 to $1,000 per child, which is a very positive addition to the code because it makes the code more fair for people struggling to get ahead.  We do something on the marriage penalty.  And as importantly to you, we eliminate the death tax.

     The death tax is a tax that causes the small business owner to pay taxes twice -- once as you build your business, and then when you pass it on to your heirs.  And it seems like to me that part of the American experience ought to make it easy for a mom or a dad, once he or she builds up his or her business, to pass it on to a son or a daughter.  That's what America is all about, is the ability to transfer -- (applause.)

     And so I appreciate so very much you all being here to lend your voice -- listen to what we have to say, and to lend your voice for reason and common sense in Washington, D.C.  All the rhetoric sometimes tries to obscure reality and there's a lot of name-calling at times, and trying to frighten people one way or the other.  But I think when people take an objective look at what we're trying to do, they'll realize this is a common-sense approach to your money, and it recognizes the great strength of America lies not here in Washington, but in the hearts and souls of our folks, people who are willing to work hard, take risk, dream big, and realize the great American experience -- but not only realize it, but enrich it, to make it so much stronger and so much better.

     I used to tell the folks in my great state of Texas, I said, I welcome the Hispanic influence in our state.  It makes Texas a richer place, a stronger place, a place that I'm proud to call home.  And that's the way I feel about America, too.

     Thank you all very much.  (Applause.)

  END                 1:30 P.M. EST


REMARKS BY THE PRESIDENT AND THE FIRST LADY TO WOMEN BUSINESS LEADERS--March 20, 2001

The East Room
10:50 A.M. EST

     MRS. BUSH:  Thank you all so much.  I want to welcome you to the White House.  I'm thrilled that such a distinguished group of women have joined us here today in the East Room.  This room, as some of you probably know, has seen a lot of changes over the years.  In fact, Mrs. Abigail Adams actually hung her family laundry to dry in this room -- (laughter) -- and there weren't any paned windows, so the fresh air was abundant in this room.  I'm thankful that times have changed.

Photo
White House photo

 

I'm especially proud that you all joined us this month as our nation celebrates women's history.  Battles hard-fought and won by women resulted in improvements in all aspects of American life, and you all are proof of that.

     Abigail Adams, by the way, cautioned her husband when he was writing the Constitution of the new United States, to not forget the women.  But women didn't get the right to vote in that Constitution and, in fact, it took a long time.  Our daughters probably don't believe, or find it very hard to believe, that just 75 years ago, women didn't even have the right to vote.

     I'll never forget one day when George was governor and we were celebrating the 75th anniversary of women's suffrage in Texas.  We were on the steps of the Texas State Capitol Building, my mother happened to be there; she was in town, so she joined me that day.  Liz Carpenter was there, and both of those women were babies when women won the right to vote.  My daughters were also there, much to their chagrin.  They represented the present and the future.  They represent the women, the girls and the women who will benefit fully from women's struggle for increased inclusion in American life.

     Everybody was dressed in historically correct costumes.  We were wearing white gowns, white dresses with yellow sashes.  Everyone was dressed like that, except, of course, for my teenage girls -- (laughter) -- who would have rather been anywhere else than on that stage.

     But, finally, we came to the part in the program where, in a great show of unity, my mother, Liz Carpenter and I, joined hands and raised our hands to give the hip, hip, hooray for women's suffrage.  As we did it, I reached out with my free hand and found a vacant space where my daughters were supposed to be standing -- (laughter) -- and in fact, I looked over and they were totally humiliated, and trying to shrink into their seats. You know teenagers; they were mortified that we had made such a spectacle of ourselves.

     For our girls, women's suffrage is ancient history.  They've never known the inequalities that women had to endure and overcome a couple of generations ago.  That's why it's so important for us to be vigilant in our remembrance, and vocal in our celebration of women's history -- because we owe the great women in our past for the opportunities that we enjoy today.

     And now, I'm proud to introduce the father of those girls -- (laughter) -- who raised them to believe that every option is open to them. In fact, he's devoted to making the future brighter for all Americans.  I'm proud to introduce my husband, the President of the United States, George Bush.  (Applause.)

Photo

White House photo

     THE PRESIDENT:  Thank you.  Thank you for being here.  Please sit down.  First Lady -- it's got a nice ring to it.  (Laughter.)  I'm proud of Laura.  She is -- she makes this White House special for me.  She is -- brings a lot of perspective to our household.  She kind of reminds the President where he came from.  (Laughter.)  And always makes sure my tie lies straight.  But I'm proud of the job she's doing for America, and she's going to be a great First Lady.  (Applause.)

     And I am proud of the ladies behind me, as well.  We've put together a great Cabinet.  (Applause.)  They're not afraid to speak their mind. They're smart, they're capable, and they represent America.  And they're good, they're really good.  We've got a great Cabinet, and these good folks up here make a big difference.  (Applause.)

     And I've got a great staff, as well.  And I appreciate Margaret LaMontagne being here.  Margaret's the Domestic Policy Advisor to the President.  And I've known here a long time.  She's plenty capable, and she's spending a lot of time on education, which is one of the subjects I want to discuss with you today.  And I appreciate you, Margaret.

     I also want to thank Bonnie for your hard work, and for putting this on.  I want to thank you all for coming.  I know you all are going to Capitol Hill today.  I hope you help us deliver a couple of messages.  One is going to be on education.  Another is on common-sense budgeting and tax relief, and why it's important to all people, particularly those who have decided to invest capital in the private sector.  And I want to explain why this tax relief package will spur economic activity and entrepreneurship in America.

     First let me talk about education.  I said it was my priority in the campaign.  It is our priority in this administration.  An educated child is one much more likely to realize his or her dreams.  And we've got to do a better job of making sure every child -- I mean every child -- is educated.

     One of things about this administration I think people will find is that we are consistent.  We set out a set of principles and stand by them, that we don't try to figure out polls and focus groups -- we don't use polls and focus groups to figure out where to head.

     And there are some solid principles involved with our education plan. One of them is setting high standards and high expectations for every child.  We believe if you have low expectations, you get lousy results.  If you believe in the best in every single child, and set high expectations, good folks will follow.

     Secondly, we believe strongly in local control of schools.  We believe in aligning authority and responsibility at the local level.  Many of you, as you run your own businesses, know full well that when you separate accountability and responsibility or responsibility and authority, it creates an excuse for failure.  Oh, I would have done it a different way. And so we align authority and responsibility where it belongs, at the local level.  And I hope you help Congress understand the importance to pass power out of Washington, to provide flexibility at the state and local level.  (Applause.)

     Thirdly, we believe strongly in a results-oriented system.  A lot of times in education people focus on process.  We think the world needs to start focusing on results.  People need to start asking the question, what do you know -- not how old are you.  (Applause.)  In a world that asked the question, how old are you, oftentimes people just get shuffled through, regardless of what they know.  If you're 12, you're here; if you're 14, you're here; and let's just move you through.  And those of us who have been involved in public education know full well who gets left behind.

     Children whose parents don't speak English as a first language, for example.  Inner-city kids -- it's so much easier to quit on children.  We strongly believe that by insisting upon results, it will begin to change the mentality of public schools all across America.

     And so, one, we've asked for more money for our budgets.  We've increased education spending quite significantly.  And we've said, in return, however, we expect states and local jurisdictions to measure, to show us whether or not students can read and write and add and subtract; to focus on every child since every child matters.  We've got to end the process-oriented world of public schools.

     And we firmly believe that, through accountability, not only can we diagnose and solve problems, but accountability serves as a catalyst for reforms.  It's the accountability system that encourages local folks to say, wait a minute, the status quo is unacceptable; let's try something else.  It's strong accountability measures that will foster charter school movements, or public school choice movements, if necessary, to make sure not one single child gets left behind.

     So we've got an education vision that says, there will be more money in the system, but let's make sure that we have high standards, local control of schools, and strong, results-oriented systems.  I firmly believe that when we get the system right, the results will begin to improve dramatically.  And we've targeted some money -- we've set aside $5 billion for a national reading agenda.

     It's not the federal government saying, here's money available for K through 2 diagnostic tools, so that we can determine early in a child's career where that child may need extra help.  There's teacher training money.  One of the failures, one of the deficiencies -- I wouldn't call it a failure, but deficiencies in the system is that oftentimes, our teachers are not given a -- taught how to teach a curriculum that works.

     We need to retrain teachers.  So we've got money available to do that. We've got intense -- money available for after school programs or schools within schools to help young readers get up to speed early.  We've set a goal that all children ought to be reading by third grade.  And I look forward to working with the Congress to make sure the program gets funded, and our Secretary of Education to make sure it gets implemented in such a way as we don't erode local responsibility of schools.

     So that's the education plan.  Oh, there's a lot of discussion you'll hear about, we can't measure, it's too much government to measure.  I just disagree.  If we're spending money, we ought to get results for the money. But this isn't a national test.  This is a test where local folks will design the test.  The great state of Pennsylvania can design its own test. Texas designs its own test.

     But there needs to be a sense of accountability in the system.  And then you'll hear people say it's racist to test.  It's racist not to test. It's racist not to hold people accountable.  (Applause.)  Those who say it's racist to test must assume that certain children can't learn.  We don't believe that.  We believe all children can learn.

     So the principles involved in the education reform are sound and solid and they reflect what I hope you all agree with, that there is a better way.  We need to challenge the status quo when we find our children trapped in schools that are just not going to teach, and won't change.

     Secondly, I want to talk about the budget.  There's a lot of talk about the budget, of course.  And I made some people nervous up here, to be frank with you, because I've decided that instead of increasing discretionary spending by 8 percent on an annual basis, which is a lot, when you're talking in terms of trillions, that we'll have spending increase at 4 percent, greater than the rate of inflation, larger than most people's pay raises last year.

      And it's caused some consternation, because the temptation is for people to appropriate when money's available.  I was in Council Bluffs, Iowa, and a grandmother stood up and she said, you know, she said, I've baked a lot of cookies in my day.  And I've had children and grandchildren go through the house.  And every time I leave them on the table, they get eaten.  And that's kind of what happens to federal taxpayers' money. (Applause.)

     So I've presented a realistic budget to the Congress.  It says, like many of you all do in your businesses, set priorities.  I realize that -- we've got to realize it's important to set priorities.  Education is a priority.  The military is a priority of mine, starting with making sure people get better pay and better housing.

     Now, we have stepped back from some of the big appropriation requests, because I want Don Rumsfeld to take a full look at the military, to make sure military spending meets a military strategy that will help us keep the peace in the out-years.  And it's important to do that.  It's important to make sure taxpayer's money is well-spent and well-focused, on all areas of concern.  And the Defense budget requires a good scrubbing and a good looking at.  And that's exactly what this administration is doing.

     But in the meantime, we need to send a clear signal to the men and women who wear the troop -- who wear the uniform, the troops who wear the uniforms, we appreciate what you do on behalf of America, so we're going to pay you to do better, and house you better, and have a mission that is more focused, which is to be able to fight and win war, and therefore prevent war from happening in the first place.

     We've got money in the budget for Medicare.  Our Medicare budget doubles over the next 10 years.  And that's part of what's needed, but also -- (applause) -- but we also need to make sure the system is modern, that it meets the needs of our seniors, it gives seniors a variety of options from which to choose, and all the options should include prescription drugs.

     So there's money in the budget for Medicare.  It's a doubling.  And we set aside all the money for Social Security for only one thing, and that is Social Security.  Take all the payroll taxes and make sure it's only spent on Social Security.  And, by the way, its system needs to be reformed as well.

     One of the major components of reform is to allow younger workers to take some of their own money and put it in safe and secure market-oriented investment vehicles which will yield a greater rate of return than the paltry 2 percent our money now gets in the Social Security trust today. (Applause.)

     And we pay down $2 trillion worth of debt in our budget.  Somebody said, why don't you take all the excess money and pay down debt?  Well, first of all, excess money tends to be spent on bigger baselines of the government.  And -- but the $2 trillion is all that's retiring over the next 10 years -- all that's to be retired over the next 10 years.  And it doesn't make any sense to pay a premium to prepay debt.  And so, we're paying down all the debt that's available.

     We set aside money for contingencies.  I know this is getting to be quite a long laundry list, but I'm trying to make a point that you all can help me make:  is that we've increased discretionary spending by 4 percent, we pay down debt, we protect Social Security, we set aside $1 trillion over 10 years for contingencies.  And there is still money left over.  And that's where the fundamental debate comes in Washington, D.C.  There are those who want to increase the size and scope of the federal government.  I believe -- I believe we need to remember who paid the money in the first place.  And I believe we need to pass it back.  (Applause.)

     Now, we drop all rates and simplify the code.  Drop the bottom rate from 15 percent to 10 percent.  We increase the child credit from $500 to $1,000.  And the purpose of that is to make sure that those who work hard to get into the middle class are more likely to succeed.  The tax code today penalizes people in the outskirts of poverty.

     The marginal rate for folks coming from -- a single mom -- the example I like to use is a single mom making $22,000 a year who is struggling to get ahead and trying to raise her two children -- which I also happen to believe is the toughest job in America -- for every additional dollar she earns above the $22,000, she pays a higher marginal rate than someone making $200,000.  And that's just not fair.  And so we address the inequity in the tax code by dropping the bottom rate and increasing the child credit.

     And we also drop the top rate, of course, from 39.6 percent to 33 percent.  If you pay taxes, you ought to get relief.  Everybody who -- but everybody benefits, I'm convinced, when the top rate drops because of the effect it will have on the entrepreneurial class in America.  (Applause.) What the Congress needs to hear is that most small businesses are unincorporated businesses, sole proprietorships.  Many are subchapter S corps, who pay at the highest marginal rate.  And when you drop the top rate from 39.6 percent to 33 percent, you encourage the growth of small businesses, whether they be women-owned small businesses, or any other small businesses.  (Applause.)

     People like to deflect the debate.  They like to turn it into a class warfare debate.  And you all can help by explaining clearly to people that reducing the top rate will help with job creation and capital formation; and as importantly, will help highlight the American Dream.  And that is, you can own your own business -- that ownership is not limited to just a few.  (Applause.)

     And we're going to do something on the marriage penalty.  And we need to eliminate the death tax.  (Applause.)  This is a realistic plan with the people's money.  It's a plan that meets needs.  Admittedly, it doesn't grow the budget the way people are used to in Washington.  But it's time to change that attitude about how prolific we're going to be with the people's money.  There needs to be a focus and a strategy and a discipline.

     It seems like at times, people forgot whose money it is we're dealing with up here.  It's not the government's money.  The rhetoric sounds like, oh, we're going to -- it's government's money.  But the money is here in Washington because of the hard work of people -- people working hard, people who care.  (Applause.)  The cash flow coming into the treasury of the United States is exceeding expectations, even though we're in an economic slowdown, which says to me, somebody is being over-charged. (Laughter.)  And I know who it is.

     And so that's what the debate is all about.  And I'd like your help. You can influence members of Congress and people listen to you.  And so I hope you take folks aside and say, be realistic about our money.  Let's don't balloon the size of the federal government.  And let's also remember that by giving people their money back, it will help provide a second wind for our economy.

     Many of you know better than me that our economy is slowing down.  And we've got some issues with which we'll deal.  Yesterday, the Vice President brought to me an interim report on energy -- we've got a problem with energy in America.  Our demand is increasing, but our supplies aren't.  And it doesn't take much economics to figure out what will happen.

     And we're going to do something about it.  This is going to be a very practical administration.  We will view problems, analyze them, and deal with them.  We'll be as up front as we can with the American people.  We'll explain when we can get something done quickly, and we'll explain when we can't get something done quickly.  We're not going to shirk from the problems with which we're confronted.  And one of the problems is an energy crisis.

     Another problem is a slowing economy.  And we're going to deal with it.  We'll deal with it in a forthright way.  And part of it is good fiscal policy, which means when we give people their money back, it should serve as a stimulus to economic growth.

     So this is a plan that not only brings fiscal discipline to the budgeting process, it's a plan that sets priorities.  But it's also a plan that remembers how America grows.  And it grows through entrepreneurship and the creation of small businesses and providing capital in the private sector for the expansion of jobs and the purchase of equipment.  And that's what the plan is.

     And I'd like your help.  I'd like your help to sell it on the Hill. (Applause.)  Two things I hope that you notice when you go up there is that I believe the country is beginning -- or the Capitol is beginning to develop a culture of respect.

     I want the members -- I fully recognize not everybody is going to agree with me -- or us.  And I respect that.  I do.  I may not agree with it, but I respect it.  One of my jobs is to change the tone of Washington. Oh, occasionally, there's the voice out there that sounds a little disgruntled.  But that's okay.  That's part of the democracy.  But our administration, or at least the people in my administration will treat people with respect.

     I respect those who don't agree with me on every single issue.  I expect there not to be unanimity.  And I believe by treating people respectfully, it is possible to do some positive things.  This is a Congress that is beginning to get a sense of accomplishment.  There is a culture of accomplishment in Washington.  There's a bankruptcy bill that's working its way through the House and the Senate; there's an ergonomics -- change in ergonomics regulations that I believe is positive, and I intend to sign today.  There are some positive developments.  Things are getting done.

     And that's important.  That will be a little change from the way people have viewed Washington in the past.  Washington seemed to be a place of bitterness and acrimony, and it doesn't have to be that way.  It's important to change it not only to get good public policy done, but it's important to change the tone of Washington so that when people look at our Nation's Capital they understand that public service can be noble and positive.  Just like these ladies up here understand.

     And our job is bigger than just legislation.  Our job is to set a good tone, a tone of respect, a tone of accomplishment for the nation.  And that's exactly what we're going to do.  And I want to thank you all for being here to help us get it done.  Thank you.  (Applause.)

10:56 A.M. EST


REMARKS BY THE PRESIDENT TO THE AMERICAN COLLEGE OF CARDIOLOGY ANNUAL CONVENTION--March 21, 2001

Orange County Convention Center
Orlando, Florida
10:24 A.M.  EST


     THE PRESIDENT:  Thank you all.  Thank you very much.  George, thank you very much for your kind introduction.  Doctor.  Doctor.  (Laughter.) I'm honored to be here, and it's an honor to be your President.

Photo

White House photo

     I thought about inviting Vice President Cheney to travel with me today -- (laughter) -- he said he's seen enough cardiologists lately. (Laughter.)  I'm pleased to report that he's feeling great.  (Applause.) And you'll be happy to know that when it comes to following doctor's orders, he's a model patient.

     I appreciate so very much the leadership of this august organization having me here, and I appreciate the fact that they invited my bigger little brother.  (Laughter.)  I can't tell you how proud I am of Jeb.  He is a really fine governor of this important state.  (Applause.)

     I'm also pleased to be traveling with members of the United States Congress from the state of Florida:  John Mica, Ric Keller and Dave Weldon.   Thank you all for coming with me.  (Applause.)  Weldon informed me he's a doctor.  He's representing your interests in the halls of Congress.

     And today we're in the home town of the new Secretary of Housing, Mel Martinez.  (Applause.)  I'm proud that Mel is the first Cuban American to serve in a President's Cabinet.  Mr. Secretary, welcome home -- but don't stay too long.  (Laughter.)  You're going back to Washington with me, we've got a lot of work to do.

Photo

White House photo

     You know, I haven't been in front of so money people who poke and prod and examine since my last press conference.  (Laughter.)  And I appreciate the chance to visit with so many distinguished doctors and their families.   So many Americans live longer, healthier and happier lives because of the important work you all do every single day.  And I'm glad to have an opportunity to thank you in person.

     Modern medicine continues to bring a revolution of hope and dignity into countless lives.  The average [life] expectancy in America today is 29 years longer than it was just a century ago.  And those added years now have added vigor.  Many forms of cancer, once incurable, are routinely treated and often cured.

     Diseases that grow more common with age, such as arthritis and osteoporosis can be less debilitating than they once were. And heart disease, though still the leading cause of death in America for both men and women, is claiming fewer lives than ever before.  Just 40 years ago, when patients were diagnosed with serious heart disease, treatment meant putting them in a hospital bed and trying to make them comfortable.

     Today, thanks to new surgeries, devices and drugs, and thanks to doctors and researchers behind them, millions of Americans with heart disease live vigorous, productive lives.  And Dick Cheney serves his country as Vice President of the United States.  (Applause.)


     This ongoing revolution in medicine is centered in America, and for good reason -- medical advances depend on innovation and innovation depends on freedom.  America has wisely resisted efforts to place medicine and health care into the hands of central planners.  (Applause.) Government-controlled health care may spring from the best of motives, but a cumbersome bureaucracy and one-size-fits-all approach stifle innovation and do not produce the best of results.

     There is an appropriate role for government in funding medical research, protecting consumers and providing health care for our senior citizens.  Our health care system is strong and it can be stronger.  And as we improve and reform it, we must always respect the freedom that makes America's health care system the best in the world.

     This year we have a real opportunity to improve health care.  Today, I want to talk about protecting the doctor-patient relationships with a patients' bill of rights.  But, first, I can't resist putting in a plug for my budget and for tax relief.  (Applause.)

     My budget funds our nation's important priorities, including many health care priorities.  We increase funding for education and for military pay and benefits.  We set aside $2.6 trillion of payroll taxes over the next 10 years for Social Security and for only Social Security.  We double funding for Medicare over the next 10 years, and make sure that every dime that comes in for Medicare is spent only on Medicare.

     And as you know better than most, Medicare urgently needs reform.  At a time when prescription drugs are often the treatment of choice for heart disease and many other illnesses, 99 percent of employer-provided health care plans offer some form of prescription drug coverage; yet, Medicare does not.  Often, Medicare does not cover new treatments and innovative technologies.  The Medicare bureaucracy is rigid and difficult and too often treats doctors as if you have nothing better to do than fill out forms.  (Applause.)

     To offer our seniors better coverage and better health care, Medicare needs new life and new vitality.  One of the leaders in the effort to modernize Medicare is a heart surgeon, Senator Bill Frist of Tennessee. (Applause.)  He's joined with Democrat Senator John Breaux and Republican Congressman Bill Thomas to set out a framework for reform.  And I'm committed to working with Congress to reform Medicare and to make sure that every senior has access to affordable prescription drug coverage. (Applause.)      My budget also proposes refundable tax credits to make health insurance more affordable for working families.  I propose making it easier for small businesses to join together so that they can purchase better and more affordable health coverage for their workers.  And we increase funding for community and migrant health centers, so that over the next five years we double the number of people served at community centers in rural and low income neighborhoods.

     I've also asked Congress to increase funding for medical research, which gives hope to many who struggle with serious disease.  My budget for next year requests an additional $2.8 billion for the National Institutes of Health, an important step toward our goal of doubling the budget for the NIH by the year 2003.  (Applause.)

     We've increased discretionary spending by 4 percent, greater than the rate of inflation.  And after we fund important priorities in the ongoing operations of our government, I believe we ought to pay down national debt.   And so my budget pays down a record $2 trillion in debt over the next 10 years.  And that sets up a $1 trillion contingency fund for emergencies or additional expenses.  After funding priorities, after paying down debt, after setting up a contingency fund we still have money left over.

     And the fundamental question is, what do we do with it?  Well, some in Congress want to spend it.  They want to increase the size and scope of the federal government.  That's not my vision.  You see, I understand the surplus is not the government's money.  The surplus is the peoples' money.   (Applause.)  And I believe after meeting priorities, we need to send it back to the people who earned it in the first place. Not only send it back, we don't need to take it in the first place. (Applause.)

     This debate in Washington has moved beyond whether we should have tax relief, to how much it should be and who should get it.  Now, to put it bluntly, some folks in Washington think all of the doctors in this room make too much money and you shouldn't get any of your money back.  That's a fact.  I know you've worked hard to get to where you are.  You spent long hours in training and school.  You do important, life-saving work.  You also pay a lot of taxes.  And I think everybody, everyone who pay taxes -- from the school teacher to the truck driver to the doctor -- should get tax relief.  (Applause.)

     Be wary of those who talk about targeted tax cuts in Washington. Those who want to pick the winners and losers.  That's not my vision for government.  I don't believe the government is to try to pick winners and losers in the tax code.  The only fair way to do it is to say if you pay taxes, you ought to get relief.  My plan helps those at the bottom end of the economic scale.  It lowers the rate to 10 percent and doubles the child credit.  In fact, the greatest percentage benefits in my plan go to those at the lowest end of the economic ladder.

     But my plan also drops the top rate from 39.6 to 33 percent, because I believe on principle that nobody in America, nobody in this room, should pay more than a third of his or her income to the federal government. (Applause.)  I hope you'll join me in making the case to Congress to enact a fiscally responsible budget and provide meaningful tax relief.  It is necessary and we can afford it.  Don't be afraid of contacting a senator of yours, or a member of the Congress.  I'm sure they'd like to hear from you.  (Laughter.)

     And there is another issue I hope you'll join me on -- persuading those very same members of both parties to work together to pass a comprehensive and meaningful patients' bill of rights.  (Applause.)  I'm very familiar with this issue.  When I was Governor of Texas I had to veto a bad patients' bill of rights.  And then I signed some good ones.

     First, I was presented a bill that gave special interest treatment to selected HMOs.  So I vetoed it.  (Applause.)  And then worked with our insurance commissioner to write new patient protections that I proudly signed into law the next legislative session.  I don't want that to happen again.  This time I hope we can get it right the first time.

     Doctors and their patients should be in charge of medical decisions. I want to sign a patients' bill of rights this year, but I will not sign a bad one.  And I cannot sign any one that is now before the Congress.  So enacting a patients' bill of rights this year is going to require some different thinking, a new approach, based on sound principles.

     First, a federal patients' bill of rights must cover everyone, all patients in all private health plans.  The standard should be strong enough to protect everyone, yet flexible enough to preserve the good work that has already been done in many states.

     Second, we must guarantee all patients important rights:  the right to get emergency treatment at the nearest emergency room; the right to see a specialist when they need one -- say, just for an example, the right to see a cardiologist for a heart problem.  (Applause.)

     Women should be able to visit their gynecologist and parents their children's pediatrician without going through a gatekeeper.  (Applause.) All patients should have the right to participate in potentially life-saving clinical trials when standard treatment is not effective. (Applause.)

     Third, if medical care is denied, patients should have the right to a fair and immediate review.  (Applause.)  People want health care quickly. They don't want to have to go through a legal, lengthy process to get it. I want to sign a bill that protects patients' rights with a strong, binding, independent review process.  If your health plan -- if your health plan denies you care, you should be able to appeal immediately to an independent, impartial review panel of medical doctors.

     And if they say you need the care, your health care plan must provide it.  (Applause.)  An effective medical review is the key to protecting patients' rights and the key to maintaining the doctor-patient relationship you work so hard to develop and preserve.

     Fourth, a patients' bill of rights should offer patients who have been harmed a meaningful remedy, without inviting frivolous lawsuits.  After independent review, if you have been harmed by your HMO's refusal to provide care, you have a legitimate complaint, and you should have recourse in court. (applause)  With a strong, independent review process, most disagreements should not wind up in court.  Our federal legislation must allow the review process to work, not short-circuit it by inviting unnecessary lawsuits.  With strong independent review, doctors make medical decisions; not the lawyers.  (Applause.)

     The fifth guideline for a patients' bill of rights ensures that Americans will have access to affordable health care coverage.  I want to sign protections that improve medical care, not make it impossible for patients to afford it, or employers to provide coverage.  Excess and frivolous litigation does harm to our health care system.  It clogs the courts and consumes time and money.  It undermines the trust between doctor and patient.  It drives up insurance premiums for everyone.

     We've enacted civil justice reforms in Texas to guard against frivolous litigation and excessive awards.  To make sure health care coverage remains affordable, I will insist any federal bill have reasonable caps on damage awards.  And the caps in proposed legislation before Congress are too high, and will drive up the costs of health care in America.  (Applause.)

     To encourage employers to continue to provide health care insurance for their employees, we must protect them from unnecessary litigation. Some proposals now before Congress fail to adequately address this problem, and would even make it worse.  Employers who decide up front they will not make medical decisions should not be required to go to court all the time to prove they were not involved in those decisions.  And I will not support a federal law that subjects employers to new multiple lawsuits in 50 different states.

     With these principles as our guide, I believe we can enact a patients' bill of rights in the Congress this year.  This issue has been debated in Washington time and time again.  Over the years, alliances have been formed, and divisions have deepened.  I hope members of Congress will join me in advancing this debate beyond the arguments of the past.

     Just as doctors no longer treat heart disease with bed rest, we should not approach this year's patients' bill of rights stuck in last year's rut.  Just as innovative approaches in medicine spur new breakthroughs, a new approach in Washington offers the hope that we will share the credit for success.  Americans deserve comprehensive patient protections; and a new, common-sense approach may be just what the doctor ordered.

     On this issue, the rewards are far greater than shared political success.  The real reward will be knowing that we have helped put the healing powers of modern medicine within the reach of all who need them. Each of you holds that incredible power and upholds a great trust.

     I appreciate the important work you do.  You have my gratitude and my respect.  And in the days ahead, I hope my plans for reform will have your support.  Thank you for having me.

     God bless.  God bless America.  Thank you all.  (Applause.)

     END  10:44 A.M. EST


REMARKS BY THE PRESIDENT TO THE NATIONAL NEWSPAPER ASSOCIATION 40TH ANNUAL GOVERNMENT AFFAIRS CONFERENCE--March 22, 2001

The Hyatt Regency Capitol Hill
Washington, D.C.
10:47 A.M. EST


          THE PRESIDENT:  Thanks for coming and thanks for having me. Diane, I appreciate so very much the invitation.  Ken, thank you for escorting me up here.  And, Jerry, thank you for that kind introduction.  I do remember the 4th of July parade.  I remember how hot it was.  And next time, let's make it a Christmas parade. (Laughter.)  He comes from a great town in a state I love a lot.

Photo

White House photo

          You said you never thought you would be introducing me the last time you saw me.  But I can assure you in 1978 when I was running for the U.S. Congress, and you were running the newspaper in Lamb County, Texas, you certainly didn't think you would be introducing me as President -- (laughter) -- because you had that funny feeling I wasn't even going to win the race for the U.S. Congress, which was true.  (Laughter.)  It's amazing how life works.

          One of the interesting things I did learn in that race, we had a lot of little, bitty counties in far West Texas.  And Jerry ran one of the newspapers -- he worked for a man named James Roberts.  Maybe some of you all got to know James over time.  He's a fine, distinguished Texan.  Lord rest his soul.

          But he owned a string of little newspapers, in Andrews and Lamb County, and I think maybe in Mule Shoe, Texas.  And I can remember knocking on the doors of the newspapers when I was traveling the district.  It was a magnificent place to learn about what was going on in each county.  It gave me a chance to get a feel for what the people were really all about.  I got to hear the gossip, got to maybe spread a little good news on my side.  But I came away with a deep respect for the small newspapers that dominate the landscape of America.  There's a real sense of community when you walk into those newspapers and sit down with the publishers and the editors and the writers.  It's really the best of America in many ways.  (Applause.)

          I sound somewhat nostalgic about those days.  I'm loving what I'm doing.  It's interesting that in spite of the fact that my first race for public office I came in second in a two-man race.  Life has its interesting twists and turns.  Life is unpredictable.  But it turns out if you aim -- work hard and treat people with respect, keep your priorities straight, life can turn out pretty good.  And it certainly has for me.  I'm honored to be your President.  I'm honored to be here to discuss some issues that are important to our country.

          I want to thank my friend, Tommy Thompson, for having been here. Tommy is serving our nation very well as the important Cabinet position.  I got to know Tommy as a governor;  you got to know him as a governor.  And he's a fine man.  He represents the kind of Cabinet I've put together, distinguished citizens, all of whom are here to serve our country; all of whom have put aside their personal comforts to do what's right for America.

          I appreciate my friend, Roy Blunt.  I understand he's coming, or has been here, a member of the United States Congress, a fellow I'm working closely with to try to get some legislation through the legislative process.

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White House photo


          I want to talk about a couple of things, and then I'd like to weave issues in in context of the budget that I presented to the Congress. I's important for opinion-makers such as yourself to hear my side of the budget.

        See, there's a lot of folks in Washington that would like to send out information that might cloud the picture so that they get to keep more of the taxpayers money here in Washington.  We're in the midst of a big debate, and it's a healthy debate, as to what to do with the people's money.  That's what the budget is all about.  Remember, the context I come from, though, is not to do with what to do with the government's money, it's what to do with the people's money.  All the talk about the surplus as the government's money misses the point.  They forget who pay the bills. Those who say the surplus is the government's money forget where it comes from.

          And one of the things I'm not going to forget where it comes from, I'm going to remember where it comes from.  It comes from hardworking people.  It comes from entrepreneurs, small business owners, hardworking folks who pay the bills for this government.

          So we sent up a common-sense budget to the Congress -- I say common sense because it sets priorities.  When you run your businesses, you set priorities.  That's sometimes the definition of success, is somebody who figures out how to set priorities and stay on those priorities.  And that's what we did, we set some clear priorities.  We funded public education, increased the funding of public education.  It's the biggest increase of any department in my budget.

          Now, lest you forget where I came from, it's one thing to provide money at the federal level.  But I can assure you I'm a strong supporter of local control of schools.  I believe that the best way to run the schools is to trust the local people.  So we're increasing spending, but were going to also increase power at the local level.  One size does not fit all when it comes to the education of the children in America.  We've got to have local control of schools; we've got to align authority and responsibility at the local level.  And I'm working with Congress to do that.

          But one of the cornerstones of reform for education is to hold people accountable for results.  I'm a strong believer that in return for the receipt of taxpayers' money, states and local jurisdictions must develop accountability systems to tell us whether or not children can read. It's in your best interests, by the way, that we have a literate tomorrow. You're irrelevant if people can't read.  And we need to start figuring out whether they can or cannot early in a child's career.  And so, the only way to do that is to measure.

          Now, I'm against a national test because a national test would undermine local curriculum and local control of schools.  But I am for saying, in return for money, show us.  Show us whether or not children can read and write and add and subtract.  Hold people accountable.  Use the accountability system not as a way to punish, but as a way to correct problems early, before it's too late.

          And you mark my words, when you have a system based upon the principles of high accountability and high -- of high standards and strong accountability, and local control of schools, children will learn.  And that's what this country needs.  They need an education system that's responsive, results-oriented, that focuses on each child as a child, that challenges the process-oriented system that asks the question, how old are you.  Oh, if you're 10, we'll just put you here.  And if you're 14, you go here.  And if you're 16, you go here.  It's time in America we start asking the question, what do you know.  And if you don't know what you're supposed to know, we're all going to come together to make sure you do early, before it's too late.

          I'm so confident that we can achieve what we all want    -- an educated tomorrow.  And it starts with having systems in place, systems in place that encourage reform, based upon accountability.

          Another priority in the budget I sent is more pay for the military.  I am concerned about morale and the troops.  It was a big issue during the course of the campaign.  I said, if you give me a chance to be the President, we'll begin by increasing morale two ways:  one, is pay people more money.  So, in our budget -- we've increased the budget that I've submitted to Congress for better pay and better housing.  And two, to have a Commander-in-Chief who will clarify the mission of the U.S. military.  And the mission of the United States military is to have our troops well-prepared and well-trained, to be ready to fight and win war, and therefore, prevent war from happening in the first place.

          The mission of the military must be focused, and the job of the Commander-in-Chief is to focus that mission.  And it's what I've done. There will be a lot of talk on Capitol Hill about increasing military budgets, and my answer is, let's make sure we have a strategic plan before we do so.  Let's have a blueprint of what the future ought to look like. Let's make sure -- not only make sure morale is high today, but as we begin to spend on weapons systems, let's make sure they fit into a plan so we can keep the peace as we go down the road.

          Many of the decisions that are made in the Defense Department today will affect how the military looks like 20 to 30 years from now.  And I want to make sure that money is wisely spent and focused on how to keep the peace in the long run.

          Another priority is retirement systems of Americans.  And so the budget I set up says the payroll taxes are only going to be spent on one thing, and that's Social Security -- that the Congress won't be using the payroll taxes for other programs.  So -- lockbox I think is the terminology they like to use up here.  (Laughter.)  Rest assured, it's set aside only for Social Security.

          And later on in the year we're going to begin the process of debating how to make sure the Social Security system works as we go down the road.  One of the things that -- I went to a senior citizen center yesterday in Orlando, Florida, home of the great Governor Bush. (Laughter.)  And a couple of folks said there, now, you're not going to be messing with my Social Security check.  They didn't quite put it that eloquently.  (Laughter.)  But I said, no.

          Every time there's a campaign there's a lot of noise and ads and stuff that try to frighten people into the voting booths.  And by setting aside all the money that goes into Social Security for only Social Security, we can assure folks who rely upon Social Security that they're going to get their check.

          But the fundamental question is what happens to the younger workers, younger folks in America, will there be a system available for them.  And one of the things that we're going to start thinking about and encourage a lot of debate about is this notion about letting younger workers take some of their own money, some of their own payroll taxes and invest them in the private markets to get a better rate of return on the money than we get now under the Social Security trust.

          You see, we've got to get a better rate of return on payroll taxes; otherwise, there's not going to be enough people putting money in the system, compared to those who are taking it out of the system.  I'm willing to think differently on the issue, and encourage others to do so up here, as well.

          Health care is a priority in our budget.  We double the number, if we put enough money aside, double the number of folks who will be served by what's called community health centers.  Perhaps you've got a community health center in your neighborhood.  These are fundamentally important health care delivery systems that enable the indigent or other folks who are struggling with health care to be able to get primary care.  These are good programs and it's an effective part of the delivery of health care.

          We double the Medicare budget in the budget I submitted to the United States Congress.  We've increased funding so we can double the NIH budget by 2003 from when that initiative first started.  There's a lot of programs that we focus on.

          We increase discretionary spending by 4 percent.  That's greater than the rate of inflation.  It's probably greater than the pay raises you gave the people working for you.  It's a pretty healthy increase.  But the problem is, they're not used to that kind of fiscal responsibility in Washington.  The discretionary spending at the end of last year increased by 8 percent.

          So you've got a new President who comes to town and says, why don't we be fiscally responsible with the people's money?  Why don't we, instead of increasing spending by 8 percent, be reasonable, take a common-sense approach?  Not try to be all things to all people at the federal level.  And that's where the squawking started.  That's where people started getting nervous.  Because fiscal responsible spending is something that they're not used to.  But it's important.  It's important to be responsible with the money.  My point to you is, we can make priorities. Four percent of a budget that we're talking about of billions of dollars is a lot of money.

          Now, there's a lot of talk about paying down debt, and we do so. The budget I submitted pays down $2 trillion of debt over a 10-year period of time.  One of the things I want to try to remind Congress to think about is there's not only debt at the national level, there's a lot of folks in your communities who have got credit card debt.  There's all kinds of debt. And we pay down debt at the national level, but it's important to also remember, there are people struggling to get ahead, particularly with energy bills going up, the economy slowing down.  We've got personal debt. And with people's money, it seems like to me we ought to encourage them to be able to manage their own accounts with some of their own back.

          I also am aware that sometimes things don't go as planned.  So in the budget we submitted, there's $1 trillion over 10 years for contingencies.  Now, you're probably saying to yourself, he's talking about a lot of money -- and I am.  But incredibly enough, after meeting priorities and by slowing down discretionary spending to 4 percent, and paying down debt and putting aside contingency money, there's still money left over --  about $1.6 trillion.  And the fundamental question is what to do with it.

          And the debate is this:  Do we increase the baselines of our budgets, or do we understand where the money came from and let the people keep it?  I stand squarely on the side of letting the people keep it.  I think it is so important for a couple of reasons:  one, more money in people's pockets.  More money in people's pockets will help provide a second wind for our economy.  And, two, I trust people with their own money.  I trust them more than I trust the federal government to make decisions on their behalf.

          There is a fundamental, philosophical divide in Washington.  It's basically, who do you trust?  Who do you trust?  I used to travel the country, and everytime I'd go somewhere there would be tax families at a stop.  And I would say, well, so-and-so Smith family.  And they would say, well, they pay, $3,000 of federal income taxes, and under our plan in which everybody who pays taxes gets relief, they're going to save $2,000 -- that would be the example, say.  And I would say, who would you rather spend the money?  Once you meet priorities in Washington, D.C., the debate is, who would you rather spend their $2,000, the Smith family, or the federal government?  And I'm coming down on the side of the family every time.  And that's what the debate is about.

          We've got pretty good cash flow coming into the treasury.  In spite of the fact the economy is slowing down in the first four months of the year, the cash flow was $40 billion more than anticipated -- $40 billion more.  It sounds like to me, somebody is getting over-charged.  And I'm asking Congress for the refund for the people.  And that's what the debate is.

          And so, the tax plan we submitted is based upon some principles, as well.  First of all, you will hear a lot of talk up here about targeted tax cuts.  Basically, what that says is, Congress wants to decide who gets a tax cut and who doesn't, obviously.  They want to decide who the winners are and who is not a winner when it comes to tax relief.  That is not my view of government.

          My view of government is that everybody who pays taxes ought to get tax relief; that the United States Congress, nor the federal government should try to say, okay, you pay, but you don't get anything, and you pay, and you do.  That's not my vision of fairness and fair play when it comes to the federal government.  So everybody who pays gets relief.

          We drop all rates, and we simplify the code.  Instead of five rates, there's four rates.  We drop the bottom rate from 15 percent to 10 percent, and increase the child credit from $500 to $1,000 per child. That's a very important part of the reform, because the tax code we have today is incredibly unfair to people who are struggling -- what I like to call struggling on the outskirts of poverty -- people who are working hard to get to the middle class.

          And under this tax code, take the example of the single mother making $22,000 a year.  The lady is raising two children.  First of all, she has got the toughest job in America.  And secondly, under her circumstances, for every additional dollar she earns, she pays a higher marginal rate on that dollar than someone who is successful.      She starts to lose earned income tax credit.  She pays the 15 percent bracket, and she pays payroll tax.  The marginal rate on her additional dollar is nearly 50 percent.  And that is not fair.  That's not what America is about.

          America is, the harder you work, the easier the middle class ought to become, and the more money you get to keep.  And by dropping the bottom rate and increasing the child credit, we make the code much more fair to people at the bottom end of the economic ladder.  And I think there's universal agreement about that point here in Washington.

          I also strongly believe we need to cut all rates, including the top rate, from 39.6 to 33 percent.  And there's a lot of rhetoric about that.  I'm sure you've heard it.  But it's very important for Congress to understand this fact:  Most small businesses in America are unincorporated, or subchapter S's.  Most small businesses pay at the 39.6 percent rate. And by dropping the top rate to 33 percent, we stimulate small businesses in America.  We encourage entrepreneurship.

          One of the things I like to tell people is, the role of government is not to create wealth.  The role of government is to create an environment in which the entrepreneur or the small business owner can flourish.  That's the role of government.  And dropping the top rate will provide more cash flow for small business owners to be able to invest, to buy new printers, to employ more people.

          Now, I've heard the rhetoric.  But they're missing the point. The point is, how do we encourage growth, particularly when the economy is beginning to slow down?  And a good way to do so is to drop that top rate.

          We also have got two other reforms that I want to mention to you. One is, we do something about the marriage penalty.  Our tax code taxes marriages, it doesn't -- I mean, penalizes marriage.  It doesn't make any sense; so mitigate what the marriage penalty does.  And we also eliminate the death tax.

          I want to quote one of your own -- publisher from Eufala, Alabama, the Tribune -- Joel Smith.  I hope I'm -- if Joel is here, I hope I'm not embarrassing you.  But sometimes, when we say things, words come back to haunt us.  (Laughter.)  Well, not exactly haunt in this case. (Laughter.)  Here's what he wrote:  "I hope the President and Congress will repeal the death tax and help my family keep publishing our 72-year-old, twice-weekly newspaper."  That's what he said.  He represents the sentiments of hundreds of Americans who work hard to build up their asset base, with the dream of being able to pass it on to a family member.

          It doesn't matter whether you're a newspaper publisher or a farmer, or a rancher, or a small business person.  Many folks have got the dream of working hard as they can to build up an asset base and to have the pleasure of knowing a family member is going to run the newspaper, or manage the farm.  And, yet, our tax code makes it awfully hard for people to realize that dream.  The death tax is unfair.  It is unfair to tax a person's assets twice.  And it's not fair to prevent people from passing their own business, their own property from one generation to the next. We've go to get rid of the death tax.  (Applause.)

          And so that's the rationale of the budget I submitted.  And we're making progress, I think.  It used to be, well, we're never going to have any tax relief.  And now, the discussion is, how much and how soon.  And as far as I'm concerned, the sooner, the better.  And I look forward to working with both Republicans and Democrats to get this done.  This is the right thing for America.  It's the right thing for our country to have meaningful, real, fair tax relief.

          There are a lot of other issues that, of course, I'm involved with.  One of the biggest issues is changing the tone in our Nation's Capital.  It's not really an issue like we know it.  It's not the kind of thing that requires a piece of legislation, but does require an attitude, and it starts with the President.

          We need more respect in our Nation's Capital.  We need people that respect other's opinions.  I used to remember looking up at Washington from Austin, Texas, and thinking about, surely there's a better way to have discourse on important issues than without the name-calling and finger-pointing and unnecessary politics on important issues that affect the people.

          One of my hopes -- and I believe we're making progress -- is to convince people of both parties to treat each other with respect.  And it starts with the President being respectful of somebody else's opinion.  I hope that by changing the tone in Washington we can change the tone in other places around the country, too, where we can prove that there can be respectful disagreement.

          I know you and your newspapers       try to do that all the time. You put out opinions, and you do so in a way that I'm confident is respectful.  And it's important.  It's important for our country to be a nation that honors -- that respects other people's opinions.  That's what democracy should be all about.

          We're not all the same.  We don't always agree, but we can do so in a way that brings honor to the process.  And it's important to do that, as well, because our system is only as good as those who are willing to participate.  And I hope -- my hope of hopes is once my stay is through up here -- and by the way, I'm heading back to Texas once it's over -- I hope somebody says, well, you know, I think I might try to enter the public arena.  I'd like to try to serve my country.  You don't have to try to serve your country as the President.  You can serve your country as a school board member, or as a county commissioner.  There's all kinds of ways to serve our nation.

          It's important for those of us who have got the high honor and responsibility of public service to remember that there's something more than personal ambition involved.  We have a responsibility to set a tone, and to call upon the best.  And that's my pledge to you.  You may not agree with my budget or how I'm approaching things.  But when it's all said and done, I think you will agree with how I conduct myself in public office. (Applause.)  It's a big responsibility.

          I think there's a second change taking place up here.  On the one hand, we've got a culture of respect developing.  Another is a culture of achievement.  We're beginning to get some things done.  Again, people may not agree with some of the things that are happening, but for example, the other day I signed a Senate resolution to change the ergonomic rules.  Both Republicans and Democrats came together.  Some people liked it, some people didn't like it, but nevertheless it happened quickly.  It's a good piece of public policy, as far as I was concerned.  It's the ability for our government to analyze regulations and to put a cost benefit analysis to them.  And the cost in this case looked far to exceed the benefits.  And, therefore, Congress acted.

          I believe we're going to see that happen.  I believe people -- that there's going to be a culture of success and results.  My job as your President is to share success, is to say to both parties that are involved, come together and get some things done.  And I'll do my best to explain to the people that you were involved.

          See, there's a time for politics, and there's a time for policy. And the way I view it is, once you get sworn in, that the politics is over. In my case, it took a little longer.  (Laughter.)  And now it's time to do the people's business.  And I believe we're making progress.

          I want to thank both the Republicans and the Democrats who are joining in this effort.  I hope America's taking notice.  It's the right thing to do, and it's the right way to conduct the people's business.  I'm honored you let me come by to listen with you.  I'm honored to be your President.

          God bless you all.  (Applause.)

          (A gift of a T-shirt is presented.)

          THE PRESIDENT:  It will play good in Crawford, Texas.  (Laughter and applause.)

                            END           11:10 A.M. EST


REMARKS BY THE PRESIDENT TO THE GREATER PORTLAND CHAMBERS OF COMMERCE MEETING--March 23, 2001

Merrill Auditorium
Portland, Maine

12:18 P.M. EST

     THE PRESIDENT:  Man, Governor, you fired them up.  (Laughter.)  I appreciate so very much, Governor, your being here.  I know the good people of this state appreciate how you conduct yourself in office.  (Applause.)

     Like your predecessor, my friend Jock McKernan, you brought a lot of class to your State House.  I love your style and I really appreciate your focus, because you care about the people of this state.  You care deeply about the citizens of Maine.  And it's clear the citizens of Maine appreciate your care for them.  So thank you so much for being here. (Applause.)

     Rick, thanks for inviting me.  (Laughter.)  Where's the wild man? (Laughter.)  Wild lady.  Thank you all for coming today.  It's an honor to be here, and it's an honor to be your President.  (Applause.)  It's an honor to be traveling with members of the congressional delegation.  I had the privilege of flying from Washington to Portland with your Congressman, Tom Allen.  I don't know Congressman Allen well.  I know he's a smart man -- maybe a little smarter if he comes around my way more often.  (Laughter and applause.)

     But I respect Tom's intellect and I respect his service to the people of Maine.  Thank you very much, Congressman, for being here.  (Applause.)

     And you've got two fantastic United States Senators.  (Applause.) Olympia and Susan are smart, capable women who aren't afraid to speak their mind, even to the people of the United States.  (Laughter.)  As a matter of fact, I'm beginning to believe they're not afraid to speak their mind especially to the President of the United States.  (Laughter.)  But they care about their state, they care about their country.  I view them as strong allies and good friends.  Thank you very much, both, for being here. (Applause.)

     And then of course, there's your Mayor.  Madame Mayor, I don't know why it is every time I see you I feel like smiling.  But I appreciate your friendship.  Thanks so much for being here.  (Applause.)

     Most of the time when I come to this beautiful state, you don't have to cross-country ski to get into the auditorium.  (Laughter.)  But I've got, obviously, fond memories of this beautiful state.  I'm hoping my mother invites me back this summer.  I'd better make sure I behave. (Laughter and applause.)

     I'm reminded of the time when I first became the Governor of Texas.  I went to a dedication for those who served in the Pacific theater in World War II.  It was Central Texas, a little town called Fredericksburg.  My mom and dad were there, and Laura, the great First Lady of the United States was there.

     And I was really looking forward to welcoming all the World War II vets.  It was a chance to say thanks on behalf of the sons and daughters of the Great Generation.  And I said, Mr. President -- that was for my dad who was the head of the parade -- I said, welcome.  And everybody cheered.  And I said, mother.  Before I could get out another word, the place went wild. And I said, well, mother, it's clear the people of Texas love you and so do I, but you are still telling me what to do after 50 years.

     And a guy in a big cowboy hat moved out in the middle of Main Street, Fredericksburg, and cupped his hands and screamed at the top of his lungs in front of 30,000 constituents, you better listen to her too, boy. (Laughter.)  I can assure you that the President of the United States is listening to his mother.  Remember that.  (Laughter.)

     The reason I thought of Mother is I thought of the Barbara Bush Children's Hospital here at the Maine Medical Center.  It is a proud moment in her life that the good folks at the Maine Medical Center dedicated the hospital for her.  (Applause.)  It is a privilege, it is a privilege for her to have her name on an institution based on love and healing and care. It also reminds me of how deep our ties are to the state of Maine.

     My folks love coming to Maine, and they love it a lot.  And they can't wait for the snow to melt -- (laughter) -- so they can get back up here. But, anyway, thanks for your hospitality.

     I want to talk a little bit about budgeting and the importance of good, sound, common-sense budgeting in Washington, D.C.  I found it's more effective for me to kind of get out of the nation's capital and explain my budget face-to-face with folks, than to rely upon the filter to do so. Sometimes the facts get kind of distorted.  Sometimes it's hard to get reality to fight through the folks.

     So let me explain my budget, if you don't mind, and what we intend to do with money if we're able to bring fiscal sanity to the Nation's Capital. Step one on a common-sense budget is to set priorities.  It's really important for the governor or the President to use the executive branch to set priorities so that those who spend money stay focused.  Without priorities, the tendency is to try to be all things to all people.

     So the priorities in the budget I submitted are these.  One, educating our children is a priority.  The biggest increase of any Department in my budget goes to the Department of Education.  I want you to also understand, though, I remember where I came from.  I came from a state, I was a governor, I firmly trust local folks to run the schools.  The people who care most about the children in the state of Maine are the citizens of Maine.  And the federal government, while it increases spending, must trust the governors and local authorities.  (Applause.)

     One size does not fit all when it comes to educating children.  So we increased spending.  But I look forward to working with the senators and the congressmen of the past power out of Washington, to provide a maximum flexibility so that the governors and school board folks can take money and meet and match them to the needs that exist.

     So step one is an accountability -- step one of a education reform program is local control of schools.  It is a red line for me when it comes to federal legislation.

     But I also know -- and I know there is some consternation here in the state of Maine about the call to hold people accountable for results.  My attitude is, if you receive federal money, you ought to measure to determine whether or not the money is being spent properly.  I strongly believed in Texas, if you received state money you ought to measure.

     The good news in the state of Maine is, the governor agrees. (Applause.)   You've got strong accountability in the state of Maine, and the federal government should in no way tell the folks in Maine how to devise an accountability system, and we don't intend to do so.  We trust the local people.  All we're saying is, you develop a system so that no child is left behind.  How do you know if you don't measure?  (Applause.) How do you know if you don't hold people accountability?  And how do you know how to correct problems unless you do measure?

     And guess what happens in a system and states without accountability? Children whose parents may not speak English as a first language just get moved through the system.  It's so much easier to quit on an inner-city child.  And one of the reasons we've got to insist upon accountability and work with states to develop accountability systems is so that we're able to detect problems early and solve them before the system quits on children.

     Too long we've gone without saying, each child matters.  For too long we've asked a question in our society, how old are you.  Oh, if you're 10, we'll put you here.  And if you're 14, we'll put you there.  Instead, we've got to start asking the question what do you know.  And if you don't know what you're supposed to know, we'll make sure you do early, before it's too late.  (Applause.)

     Another priority of your President is to keep the peace.  In order to do so, we must boost morale in our military, and it starts with making sure our soldiers and sailors are paid better.  (Applause.)  So the budget I submitted to the Congress increases the pay and improves the housing.  But morale will also be improved by having a clear mission for our military. (Applause.)  And the mission of our United States military must be prepare our troops to fight and win war and, therefore, prevent war from happening in the first place.  (Applause.)

     I believe strongly that as the head of the executive branch we owe it to the people and to the Congress to develop a strategic plan as to how best to spend the people's money when it comes to bolstering our defenses. That as it's chief executive of government, our responsibility is to develop a plan about what the military ought to not only look like today, but what the military ought to look like 20 to 30 years from now, so that we can focus taxpayers' money in a responsible, planned way.

     It is irresponsible to spend your money in a haphazard fashion.  We must not have our defense budgets driven by politics.  We must have them driven by vision and need in order to not only effectively spend your money, but in order to make sure we keep the peace 20 to 30 years from now. Military preparedness is a priority of our administration, and so is making sure we shepherd the taxpayer's money in a wise way.

     Another priority is health care.  The budget I submitted to the Congress doubles the Medicare budget -- actually, more than doubles the Medicare budget.  (Applause.)  It says that Medicare is an important responsibility for our government.  But we also must be bold enough to reform Medicare.  The Medicare system is ancient.  It's meeting some needs, but not all needs.  And everybody, particularly those in the state of Maine, know loud and clear that Medicare does not provide prescription drugs for our seniors.

     It is time to seize the moment.  It is time to provide our seniors a variety of options from which to choose, all of which will include prescription drugs.  (Applause.)  I've heard all the talk about Social Security.  You can imagine, particularly all those ads on TV that said, if George bush becomes the President, you're not going to get your Social Security check.

     Well, let me tell you, the budget I submitted to the Congress sets aside all the money that's supposed to go to Social Security for only one thing:  Social Security.  (Applause.)   We're going to have a debate on Social Security, as well.  The debate about where payroll taxes goes is over.  Now, some may decide to try to hyperventilate on the issue.  But it's over.  This Congress and this President are not going to allow payroll taxes to be spent on anything other than Social Security, that's for certain.  And anybody who relies upon Social Security in your state need not worry.

     The people who need to worry are the younger workers.  Those are the folks who need to worry.  The folks that are coming up that are going to have to pay for the baby boomers like me, when we retire.  And so this debate may take a while, until the Congress finishes a lot of other business.  But we need to have the debate about how to make sure the Social Security system is not only solvent today, but is solvent when the baby boomers begin to retire.  And I'm going to strongly suggest that one way to do so is to allow younger workers, at their choice, to take some of their own money and put it in the private markets.  (Applause.)

     So we've set priorities.  We double the number of folks covered at community health centers.  This is incredibly important programs.  I hope you've got -- I'm sure you've got some in Maine.  They make an enormous difference for the indigent and the poor.  So in my budget, we double the number of people served over the next five year period.  We work with the Congress to make sure the NIH budget gets doubled by the year 2003, a commitment the Senators made so we could have adequate research to help cure disease in America.  We set priorities and we fund them.

     There's a lot of debate in Washington about debt.  And I'm concerned about debt, too.  In the budget I submitted to the Congress, we pay down $2 trillion of debt.  That's the biggest debt repayment in the history of the world.  It's $2 trillion over 10 years.  (Applause.)  We pay down all the debt in a 10 year period that comes due.

     And if you hear anybody in Washington talking about, well, let's pay down all the debt, it means they want the taxpayers to pay a premium on debt repayment.  It doesn't make any sense to pay down debt until it becomes due.  Otherwise, taxpayers are going to have to pay a premium to do so.  That doesn't make any common sense to me.  It's not wise to try to accelerate debt repayment.  It costs you too much money to do so.  Let's pay down debt when it becomes available to be paid down.  And that's what we do in this budget.  So we set priorities and pay down debt.

     Part of the hollering you're hearing out of Washington is the fact that my discretionary spending increases at 4 percent.  And that's a lot, particularly since 4 percent is greater than the rate of inflation and 4 percent is greater than the pay raise most working people have gotten in America.  That's a big, healthy increase, particularly when you're talking in terms of billions.

     But the reason why it's created some tension and friction in Washington is because it -- last time around, they increased discretionary spending by 8 percent.  All of a sudden, we've gotten a new chief executive in town that says, let's be fiscally responsible.  Instead of increasing the size and scope of the federal government, instead of having a spending contest before we got out of town, let's be responsible with the people's money.  Listen , 4 percent is plenty of growth with discretionary spending. (Applause.)

     We also set aside $1 trillion for contingencies over a 10-year period. It could be money to help the farmer, it could be money to -- who knows what it will be used for, but it's there.

     Now, I know these numbers sound like a lot, but this is reality I'm talking about.  We've increased discretionary spending by 4 percent, we pay down $2 trillion worth of debt, we set aside $1 trillion in the budget over a 10-year period for contingencies, and guess what?  There's still money left over.  And that's the debate.  The fundamental question is, what to do with it.

     And I start with this premise:  the surplus, that leftover money is not the government's money, it's the people's money.  (Applause.)

     And I'll give you another premise.  The best way I heard it the other day was in Council Bluffs, Iowa.  A lady got up and she said, you know, Mr. President, I've been a mother and a grandmother, and I love to bake cookies.  And every time I baked a plate of cookies and put them on the table when my children and grandchildren went through the house, they always ate the cookies.

     And that's how I kind of view tax money in Washington.  If it's left on the plate -- (laughter and applause) -- if we leave it on the platter, it's going to be spent.  And so the fundamental debate is, once priorities are met, once we pay down debt, once we set aside money for contingencies, what do we do with it?  Do we increase the size and scope of the federal government, or do we trust the people with their own money.

     The last four months of -- the first four months of the fiscal year, the cash coming into the treasury was $40 billion, anticipated.  This, in spite of the fact that the economy was beginning to slow down a little bit -- $40 billion more than projected.  It sounds like, to me, that somebody is being overcharged.  (Applause.)

     And so I submitted a plan to the United States Congress that remembers where the money came from, that helps with fiscal sanity in Washington, D.C. -- a plan that will serve as a second wind to an ailing economy.  A plan that says that everybody who pays taxes ought to get tax relief.  It says to the Congress, trying to target tax relief is not fair.  The role of the Congress and the role of the President is not to try to pick and choose who wins or loses when it comes to tax policy.  (Applause.)

     It you pay taxes, you ought to get relief.  And so we've submitted a plan that does just that.  It reduces all rates on everybody who pays taxes and shrinks the number of rates from 5 percent to 4 percent.  It increases the child credit from $500 to $1,000.  And I want to talk about two aspects of the tax relief plan.

     First, the code we have now is incredibly unfair to people who are struggling to get ahead.  And the example I've used over and over again is one I'm going to keep using until Congress solves the problem.  And it's the single mother working hard as she can to raise two children.  She's making $22,000 a year.

     First of all, she's working the hardest job in America.  Secondly, for every additional dollar she earns under this code, she pays a higher marginal rate than somebody who is successful in America.  She begins to lose her earned income tax credit, she gets put in the 15 percent bracket, she's paying payroll taxes.

     Under this tax code, the people working on the fringes of the middle class struggling hard to get ahead pay a higher marginal rate than somebody who is successful.  And that's not right.  That's not what America is all about, as far as I am concerned.

     America says, the harder you work, the more money you put in your pocket, and the easier it is to access the middle class.  And we've got to change that, and so we dropped the bottom rate from 15 percent to 10 percent and increased the child credit from $500 to $1,000.  (Applause.)

     But I also believe strongly that we need to drop the top rate, as well.  And I know there's a lot of talk about it in Washington, D.C., and there's a lot of -- by dropping the top rate, it creates all kinds of finger-pointing and name-calling.  But I want members of Congress to remember this fact about our tax code and about our economy and about the American Dream.  There are thousands of small business owners, thousands of entrepreneurs who are unincorporated in America, who are sole proprietors, who are subchapter S's, that pay the highest marginal rate in the tax code. And when you drop the top rate from 39.6 percent to 33 percent, we're sending a clear signal that the role of government is not to create wealth; but the role of government is to create an environment in which the entrepreneur can flourish, in which the small business can grow to become a big business.  (Applause.)

     Our government must understand:  tax relief will provide capital for the small business owner to be able to expand.  Our government must hear loud and clear that by far, the vast majority of job creation comes from small businesses and entrepreneurs, and we always must remember the great hope of America, the great dream of our country is for people to own their own business and own their own home, to be an owner in our country.

     One of the things I'm going to do is fight for the entrepreneurial spirit in America.  And one way to do so is to drop that top rate, to encourage capital formation in the private sector and in the hands of our small business owners all across the country.  (Applause.)

     There are two other aspects of tax reform I want to talk about. First, our tax code sends the wrong signal about family.  We penalize marriage.  It makes no sense to do so.  I look forward to working with the Congress to change the marriage penalty in the tax code.  And we also do something else that's incredibly unfair.  We tax people's assets twice: once when they're living and once when they die.  And that's not right. It's not right for small business owners, it's not right for Maine farmers, Texas ranchers.  It's not right to have a death tax and it's time to get rid of it.  (Applause.)

     I know these numbers sometimes sound just like they're a bunch of numbers and a lot of talk and balance sheets, and throwing around zeros like its common day practice.  And I understand that.

     So what I like to do is, I like to put a face on what I'm trying to talk about.  I like to invite people who will be affected positively by my plans to -- and I would like to introduce to you the Hanington family today.  They're from way up east.  You're way up there, right on the Canadian border.  Willard is a small business owner.  It's a family-owned logging business.  He brought his three children with him today.  I want to talk about his circumstances right quick.

     This good family, they're raising Kayla, who's 14 and Logan who's 10, and Laci's two and a half years old.  They work hard to get ahead.  They pay $2,850 of federal income taxes.  And when Congress enacts the plan that I've submitted, this good family will save $2,150.  (Applause.)

     That's after we've grown the discretionary spending by 4 percent, after we've committed ourselves to saving Social Security and strengthening it, after we've doubled the Medicare budget, after we've provided for the military, there's money left over.

    And the fundamental question, folks, is who do you want spending that $2,150?  That's what the debate is all about.  And I submit to you, it's better for our country, to trust this good man and his wife to spend their $2,150 than the members of the United States Congress.  (Applause.)  I appreciate that.

     And that's my budget, and that's my vision.  It's based upon, who do you trust?  I trust the people of this country.  If you were in my position, you'd trust them, too.  I travel -- everywhere I go, the people of this country are fine and decent and honorable people.

     The governor and I and senators and congressmen just came from the Salvation Army.  It's a place based on something government can't create, which is love and concern and deep compassion.  No government can help.  We can spend money, but we cannot put hope in the hearts of people.  The great strength of this country comes as a result of people loving their neighbor, and asking the fundamental question, what can I do to help?  What can I do to make my community a better place?

     Oh, this is a fabulous nation.  That's why it's such an honor to be your President.  I think we're making progress, not only on issues, but the culture is beginning to change some, in Washington, for the better. (Applause.)  It's a culture of accomplishment, a culture of achievement.

     Recently the Senate and the House moved a piece of legislation which I supported.  I understand good folks may not agree.  But there was excessive regulation getting ready to be placed on large and small business through what's called ergonomics.  And the Congress and the Senate took a look at it and said the cost benefits just doesn't make sense.  Let's change it and come up with more realistic policy.

     The reason I bering that up is it was a good, sound debate.  Both Republicans and Democrats supported the measure.  It made it to my desk.  I signed it.  But there's a sense of accomplishment, a sense of what we can do together for the good of the country that's beginning to become a part of the culture in Washington.  There's a culture of respect developing in Washington.

     I hope in my comments you understand that the congressman may not agree with what I'm trying to do, and I may not necessarily agree with every vote.  But I respect the man.  And we need more of that in our nation's capital.  We need to send the signal that good folks can disagree, that there is time for politics and there's time for doing what's right for the American people.  (Applause.)

     And, finally, I hope that we're beginning to develop a culture of responsibility in the country.  Those of us who hold high office, like your governor, myself and others, have a responsibility to the people, a responsibility to uphold the honor of the office.  (Applause.)

     But that's just the beginning.  That if we're blessed, we have the responsibility to help a neighbor in need.  That we must send the signal to our children, make the right choices, be responsible for the decisions you make in life.

     No, I think we're making good progress.  There's a lot of work to do. But it starts with trusting the people.  And we're always remembering, the great strength of this land lies in the hard working, good hearts of the American people.

     Thank you for coming.  God Bless.  (Applause.)

END                                               12:49 P.M. EST


RADIO ADDRESS BY THE PRESIDENT TO THE NATION--March 24, 2001

The Cabinet Room


          THE PRESIDENT:  Good morning.  Just over two weeks ago, the House of Representatives passed a large part of my tax relief plan.  Now the House is about to vote on my budget, the funding we provide for the needs and goals of our government.  I have sent the Congress a budget plan that reflects our values as a people.

          My budget is compassionate.  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 for Social Security alone.

          It increases spending on education substantially.  It provides tax credits to help low-income people buy health insurance.  It adds funding for medical research.  And it gives our men and women in uniform a $1-billion pay increase.

          My budget is also responsible.  It pays down the national debt faster than any country has ever repaid its debt before.  It establishes a contingency fund for unexpected needs.  And it provides a reasonable 4-percent increase in discretionary government spending -- that is, 4 percent after we have paid every promised dime for Social Security and Medicare.  Then, after meeting all these priorities, we return about $1 out of every $4 in the surplus to the American taxpayer.

          Some in Washington do not think a 4-percent spending increase is enough.  They want government to take a much larger part of the surplus. But think about it:  For the past few years, average hourly wages have risen at a rate of about 4 percent.  If the taxpayer can get by on a 4-percent raise, the tax collector ought to be able to make do with 4 percent, as well.

          There's a lot at stake here.  Last year, federal discretionary spending grew at a massive 8 percent.  If this spending spree were to continue, we would drain the surplus by funding a permanently larger government.  This would be bad for the taxpayer, and bad for the economy. It would make significant debt reduction and tax relief much more difficult.

          My budget plan doesn't slam the brake on spending; it slows the growth of spending.  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.

          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.  And this is why we need a balanced approach of moderate spending growth, debt reduction, and meaningful tax relief.

          This is the plan that Congress is now considering, and I hope you'll give it your support.  Thank you for listening.

                                 END


Remarks by the President to the Employees of Bajan Industries-- March 26, 2001
Kansas City, Missouri


11:50 A.M. CST

 

POTUS with group of workers
White House photo

 

THE PRESIDENT: Elson, thank you very much for your hospitality. It was interesting, you said the name of this company is a reflection of his heritage, and that's true. But this company is also a reflection of the American Dream, as well. And I'm so thankful for the invitation to be here. I'm also thankful for your willingness to dream and to create jobs. This is what America is all about. This is what I call the lifeblood of the country. (Applause.)


I also took notice of the fact that you were quick to introduce your wife. (Laughter.) Smart man. (Laughter.) But I'm so thankful for you all to let us come. Senator, thank you very much for traveling with me. I appreciate Senator Bond's leadership. I believe he's got his priorities absolutely straight, and they include the people of -- (applause) -- they include the good people of Missouri right at the top of the list. And I appreciate being able to call him an ally.

Earlier today, I was proud to travel with the newly-elected congressman, Sam Graves. We went to his district to say hello to folks in the district. And, Sam, thank you for your willingness to serve.

It's good to see Congresswoman Karen McCarthy. Thank you for your hospitality, Karen. And Congressman Dennis Moore, I've had a chance to visit with Dennis in the past and I appreciate him at least giving me a chance to make my case. (Laughter.)

Mayor, thank you very much for your hospitality. Thanks for greeting me here today. I want to talk about a subject that's on my mind, and part of my job is to put it on your mind if it's not, and that's how to make sure we treat your money wisely in Washington, and what do we do if we have any of it left over. First, let me talk about budgeting. Elson has to budget. And his plant manager has to budget. And one of the key components of budgeting is to set priorities. We're in Washington; sometimes there are no clear priorities. You have to prioritize with the people's money. And we have set priorities in my budget.

A major priority is education. The biggest increase of any department is in the Department of Education. But I also want you to know, even though we're asking for more money to be spent in Washington, I'm not asking for more power. As a matter of fact, I want there to be less power in Washington, because I strongly believe in local control of schools. I believe that Washington ought to trust the local people to make the right decision for the schools. People closest to the problem are those best able to address -- (applause.)


You've heard a lot about some issues that relate to schools in this area. Don't be looking for Washington for the solutions. We may be able to help with some funding, but the government that is closest to the people is that more likely to be able to address problems. And as a former governor, I understand one size does not fit all when it comes to education. The issues between Texas and Missouri are different, and they darn sure were different within my own state. And so we need more flexibility at the local level, less power in Washington.

But I also believe in results. I know Elson believes in results. He's a results-oriented man. And I believe public policy ought to be results-oriented. So my attitude is, if we increase spending at the federal level, and align authority and responsibility at the local level, we also ought to ask the question, what are the results. We ought to say to local school districts, if you receive federal help, you measure and you show us whether or not children are learning to read and write and add and subtract, so that we know -- so that we know whether school systems are quitting early on children.

And I've seen what happens when school systems quit early on children. Guess who gets quit on. Children whose parents may not speak English as their first language; inner city children. And to me it makes sense that if you receive help, you've got to measure. I don't want there to be a federal test. I don't want the national government to undermine local control of schools. But I do think society ought to ask the question, are the children learning. And if they are, we ought to applaud and thank principals and teachers. But if not, we ought to correct the problem early, before it's too late. It's time for a new attitude when it comes to the education of our children, particularly starting in Washington, D.C. (Applause.)

And I think we're making good progress. There's a new spirit of accomplishment in Washington, D.C. And I think we're making good progress on an education bill. Both Republicans and Democrats are coming together to adhere to a set of principles that will encourage educational excellence.


Another priority of mine, of course, is how best to keep the peace. And so part of my budget was to ask Congress to spend more money on the men and women who wear the uniform, to increase the salaries of our troops and to make sure they're housed better. I'm worried about morale in the military. And one good way to start rebuilding morale is to pay people better, and that's exactly what we're going to do. (Applause.)

But I also have the responsibility of laying out a strategic plan for the military, for how best to spend the taxpayers' money beyond pay increases. We have the responsibility in the Executive Branch to take a full review of where money ought to be spent in the future, so we can better keep the peace. Before we ask Congress to spend money on weapons systems, our view is let's make sure the weapons systems are needed.

As we think about research and development money, let's make sure it fits into a strategic plan, so that the United States can keep the peace not only today, but 20 to 30 years from now.

Another priority is health care. And we've got a lot of money in my budget for health care. We double the money for Medicare. We double the amount of folks who will be served at community health centers. We provide money in the budget to help the working uninsured be able to purchase insurance. We focus on health care.

And we also do something else in the budget -- and I know there's a lot of talk, there's a lot of ways to justify keeping your money in Washington. But one of the old ways of justifying keeping your money in Washington is left, it's no longer relevant. Some may continue to try to frighten people with it -- and that's the issue of Social Security. We're taking all the payroll taxes and dedicating them only to one thing, and that's Social Security. The day of trying to frighten seniors in America to be against something is over with. (Applause.)

This is a budget that sets priorities. Defense is a priority; education is a priority; health care is a priority. I readily concede we don't try to be all things to all people in our budget, however. But we do increase discretionary spending by 4 percent. And this creates the rub in Washington. There are some who think 4 percent is too small. I can understand why, because during the last budget cycle the Congress spent -- raised the discretionary spending by 8 percent.

Now, remember, inflation is less than 4 percent. Most people aren't getting 4-percent pay raises, and yet asking our government to live on a 4-percent increase in discretionary spending has created some tension. It made people nervous, has created all kinds of noise in Washington.

But I think it's realistic to ask the federal government to keep its spending at a rate a little more than the rate of inflation. I think that's a realistic expectation. And it shouldn't surprise any of you all. I said if you give me the chance to be the President, I'll work to be fiscally responsible with your money. The days of spending orgies in order to get people out of town are over with, as far as I'm concerned. I'm going to set priorities, and strictly make sure that your money is spent wisely, and that we don't have a bidding contest in Washington, D.C.

We've also paid down a lot of debt. There's a lot of discussion about debt at the national level, and ours is a budget that pays down $2 trillion worth of debt. Now, there are some who may want to pay off more debt. But the $2 trillion is the only amount that's coming due over the next 10 years. And it doesn't make much sense to pay down debt prematurely. It will cost the taxpayers additional money to do so.

I guess what I'm trying to say is, I've taken a common sense approach to your money. We've set priorities. We've increased the budget by 4 percent. Admittedly, it's not 8 percent. But 4 percent's plenty for the federal government to live on. We pay down $2 trillion of debt.

Incredibly enough, we also set aside $1 trillion more over 10 years for a contingency. But you know what, there's still money left over -- about $1.6 trillion. And that's where the big debate -- that's what we're talking about, what to do with the money. I start with this premise, that that surplus is not the government's money. It's the hard-working people's money. (Applause.) It's the money of the entrepreneur. It's the hard-working -- it's the people's money. That's whose money it is.

And as we're thinking about what to do with it, I hope the Congress always remembers whose money it is. I love the idea we're going to give the people their money back. You know, I say that myself sometimes. I just don't think we ought to take it in the first place. After we meet priorities, I think we ought to let you have it. (Applause.)

So I've submitted a tax relief plan. The debate no longer is whether or not we're going to have tax relief. It is how much money is going to be passed back to the people, and how quickly. And that's a good sign for the hard-working Americans who are paying taxes.

I'd like to explain some of the principles of the tax relief plan. First of all, you hear a lot of talk about targeted tax relief. Those words basically mean that Congress gets to pick and choose who gets tax relief and who doesn't get tax relief. But that is not my vision of fair government.

Our vision of government says that if you pay taxes, you ought to get relief; that the idea of trying to pick and choose who does and who doesn't isn't right. (Applause.) So we lower all rates for everybody who pays taxes. The largest percentage tax relief goes to the folks at the bottom end of the economic ladder.

We understand -- or I understand, and the proponents of my plan understand, that if you're on the outskirts of poverty, struggling to get ahead, the tax code is incredibly unfair. It's unfair because as some taxpayers make more money, they pay a higher marginal rate than successful people do. If you start losing your earned income tax credit and you go into the 15 percent bracket for the first time, and you pay payroll taxes, the marginal rate on every additional dollar you earn is higher than somebody making $200,000. That's the current tax code today. And that's not right.

One of the major principles in the tax relief plan says, the harder you work, the more money you ought to be able to make and keep. The harder you work, the more money you ought to have in your pocket. And so this is a plan that recognizes the code is unfair. That's why we drop the bottom rate from 15 percent to 10 percent, and increase the child credit from $500 to $1,000 per child. (Applause.)

We also drop the top rate from 39.6 to 33 percent. And this is where some of the folks in Washington would rather holler than listen to the facts. It's easier to say some things about maybe certain folks shouldn't be getting tax relief. But I want people to understand this about dropping the top rate. A major beneficiary of dropping the top rate from 39.6 to 33 percent are small business owners. Thousands of small businesses pay taxes at the top personal rate. The limited liability corporation, just like this company, pays taxes at the high personal rate. The unincorporated small business owner pays taxes at the high personal rate. The sole proprietor pays taxes at the high personal rate.

Elson, you'll be pleased to hear, I hope, that I believe the role of government is not to create wealth, but an environment in which the entrepreneur can flourish. (Applause.) And one way to do so is to provide meaningful tax relief for the unincorporated businesses all across America. By dropping the top rate, we're enhancing the cash flow of the major new job creators in the country. (Applause.)

Oh, I've heard the rhetoric, but the reality is, the Elson Seales of the world, his company benefits, which makes it easier for him to employ the good folks he's employing here. Tax relief for small businesses is vitally important. It's vitally important to make sure that the entrepreneurial -- the entrepreneurial spirit flourishes in America. It's also vitally important as our economy slows down.

We've got to remember who the major job creators are. New jobs are created by small business people and entrepreneurs. And we should not let the rhetoric of a few in Washington cloud the issue. And the issue is, how do we get more money into the coffers of the small businesses like Elson's in America. And that's what this tax relief plan does. (Applause.)

So when you hear them saying they're against dropping the top rate, you can translate that to the people saying, we just don't appreciate entrepreneurship, or the small business creation in this country.

There's two other issues I want to talk about. One is that the marriage penalty is unfair. It's an unfair part of our tax code. And I urge the House, and ultimately the Senate, to do something about that.

And I tell you something else unfair in our tax code, the death tax. That's unfair. I think Elson ought to be allowed to pass his business from one generation to the next without being taxed twice. (Applause.) I don't know what your plans are to do with your business, and I'm not going to get you to declare right now. (Laughter.) Particularly in front of your son and daughter. But I do know that if part of your dream is to pass your asset base on to your kin, you ought to be allowed to do so. He pays taxes during -- when he makes money, that's one time. Why should he pay taxes on his death? It doesn't seem to make sense to me. If part of the American experience is realizing a dream and building up your own asset base, an equally important part of that is passing your asset base on to your kin, to your son or your daughter. It's part of the American Dream. It's time to get rid of the death tax in the tax code. (Applause.)

Not only does today give me a chance to talk about the benefits for a company like Elson's, I'd like to introduce some folks that I got to meet at a restaurant over there, the Edwards family. Robert's a manager at Bob Evans Restaurant, and Jennifer's an accountant at a real estate firm. They've got Quentin and Ian with them. Quentin is three and a half. Ian is barely hanging on at one. (Laughter.) Looking for a nap. (Laughter.) Mom probably is, too, right about now. (Laughter.)

The reason I asked them to come, because I want to just describe their circumstances quickly. This good family works hard. They pay $1,750 in federal income taxes. And under the plan, when fully implemented, if Congress passes it, they'll end up paying no federal income tax. They'll end up saving $1,750. And I've asked them to come because it gives me a chance to vividly make this point, and it's this.

Once the government has met its basic needs, and we've grown the discretionary budget by 4 percent, and paid down $2 trillion of debt, set aside a trillion for contingencies, what do we do? I would much rather have these good folks spend the $1,750 than the Congress. In all due respect, I think we ought to trust these people with their money. (Applause.) It is your money to begin with.

And that's the fundamental debate. And that's the debate that's going to take place. It's taking place in the House. It's going to take place in the Senate. Who do we trust? This debate, as far as I'm concerned, is a matter of trust. Do we trust the Elson Seales of the world, or do we trust the government to make the decisions? Once priorities are met, once we have increased discretionary spending, once we have made sure Social Security is safe, once we have doubled Medicare, who do we trust with the people's money? Ask the people.

I would much rather have this man and his wife making the decisions what to do with that $1,750 than the appropriators in the United States Senate and the United States House. And that's the issue during this campaign -- and that's the issue during this debate. (Applause.)

And so if you like what you heard, I urge you to use the old email. (Laughter.) Or the telephone. Or the letter. It's amazing how effective people can be when it comes to convincing their elected officials to listen to a different point of view.

I'm honored to be able to come out and make my case. It's important for me to get out of the Nation's Capital and get in front of as many people as I can. Sometimes the filter may not say it exactly the way I'd like it to be said, if you know what I mean. (Laughter.) Sometimes the message doesn't get delivered directly. And this gives me a chance to do so. It gives me a chance to say that ours is a plan that meets priorities, but doesn't want to grow the size of the federal government relative to the size of people's pocketbooks.

There's a lot of talk about debt at the national level -- I urge the senators and the Congress to remember there's a lot of debt at the personal level, too. And there's a lot of talk about, oh, this assumption, that assumption. But one thing we're certain of is that energy bills are going up for people. We're certain of that. And at the very minimum, we ought to share some of the people's -- not take the people's money in the first place, so they can manage their new energy account, increased energy accounts.

Now, we need to hear the people of this country. We need to listen to them. We need to understand the entrepreneurial spirit. We need to trust families with their own money. Because the true strength of the country lies in the hearts and souls of the American people. That's the great strength of this country. The great strength of the country happens when a neighbor turns to a neighbor in need and says, what can I do to help. Brother, you got a problem. What can I do to help? So the acts of kindness that take place on a daily basis.

No, the true strength of the country is when somebody says, I think I want to teach some values to a child, and becomes a Boy Scout or Girl Scout leader or Boys or Girls Club leader. The true strength of the country comes when a mother or dad understands their most important job is not what they're doing during the day, but loving -- if they happen to have a child -- loving their children with all their heart and all their soul. That's the true strength of this country. (Applause.)

I know we've lost some wealth in the stock market recently. But the real wealth of America is the creative energy of our folks. And tax policy ought to unleash the creative energy of Americans, and trust Americans with their own money. I'd like your help. I'd like your help. This isn't for me. This isn't help for a political party. This is help for doing what's right for America. This is important for our economy, but it's also important for the families and hard-working people all across the country. And we can afford it.

God bless. (Applause.)

END 12:15 P.M. CST

 


REMARKS BY THE PRESIDENT IN BILLINGS, MONTANA WELCOME EVENT--March 26, 2001

MetraPark Expo and Convention Center
Billings, Montana

5:10 P.M. MST

Photo

White House photo


     THE PRESIDENT:  Thank you all.  This is my first time in your beautiful state.  (Applause.)  And I want to thank you for the warm welcome.


   Before I begin and say the thanks, I do want you all to join me in a moment of silent prayer for the two soldiers, men who wore the uniform of America, who lost their lives in Germany today; and two of our pilots who are missing over Great Britain.  Would you please join me in a moment of silent prayer, please.

     (A moment of silence was observed.)

     THE PRESIDENT:  Thank you.  God bless them, God bless their families and God bless America.

     I first want to say thanks to my friend, your former Governor.  It seems like you still remember who he is.  (Applause.)  I, of course, know who he is.  I had no stronger ally, a good man, as you know and, gosh, maybe one of these days we might convince him to get his political uniform back on.  (Applause.)

     I appreciate so very much getting to know your current Governor. (Applause.)  The first time I met her was at the White House, we had a pretty fancy dinner.  It was the first fancy dinner we had at the White House; I invited all the governors over.  And she came and did just fine, I want you to know.  (Laughter.)  Now, her husband on the other hand -- (laughter.)  I don't know where he rented his tux, but he looked quite handsome.

     At any rate, it was an honor to know your Governor.  People say the kindest things about her.  She's a good, strong leader and I know you're proud to call her Governor and proud to call the Lieutenant Governor, Lieutenant Governor.  I want to thank them both for being up here today. Thank you all for coming.   (Applause.)

     I'm particularly proud to be here with the Montana congressional delegation.  (Applause.)  Fine Americans.  Fine Americans, all starting with the senior member of the delegation, the Senior Senator who is a man who's got enormous power in Washington.  He's the kind of man who has got enough power that if he likes what I have to say, and you like what I have to say, I'm confident he'll get it done.  (Applause.)

     And I flew into town today with Senator Burns, a man who is not a very shy, retiring fellow.  (Laughter.)  After all, he was an auctioneer.  But I'm looking forward to having his vote when these bills start hitting the floor.  He looked in and there we were, about 35,000 feet and he said, President, you're doing the right thing.

     And we already know how this man is going to vote.  We've had a couple of tough votes on the floor of the House and, Congressman, thank you for your strong support, you did the right thing for the people in Montana. (Applause.)

     I want to talk a little bit about the budget.  There's a lot of talk about the budget, and I found it's much better for me to take my case directly to the people.  Sometimes the word coming out of Washington gets filtered.  (Applause.)  Sometimes it's hard to get a direct message to the people.  So I found the best way to get the message out is to travel the country.  (Applause.)

     And it's pretty healthy to do so, too.  Sometimes some of us in Washington forget where we come from.  And that's why it's good for the President to get out and remind people of who matters.  And the people that matter are the hard-working people of America who pay this nation's bills, that's who matters.  (Applause.)


     I'd like people to know my perspective of how we're going to spend your money.  I'd like to characterize it as a common-sense way of spending the people's money, which means we start with priorities.  Anytime you set a budget it's important to set priorities.  I'd like to explain a couple of the priorities in my budget.

     Education is a priority in my budget.  (Applause.)  Our education budget -- the Department of Education receives the largest increase of any department in our budget request to the Congress.  It's one thing to ask for more money, but it's always important to remember where you come from.

     I used to be the governor of a great state.  I used to (applause) -- there you are.  (Laughter.)  You obviously are not checking passports at the border.  (Laughter.)  Thank you for waving those flags.  (Applause.) And the reason I said that is because I remember how I really didn't like all the federal rules and strings, the federal government centralized authority telling the people how to run the school system.  That's why we're asking for more money.  We're also asking Congress to free up local folks to make the right decisions for the children.  The people who care more about the children in Montana are the citizens of Montana. (Applause.)

     One size doesn't fit all when it comes to educating our nation's children.  So, on the one hand, we're asking for more money; on the other hand, we're asking for power to be passed out of Washington, D.C, with as much flexibility and authority so the good Governor and Lieutenant Governor and legislators and school board officials can help chart the path of excellence for every child.

     But in our budget and in our plans for education reform, we also ask this:  we ask that in return for getting help that you, the people of Montana, or the people of any state, develop an accountability system that says to the good taxpayers, our children are learning; an accountability system that will tell us whether or not progress is being made.

     See, I think it's important for us to be a results oriented nation, a nation that measures progress.  And as importantly, a nation that determines whether children need help early, before it's too late.  Our mission in America is to make sure that we reform schools where reform is needed, so that not one child in America is left behind as we go into the 21st century.  (Applause.)

     I mentioned the military, and one of our priorities in this administration is to strengthen the military.  It's to lift the morale of the military.  (Applause.)  And so in my budget, we ask Congress to increase the pay for the men and women who wear the uniform, to make sure they're better paid and better housed.  (Applause.)

     A priority is a strong military.  But it's one thing to spend more money.  It's also important to have a Commander-in-Chief who sets a clear mission for the military of the United States.  And the mission is this: be prepared to fight and win war and, therefore, prevent war from happening in the first place.  (Applause.)

     There are new threats that face our nation.  Ours will be an administration that is realistic, that brings common sense to our foreign policy.  We'll address the threats as we see them.  I'm concerned about rouge nations and leaders that may try to hold the United States or our allies hostage.

     Not only must we make sure that our men and women are trained well, we must make sure we have the equipment necessary to keep the peace; the research and development to make sure we  have the systems that says to those who may try to hold our nation hostage, don't try it, don't dare.  We need a missile defense system that prevents the world from being held hostage by terrorism.  (Applause.)

  The budget we've submitted to the Congress doubles the Medicare budget over a 10 year period of time.  It also increases the number of folks who will be served at community health centers.  It provides money for the working uninsured, so they can buy health insurance.  No, we focus on the health care of the citizens of this country.

     The budget I submitted, the budget I submitted ends for once and for all the old, tired, stale political rhetoric that says somebody like Bush is going to come along and affect the Social Security of our nation's seniors, the old scare tactics politics, that for too long has dominated the political scene.

     I hope once and for all Republicans and Democrats will quit all this business about trying to frighten people, because in the budget I submitted to the Congress, it sets aside all the money aimed for payroll taxes for only one thing, social -- I mean, all the money from payroll taxes aimed for Social Security for only one thing, and one thing only, Social Security.  (Applause.)

     No, I know, there are some who want to keep all your money in Washington, and they'll say what they have to say to do so.  But don't get fooled by this rhetoric about Social Security being threatened.  Those days are over with.  Those days are over with.  Those who need to worry about Social Security are not those who rely on Social Security today, or those near retirement.  The folks that better hope we have a Congress and a President who's willing to think differently on Social Security are the younger workers who are going to have to pay for us baby boomers when we retire.

     The debate will happen later on in the year, but I'm going to have Congress take a hard look at letting younger workers take their own money and manage it in the safety of managed savings accounts, investment accounts.  (Applause.)

     Those are our priorities.  Paying off debt is a priority.  In the budget I submitted to the United States Congress, we pay down $2 trillion worth of our debt.  In a 10-year period, we pay down $2 trillion.  People say, why not more?  Well, because we'd have to pay a premium to pay down any more debt.  That's all the debt that's coming up to be paid off in a 10-year period.  It makes no sense, certainly not any common sense, to pay a premium for debt that hasn't come due yet.  So this administration isn't going to do that.  But we do pay down $2 trillion of debt.  It's a significant payment down of our nation's debt.  We set priorities and we pay down debt.

     But part of the problem is that I only grow discretionary spending by 4 percent.  Now, by the way, 4 percent is greater than the rate of inflation; 4 percent is a bigger increase than most people's paycheck increased.  Surely, Congress -- surely, Congress can keep the spending down to 4 percent.  It's going to require a new mentality, though, you see. Because discretionary spending at the end of last year increased by 8 percent.

     It's like they had a bidding contest to see how -- the guy who spent the most got out of town first.  And that's not the right way to deal with your money.  We need fiscal sanity in Washington, D.C.  We need to set priorities.  We need to make sure that we don't overgrow the federal budget.  (Applause.)

     And by bringing fiscal discipline to Washington, by having the discretionary budget that increases at 4 percent, not at 8 percent, there's money left over.  And the big debate is what to do with it.  Now, by the way, before I tell you what I think we ought to do with it, before I tell you what we think we ought to do, I want to also tell you that within our budget, over a 10-year period there's a trillion dollars for contingencies.

     So, set priorities; set aside payroll taxes for Social Security; we double the Medicare budget; we increase discretionary spending at 4 percent; we set aside money for contingencies.  One contingency may be a continuing problem in our agricultural sector.  There's money set aside for contingencies.  There's still money left over, and that's where the clash of wills is coming in Washington, D.C.

     Let me tell you the principles that I made my decision.  First of all, that money left over -- we call it the surplus -- that money is not the government's money, it is the people's money.  (Applause.)  The government didn't earn that money.  You earned the money.  (Applause.)

     In the first four months of this year, the cash flow coming into the treasury exceeded expectations by $40 billion, in spite of the fact that our economy has been sputtering a little bit.  During the first four months of the fiscal year, $40 billion excess cash came in.  It sounds like to me somebody is being over-charged.  (Applause.)  And we need to ask for a refund.  (Applause.)

     And that's what I'm here to talk about.  I'm here to talk about the tax relief plan that I have submitted to the United States Congress.  It starts with this.  It says, let's reduce all rates.  I know there are some in Washington who like to talk about what they call, targeted tax cuts. Let me tell you what that means.  That means that the folks in Washington get to decide who the winners are and who doesn't win when it comes to tax relief.

     That's not our view of government, folks.  Our view of government says if you pay taxes you ought to get relief.  (Applause.)  We simplify the code.  We try to make this cumbersome tax code easier for folks to understand.  This tax code of ours is patently unfair.  It's unfair to people at the bottom end of the economic ladder.  If you're a single mom in the state of Montana, trying to raise two children -- by the way, you'd be working the toughest job in the state of Montana, the toughest job. (Applause.)

     If you're on the edge of poverty, if you're working hard and you're making $22,000 a year, under this tax code, incredibly enough, for every additional dollar that hard-working woman makes, she pays a higher marginal rate on that dollar than someone who is successful.  Under the tax code today, for every additional dollar the single mom making $22,000 a year earns above $22,000, she pays a higher marginal rate on that dollar than someone making $200,000 a year.

     And that's not right.  That's not the vision we have for America.  So I'm asking Congress to drop the bottom rate from 15 percent to 10 percent and increase the child credit from $500 to $1,000 per child.  (Applause.) I think everybody pretty much agrees with that.  (Applause.)  Let me tell you something.  Let me tell you something else.  I'm advocating dropping the top rate, as well -- from 39.6 percent to 33 percent, and let me tell you why.  Oh, I've heard all the rhetoric, you've heard it, too.  You know, this is the plan only the wealthy people benefit.

     I want to remind the people all across America that there are thousands of small business owners who are unincorporated in America who pay the 39.6 percent rate.  (Applause.)  I want to remind people that there are hundreds of thousands of sole proprietors in our country who are working hard every single day to realize the American Dream of starting their own business, of employing people, who pay at the high rates in our tax code.

     No, we've heard all the rhetoric.  But the truth of the matter is, the role of government is not to create wealth, but an environment in which the entrepreneur and small business owner can flourish in America.  And dropping that top rate sends a clear signal:  we want you to have more cash flow so you can expand your business when this economy is slowing down; we want you to have more money in your pocket so you can continue to employ more hard-working people in the great land of America.  (Applause.)

     The marriage penalty is unfair in our tax code.  (Applause.)  It doesn't make sense to tax marriage disproportionally to those folks who aren't married.  That's not right.  We ought to encourage families to stay together.  We ought to have a tax code that welcomes families.  (Applause.)

     I had the honor of meeting with some farmers and ranchers from your good state.  And it leads me to my final point on tax fairness and tax relief.  The death tax is unfair.  (Applause.)  It's unfair to ranchers, it's unfair to farmers, it's unfair to the family business owner that works his or her heart out to be able -- and wants to leave it to a family member.  It's not right, folks.  It's not right to tax a person's assets twice.  It's time to get rid of the death tax in this tax code. (Applause.)

     You've heard them all over there.  They say, this isn't enough.  We've got some people that are saying, let's make it bigger.  And some people saying, let's make it smaller.  Our message we've got to send the United States Congress is the plan I've laid out is just right.  It's just right for the small business owner.  It's just right for the person struggling to get ahead in America.  It's just right for the rancher and farmer. It's just right.

     And let me tell you another reason why we need tax relief.  I was in Council Bluffs, Iowa, and a grandmother stood up and she said, you know, Mr. President -- behave yourself (laughter) -- she didn't say behave yourself, she said, Mr. President.  She said, I baked a lot of cookies in my day.  She was talking about the budget and money in Washington.

     She said, I baked a lot of cookies in my day.  And I've seen children and grandchildren go through my house more times than you can possibly imagine.  And every time I left cookies on the plate on the table, they were eaten.  That's how I feel about your money in Washington.  It's a fundamental difference about once we meet priorities, who gets the money? Where does the money go?  (Applause.)

     Today I've asked the Palmers -- there they go, right over there where it says, tax relief now.  That's Mike Palmer, that's Kathy Palmer, that's Joe Palmer and Jacob Palmer.  And I want to thank you all for coming. (Applause.)  Mike works for the Burlington Northern Santa Fe Railroad. Kathy is a teller at Wells Fargo Bank.  Joseph is 12 and Jacob is 9.

     This good family, they pay $2,900 in federal income taxes.  Once Congress puts the plan I've just described to you in place, these good folks will save $1,700.  (Applause.)  That's not a lot for some, they say. It's a lot for them.  It's $1,700 more dollars in their pocket.  You know, there's a lot of talk about national debt.  I want people to remember in Congress, there's also debt at the private level.  There's a lot of folks who have got credit card debt.  They thought they could manage the debt okay, until the fact that our nation didn't have an energy policy caught up with us.

     People's energy bills are going up.  People are having trouble making ends meet in America.  We've met priorities.  We've got money left over. And the fundamental question is, do you want the Palmers to spend the money or the government?  I want the Palmers to spend the $1,700.  (Applause.)

     This is a matter of trust.  It's a matter of trust.  Who do you trust with that extra money?  Who do you want to spend it?  That's the question I'm asking the members of the Senate and the House of Representatives, and the question I hope you join me in asking.  Once we've met priorities, once we've paid down debt, I want to trust the Palmers and the hard-working Americans.  It's your money to begin with.  It's not the government's money we're talking about, it's the people's money. (Applause.)

     And it's so important to trust the people of this country.  It's so important to trust our fellow Americans.  The strength of the country is in the hearts and souls of our citizens.  That's the strength of America.  It doesn't lie in our halls of government.  And we have a great form of government.

     But the true strength of America is in our citizenry and our neighborhoods, where somebody puts their arm around a neighbor in need, and says, brother or sister, what can I do to help?  No, the great strength of this country is because good-hearted citizens say, I want to teach a child some values, and become a Boy Scout or a Girl Scout leader, or a Boys and Girls Club leader.  The true strength of the country is in our churches and synagogues and mosques, places of worship that teach us -- that teach the scholar lesson.  (Applause.)

     I trust the people of this country.  That's what makes our nation unique and strong and compassionate.  The best thing I can do besides arguing for good public policy and to sign good law is to begin by changing the culture in Washington, by working to establish a culture of respect.

     It's important for the rhetoric in Washington, D.C. to be dialed down a couple of notches -- that needless partisanship that goes on.  We ought to be talking about the people of the country.  (Applause.)  We need to be talking about disagreeing in an agreeable way.  There's a time for politics.  Thankfully, we finished that.  Now it's a time for good public policy.  And a good public policy always begins by trusting the people and listening to the people and remember whose money we're spending when it comes to setting the budgets of the federal government.  (Applause.)

     We have a solemn obligation in Washington to do the people's business. So I believe we're beginning to develop a culture of accomplishment in Washington, as well.  I was pleased to sign a bill that would have -- that got rid of needless regulations, unnecessary, burdensome, cumbersome costly regulations on what they call ergonomics.

     We can come up with better policy, but it's the system of accomplishment.  Things are beginning to happen.  It requires a President who can set an agenda, work with members of both parties and share credit when positive things happen.  And that's so important.  I want people to look at Washington and not see finger-pointing and name-calling and bickering, but accomplishment.

     And, finally, I believe we have an opportunity in America to usher in a culture of responsibility, a signal that says loud and clear to our country that each of us are responsible for the decisions we make in life; that if we've got an issue in Billings, Montana, don't hope that the federal government will wave some magic wand and solve -- (applause.)

     All of us in positions of authority must uphold the offices that we occupy.  All of us with responsibility must understand that it all starts with those of us who are fortunate enough to be able to say we're a mom or dad.  It all starts with loving our children with all our heart and all our soul and all our mind.  No, the greatness of the country lays ahead of us, when we usher in a period of personal responsibility; when we understand loving a neighbor like we like to be loved ourselves is an important part of the American experience; where we have a hopeful nation, a nation that holds up hope for everybody who is fortunate to be called an American.

     I see a great day ahead for this country.  But it all counts on the people.  I'm here to ask for your help.  You're only an e-mail away from influencing public policy, only a phone call.  (Applause.)

     It is such an honor to be here.  Mark was right, I was incredibly inspired not only when I saw the beautiful countryside, but when I saw the hundreds of citizens who took time out of their day to come by and wave. And I'm honored that so many folks came here today.  It makes me feel great.  I'm honored to be your President.  It's a huge, huge honor.  I won't let you down.

     God bless.  God bless America.  Thank you all.  (Applause.)

END 5:45 P.M. MST


REMARKS BY THE PRESIDENT TO SOUTHWEST MICHIGAN FIRST COALITION/KALAMAZOO CHAMBER OF COMMERCE JOINT EVENT ON THE ECONOMY--March 27, 2001

Western Michigan University
Kalamazoo, Michigan

1:42 P.M. EST

Photo

White House photo


     THE PRESIDENT:  Thank you very much for that warm welcome.  I am honored to be back here in Kalamazoo.  The last time I came, I think I went to the school right down the street, if I'm not mistaken.  And it is a thrill to be back.  It's an honor to be with my friend, the Governor of the great state of Michigan, a man who I really enjoy being around.  That guy's done a fabulous job as being your governor, John Engler.  (Applause.)


     It's good to be with the Lieutenant Governor, Dick Posthumus.  Good to see you, Dick.  Candace Miller.  (Applause.)  It's great to be here with Dr. Floyd.  I got to know Dr. Floyd last summer.  I was impressed by him then; I'm doubly impressed by him now.  He does a fabulous job for this important institution.  Thanks for having us, Dr. Floyd.  I'm honored to be in your presence again.  (Applause.)

     I want to thank the leaders of the Kalamazoo Chamber of Commerce, Kevin McCarthy.  I'm honored that you would have me here.  I'm here to talk about a subject that's dear to our collective hearts, our nation and its economy.

     Before I do so, though, I want to thank all of the members of the United States Congress who are here.  I see Upton, Fred Upton is here; and Peter Hoekstra, Vern Ehlers, Nick Smith, Joe Knollenberg and Mike Rogers. I'm honored to be in your presence.  I would spend more time talking about you, except we're flying back to Washington on Air Force One.  It will give me ample time to visit with you about where I think we need to be heading. (Laughter and applause.)

     But the good news is, with those that are here, I have no doubt that they're going to do the right thing.  We've had a chance to see them in action before.  I submitted my bill a month ago to Congress to reenergize our economy.  And this Michigan delegation, at least these folks here, stood strong for the working people of Michigan, and voted for real, meaningful tax relief for the people of this important state.  And I want to thank you all.  (Applause.)

     Important elements have passed the House and are now before the Senate.  We have made progress.  But there's a lot of work to be done.  And I'm here to ask for your help.  If you like what you hear, you're only an e-mail away from letting two senators know what you think.  (Applause.)

     I find it's important to get out of town -- at least out of the Nation's Capital -- to take my message directly to the people who matter. You see, oftentimes, what I try to say in Washington gets filtered. Sometimes, my words in Washington don't exactly translate directly to the people, so I've found it's best to travel the country.  I'm coming in from Billings, Montana.  We had about 12,000 people show up last night to hear my -- gave me a chance to talk about what tax relief means and what common-sense budgeting will do for our nation.

     You see, it's the President's job to look for warnings of economic trouble ahead, and to heed them, and to act.  I got elected because the people want the President to act, and that's exactly what I'm going to do. (Applause.)

     My approach is based upon common sense, and here it is:  We must put more money in the hands of consumers in the short-term, and restore confidence and optimism for the long-term.  We need an immediate stimulus for our economy and a pro-growth environment for years to come.

     Some in Congress want America to choose between these goals, to think of the moment, and not the future.  But lasting prosperity requires long-term thinking.  And if we face facts and act boldly, I'm confident we can build the long-term prosperity we seek.

     The American economy is like a great athlete at the end of the first leg of a long, long race -- somewhat winded, but fundamentally strong.  We pioneer new technologies in new industries.  The dollar is as respected in Kiev as it is in Kalamazoo.  The world's shrewdest investors put their money in America.  The world's best students come to study in America.  And the world's most ambitious people come to work in America.  This is an economy that has done amazing things, and it's on the verge of even greater accomplishments and achievements.

     Individuals make it happen.  That's what we've got to understand.  The future just doesn't happen; individuals make it happen.  And the right public policy empowers individuals in America.  My policies face reality as we found it, and lay the foundation for future growth.

     As many Americans know firsthand, U.S. stock markets have been declining steadily for more than a year.  The Nasdaq peaked a year ago last March.  The Standard and Poorer's 500 did the same.  The Dow Jones Industrial average peaked 15 months ago, in January of 2000.  Since those peaks, the Dow has lost nearly 20 percent of it's value; the S&P more than a quarter of its value; and the Nasdaq more than half of its value.  These declines have hurt almost all investors.  And they've surprised and worried many new investors.

     In the final quarter of 2000, the American economy grew at a sluggish, 1.1 percent pace.  In that same quarter, there was no growth at all in new business investment.  Industrial production began dropping last October, and almost every week brings us reports of layoffs, especially in manufacturing.  Michigan has been hit especially hard.  According to the latest figures, unemployment has risen more in Michigan over the past year than in any other state of the Union.  Some regions of America, and some industries are doing better, but the trend is clear, and the need for action is urgent.  (Applause.)

     In the short-term, the American consumer needs a hand.  About 25 million families are carrying more than $10,000 in credit card debt.  Many families have tried to reduce their debt by tapping into their home equity, and partly as a result, the average home owner's equity share in his or her house declined in the 1990s.  More than a few consumers counted on their earnings in the stock market to help them carry their obligations.  They need tax relief fast.  In fact, they need it yesterday.  So I strongly support the idea of back-dating tax relief to get cash into the consumer's hands as swiftly as possible.  (Applause.)

     And I applaud the members of Congress, Republicans and Democrats, who have come forward to endorse quick action on tax relief.  Yet, our economy needs more than a pick-me-up, more than a one-time boost.  Our economic health depends on people feeling comfort and confidence about long-term decisions -- to start a new business, to invest in a new idea, to buy a new home.  And the people who make those decisions don't care only about this year's tax rate; they care about next year's rate, and the year after that.

     Immediate tax relief is good news.  But tax relief that gets yanked away next year is not such good news.  Lower rates do not stimulate much economic activity, unless people can rely on them for years down the road. We must rebuild business confidence and market confidence and consumer confidence through a permanently improved business environment.

     Lower tax rates mean a new home will be more affordable, not just the first year, but every year.  Lower rates mean that a new investment will have a better chance of success, not just the first year, but every year. Lower rates mean that a start-up company will keep more of its earnings, in not just the first year, but in every year.

     The long-term growth of our economy also depends not only on real, meaningful tax reductions, but also on increasing productivity.  America has prospered more than any other major economies in recent years because our productivity has grown faster than that of other major economies -- and faster than we, ourselves, once believed possible.  Since 1995, in fact, productivity has grown nearly twice as fast as it did between 1975 and 1995.

     What makes productivity go up?  Well, you know as well as anybody, it's education and investment.  If our productivity is to continue to grow, our people must know more tomorrow than they know today.  They must read better.  They must calculate faster and more accurately.  They must understand science more deeply.  So our education policies must insist upon results.  We must be bold enough to measure our children's progress.  We must hold schools accountable.  And we must give parents and children better options if our schools fail to teach and will not change. (Applause.)

     And if our productivity is to continue to grow, our tools and machinery and equipment must work better and faster.  Our present tax code discourages investment by small business and entrepreneurs.  The vast majority of American businesses -- the vast majority of American businesses -- pay tax on the personal schedule, not the corporate schedule.

     It is important to -- it's important for Congress to hear this.  The number of unincorporated businesses and sole proprietors are huge.  But they're the backbone of economic vitality in America.  Back in 1990, they faced a top rate of 28 percent.  Today, the unincorporated business can face a maximum federal rate of nearly 40 percent.  Those taxes come right out of cash flow, making it harder for small business owners to make investments that raise productivity, boost incomes, provide benefits to their workers.

     High taxes discourage potential entrepreneurs from taking the risk of starting a new business in the first place.  Small business generates approximately 75 percent of America's net new jobs.  High tax rates are weighing those businesses down.  And so I've submitted a plan that not only reduces the rate at the bottom end of the economic spectrum, but raises the top rate, as well; to give small businesses the lift they need to continue providing the job base that will keep America strong.  (Applause.)

     Oh, I know you've heard the rhetoric about only certain kinds of people are going to get relief if you reduce all rates.  But I want to talk about two things, two principles.  One, if we're going to have tax relief, everybody who pays taxes ought to get relief.  (Applause.)  And, secondly, it's important to always remember the role of the federal government -- or any government for that matter -- is not to try to create wealth; the role is to create an environment in which the entrepreneur can flourish, in which a small business owner can grow to be big businesses.  (Applause.)

     So it's important to send a message to the members of the United States Senate, to be fair and principled and always remember the role that the small business owner provides in America:  Dropping that top rate makes good, strong economic sense for the future of this country.  (Applause.)

     My plan also will encourage the saving that makes investment possible. The marginal tax rate on savings can reach 68 percent when the impact of the death tax is combined with that of personal income tax.  The death tax is unfair.  (Applause.)  It taxes a person's assets twice.  It discriminates against savings, against investment, and against growth.  And my plan repeals the death tax.  (Applause.)

     And my plan reforms Social Security so that every worker can be a saver and an owner.  There is no human dream stronger than the dream of having something you can call your own.  It is the promise of America. It's the promise of independence and dignity.  And we must reform the Social Security system to give workers the option of directing some of their payroll tax contributions into personal retirement accounts -- give every -- every -- working American an opportunity to be an owner, not just a wage-earner.  (Applause.)

     We will protect those who rely on Social Security.  We'll also strengthen our nation's greatest social program by making it a powerful source of saving and investment.  More money in people's paychecks in the short-term.  Greater incentives for work and saving in the long-term.

     Tax relief is central to my plan to encourage economic growth.  And we can proceed with tax relief without fear of budget deficits, even if the economy softens.  Projections for the surplus in my budget are cautious and conservative.  They already assume an economic slowdown in the year 2001.

     Even if the slowdown were to turn into a recession similar to that of 1990 and '91, the Congressional Budget Office projects that the 10-year surplus would shrink by only 2 percent, from a little more than $5.6 trillion to a little less than $5.5 trillion.  Of course, there's more to economic growth than just taxes and budget.  An industrial economy runs on energy, and we must have a strategy to keep the wheels turning and the lights burning.  (Applause.)

     I know you've seen the news.  The lights are dimming in California. Consumers and businesses in California, the west and all over our nation are paying sharply higher energy bills.  And as we compare our future energy needs to the currently projected domestic energy supply, we see an ominous growing gap.  Our people are paying a high price for years of neglect.  And the time to act is now.  (Applause.)

     I directed Vice President Cheney to lead a task force that will produce the comprehensive energy strategy this nation needs, and has lacked for many years.  The energy problem wasn't created overnight, and we won't solve the problem overnight.  But we will at last start down the right road, so that the shortages we face today will not recur year after year.

     We'll not solve the energy problem by running the energy market from out of Washington, D.C.  We will solve the energy problem by freeing the creativity of the American people to find new sources of energy and to develop the new technologies that use energy better, more efficiently and more cleanly.  (Applause.)

     The tests for any energy policy are simple:  Does it increase supply, and do its incentives encourage conservation?  A policy that fails to meet these tests is bad public policy.  And that is why this administration does not, and will not, support energy price controls.  (Applause.)  Price controls do not increase supply, and they do not encourage conservation. Price controls contributed to the gas lines of the 1970s.  And the United States will not repeat the mistake again.

     And there's another mistake we won't repeat -- the mistake of putting artificial barriers in the way of world trade.  When economy slows down, protectionist pressures tend to develop.  We've seen this happen before, and it could happen again.  So I want to say this as clearly as I can: Trade spurs innovation; trade creates jobs; trade will bring prosperity.

     If our trading partners trade unfairly, they'll hear from us.  This administration will always speak for American interests.  But free and open trade is in our national interest.  (Applause.)  The world will know this, that I strongly, and my administration strongly supports free trade. Twenty years ago, hundreds of millions of human beings were walled off from the global economy by the policies of their own governments.

     And those walls are coming down.  And people in Mexico and the Americas and Asia and Africa and Eastern and Central Europe are being set free to join the world, to understand the promise of market-oriented systems.  It's a big change, and change isn't always easy.  But trade lifts lives and trade furthers political freedom around the world.  And it will build the wealth of our nation.

     I believe this.  I believe I must speak straight with the American people.  The American economy began slowing last summer.  But we know how to emerge from trouble.  I like to look at what my predecessors did in the past.  John F. Kennedy supported tax cuts to jump-start a sluggish national economy in the early 1960s.  Ronald Reagan used tax cuts to break us out of stagflation in the early 1980s.  And I strongly believe that meaningful, real tax relief can ignite another generation of growth.  (Applause.)

     At tax plan that doesn't play favorites.  A tax plan that cuts taxes permanently.  A tax plan that not only gets money in people's hands quickly, but a tax plan that stimulates investment and enterprise and entrepreneurial growth.  That's the tax plan I submitted.

     You know, some in the Congress are saying, well, Mr. President, your plan is too little.  And some are saying, it's way too big.  But after careful thought I can look in the eye and say, I think it's just right. And I hope you'll join me.  (Applause.)

     I remember campaigning here in the great state of Michigan.  I think John might remember this.  And people kept saying, well, it just doesn't seem like your tax plan is getting much steam.  Nobody seems interested. And I said, well, I think you miscalculated our campaign; it's not one that's based upon polls or focus groups.  The campaign I wage and the administration I'll run is one based upon doing what I think is right.  I'm worried about hard-working people in America.  I worry about the man or woman who goes to work every single day and has high energy bills to pay and credit card debt to worry about.  I worry.

     I also understand this basic premise of America, though -- that we've got to trust the people of the country to make decisions; that the whole fundamental concept of America is based upon individual freedom and our government must trust people.  And it starts with understanding that the surplus -- it is not the government's money, it is the people's money.  And we ought to trust them with their own money.  (Applause.)

     And that's the fundamental debate in Washington, D.C.  If you listen carefully, the people up there will use every excuse in the book to increase the baselines of government.  At the end of last year, the discretionary spending in Washington, D.C. increased by 8 percent.  It's vastly larger than the rate of inflation.  So the new administration came to town and said, why don't we focus and set some priorities and slow the discretionary rate of spending down to 4 percent?  And I must confess, it created some to squawk and holler.

     But we submitted a budget that sets priorities.  It doubles Medicare. It sets aside all the payroll taxes for Social Security.  It focuses in education.  It pays the people who wear the uniform of the military more money -- (applause.)  But I think it's important -- we pay down $2 trillion of debt.  There's $1 trillion set aside over the next 10 years for contingencies, and there's still money left over.  And I strongly urge the United States Senate to remember where that money came from.  It's the people's money, and we need to send it back to the people who pay the bills in this country.  (Applause.)

     No, this is an issue about trust, as far as I'm concerned.  It's who do you trust.  And I want you to know, I trust the people of this country. I not only trust them to spend their own money more wisely than the federal government will spend it, but I trust the people to provide a compassionate tomorrow for our fellow citizens.

     You see, I understand the great strength of this country is not in the halls of government and faraway capitals, it's in the neighborhoods of Kalamazoo, Michigan.  It's in the churches and synagogues and mosques that dot this landscape.  (Applause.)

     We'll debate budgets and line-items and all that, but one thing that can't be debated is the true strength of our country lies in the hearts and souls of citizens who hear the universal call to love a neighbor just like they would like to be loved themselves.  The true strength of the country takes place in acts of kindness that no government official probably has ever heard of, where somebody walks across the street and says, what can I do, to somebody who needs a hand.  Or that Boy Scout or Girl Scout leader who dedicates time to teach a child values.  Or the after-school program run by a Girls' Club or Boys' Club, where somebody says, gosh, I'd like to help somebody understand somebody loves them.  No, that's what America is all about.

     And our federal government not only must trust people with their own money, we must empower the great compassion of America by trusting Americans all across the country.  It begins by working on changing the culture of the Nation's Capital, and I think we're making good progress. There's a culture of responsibility beginning to become a part of our Nation's Capital that each of us understand if we're given the awesome tasks that we're responsible for upholding the offices we hold.  There's a culture of respect beginning to take hold in the Nation's Capital, where good people can disagree, but on respectful terms.  The American people are sick and tired of finger-pointing and name-calling to try to tear somebody down to build themselves up.  It's time to have good public policy become the focal point of this Nation's Capital.  (Applause.)

     And I'm convinced that by changing the tone of Washington and by setting lofty goals and remembering where the great strength of this country comes from, that this land of ours can achieve anything we set our mind to; that not only will this economy come roaring out of its doldrums, but we'll be a land where the fabric is made up of groups and loving centers that really say to somebody, I really want you -- I want you to succeed; that the American hope belongs to everybody who lives in this great land.

     I love being your President.  I'm honored you're here.  Thank you for giving me a chance to state my case.  And God bless.  (Applause.)


END                             2:09 P.M. EST


Remarks by the President to African American Leaders -- March 29, 2001
The East Room

4:00 P.M. EST

Bush walking with group of men
White House photo

THE PRESIDENT: Thank you all. The Legislative Branch is always trying to take something from the Executive Branch. (Laughter.) Thank you, J.C., for helping set up this meeting. And thank you all for coming. It's my honor that you're here, and I want to welcome you to the people's home.

Before I begin, I do want to make mention of the fact and ask you to join me in a moment of silence -- a member of the United States Congress passed away today, Norm Sisisky, from the state of Virginia. I know you'll join me in asking God's blessing on Norm, as well as on Rhoda and his four sons and seven grandchildren.

(A moment of silence is observed.)


THE PRESIDENT: Amen. Thank you very much. Secretary Paige, thank you very much for being here. I've known Rod a long time. You may remember, at one time I was the governor of the great state of Texas. (Laughter.) And we had a superintendent of schools in our largest school district who insisted that every child could learn. And he caught my attention by saying that, and then not only insist that, he worked hard to make sure that that was the case. And it's such an honor to have Rod make the sacrifice of moving from Texas up here and becoming the Secretary of Education. People are going to be proud of the job he does. It doesn't matter what your political party is, you'll be proud of the job this man does. Thank you, sir. (Applause.)

I know the Lt. Governor of the great state of Colorado is here, Joe Rogers. And I don't know if Kenny Blackwell is here, from Ohio. We've got elected officials, I know, from Oregon and Nevada and all around the country. Thanks for coming.

I love the old words of Jackie Robinson -- he one time said when President Kennedy did something he disagreed with, he said, "The President is a fine man. But he reserved the right to change his opinion." (Laughter.) Every President, whatever his party, is judged not only by the words he speaks, but more importantly, by the work he leaves behind. And that's what I hope my administration is judged on -- by the work we leave behind.

I will constantly speak for the values that unite our country: personal responsibility, equal justice, equal opportunity for everybody. These are important common values. And I've set this administration to the work of putting those values into practice and into law.

The work begins where opportunity usually begins, and that's in the schoolhouses. I have made public education the number one priority of this administration for a reason -- because when we get it right, when every child learns, America will be a much more hopeful place.


Today, all the children -- there was a day when all the children couldn't enter schools. Some of you may remember that. I'm not trying to age you. (Laughter.) As a result of a lot of hard work, that has changed. All children can enter schools. But the fundamental question now is, once in school, will all children learn. And that's the question all of us must ask, and if not, we must insist on change. We must insist on change. I've asked Congress to spend more money on education. But I've also asked that we expect more in return.

A good education system is one that's based on some fundamental principles. One is high expectations for every child. You all know, those of you involved with education know if you lower the bar, if you have low expectations, you get those kind of results. If you assume certain children can't learn, certain children won't learn. So, inherent in any good reform system is one that sets high standards.

Secondly, it's so important to trust the local folks, is to set power out of Washington so as not to provide convenient excuses for failure. We must align authority and responsibility at the local level.

There's nothing worse than having a school system where centralized authority says you must do it this way and when there's failure, somebody says, oh, we would have succeeded except somebody told me to do it the way we didn't want to do it. Authority and responsibility must go hand in hand.

And, finally, at the center of reform, something Rod and I worked hard on in Texas, is to measure, is to insist upon accountability. There's a lot of fear about accountability in the education system. People view it as a way to punish. That's not our vision. We view it as a way to correct.


How do you know if a child isn't learning unless you measure? So it's so important that Congress gets the message that in return for federal help, states and local jurisdictions must develop accountability systems that measure third, fourth, fifth, sixth, seventh and eighth grade. It's important that we desegregate those results, so that we treat each child as an individual. It is important that we post the results so people know; and as importantly, when we find success, thank the teachers and principals that are working hard. But when we find failure, instead of accepting the status quo, do something about it.

That's why it's important to start measuring early. I've got a reading initiative in front of the Congress that starts with those in kindergarten. It basically says, in order to access the money, you must develop diagnostic tools, so that we can determine early whether a child needs extra help, extra time on task. It says we'll use curriculum that works, not fancy, feel-good theories, but curriculum that actually can take a child from illiteracy to literacy. It says, if need be, teach reading all day long, until you get it right, because literacy, as our friend, Phyllis Hunter, said in Houston, Texas, is the new civil right.

And so this is an education program that's based upon principles. I firmly believe that when implement, that when in place, that we'll begin to achieve the goal and dream that we all want, and that's an educated tomorrow.

I also know that -- the importance of our Historically Black Colleges. I know it well, because in our state of Texas, many of our finest citizens have been educated at those places of higher learning. And therefore, in the budget I've submitted to the Congress, I'm asking for an increase of $1.4 billion over a 5-year period of time. (Applause.) I hope Congress doesn't blink. I hope they join us in this important mission.


And people say, well, is there money -- do you have enough money in Washington to be able to make those kinds of commitments. Let me talk about my budget, because there's a lot of discussion about budgets. And I want to thank the House for passing what I call a common-sense budget. It's a realistic budget. It's a budget that has set priorities. One of the priorities is education. In the budget is the amount of money I've just spoken to. It's a budget that sets aside all the payroll taxes for Social Security, and only Social Security.

That old style, that old tired debate hopefully will be put to rest now forever, so they don't try to scare folks away from good public policy. The budget doubles the Medicare budget. That's over a 10-year period of time we double the Medicare budget. It's a budget that increases the -- doubles the number of folks who will be served in the community health centers over the next five years.

I don't know if you know what the community health centers are. There places where folks living on the edge of poverty, maybe the newly arrived, can get good primary care in the health care system.

It's a budget that talks about how do we enable the working uninsured to purchase health insurance. It's a budget that grows by 4 percent in the discretionary side of things.

Now, 4 percent is greater than the rate of inflation; 4 percent is greater than most people's paychecks have increased. But for some, 4 percent isn't enough. I happen to think it's just right. Because by focusing and by having a budget that's realistic, it leaves more money left over. And with this economy beginning to sputter, we need to send some money back to the people who pay the bills. We need to have meaningful, real tax relief. (Applause.)

And we can afford tax relief. We certainly can afford tax relief. And that's the debate. Can you afford tax relief, or do you want bigger government? And after setting priorities -- and, by the way, paying down $2 trillion of debt over a 10-year period, and setting aside money for contingencies -- I firmly stand on the side of letting people keep their own money. It's not only good for the economy, it's good for people, more importantly.

The crux of the issue is, who do you trust with the money? And I trust the people. It's their money, to begin with. This surplus is not the government's money, it is the people's money. And so we've submitted a plan that I think makes the code more fair, eminently more fair.

If you're a single mother in America, let's say, trying to raise two children -- if she's at the income level of $22,000 and makes an additional dollar, she will pay a higher marginal rate on that dollar than someone who makes $225,000 a year. The way our tax code is structured is that for every additional dollar above the level of $22,000, in this case, for this particular woman, she starts losing her earned income tax credit, she pays a 15-percent bracket for the first time and she pays payroll taxes.

Our code is structured so that somebody struggling to get ahead, somebody working the hardest job in America, pays a higher marginal rate than successful folks -- Wall Street bankers. And that's not right. And that's not fair. So one of the things we have done is we work with Congress to drop the bottom rate from 15 percent to 10 percent, and doubled the child credit from $500 to $1,000, making the middle class easier to access than the current code. The code is more fair. (Applause.)

I also drop the top rate -- 39.6 percent to 33 percent. My attitude is that everybody who pays taxes ought to get tax relief. I get nervous when I hear we're going to have targeted tax cuts. I guess that's okay, just so long as you're not targeted out. (Laughter.) Just so long as the target is fixed in the right way. I don't believe in trying to pick or choose winners and losers in good public policy. I think everybody who pays taxes ought to get relief.

But I have been reminding people around here about the benefits of dropping the top rate, and it's important for you all to hear this. By far, the vast majority of small businesses are unincorporated businesses, sole proprietorships, maybe subchapter-S corporations, all of which pay taxes at the highest marginal rate.

There's a lot of discussion, and rightly so, about how do we encourage ownership in all communities in America. Well, one way to do so is to have an environment for the growth of small businesses in America. It turns out there are many hundreds of African Americans who are starting their own business. And public policy people got to think about how to create an environment so that those businesses can flourish. And one way to do so is to let people keep more of their own cash flow so they can reinvest it. Seventy-five percent of the new jobs -- (applause) -- 75 percent of the new jobs in America are created by small businesses. And 100 percent -- 100 percent -- of the great hope of America comes when somebody owns and company. And that's what it's all about.

So I urge Congress not to get trapped in the -- kind of the rhetoric of class warfare, and think about the positive benefits that come by encouraging the growth of the small business sector of America.

I see many of my friends here who are involved in the faith community, and I want to thank you all for coming. As you know, there's been a lot of discussion about a faith-based initiative. My attitude is that government can pass laws and we can work on matters of justice -- and, by the way, we will. Racial profiling is wrong. I've instructed the Attorney General to come up with a plan to end it. (Applause.) And he's following through.

But what government cannot do is cause people to love one another. I wish we could. We would sign the bill. J.C. will sponsor it -- (laughter) -- I think, won't you? And I will sign it. (Laughter.) But love comes as a result of a higher calling, in many cases. Love comes from hearts. And our job in America is to gather the great compassion of America.

You know, we were talking about, earlier -- I remember my friend, Tony Evans, gave a speech outside of Dallas, in Greenville, Texas. And he talked about the greatest welfare programs are on every street corner in America. Because there are houses of worship where people have heard the universal call to love a neighbor like they'd like to be loved, themselves. People who spend their days trying to help a neighbor in need.

Government can't make people do that. We've got to recognize the limitations. But what government can do is encourage faith-based programs and their mission. What government can do is fund an individual who we'd like to help, and let that individual make a choice as to whether or not they want to find help in a secular program or in a faith-based program. Government can do that. (Applause.)

And we can do that without offending the process-oriented people who worry about church and state. We shouldn't breach the line of church and state, but we should welcome faith-based initiatives and faith-based programs, that use a powerful, powerful way of changing people's lives. That's called the power of faith. You change somebody's heart, you change their lives. And government shouldn't fear faith-based initiatives. As a matter of fact, we ought to welcome them.

And I want to thank those in the room who have been on the forefront of change -- of helping us change government attitude toward a policy that I'm absolutely convinced is going to positively affect the lives of thousands of people. One such initiative that we've asked for Congress to fund is a mentoring program for boys and girls whose mom or dad may be in prison. (Applause.)

And so these are some of the goals that we're working on here in Washington. I cannot do it alone. One, I've assembled a great team of people, of good people, like Rod and others. I was today with the Chancellor of Germany, at the Oval Office, there and the little dining room. And sitting next to me were Colin Powell and Condoleezza Rice, as we were effecting foreign policy that affects the world. And I've got a great team of people around me.

As you can tell, I welcome good, strong folks. I guess the sign of a chief executive officer who knows what he's doing. And I empower them, and I work with them. But we can also do some other things. We can help work to change the culture of Washington, and to kind of tone down, dial down the rhetoric and dial up success. (Applause.)

I'm doing my very best to stop the name-calling and the finger-pointing, to say that good people can disagree in an agreeable way. It's so important that we have mutual respect in the Nation's Capital. The issues that I've talked about, I don't particularly -- I don't think are necessarily Republican issues. I think they're good policy issues. I think these are issues that are best for everybody in the country; otherwise, I wouldn't be promoting them. And I know we can do a better job. And I hope the country's beginning to get a sense that there is now a culture of respect in Washington, D.C., and, as importantly, a culture of accomplishment, that we're getting some things done.

And not everybody's going to agree with every detail, but we're getting things done. And that's important, because, after all, those of us who have assumed the high offices we hold must understand we have a responsibility to those offices. We have a responsibility to conduct ourselves in ways in which somebody will say, I'd like to serve. Public service is a noble calling. Public service is important to this nation.

But you don't have to be a president or a congressman or a secretary of a cabinet to affect people's lives in a positive way. And that's a message I'm also trying to spread -- that the true strength of this country really isn't in the halls of government or in the White House; it's in the hearts and souls of people who live all across America, without government, without a president saying to go do this -- just walk across the street and say to somebody in need, what can I do to help.

And that's why I'm so optimistic about America, and so optimistic about our future, and so thankful that you are here to give me a chance to talk about our vision. Thanks for coming, and God bless. (Applause.)

END 4:20 P.M. EST

 


Remarks by the President to the National Restaurant Association -- April 2, 2001
Presidential Hall
Eisenhower Executive Office Building


2:11 P.M. EDT

President shaking hands
White House photo


THE PRESIDENT: Well, Denise, thank you very much for your kind introduction and your leadership. I'm honored to be here, and I'm glad you all are here, as well. I'm so pleased with the strong support that my budget and tax relief plan has received from the restaurant folks all across America. It means a lot. A lot of members of Congress and members of the United States Senate eat in your establishments, so it's a pretty good place to start the lobbying process. (Laughter.)


First, I want to describe a little bit about the budget I submitted. It's created some heartburn in Washington because the increase in discretionary spending wasn't as large as some would like to see it.

In the past, during the last fiscal year, the last year that affected this fiscal year, the discretionary spending in our budget went up by 8 percent. Now, that's a lot. It's a lot when you're talking in terms of billions of dollars. It's a lot when you're trying to preserve money for Social Security. It's a lot when you're worried about the state of our economy. It's too much -- the increase was way too much. It's almost as if there was a bidding contest to determine who got out of town first.

And so, we came to town with a new attitude that said we can meet priorities if we control discretionary spending. We can meet priorities, we can pay down debt if we control discretionary spending. We can meet priorities, pay down debt, set aside money for contingency, and send back money to the people who pay the bills if we control discretionary spending.

And so, I submitted a budget to the United States Congress which passed the House -- it's going to be voted on in the Senate -- that limits discretionary spending to 4 percent. Now, for some who don't pay attention to all this process, 4 percent sounds like a little bit. But it is -- and it is, compared to what happened during the last budget negotiations. But I want to remind you, it's greater than the rate of inflation. It's greater than maybe some of the pay raises that you're giving the folks that work for you. It's a pretty healthy chunk of money. It's a big increase.

Yet, for some, it's not enough in Washington. And what we're trying to do is fashion the debate to say that 4 percent is plenty, particularly since we strongly believe and I strongly believe that we need real tax relief. We not only need to have tax relief that gets money into people's pockets quickly, we need long-term tax relief that will send a signal to the entrepreneurial class of America that tax relief is real, it's permanent, you can make your plans based upon a new tax system.

There are some in Washington who would like to see the issue go away by saying, here's some immediate money for everybody, and let's hope they forget about long-term relief. My position is clear: For those who want to accelerate tax relief, we're joining right with you. We think it's important to have quick injection of cash into our economy. But in order to make sure the environment for entrepreneurial growth is consistent and strong, we have an opportunity to have long-term tax relief.

And that's what I'd like for you to help me convince members of Congress to listen to. Because you see, the great American experience is to own your own business, is to own your own home, is to own something. It's that no matter where you're from or who you are or what you're -- how you're raised, if you have an idea, you can go out and start a restaurant. And it's your own.

And the role of government has got to try to create an environment so that people can -- that people feel comfortable about investing. There needs to be certainty when it comes to investment. There also needs to be recognition of the role small businesses play in our society. The tax relief plan I submitted cuts taxes on everybody who pays taxes. It affects those at the bottom end of the economic ladder by dropping the bottom rate from 15 percent to 10 percent, increasing the child credit from $500 to $1,000 per child. But it also drops the top rate, from 39.6 to 33 percent.

See, I recognize that most small businesses -- and there are many small Mom and Pop restaurant owners all across America who are not incorporated. They're sole proprietorships. They have subchapter S corporations, where they pay -- where the tax rate they pay is not the corporate tax rate, not the C rate, but the high individual rates. And so by dropping the top rate from 39.6 to 33 percent, we're saying to people who started their own business, well, the environment is going to be better. You'll have more cash flow so you can reinvest in your company. You'll have more cash flow so you can employ more people.

This Congress must hear loud and clear the role of small businesses in our society when it comes to new job creation -- 75 percent of the new jobs created in America are created by small business people. And so tax relief is aimed not only at helping people at the bottom end of the economic ladder, but the tax relief package also is aimed at encouraging and stimulating entrepreneurial growth in America. And that's what Congress must hear.

Now, they'll try to debate the issue all kinds of ways and throw all kinds of smokescreens up. But reality is that a real, meaningful tax relief plan is good for investment in the private sector and job creation.

One of the most interesting moments of the budget debate came when I was in Council Bluffs, Iowa, and a lady stood up and said, now she was a proud mom and proud grandmother, and that she had baked cookies for a long time in her family. And every time she left a plate of cookies on the table her children, her grandchildren ate them. She's really talking about the budget when she talked about that story. (Laughter.) And so the fundamental question is not only how do we stimulate economic growth, but what happens to the cash flow if it's not returned back to the people, or not taken in the first place -- let's put it that way.

And I can tell you what's going to happen to it. It's going to be used to increase the size of the federal government, that's what's going to happen. And so this is not only a debate about how to stimulate economic growth, it's a debate about who do you trust with the people's money. And it's a fundamental debate and it's a good debate, and I'm glad it's taking place here in Washington.

See, I would rather trust you with your own money to make the proper investment. Once we meet priorities -- and, remember, we pay down $2 trillion of debt in the budget I've submitted -- we increase discretionary spending by 4 percent, we've set aside money for contingencies. Once we meet those obligations and priorities, I would rather you have your own money so you can make the investments you think are necessary.

I'd rather working people have their own money so they can decide what to do with their hard-earned dollars, as opposed to the federal government making those decisions. And that's the debate. And there's a big philosophical divide.

Oh, some folks up here may not want to see it that way, but it's clear to me that it's a matter of trust. And I'm here in Washington; I readily concede I'm a part of the federal government -- proudly so. But I trust people with their own money. I would rather have people have -- once priorities are met -- I'd rather have people have their own cash flow so they can decide how to save and invest.

I don't think 535 people ought to be making the decisions for people with money that I don't think is necessary to remain here in Washington, D.C. And I hope you help me spread that message, because it's an important message for this country. It's a fundamental debate about how wealth is created. It's a fundamental debate about who does our government trust.

I like our position, because when the people begin to hear outside the filter of Washington, D.C., you know, when we get beyond those who decide how words sometimes are translated out there in the hinterlands, once people realize Social Security obligations will be met, and the Medicare obligations will be met, once they understand, for example, in the first four months of this year there's $40 billion more coming into our Treasury than anticipated, that even though the economy ground down to growth of one percent in the last quarter, $40 billion more will come into our Treasury than we thought -- once people hear the facts, they will realize that tax relief doesn't mean somebody is going to suffer, tax relief is a positive.

For too long in Washington, people had to put tax relief in zero-sum politics. We've got one winner and one loser. If you keep more of your tax money, somebody's going to lose. But that's not reality. That's not reality.

Let me reiterate what I just said -- $40 billion more in the first quarter of this year, in spite of the fact -- anticipated -- in spite of the fact that our economy grew at only 1 percent. The way I like to put it is, it sounds like somebody -- somebody is overcharged. (Laughter and applause.)

And there is another issue that's going to be debated here pretty soon. And that's the death tax. I firmly believe that our nation must get rid of the death tax. (Applause.) You know, I think of all the folks that I met who are struggling with their own small business, not only trying to fight the battles of cash flow and employment and workers comp and all the issues that small business owners deal with -- liability -- but I'm also thinking about all those who dream about leaving their assets to a child. And what a wonderful thought that is, that somebody's worked all their life to start their own business, so that a son or daughter can run it, as part of a family legacy. And yet our tax code makes it really hard for that to happen.

There's a lot of small business owners, a lot of restaurant owners who inherent a restaurant and are unable to pay the cash necessary to accommodate the evaluation and, therefore, are out of business. There's a lot of farmers and ranchers who have to do the same thing, and that's not fair. It's not fair to tax a person's assets twice. (Applause.)

I urge the Congress to listen to the voices of the people who are working all day long to build up their asset base and their business. It doesn't matter who you are or where you're from, this affects all Americans in a negative way. And I think we're going to get a positive response out of Congress.

And you can help. You can help by talking to the Congress people from your district and the senators from your states. I truly believe -- I believe you can have a great presence here in Washington. I know there's a lot of frustrated folks outside in the country that say, well, I can't influence Washington. I disagree. I think you can. I truly think you can.

I think one of the reasons why we've gone as far as we have in the tax relief plan is because a lot of people in America are beginning to hear reality and hear the truth that we've got enough money to meet needs and let people keep their own money. A lot of people are beginning to realize that this is a plan that is fair, an eminently fair plan. If you pay taxes, you ought to get relief.

The idea of Washington, D.C. -- of people in Washington saying, we're going to have targeted tax cuts -- you know what that says to me? It says, people can decide you win, and you don't win. And that's not good public policy. It seems like to me if you pay taxes, you ought to get relief. And I think that's the American way. (Applause.)

I think most Americans understand the role of our government is not to create wealth, but an environment in which small businesses can flourish, in which people can work hard to realize their dream. So we're making great progress.

I remember campaigning during last summer, and people would say, well, are you ready to abandon your tax relief plan? It doesn't seem like anybody wants it in America. And I said, no, I'm not abandoning it; it's the right thing to do. It's the absolute right thing to do. And so now, the debate no longer is, are we going to have tax relief; the debate is, how large will the tax relief package be. And I appreciate your helping getting us to this point.

But we need to work more. Because until I sign that bill, I'm going to be relentless on the subject. It is the absolute right thing to do for America. It is the right thing to trust people with their own money. It is the right thing for our economy to accelerate tax relief. It is the right thing to create an environment that is optimistic about the future by having real, meaningful tax reform. It's the right thing to get rid of the death tax. And the American people are hearing it, and they're coming our way.

And a lot of it has to do with leadership such as yourself, who go back to your states and your communities, and says, let's pay attention to what's going on in the Nation's Capital. It will affect us -- have a direct effect on our livelihoods.

And so, I want to thank you for giving me a chance to come and make my point and make my case, and more importantly, Denise, I want to thank you and your organization for joining us as we get something positive done on behalf of the people

I am so optimistic about the tone in Washington, it's beginning to change. The habitual name-calling seems to be subsiding somewhat. Even the President, me, when somebody says some things I don't like, I'm willing to smile. (Laughter and applause.) And there is a spirit of accomplishment. We're beginning to get something done. And that's so important. It's so important, so that when people look at Washington, they're not disgusted at what they see. What they see, as opposed to this needless partisanship that sends a signal that, all of a sudden, the people don't matter -- we need to replace that with a spirit of at least respectful disagreement. And I think we're making pretty good progress. (Applause.)

So I'm pleased with the progress we're making. I'm mindful that we've got a lot more work to do, and I want to thank you all for giving me the chance to come and make my case. God bless. (Applause.)

END 2:28 P.M. EDT

 


Remarks by the President at American Society of Newspaper Editors Annual Convention -- April 5, 2001
The J.W. Marriott Hotel
Washington, D.C.

Listen to the President's Remarks


1:17 P.M. EDT


THE PRESIDENT: My fellow Texan -- (laughter) -- by way of other states. (Laughter.) It's good to see you again, Rich; thank you. I've had a great relationship with Rich in Austin, Texas. He occasionally opined in ways I didn't care for, but I always knew he was honest and open. He had his priorities straight: his country and his family. It's good to see members of his family here. I see you lowered your standards by inviting others from the Office of American Statesmen here to Washington today. (Laughter.) Particularly Harmon. (Laughter.)


At any rate, it's my honor to be here. It turns out every President since Warren Harding has spoken to this group. I found that interesting. Harding came here because he was a newspaperman himself. The rest of us just wanted to pander. (Laughter.)

Of course, with a lot of attention you get as the President, you often occasionally get criticism, and I understand that. You know, I admit, I take it pretty well. After all, I was in baseball. But I wish some of the stories had come out differently.

And so, in the spirit of constructive criticism, I thought I'd thought I'd make some suggestions to you as to some of the headlines I'd like to see in the future: "Cheney Cloned -- (laughter) -- President Has Nothing To Do At All Now." (Laughter.) "2 Million Overlooked Ballots Suggest Bush Won California." (Laughter.) "Sri Lanka President Chundrika Kumart Atunga Stumped By Name Of U.S. President." (Laughter.) "Gephardt Says Bush Tax Plan 'Just Makes Sense'." (Laughter.) And finally: "Sammy Sosa Returns To The Rangers -- (laughter) -- Says: 'I Want To Go Home'." (Laughter.)

But I'm really not here to tell you your business. It's your job to tell everyone how to run theirs. (Laughter.) And you do a pretty good job at it. Few American figures are more legendary than the hard-bitten, but idealistic, news editor. And I'm aware of that. After all, I've sat through what seems like hundreds of editorial boards. But I think of people like Benjamin Franklin or Horace Greeley or Meg Greenfield, who we all dearly miss.

As you know, we've had a serious of votes recently on a proposed budget. And that's what I'd like to talk about today. Sometimes the Washington filter makes it hard for me to get my message directly to people. And since I view you as people -- (laughter) -- I'd like to go directly to you.

The House passed a budget last week. Tomorrow we'll hear the final say on the Senate budget. The House and I agree: We need common-sense policies to safeguard Social Security and accelerate economic growth. And I hope the Senate joins us.

I've written a budget based upon my vision of an active and responsible government. Now, I recognize government has got important work to do; yet, active government must also be focused and effective. Education is my top priority; and, frankly, it ought to be your top priority as well.

After all, an industry which depends on the ability of people to read, needs to be involved in education. Children who fail to master reading are going to be left behind in America, and we had better do something about it.

I know Rich Oppel has heard me talk a lot about waging a war on illiteracy; it was a focus of mine when I was a governor of Texas; it will be a focus of mine as President, and that focus also will be the focus of the First Lady as well.

My budget reflects the commitment to education. It increases -- it has an 11 percent increase in the Department of Education. We triple funding for reading programs. We have got a big focus on early childhood development.

In my budget, we double the Medicare budget by the year 2011. We introduced a new prescription drug program. We finished the job of doubling medical research at the National Institutes of Health by 2003. Basic research gets big increases as well.

My budget pays for ambitious new programs to mobilize faith-based and community groups, which fight poverty and addiction. We expand the Women's, Infants' and Children's nutrition program by $94 million this year -- next year. The federal contribution to drug treatment by $100 million. Head Start by $125 million, and programs to fight child abuse and neglect by $267 million.

We propose to put $900 million into the Land and Water Conservation Fund, the biggest conservation budget in U.S. history. Over five years, we'll devote $4.9 billion to repair and improve our national parks -- again, the biggest increase in park upkeep in our nation's history. We provide housing vouchers to 34,000 additional low-income families, and assist 130,000 others with the downpayment on their first home. We support 1,200 new and expanded community health centers, to double the number of patients served in those important institutions.

It's an ambitious agenda, and it doesn't come cheap. The total budget is $1.96 trillion in the year 2002. You know, when you hear all the litany of things we're spending money on, some people are beginning to wonder whatever happened to all the penny pinching Republicans.

But I don't think this budget's too big for the critics, nor do I think it's too small. As I'm sure you can guess, I think it's just about right. We've prepared a budget with great care. I understand the budget is to choose, so I made choices. We identified priorities: education and health care, research, military pay, conservation, community and faith-based organizations.

I gave those priorities the funding they needed, while keeping overall discretionary spending at a responsible rate of 4 percent growth. The result is a budget that keeps our national commitment to Social Security and Medicare, and increases the federal budget by $100 billion from 2001 to 2002. A $100- billion increase in spending ought to be sufficient.

Let me give you some idea of just how much money $100 billion is. It is, when you adjust for inflation, it is more than all we spent on the Marshall Plan, five years' worth of spending on the Marshall Plan, $100 billion is more than that. It's enough money to run our government and meet our priorities. The House understood that, and the Senate needs to hear that as well.

Secondly, the percentage increases in spending of the past few years cannot be sustained. In fiscal 2001, Congress appropriated 8 percent more in discretionary spending than it did in 2000. An 8 percent increase -- federal appropriations will double in nine years -- 8 percent spending increases will burn through the surplus.

My budget allows for four percent. And that's more inflation, by the way, and that's more than the average increase in wages in the past few years, and my attitude is, if the taxpayer can get by on a 4 percent increase, so should the federal government.

And we finally -- and finally, we need significant tax relief -- I mean, significant tax relief -- and we need it now. A Democratic Congress passed the Kennedy tax cut, even though there was a deficit, because the country needed it.

A Republican Senate and Democrat House passed Ronald Reagan's tax relief, even though there was a deficit, because the country needed it. Our country needs tax relief now, and we have a surplus. I don't think there's any excuse for providing real, meaningful tax relief. We only used about one surplus dollar out of four.

My tax relief plan is smaller than President Kennedy's or President Reagan's. But it's just as urgently needed. I sent Congress a reasonable budget. It gives the federal government over $100 billion to spend on important priorities. It pays down debt at a record pace. It leaves room for tax relief. It will help restore economic growth. It's a budget in line with the values of the American people, as you know, from trying to cover it.

The budget process is a long and winding one. An observer of Washington legislative processes once said, it's never over until it's over. And it's never over. It's especially true of how we pass our budgets. No one vote is decisive. There will be a vote today. There will be one tomorrow.

I urge the senators when they cast the vote tomorrow to remember, there's a lot of people in our country who are beginning to hurt. A lot of folks are paying higher energy bills. A lot of people have got consumer debt. I urge the senators to prioritize. But always remember that the surplus is not the federal government's money. The surplus is the people's money. And once we meet priorities, we ought to share it with the people. It's not only the right thing to do for our economy, it's the right choice to make, to trust people with their own money.

The debate about the economic approach has been a vigorous one, and it should be. I think it's healthy for our country to debate these issues. People of different parties, and as I have discovered, some of my own party, think we ought to spend more than I think we ought to do, and have smaller tax relief.

But so far, it seems like everybody has shown goodwill and good intentions, and for that, I'm grateful. Since I took office, a little more than 10 weeks ago, I've personally met with a lot of members of the United States Congress. I was surprised to realize the other day that I met with more than 278. And I hope a lot more come down to the White House.

You know, I haven't convinced them all. And they haven't convinced me. But we've been able to make our points without making enemies. And it's a good start to changing the tone here in Washington, D.C. And that's what's needed, a more civil discourse.

I understand civility doesn't make good copy. I understand it doesn't make good copy to say so and so may not agree, but they respect each other. It's much easier to print the mean word or the pointed attack. And your reporters are just doing their job.

But the truth of the matter is, all of us can work to make America a little more civil, can herald a civil discourse. It's important. Ours is the greatest democracy in the world. Ours is the greatest country in the world. And those of us who are responsible for shaping the dialogue must always remember that it's -- people are watching. The more civil we can be in Washington, the more civil we can be in our newspapers, the more likely it is democracy will continue to flourish.

Thank you for what you do. I sometimes wish I could shape it a little differently. But I appreciate free press, just like you appreciate free speech. And that's just what I've given you today, a free speech. (Laughter.)

I'll be glad to answer any questions you have. (Applause.) * * * * *

Q I was wondering if, in the spirit of civility and conciliation you were talking about, whether you think that when it comes to appointing members to the federal bench, and especially if there are vacancies to the Supreme Court, that you should try, before appointments are made, to engage in a bipartisan conversation with Democrats in the United States Senate who have already indicated that they might be taking a very hard line if they believe you're sending up nominees that are philosophically extreme? Or do you feel that you are like any other President, and should operate on the principle of you propose and let them dispose?

THE PRESIDENT: The latter. We're going to pick the most qualified people we can find, people that share my philosophy about strict constructionism on the Court. I'll be mindful of confirmation. I don't particularly want a big fight in the Senate. And so we'll be putting out -- we'll be gathering intelligence as to whether or not a person can be confirmed or not. I made decide to send somebody up that will create a tough fight. I don't know. I haven't gotten there yet.

But of course, I pick somebody I want them to get confirmed. And so we'll be mindful of that. Obviously I've made a lot of other -- another decision about whether or not we ought to have screening agencies or screening groups, people to screen our people, and I decided not to do that. We'll get a lot of opinions, and not one opinion is more important than another, as far as my administration's concerned. And so we'll pick the people, and the Senate can hopefully confirm them.

Q Do you believe it's appropriate for the Chinese to be questioning our airmen that have been downed? And also, what do you believe the Chinese have put at risk with their actions?

THE PRESIDENT: I appreciate you bringing up the subject. I want to make this clear. First, I regret that a Chinese pilot is missing, and I regret one of their airplanes is lost. And our prayers go out to the pilot, his family. Our prayers are also with our own servicemen and women. And they need to come home.

The message to the Chinese is, we should not let this incident destabilize relations. Our relationship with China is very important. But they need to realize that it's time for our people to be home. We're working all diplomatic channels to affect our priority. There's discussions going on. And we'll continue to do so. My mission is to bring the people home.

And as to whether or not we'll have good relations, my intention is to make sure we do have good relations. But the Chinese have got to act. And I hope they do so quickly.

Q Following up on that, are there any circumstances in which you would offer an apology to the Chinese? And secondly, are you having any second thoughts about your decision to go to China later this year?

THE PRESIDENT: I have no further comments on the subject. That won't count as a question. (Laughter.)

Q Sir, as you know, at the heart of this newspaper organization is its passion for preserving and enhancing the nation's access to information. Would you take this moment to articulate your own view of First Amendment freedoms, and give us a sense of the fundamental message that you will send to your administration as it makes decisions on whether to open or close access to government information?

THE PRESIDENT: Yes. (Laughter.) There needs to be balance when it comes to freedom of information laws. There's some things that when I discuss in the privacy of the Oval Office or national security matters that just should not be in the national arena.

On the other hand, my administration will cooperate fully with freedom of information requests if it doesn't jeopardize national security, for example. The interesting problem I have, or for me, as the President, is what's personal and what's not personal. Frankly, I haven't been on the job long enough to have been -- to have had to make those choices.

I'll give you one area, though, where I'm very cautious, and that's about e-mailing. I used to be an avid e-mailer, and I e-mailed to my daughters or e-mailed to my father, for example. And I don't want those e-mails to be in public -- in the public domain. So I don't e-mail any more, out of concern for freedom of information laws, but also concern for my privacy.

But we'll cooperate with the press, unless we think it's a matter of national security, or something that's entirely private.

Q I hope you will respond to this question. It's on the Asia subject, but general.

THE PRESIDENT: I might; I'm not sure yet. (Laughter.)

Q In my region, we have strong economic interests in Asia as an export market. Would you please comment on the balance that you think should be struck between our strategic interests and our economic interests in Asia, including China?

THE PRESIDENT: I believe that China ought to be a trading partner of ours. I think it's in our economic interests to open up the Chinese markets to U.S. products, to U.S. agricultural products. I not only believe it's in our economic interest, I believe it's in our interest to promote U.S. values.

And I believe the marketplace promotes values. When people get a taste of freedom in the marketplace, they tend to demand other freedoms in their societies. And so, I'm an advocate of China's entering into the WTO and I'm hopeful that the current situation ends quickly and our people come home.

China is a strategic partner, a strategic competitor. But that doesn't mean we can't find areas in which we can partner. And the economy's a place where we can partner. And we've got some differences with China, long-term differences, spreading of weapons of mass destruction is an issue that we need to work with the Chinese on, as well as other nations in that part of the world.

Human rights is an issue, but I believe trade will encourage more freedom, particularly when it comes to individual liberties. The marketplace is -- the marketplace unleashes the opportunity for people to make choices, and so I continue to push for trade with China, and --

Q All of us here flew in for this conference. Most of us had delays of one type or another. Earlier this week --

THE PRESIDENT: Most of you -- sorry?

Q Had delays at airports. Earlier this week, there was a report issued which was critical of the airline industries and the mounting problems with service and people getting around the country.

I guess my question, coming from Northwest Indiana, where the debate is whether to have a third Chicago airport or not, what's your administration going to try and do to solve this ongoing problem?

THE PRESIDENT: Well, one thing we need to do is expand the number of runways all around America. And as you know, there's a lot of environmental regulations, some of them meaningful, some of them not, that prohibit the expansion of runways. And step one is to increase accessibility, which will then make it easier to increase competition.

As to your question about whether or not there ought to be a third airport in the Illinois area -- I mean Chicago area, I haven't made up my mind yet.

Q I'm getting the signal from your --

THE PRESIDENT: Getting the hook? Thank you for having me.

END 1:40 P.M. EDT

 


Remarks by the President in New Orleans, Louisiana Welcome-- April 25, 2001
Zephyr Field
New Orleans, Louisiana

3:45 P.M. CDT

Bush at outdoor rally
White House photo

THE PRESIDENT: Thank you all very much. Thank you all. It's an honor to be here. This ballpark kind of reminds me of home. (Applause.) And seeing my friend, Will Clark, who used to play for the mighty Texas Rangers, it really reminded me of home. (Applause.) I want to thank you for being here, Will.


I also want to thank my friend, David Vitter, the great congressman from this district, for his introduction. (Applause.) I'm pleased to have been traveling today as well with the congressman from northern Louisiana, John Cooksey. I appreciate John being here. (Applause.)

And you should appreciate him, as well, because when it came to trying to figure out what to do with the people's money, they stood strong for tax relief. (Applause.) At the airport when I arrived it was good to see my old friend and fellow governor, the governor of Louisiana, Michael Foster. (Applause.) And with Mike was a friend of mine, the elections commissioner of the state of Louisiana, Suzie Haik-Terrell. It's good to see Suzie as well. (Applause.)

Just to make it clear that tax relief is not necessarily a Republican idea or a Democrat idea, today I'm proud that Karen Carter and Lambert Boissierre, both good elected Democrats here in the state of Louisiana, stand in this crowd in solid support of tax relief on behalf of the working people. (Applause.)

And, finally, before I get going, there are two folks here who I'm glad they're here; I wish I would have been here to hear them sing: Mr. Percy Sledge and Aaron Neville. (Applause.)

After this, I'm going to Arkansas and then I'm going to spend a couple of days in my state of Texas. (Applause.) I'll be spending some quality time with the First Lady. (Applause.) And she's going to be envious to know that I got to shake Percy Sledge and Aaron Neville's hand. (Applause.)

By the way, I'm proud of the job that Laura is doing. One of the things she is doing is traveling our country, reminding people of how important it is to be a teacher. (Applause.) Telling the teachers of this good land how much we appreciate them. But also telling those young and old alike that if you're looking for something to do, if you want to make a contribution to our nation, become a teacher. Teaching is a noble profession. (Applause.)


And there is something very fundamental about making a contribution to our nation. The truth of the matter is, if you want to start making a great contribution to our nation, if you happen to be a mom or a dad, remember this: the most important job you'll ever have is to be a good mom and dad. (Applause.) If you have the honor of being a mother or a father, the most important contribution you can make to this land is to every day tell your child you love them with all you heart and all your soul. (Applause.)

I wish I knew the law that I could sign that would say we would love each other, like we like to be loved ourself. There's no such law. But there are some laws we can pass to help people with their lives. And that's exactly the kind of budget I submitted to the United States Congress, the Congress is focused and principled. It's a budget that says we could spend more money on the public's education system around America. It's a budget that prioritizes education.

The biggest increase of any budget, of any Department in my budget goes to the Department of Education. (Applause.) It signals a priority. But I haven't forgotten where I come from, either. I know that Washington doesn't have all the knowledge necessary to run the schools. As a matter of fact, I'm against mandates. I'm for freedom at the local level. I believe in local control of our schools. (Applause.)

We're making progress. We're making progress. And I appreciate so very much the cooperative efforts of both Republicans and Democrats in Washington to craft a bill that embodies these principles. First, we've got to set high standards when it comes to educating our children. (Applause.) Everybody understands that if you set low standards, you get low results. When you raise the bar, when you expect the best is when you start getting the kind of results we want in America.

Secondly, embodied in the principle involved in the bill that I submitted and we're working on, it says we've got to trust the local people to run the schools in America. (Applause.) It says we've got to trust the local people to make the decisions for children. The people who care more about the children in Louisiana are the citizens of Louisiana, and we must empower the citizens to make that choice. (Applause.)

But also a principle in the bill that's working its way through the Senate says that want to know results in America. We've got to know. We don't want the federal government setting up a test, we want local people to devise accountability systems that let us know whether or not our children are learning to read and write and add and subtract. It is so important that we measure. It is important to use measurement not as a way to punish, but as a way to solve problems early, before it's too late. (Applause.)

I refuse to accept a system that will not hold people accountable; a system that will just shuffle through children through the system, without regard to their knowledge base. (Applause.)

Now, we can do better in America. We can do better by asking the question to our children: what do you know? And if you don't know what you're supposed to know, we will make sure you do early, before it's too late. No child should be left behind in the great land called America. (Applause.)

In the budget I submitted to the United States Congress, I sent this priority: we better make sure we pay the people who wear the uniform of the United States a decent wage. (Applause.) I have the awesome responsibility of being the Commander in Chief of the United States, and that means making sure that morale is high amongst our troops. (Applause.) That means good pay. That means good housing. That means good training. And that means having a Commander in Chief who respects the men and women who wear the uniform and who, in turn, earns the respect of the men and women who wear the uniform. (Applause.)

Behave yourselves. (Laughter.)

There's always a lot of talk when it comes to the budget, that if we try to share the people's money with them, that somebody is not going to get their Social Security check. Hopefully, these days of that kind of rhetoric are gone from the political discourse. (Applause.) Hopefully, the days of trying to scare people, days of trying to frighten people are behind us. (Applause.) That kind of politics is divisive and unnecessary.

The reality is, the budget I submitted, and the budget most people agree with says that we will spend payroll taxes -- those taxes aimed for Social Security on one thing and one thing only, and that is Social Security. (Applause.)

We have made a commitment to our elderly in America. It is a commitment this administration will keep. (Applause.) But if you're young in America, you better be wondering what the Social Security system is going to look like tomorrow. There's not going to be enough people paying in by the time you get to be Social Security. We've got to think differently.

On the one hand, we're going to protect our seniors. But on the other hand, we better let younger workers, at their discretion, manage some of your own money in the private market so you get a better rate of return on investment. (Applause.)

There's a lot of concern about the health of our seniors, as there should be. The budget I submitted doubles the Medicare budget over the next 10 years. It doubles the amount of folks who will be served at community health centers over the next five years. It provides tax credits for the working uninsured. This is a good budget. It is a sound budget. And it meets the nation's priorities.

It increases discretionary spending by 4 percent. That ought to seem like a lot for people whose pay raise hasn't gone up by 4 percent over the last couple of years. Four percent is greater than the rate of inflation. Four percent is a hefty increase. But for some in Washington, 4 percent is not enough.

AUDIENCE: Boooo!

THE PRESIDENT: For some in our nation's capital, they don't think 4 percent can meet the nation's needs. And that's where we're having a major disagreement. The truth of the matter is, the budget last year grew at -- the discretionary budget last year grew at 8 percent.

The bill that came out of the Senate again grows the discretionary spending by 8 percent. And if that were to continue, the discretionary budget of the United States of America would double in nine years.

AUDIENCE: Boooo!

THE PRESIDENT: There's a fundamental argument going on in Washington, D.C. And it's, what do we do with the people's money. That's what the argument is about. And my point I make to Washington is after we meet priorities and grow the budget at 4 percent, we ought to be understanding where that money comes from. The surplus isn't the government's money. The surplus is the people's money. (Applause.)

Let me make the case a little further. We increase discretionary spending by 4 percent. As well, in the budget I submitted to the Congress, we pay down debt by $2 trillion over 10 years. (Applause.) We've also got another trillion set aside for contingencies.

Oh, there are contingencies all the time, when it comes to the federal level. There are emergencies. Sometimes our farmers need a little extra help because of emergencies. And we're going to meet those obligations. This is a sound budget. It leaves money unspent. That's always dangerous when it comes to Washington, D.C., leaving money unspent. (Laughter.)

I was campaigning on this very issue in Iowa. And a lady got up and she said, you know, the budget debate in Washington reminds me of what it was like when I had my grandchildren in the house. And I said, well, why was that? And she said, well, because I always made cookies. And when I left the cookies on the kitchen table and the grandchildren came through, they always got eaten. (Laughter.) They were never left.

Well, that's what happens to U.S. taxpayers' money. If you leave it sitting around in Washington, it's going to get spent. And it's going to get spent on bigger government. What we need to do is set priorities and always remember whose money we're talking about.

And so I submitted a plan that does just that. And the two congressmen with me today, they stood strong on the side of the working people in Louisiana and voted for that tax relief. (Applause.)

What you hear in Washington is, a lot of times you hear people saying, well, I'm for tax relief, just so long as only a certain number of people get it. That's right. That's what we call targeted tax relief. That means somebody in Washington gets to pick the winners and somebody gets to pick who doesn't win. That is not our view of fair tax relief. Everybody who pays taxes ought to get tax relief in America. (Applause.)

So ours says, everybody who pays taxes gets relief; we cut all rates. We cut the bottom rate from 15 percent to 10 percent. That's important, because there are people in America struggling on the outskirts of poverty. There are people working hard that aren't getting ahead. And not only did we cut the bottom rate, we increased the child credit from $500 to $1,000 per child. (Applause.)

One of the things that troubles me most about our tax code is the example I like to use is a single mother, working hard to get ahead. By the way, she's working the hardest job in America. Raising children by herself is the toughest job in this country. (Applause.)

Under this tax code, if she's barely getting ahead making $22,00 a year, say, raising two children, for every additional dollar she earns, she pays a higher marginal rate on that dollar than someone who is a successful Wall Street stockbroker, for example. And that's just not right, folks. That's not what this country is about.

The message in the tax code ought to be, the harder you work, the better it is chance you've got to get ahead in life. And so we reduced the bottom rate and we increased the child credit. (Applause.) This code needs to be more fair.

But there's a lot of them up there saying, well, you can't drop the top rate; that's not fair. Well, first, if you pay taxes, you ought to get relief. And, secondly, you can help me send this message to Washington: The small business owner in the state of Louisiana is likely to be a sole proprietor, is likely to be a Subchapter S, generally is not going to pay corporate income taxes. Therefore, is going to be paying personal income tax rates.

By dropping that top rate from 39.6 percent to 33 percent, we're sending this message. The role of government is not to create wealth, but the role of government is to create an environment in which the entrepreneur can flourish, in which the small business can grow to become a large business, dropping that top rate sends the clear message: We want more money in the pockets of the small business owners so they can expand and grow their businesses. (Applause.)

The tax code we submitted makes the tax code more fair. It addresses inequities. It makes the code more responsive to hard work. But it also recognizes the role of families in society. The marriage penalty is unfair, and we've got to do something about taxing marriage in America. (Applause.)

And you know what else is unfair? Taxing a person's assets twice. In our country, called America, if you're a farmer or a rancher or a small business owner, and you pass away, your heirs have to pay taxes twice. They pay taxes when you get profitable, and they pay taxes when you die. The death tax is unfair, and for the goodness of America, we need to get rid of it. (Applause.)

Now, that's the plan I submitted. Now, when I was campaigning in Louisiana during the campaign, I came and talked like this and a lot of people heard it and cheered. But I must confess, a lot of the punditry kind of had a blank stare on their face. They thought I was, as they say, whistling into the wind -- (laughter) -- that there was no chance we would get any tax relief.

But thanks to the hard work and the phone calls and e-mails of hundreds of Americans from across the country, we have begun to define the parameters. Out of the House came a $1.6-trillion plan, and now the Senate, somewhat reluctant, but nevertheless, they passed a $1.2-trillion plan. Because of you all, because of the voice of America, tax relief is on the way. (Applause.)

And there's two important reasons why it must happen. The first is, we have a little slowdown in our economy, and tax relief will help. It's a part of how we've recovered the steam necessary to get our economy chugging again. And I'm confident with tax relief, we'll send a message, one, it will encourage long-term investment, but the tax relief package I look forward to working with the Senate and the House on will also have a retroactive feature to it, will get money in people's pockets quickly. It'll help recover this economy. And it's necessary. It is necessary. (Applause.)

But there is another reason. It has to do with the people. You know, sometimes, with public policy we like to talk about ideology and numbers and charts. Behind every good public policy is the question, how do we help people. Today, in the crowd, we've got the Rogelstads, somewhere behind -- there we go, right there. And I've asked them to come -- it's Katie and Dustin. Katie is a receptionist, Dustin is a sales rep. More importantly, they're a mom and dad of Lawson and Karli.

They've come for a reason -- because I want to share with you what happens to this one Louisiana family when we have tax relief. The Congress passes the plan that the House passed. And when it's fully implemented, these good folks who now pay 3,390 in federal income taxes, will save $1,850 a year. (Applause.)

You know, some will say, well, you know, $1,850 -- that may not be a lot for -- but it's a lot for them. It's a lot for them, given the fact that we've had no energy policy in America and, therefore, energy prices are going up on the American people. (Applause.) It's a lot for people who struggle with credit card debt.

Now, this tax relief package, we're talking about live Americans who will benefit in a real way. You see, and the question is -- and this is the fundamental question facing Washington, D.C. -- once we meet fundamental obligations and pay down debt, once we increase discretionary spending by 4 percent, what do we do with the money left over?

The other way to look at it is, who do you trust? Do you want the Congress spending this $1,850, or do you want these people spending the $1,850? And we stand on the side of the families in Louisiana. (Applause.) It's who do you trust. Do you trust the government, or do you trust the people, and you've got an administration that stands squarely on the side of the people of America. (Applause.)

And not only do I trust you when it comes to your own money, I trust you when it comes to asking for your help, and maybe convincing some of the members of the Louisiana delegation to see it our way, to see it our way. (Applause.) You're one e-mail away from letting somebody know how you feel. You're one stamp away from saying, meet priorities, but trust us with our own money. Meet priorities, but remember whose money it is you're spending up there.

You see, we can not only afford tax relief, but my point to the Congress is, we can't afford not to have tax relief. (Applause.) It is so important to trust the people of America, because that's why our nation is so different and strong, because of our people.

This is a fabulous country, and I'm so honored -- I'm so honored to be your President. I'm able to stand up -- (applause) -- I'm the President of the greatest people on the face of the earth -- hard-working, God-fearing people. People who walk outside their house on a regular basis and say to a neighbor in need: What can I do to help? They don't need the federal government telling them how to love a neighbor, they do it out of the goodness of their heart. No, this is a land that is so strong because every single day, there are countless acts of kindness where neighbor helps neighbor, or church member says to a child who wonders whether or not there's a future for him or her, somebody loves you.

My call to America and to the Congress is, let's free the good hearts of the American people. Let's not stand in the way of faith-based and community-based programs that are trying to help people in need. Let's unleash -- (applause) -- let us unleash not only the creative passions of America through tax relief, let's unleash the compassion of America through a faith-based initiative that recognizes the great strength of our countries lies in the hearts and souls of our loving citizens.

We're making a difference in Washington. I say "we" because I stand up there with you all -- that there's a new attitude in our Nation's Capital. We've still got a lot of work to do. But it's an attitude of respect. We need to have debates with the people in mind. Not debates trying to say, my party is better than your party or debates that say, well, I'm going to tear this person down so I can do better. That's not what America should be about.

Slowly but surely, we're ushering in a culture of respect in the Nation's Capital. It's important to do so. (Applause.) And as importantly, all of us must work together to usher in a culture of personal responsibility into America, a culture that says each of us are responsible for the decisions we make in life, responsible for loving our children, responsible for helping a neighbor in need.

And I understand my responsibilities, which is to uphold the high honor of the great office of President of the United States. (Applause.)

So I want to thank you all for coming out. I am honored to have you by my side. (Applause.) Let's work hard, and we're going to bring tax relief where it belongs -- to the people of America. God bless. God bless America. Thank you all.

END 4:10 P.M.


Remarks by the President at Tim Hutchinson for Senate Reception -- April 25, 2001
Statehouse Convention Center
Little Rock, Arkansas

6:53 P.M. CDT

THE PRESIDENT: Well, Tim, thank you very much. It's my honor to be back in the great state of Arkansas. We were just reminiscing about the campaign. I remember -- I was kind of tired, because it was the last day of the campaign, and I was on the airplane flying into Arkansas, wondering whether or not I could give one final speech. And we landed up there in Northwest Arkansas, and there was about -- I don't know, 17,000 people inside the area and another 17,000 trying to get in. And I had that funny feeling right there that not only could I not only give the speech, but I had that feeling things were going to go okay on election day in Arkansas, and they did, and I want to thank you all. (Applause.)

I want to thank Tim Hutchinson for his help in getting me here. More importantly, I want to thank him for his help as a United States Senator. I'm here for one simple reason. This man needs to be returned back to the United States Senate, come elections in 2002. (Applause.)

It's good to see the Lieutenant Governor, Win Rockefeller, and wife, Lisa Ann. Thank you all for being here. Every time I came back to Arkansas, it seemed like Win was able to make time for his old buddy, the Governor of Texas, and I appreciate that very much, sir. Thank you very much. It's great to be here -- (applause) -- with former State Senator Jim Keet. It's good to see you again. He reminded me in 1988 when I campaigned here for the man we affectionately call "Number 41." (Laughter.) I'm "Number 43" -- (applause) -- but we campaigned together for a great President, my dad, in 1998 together, and it's good to see you again, sir. (Applause.)

It's also great -- Nick Bacon is here, Medal of Honor winner, an American hero, a man who represents the veterans of this state incredibly well. You need to know, Nick, that the veterans have got a friend in the White House. And it's my honor to be the President, not only the Commander-In-Chief, of those who wear the uniform, but a President who understands that those who used to wear the uniform need to be well-represented in Washington, just like you're doing here in Arkansas. (Applause.)

And Dennis Rainey (phonetic) of the Family Life Ministry, and Pastor Robert Smith, thank you all for being up here. I'm sorry my wife isn't here with me. She is in Crawford, Texas. And I'm headed to Crawford, Texas after this speech. (Laughter.) They say, well, you must not like to live in Washington because you like to go to your ranch or Camp David. Well, I like to do both. I like -- I love my life in the White House, I love getting up every morning and going into this majestic office that we call The Oval Office. As Tim said, it is an honor to be the President of the United States, and I view it that way, but I also like to stay in touch with the people that got me here.

I like to get outside of Washington. I like to go to where the space is open, where I can walk around with Spot and Barney, the two family dogs. (Laughter.) My wife loves our country, the country house we've got, and so do I, and so I beg your forgiveness for not eating dinner here tonight. I am here to thank you for supporting Tim. I do want to give some remarks about what I think is going on in Washington, but then I'm fixing to get on Air Force One and take it to Crawford, Texas. (Laughter.)

By the way, our family is happy. I'm really proud of the work that Laura is doing. She is -- people are learning about West Texas women. They sometimes don't say a lot, but when they speak, people do listen. She's a great listener. And she's doing the country a great service by traveling our nation, convincing people, both young and old alike, to become teachers, reminding people that teaching is a noble profession, and that you do the country a great service if you end up in the classroom.

We're working Troops to Teachers programs that take retired teachers -- I mean, retired military folks and help them become a teacher. And she, as well, is working with youngsters who are just getting out of college and saying, be a teacher; it will be a huge contribution to America and people are listening. And for that, I am grateful, and I know you are as well. (Applause.)

As Tim mentioned, I think we are making good progress in Washington -- reminding people that we're up there for a reason, and it's just politics. We're up there to get some things done on behalf of the American people. And Tim's helping -- a lot. And he mentioned tax relief.

I want to remind people that before the tax relief debate started because of me, he had already been up there talking about increasing the child credit for people who are raising children in America. Well, now, one of the key ingredients in our tax plan is doubling the child credit. And that's an important part of tax relief. It's an important part of tax relief, particularly when you drop the bottom rate in our tax code, like we're advocating.

And the reason that's important is because there's a lot of folks in our country who live on the outskirts of poverty who are working hard to get ahead, and as a result of the way this tax code is structured, as they begin to get ahead, pay a higher marginal rate on dollars earned than somebody who is successful.

I love to use the example, because it helps make my case as loud, as clearly as I can about the single lady working in any state in the union, trying to get ahead. She may have two children. First, it's important for Congress to understand she's got the toughest job in America. Raising children on her own is the hardest work in our country -- coupled with the fact that for whatever reason, she's making $22,000 a year.

The way this tax code is structured today, for every additional dollar she earns, she pays a higher marginal rate on that dollar than someone making $200,000 a year. And that is not fair, and that's not what America is about, as far as we're concerned.

So tax relief, when you combine dropping the bottom rate from 15 percent to 10 percent and increasing the child credit, it makes the tax code more fair and more equitable. It inculcates this principle: The harder you work, the more money you ought to put in your pocket in America. And Tim understands that. (Applause.)

Well, I've heard a lot of the debate about taxes. You know, they say, well George W., he only cares about the wealthy people. That's because I believe if you pay taxes, you ought to get tax relief. What I don't subscribe to is this business about Washington, D.C. people being able to pick and choose the winners. That's code word for targeted tax cuts. That means elected officials get to sit in a room and they get to say, this table over here gets tax relief, and this table doesn't. Our attitude is, if you're paying taxes, you ought to get relief. That's the only fair thing in America. (Applause.)

We dropped that top rate, just like we dropped the bottom rate. And there are two positive effects when you do so. First of all, it sets a principle, that the federal government should take no more than a third of anybody's check. It's time we have some principles in the tax code. One, the code ought to be more fair.

Two, our federal government doesn't need to take more than a third of anybody's check. (Applause.) And, secondly, it's important for the policy makers in Washington to focus on the reality of dropping the top rate. By dropping the top rate, we stimulate investment. We send a clear message that ours is an entrepreneurial economy.

The role of government is not to create wealth. The role of government is to create an environment in which the entrepreneur or the small business person can flourish. (Applause.) And these senators that are balking on this plan must understand that most small businesses all across America are unincorporated, they're Subchapter-S's, they're sole proprietorships. They don't pay the corporate tax. They pay the personal tax. And by dropping the top rate we're sending a clear message that small business must thrive and flourish in America; that we want our entrepreneurs to have more cash so they can expand their payrolls, create new investment opportunities.

No, the way to deal with this tax code is to recognize if you pay taxes you've got to get relief. And that's what this Senate must hear loud and clear from the people of Arkansas. (Applause.)

We're trying to do something about the marriage penalty. This tax code of ours sends the wrong signals. It taxes marriage. We ought to be rewarding marriage. We ought to be encouraging families in the tax code. (Applause.)

And, finally, one area the senator and I are working closely on, it's an area dear to the hearts of a lot of people -- doesn't matter whether you're Republican or Democrat. And that's this business about the death tax. The death tax is unfair and we need to repeal the death tax in the code. (Applause.)

It's unfair to tax a person's assets twice. I've talked to hundreds of people all across America who've heard this message about repealing the death tax. And they come up to me and say, I've worked all my life. I started with nothing. It looks like I'm going to end up with something. And it should be the American right to be able to pass my assets on to my children without the federal government making it impossible for me to do so. (Applause.)

This is a state with a lot of farmers. And Tim and I spent a lot of time talking about agriculture coming down here. And I understand that some in the agricultural sector are hurting. And I understand there is pressure -- what they call urban sprawl in some areas.

Well, if you're worried about urban sprawl and if you're worried about the farmer, why don't we make it easier for people not to have to sell their farm upon death. We need to get rid of the death tax and the Senate needs to hear that loud and clear. (Applause.)

I'm sure you've heard the arguments -- I certainly have -- that, well, if you have a $1.6 trillion tax cut, the government is not going to be able to meet its needs; that by letting people keep their own money, the federal government is going to starve to death.

Well, let me tell you about the budget that Tim has supported and I proposed. It increases discretionary spending by 4 percent. Now, there are some parts of our budget that are going to grow based upon what they call entitlements. That's like Social Security. And Social Security, by the way, we've set aside all the payroll taxes, and -- only be spent on Social Security. This business about letting Congress dip into Social Security, that's over with. People have got to understand the Social Security is safe and secure and sound under a Bush administration. (Applause.)

But discretionary spending grows in my budget at 4 percent. Is that enough? Well, 4 percent is greater than the rate of inflation. Seems like it's enough to me. Four percent is greater than most people's paychecks increased by. that ought to be enough. But it's not enough. And over the objections of Senator Hutchinson, the United States Senate passed a discretionary budget of 8 percent.

Now, what does 8 percent mean? If we increase the discretionary budget by 8 percent on an annual basis, it means that nine years of discretionary budget of the United States of America will double. And when you double the discretionary budget of federal spending, you crowd out capital in the private sector and it's a drag on the U.S. economy. This Congress needs to be able to live within its means and 4 percent is plenty. (Applause.)

We've got some choices to make: bigger government or a stronger economy. And we've got some choices to make. Once we meet the needs of the government, who do we trust with the money? Who do we trust? And that's the question I'm asking Washington to think about. Senator Hutchinson trusts the people. And so does President Bush. (Applause.) Because we understand this surplus is not the government's money. The surplus is the people's money. And we've got to trust them with their own money to make decisions for their family. (Applause.) It's a fundamental, philosophical question.

Some of your members here of the congressional delegation are struggling with that question. Who do you trust? Who do you trust with that additional money? And Senator Hutchinson has no problems making the statement loud and clear. Once we meet our needs in Washington, he trusts the people, the people of Arkansas to make the right decisions for their families and the children; make the right decision on how they're going to save and what they're going to do with their money.

And we've got some priorities in the budget and that's one reason why I think it's safe for me to say that the budget meets the needs. Instead of trying to be all things to all people, it sets clear priorities. Education is a priority in our budget, and it should be a priority in the budget. The Department that gets the biggest increase of any one, of any Department in my budget is the Department of education.

And let me tell you what we do in it. I've made reading a priority in our nation. I fully understand if you can't read, it's going to be hard to get ahead. One of the worst things that's happened is we've just shuffled children through the system who are illiterate. And that has got to end in America, and it starts by having the federal government make a commitment to sound reading programs, diagnostic tools. And so we've tripled the amount of money in the federal budget, money that's accessible by the local school districts.

We tripled character education funds. It's one thing to teach children to read and write, but we also have to teach them right from wrong in America. And so we make money available for local school districts for character education. (Applause.)

Teacher training is a priority. So we increase teacher training funds by 18 percent, from 2001 to 2002. No, we set priorities in the budget. And I appreciate Senator Hutchinson's leadership on the Labor and Education Committee in the Senate. He talked about a bipartisan consensus, and we're getting there. Because the principles inherent in the bill are sound and make sense. It's a common sense approach to education.

It says, first and foremost, this nation must set high standards for the children to go to school. If you set low standards, guess what you get? Low results. And so we set high standards and high expectations. Secondly, we know who is best to chart the path to excellence and it's not in Washington, D.C. This bill and reforms that we're proposing in Washington will pass power out of Washington because I strongly believe, as does Senator Hutchinson, and local control of schools. (Applause.)

We've done something different at Washington, D.C. We have said, listen, we've spent a lot of federal money. And some of it makes sense. And if you receive federal money, you have to account for it. It's time to have a results oriented approach to public policy. (Applause.) And it says if you receive money, you must measure. It doesn't say the federal government should measure, it says the state of Arkansas ought to measure. And you ought to test. And you ought to let us know whether or not children are learning to read and write and add and subtract.

And if they are, there ought to be ample praise in society. But if they're not, instead of just quitting on children, instead of just shuffling through the school system, we've got to end that practice.

Up until now, much of public education has asked the question to our children: how old are you? If you're 10, you're supposed to go here; and if you're 12, you belong here; and if you're 16, you go here. And guess what happens in a system that simply asks age as opposed to, what do you know? Children get shuffled through the system. And many times, sadly enough, they're inner city kids. It's so much easier to quit on a child than to take the extra time to teach them.

The system must stop asking the question, how old are you, and start asking the question, what do you know. And if the children do not know what they're supposed to know early in life, we need to correct those problems. Because there are no second-rate children in America as far as this administration is concerned. There are no second-rate dreams. And the education reform package we're sending sets this clear and profound goal: not one single child will be left behind in the great country called America. (Applause.)

I take my obligation to defend our country very seriously. I'm proud to be the Commander in Chief. And I fully understand that to enhance morale in the United States military, it requires a Commander in Chief who honors the men and women who wear the uniform, and in turn, earns the respect of the men and women who wear our uniform.

And, secondly, in order to boost morale we must increase pay, and my budget does so. It improves housing. And my budget does so. And Tim Hutchinson stands side by side. We need modern defenses. And he and I agree strongly that the Little Rock Air Force Base is important for the future of this country. (Applause.) He not only looks out for Arkansas, this Senator looks out for America. And for that I hope the people of this great state are grateful. (Applause.)

You will hear those who make every excuse in the world to keep your money in Washington say, well, the Bush budget or so and so votes means that somebody is not going to get adequate health care. In the budget I submitted to Congress, we doubled the Medicare budget over a 10 year period of time. In the budget I submitted to Congress, we doubled the number of folks who will be served in community health centers in America over a five-year period of time. In the budget I submitted for America, we have tax credits for working uninsured. We have a President who is saying to Congress: Instead of just talking about these health care issues, let's get something done on them, and my budget reflects that. And that's an important priority of ours -- the health of our citizens.

And finally, I believe that Senator Hutchinson and I and others, but Republicans and Democrats, are doing something that's immeasurable. You can't talk about it in terms of the budget. But they're working hard to change the tone of Washington, D.C.

I have pledged to the American people to change the tone of our Nation's Capital so that when people look at Washington, they are proud of what they see. I believe most Americans of either party are sick and tired of needless partisan bickering and name-calling, and finger-pointing. (Applause.)

We need to spend our energy getting things done, not passing the blame. And we're making good progress. There is a culture of respect that's beginning to emerge in Washington. I'm beginning to notice that the rhetoric is toning down just a little bit. I hope people realize that good public policy means good politics. And we don't need to be spending all our time on politics in Washington. It's time to focus on the people's business. Tax relief is in the people's interest. It's good for our economy, it's good for our people.

This doesn't have to be a, well, I can't vote for that bill because it might make George W. Bush look good, or some political party look good, we need to get the attitude in Washington, D.C. we've been elected for a reason -- and that's to stand up and do what each of us think is right on behalf of the American people

Tim Hutchinson understands that. I hope all senators understand that. And if they understand that, then the dialogue is going to be much, much more civil, much more responsible. And that's what we need in this country. We need responsibility. We need to usher a period of personal responsibility, where each of us understands we have the awesome responsibility to be a good citizen.

If you happen to be a mom or dad, you have the awesome responsibility of loving your children with all your heart and all your soul. If you're a fortunate citizen in this country, you have the responsibility of putting your arm around a neighbor in need and say, brother or sister, somebody loves you. Somebody cares. One of the most profound initiatives that we are working on -- (applause) -- one of the most profound initiatives that we are working on is the faith-based initiative that welcomes people of faith and community and good heart into the compassionate delivery of help for people who need help in America. We should not fear faith in America; we ought to welcome faith. It changes lives and changes hearts. (Applause.) We're making good progress toward ushering in a period of personal responsibility. But it requires people serving in Washington who understand the reason they are there. And I firmly believe Senator Tim Hutchinson understands the reason they are there. He loves and cares about the people of Arkansas.

And, by the way, as this campaign gets going, you might turn to a friend or neighbor and say, it makes a lot of sense for Arkansas to have somebody who can walk into the Oval Office. It makes a lot of sense for our state with the problems we have, to have a United States Senator be able to pick the phone up and say, Mr. President, I'd like to discuss the concerns of the people of Arkansas. We've got some problems with our farmers; I'd like to discuss the concerns. We may have a problem in our education system; Mr. President, I'd like you to hear me out. I'd like to deliver a message on the people of Arkansas.

And I can assure you, folks, that the person running this race who will have the ear of the President of the United States is Senator Tim Hutchinson. (Applause.)

So I want to thank you all for coming. Thank you for your generous support. Work hard. We need this man in Washington, D.C. God bless. And God bless America. (Applause.)

END 7:20 P.M. CDT

 


REMARKS BY THE PRESIDENT IN SOCIAL SECURITY ANNOUNCEMENT-- May 2, 2001

The Rose Garden
10:27 A.M. EDT

     THE PRESIDENT:  Please be seated.  Mr. Secretary, thank you for coming.  Members of the newly-formed Social Security Commission, I want to thank you all for being here.  And I want to thank your family members who are here, as well.


President George W. Bush with Richard D. Parsons, co-chief operating officer for America Online at the Social Security speech Wednesday morning, May 2 at the White House.  WHITE HOUSE PHOTO BY ERIC DRAPER

White House photo

 

Social Security is one of the greatest achievements of the American government and one of the deepest commitments to the American people.  For more than six decades, it has protected our elderly against poverty and assured young people of a more secure future.  It must continue to do this important work for decades to come.

     Yet, it has been apparent for many years that Social Security, itself, is becoming insecure.  Social Security was designed for an era when few Americans lived much past the age of 65, and when families of three or four children were more than the exception.

     When Social Security was created there was about 40 workers paying Social Security taxes for every one retiree receiving benefits.  Today, there are three workers for every retiree; soon, there will be two.  Long life is a blessing.  Smaller families are an individual choice.  But the consequence of this blessing and this choice is that the Social Security payroll tax, which was once 2 percent, has now passed 12 percent.

     Economists calculate that it will have to rise past 18 percent if the baby boomers are to receive the same benefits that Social Security has promised, unless we take steps soon to reform the way Social Security is financed.

     The threat to the stability of Social Security has been apparent for decades.  For years, political leaders have agreed that something must be done.  But nothing has been done.  We can postpone action no longer. Social Security is a challenge now; if we fail to act, it will become a crisis.  We must save Social Security and we now have the opportunity to do so.

     Our government will run large budget surpluses over the next 10 years. These surpluses provide an opportunity to move to a stronger Social Security system.  Two months ago, in my address to Congress, I described the principles that must guide any reform of Social Security.  First, Social Security reform must preserve the benefits of all current retirees and those nearing retirement.

     Second, Social Security reform must return the Social Security system to sound financial footing.  Third, Social Security reform must offer personal savings accounts to younger workers who want them.  Today, young workers who pay into Social Security might as well be saving their money in their mattresses.  That's how low the return is on their contributions. And the return will only decline further -- maybe even below zero -- if we do not proceed with reform.

     Personal savings accounts will transform Social Security from a government IOU into personal property and real assets; property that workers will own in their own names and that they can pass along to their children.  Ownership, independence, access to wealth should not be the privilege of a few.  They're the hope of every American, and we must make them the foundation of Social Security.

     Today, I am naming a Presidential Commission to turn these principles into concrete reforms.  This task is not easy, but the mandate is clear: strengthen Social Security and make its promise more certain and valuable for generations to come.  I have asked the Commission to deliver its report later this fall.

     Social Security does not belong to any one political party,  so the Commission is drawn from both parties.  Social Security does not belong to the government or to the politicians, and so my Commission has members from many different walks of life.  It will be chaired by two outstanding Americans:  Senator Daniel Patrick Moynihan and Richard Parsons, of AOL-Time Warner.

     Senator Moynihan has been aptly described as the nation's best thinker among politicians since Lincoln, and its best politician among thinkers since Jefferson.  A profound mind, a compassionate heart and a far-seeing imagine have distinguished him throughout his career.

     Our task today is to preserve what is the best in Social Security, while updating it, and for a new time.  And nobody will do that job better than this great student of Social Security's history, and stalwart champion of Social Security's principles.

     As Co-Chief Operating Officer of AOL-Time Warner, Richard Parsons is one of the leaders of this nation's Information Age economy.  Few people have served more tours of duty in the American government and business; a senior aide in the Ford administration; managing partner of a distinguished law firm; CEO of a major savings bank, before becoming president of Time Warner.

     Mr. Parsons serves his community as ably as he's served his country. He chairs the Upper Manhattan Empowerment Zone Development Corporation, where he mobilized the creativity of the private sector to bring jobs and opportunity to people in need.  And he sits on the boards of Howard University and the Lincoln Center.

     Richard Parsons represents in our time the spirit of business statesmanship at its highest.  Fourteen other fine Americans have joined the Moynihan-Parsons Commission; seven of them are Republicans and seven are Democrats.  They include a former aide to Robert Kennedy and a former aide to Ronald Reagan; political leaders, entrepreneurs, eminent experts on the Social Security system.

     Every one of these fine men and women is passionately committed to the safety, success and long-term security of Social Security.

     I'm giving this Commission a great task and its members have my full faith.  When it makes its report, the Congress and I will face some serious decisions, but we must be inspired by the example of the founder of Social Security, President Franklin Delano Roosevelt.

     In his Fireside Chat of September 1934, shortly before Congress enacted Social Security, he warned that there will always be those frightened by boldness and cowed by the necessity for making decisions. They will complain, he said, that all we have done is unnecessary and subject to great risks.

     But now, as then, bold action and serious decisions are necessary and we in our time must rededicate ourselves to the great ideal Roosevelt defined 67 years ago:  greater freedom and greater security for the average man than he has ever known before in the history of America.  That's our charge and we must keep it.

     And now, one of the Co-Chairmen of this Commission, Senator Daniel Patrick Moynihan.  (Applause.)

* * * * *

     THE PRESIDENT:  I now have the honor of signing the commission into being.

     (The executive order was signed.)

     THE PRESIDENT:  Thank you all very much.  Thanks for coming. (Applause.)

                                 END           10:38 A.M. EDT





EXECUTIVE ORDER

PRESIDENT'S COMMISSION TO STRENGTHEN SOCIAL SECURITY

By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Federal Advisory Committee Act, as amended (5 U.S.C. App.), and to preserve Social Security for senior Americans while building wealth for younger Americans, it is hereby ordered as follows:

Section 1. Establishment. There is established the President's Commission to Strengthen Social Security (Commission).

Sec. 2. Membership. The Commission shall be composed of sixteen members appointed by the President, of which no more than eight shall be members of the same political party. The President shall also designate two members of the Commission to act as co-chairs. The two co-chairs shall not be members of the same political party.

Sec. 3. Mission. The mission of the Commission shall be to submit to the President bipartisan recommendations to modernize and restore fiscal soundness to the Social Security system according to the following principles: (a) Modernization must not change Social Security benefits for retirees or near-retirees;

(b) The entire Social Security surplus must be dedicated to Social Security only;

(c) Social Security payroll taxes must not be increased;

(d) Government must not invest Social Security funds in the stock market;

(e) Modernization must preserve Social Security's disability and survivors components; and

(f) Modernization must include individually controlled, voluntary personal retirement accounts, which will augment the Social Security safety net.

Sec. 4. Administration. (a) The Social Security Administration shall, to the extent permitted by law, provide administrative support and funding for the Commission.

(b) Members of the Commission shall serve without any compensation for their work on the Commission. Members appointed from among private citizens of the United States, however, while engaged in the work of the Commission, may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by law for persons serving intermittently in Government service (5 U.S.C. 5701-5707), to the extent funds are available.

(c) The Commission shall have a staff headed by an Executive Director, who shall be selected by the President. To the extent permitted by law, office space, analytical support, and additional staff support for the Commission shall be provided by executive branch departments and agencies as directed by the President.

(d) The Commission shall receive input from and provide briefings to the Congress, by procedures determined by the President in consultation with the congressional leadership and the Commission. Public hearings shall be held at the call of the co-chairs, in consultation with the President.

(e) The functions of the President under the Federal Advisory Committee Act, as amended, except for those in section 6 of that Act, that are applicable to the Commission, shall be performed by the Social Security Administration, in accordance with the guidelines that have been issued by the Administrator of General Services.

Sec. 5. Reports. The Commission shall submit reports to the President as follows: (a) Interim Report. An interim report shall describe the challenges facing the Social Security system and the criteria by which the Commission will evaluate reform proposals. These criteria may include but are not limited to: solvency, sustainability, benefit adequacy, fair treatment across generations and demographic groups, total annual cost obligations, net impact on the Federal budget, impact upon national savings, impact on workforce participation, impact on employer-provided pension plans, rates of return, and protections against poverty.

(b) Final Report. The final report will set forth the Commission's recommendations, in accordance with its stated mission in section 3 of this order, regarding how to strengthen Social Security with personal accounts. The Commission shall submit its final report during the fall of 2001. The submission date shall be determined by the co-chairs in consultation with the President.

Sec. 6. Termination. The Commission shall terminate 30 days after submitting its final report.

GEORGE W. BUSH
THE WHITE HOUSE,
May 2, 2001.


 

Remarks by the President at RNC Gala -- May 22, 2001
D.C. Armory
Washington, D.C.

7:53 P.M. EDT

THE PRESIDENT: Thank you very much. Be seated. Thank you all very much. Mr. Vice President, thank you for that kind introduction. Governor Gilmore, thank you very much for agreeing to become the Chairman of the Republican Party. Our party will thrive under your leadership, and we appreciate you doing this, sir. (Applause.)

I want to thank all the folks who worked so hard on this dinner tonight -- Ann Wagner, Al Hoffman, Jeff and Nancy Marcus, from the great state of Texas, all the table chairmen -- thank you so much for your generosity.

I'm honored to be able to say -- to introduce the Speaker of the House of Representatives, Denny Hastert. Mr. Speaker, you and your team are doing a fantastic job. (Applause.)

I haven't seen Congressman Armey here, but I know Congressman DeLay is here, as are many other members of the House of Representatives. I can assure you, knowing that we've got such a fine leadership team and a solid core in the House gives the Vice President and me a lot of comfort. And I can't tell you how joyous it is to work with this fine Speaker and the members of his team.

I would like to have introduced Majority Leader Lott, but he and the other senators are working as hard as they can to get a meaningful, real tax relief package out of the United States Senate. (Applause.) It is time for the Senate to stop delaying tax relief. It is time to move the package on, for the good of the American people. (Applause.)

I'm so thankful that I did well at the altar. America is better off for it -- we've got a fabulous First Lady in Laura Bush. (Applause.)

We came to your dinner last year, and I remember the warm welcome in the middle of a hard-fought campaign. A lot of things have changed since then. Last year I had to fly halfway across the country to get here. Today it took me five minutes. (Laughter.) For another thing, I was running against the Vice President. This time around I brought a fantastic Vice President with me. (Applause.) And, of course, it's a great joy to welcome Lynn Cheney, as well. (Applause.) The best decision I made in 2000 was to ask Dick Cheney to be my running mate. (Applause.)

I want to thank you all very much for your generous contributions so that my drive was only five minutes. (Laughter.) I appreciate your support during the campaign, and I appreciate so very much your support to make sure our agenda gets advanced. (Applause.)

As well, there are members of my Cabinet who are here. I'm really proud of the men and women who decided to serve our country. It's a diverse group of folks who are dedicated to one proposition -- a hopeful America. And if my Cabinet Secretaries would stand I'd appreciate you recognizing them. (Applause.)

And finally, I've assembled one of the finest staffs a President has ever put together, headed by Andy Card, and National Security Advisor Rice, Karen Hughes and Karl Rove -- all these folks work harmoniously; they do what's right for America. And our nation should be proud that such fine citizens are willing to dedicate their life to this great country. (Applause.)

Laura and I have had the honor of living in the White House for four months and two days. That's already one-twelfth of a term, and we haven't wasted a day. (Applause.) I have visited 28 states and two countries. I met with 46 heads of state, and more than 300 members of the House and the Senate; four Cabinet meetings, one speech to Congress, not to mention a Cinco de Mayo festival, a gathering of Hall of Famers, celebrations for St. Patrick's and Cuban Independence Day, and T-ball. (Applause.)

It's been a joyous time for us in the White House, and a high honor. And it's been a busy time, and that's just the way I like it. I often said during the campaign that Dick Cheney and I were not going to Washington just to mark time. We came to make good on our commitments for the great people of America. We came to get something done. We weren't afraid to state our case, nor were we afraid to work with anybody who heard our cause. We came not to have Washington change us, but for us to change Washington. (Applause.)

And I think we started doing that in our own party. We welcome new faces, because ours is a philosophy that is conservative and compassionate. Ours is a philosophy that holds out hope for every single American, no matter what their background or their heritage may be.

We're also a party of principle and optimism. We believe strongly in our soul not in the supreme wisdom of Washington, but in the wisdom of the American people. Ours is an administration, as America is coming to learn, that it's not afraid to take on the tough issues confronting our country; that we're willing to --(applause.) I can remember during the campaign, and perhaps you all do, as well, about the collective yawn from members in the Fourth Estate about tax relief. People used to say, well, he's just saying that because it might make good politics. No, Dick Cheney and I talked about tax relief because we thought it was right for the country. This nation can afford tax relief and we can't afford not to have it, with our economy slowing down. (Applause.)

And we're making good progress. We're making good progress. I believe we convinced Congress to cut the rates on everybody who pays taxes. We've eliminated this business about the Congress getting to pick and choose who the winners and losers are in the tax code. Our philosophy was fair and descent, and it said loud and clear, if you pay taxes in America, you ought to get tax relief. (Applause.)

We believe we ought to do something about the marriage penalty. And we believe, once and for all we need to get rid of the death tax in the tax code. (Applause.) Again, Mr. Speaker, I want to thank you for your -- for working with us on this issue.

Ours is an administration that's willing to talk openly about Social Security reform. Many candidates and politicians and others who have been elected to office never wanted to talk about Social Security. It was called the third rail of American politics. This is an administration that knows we'd better make sure Social Security is reformed, safe and solvent for the older generation, around for the younger generation. And we'll seize the moment to get it done. (Applause.)

Ours is an administration that recognized our nation has an energy problem, and we laid out solutions to do something about it. I'm sure that maybe some other administration has talked about energy, but we put out a concrete, specific plan, with over 100 recommendations -- 100 proposals -- to ease the burden on the American working people.

Our plan starts with wise conservation, the use of technology to make sure that we are better stewards of our energy. But California has taught us a lesson -- the state with the second best record of conservation is a state which ran out of energy. And so we need additional supplies. We need reliable supplies. We need a balanced approach to our energy. We need clean coal technology, and natural gas exploration, safe nuclear power, as well as alternative sources of energy.

And finally, we must face up to the problem that we're having problems getting energy from the power plant to the light switch. We need to modernize our infrastructure. No, ours is an administration that won't simply look at a problem; we'll address it in a concrete, specific way. (Applause.)

We need to have better language when it comes to energy. I mean, the people of this country have somehow been told that you're either for the environment and against energy policy, or you're for an energy policy or against the environment. That's the old way of thinking. That's stale, old-style politics. You and I know it's not either-or; with good, sound policy, it's both. We can increase our energy supplies so the people can find work, and we can protect our environment at the same time. (Applause.)

Ours is an administration that's also pushing a compassionate conservative vision. It starts with making sure that every child is educated in America. We've laid out a bill that we're working on in the Congress right now that talks about sound, solid principles to make sure that not one child gets left behind. It begins by setting high standards for every child.

Ours is an administration that believes that every child can learn. And we refuse to accept low standards, because we understand low standards means lousy results for children all across the country. Ours is an administration that trusts the local people to chart the path to excellence.

And ours is an administration that insists upon results. We want to know. We want to know whether our children are learning to read and write and add and subtract. And if they are, we'll praise the teachers. But if not, we'll demand something else happens for those children. There are no second-rate children in this great land of ours, and there are no second-rate dreams, as far as we're concerned. (Applause.)

We've taken on a different task when it comes to welfare reform. I strongly believe that this nation must rally the armies of compassion which exist in every neighborhood in America. The reason I believe that is because I understand the true strength of our country. It's not in the halls of government, it's in the hearts and souls of loving citizens. I understand cultures and societies change one heart, one soul, one conscience at a time. And government can fund, but what government can't do is cause people to love one another.

Perhaps the most important initiative of all of the Bush-Cheney administration is to push a faith-based initiative that says loud and clear, government will never fund religion, but government will stand side by side with the soldiers in the armies of compassion to make sure lost souls are found; to make sure wanting children have somebody to love them in the form of a mentor. (Applause.)

No question this is an ambitious agenda. But it's exactly what the Vice President and I told the American people we would do. You know, Washington is a place with many temptations. And one of them is to settle in and just go along and forget about the commitments you made during the course of a campaign. But this is an administration which will keep its word. And we expect others to do so, as well.

We may not always agree, but hopefully, we can be honest with each other, and respect each other, and change the tone of Washington, D.C., so that when people look at the Nation's Capital they will be proud of what they see. (Applause.)

Changing the tone of our Nation's Capital hasn't been easy. I realize that in politics, old ways die hard. Washington at times has got a plenty sharp edge to it. The only thing I can do, and the only thing Dick Cheney and others in our administration can do is to control our own responses. When I hear my policies and my nominees attacked in a hostile and partisan way, I simply hear the echoes of an era behind us. (Applause.)

I'm not going to take the bait. I'm going to lead this country to a new level of respect. (Applause.) I came to this town to change the tone of the capital. And I'm not going to quit.

You know, Mark Twain used to say, always do right; this will gratify some of the people, and astonish the rest. (Laughter.) We're going to do the right thing. We're going to pass an agenda that focuses on the American people. We will share credit for success, because we understand the best politics is good public policy. (Applause.)

I think our good party will have a strong record of accomplishment to run on. The people of this country will be able to say, we elected them; they went to Washington; they did what they said they were going to do, and the people are better off for it.

I also think the people of our country will be able to look at their Nation's Capital and begin to see a group of folks working hard to usher in a period of personal responsibility; a period in our country when everybody understands that each of us are responsible for the decisions we make in life. It starts with those who are fortunate enough to be a mom or a dad -- that each of us must understand our primary job, our primary focus must be to love our children with all their hearts and all our souls.

The responsibility era says that each of us must be responsible for what we say and what we do. And a period of personal responsibility understands that we must love a neighbor just like we'd like to love themselves. I'm absolutely convinced we're on our way to ushering in this new culture. And I believe America will be better for it. And I'm honored to be the President during the period of time when this nation will realize its full potential. (Applause.)

Thank you all for having me. God bless you all, and God bless America. (Applause.)

END 8:10 P.M. EDT

 


Remarks by the President at Summit on the 21st Century Work Force -- June 20, 2001
MCI Center
Washington, D.C.

View the President's Remarks
President Bush Issues Executive Order Regarding 21st Century Workforce Initiative
9:35 A.M. EDT


THE PRESIDENT: Thank you all very much. Thank you very much. Please, be seated. Madam Secretary, thank you very much, and I appreciate so very much your service to the country. I made a good pick when I convinced Elaine to join my Cabinet; she's doing a terrific job. (Applause.)


I think Rod Paige is here, too, the Secretary of Education. If he's not -- he is here. Hey -- Mr. Secretary. (Applause.) Thank you, Mr. Secretary. Members of Congress, thank you all so very much for being here. I spend a lot of quality time with members of Congress these days. (Laughter.) I think we're making pretty good progress, and I appreciate you all for coming.

I want to thank the business and labor leaders who are here. I want to thank you all for taking an interest in the American work force.

As Elaine mentioned, I just came back from Europe and had a fascinating experience. It's such an honor to represent our great nation around the world. We've spent a lot of time talking about industry and trade and commerce -- after all, we trade over $1 trillion a year between Europe and the United States. And I reminded people a solid truth, that the strength of our economy depends upon the people who go to work every day -- that there is a lot of fiscal matters that we'll take up and monetary matters, but the truth of the matter is, the great strength of the American economy is our work force, the hard men and women who work every single day to make a living.

And that is your concern today, and I commend you all very much for giving this conference your time and your interest and your talent.

Our responsibilities are clear: We should try to make it easier for people to find good jobs by giving them the education and training they need to succeed. Second, we should help them keep good jobs, and encourage employers to do more for their workers. And, third, we owe them a chance to build a nest egg that will help them maintain a high standard of living in their retirement years.

As you well know, a successful working life usually begins with a good education. This has always been true. But it's even more true as our economy changes. We live in a time of incredible opportunities to succeed, and every child growing up in America, regardless of background or accent, deserves an equal chance to take advantage of these opportunities.

Five months after the day that I was inaugurated, I am pleased to say that we are nearing historic reforms in public education. This is a victory for every child and for every family in America. Last week, education reform passed the Senate by a vote of 91 to 8. (Applause.) When these reforms become law, schools will have more freedom from needless meddling by Washington. There will be fewer mandates and regulations for schools to meet, more freedom and more flexibility, as schools live up to high standards they will now be required to meet.

You see, I believe every child can learn. I believe we've got to start with the mind-set that every child in America can learn. And we need to raise the bar and trust local people to meet the standards and -- the high standards. Every public school, starting next year, as well, will be held accountable for its performance.

It's not enough to promise and proclaim high standards. The American people expect results. Families and parents want results. And the law will soon require such results with testing every child for every grade, 3 through 8, in reading and math.

The critics say, why? The answer is, because we want to know. And we want to know early, before it's too late. This business about passing children through grades because of age had got the end. This society must ask the question, what do you know. (Applause.)

I'm grateful for the hard work on Capitol Hill by both Republicans and Democrats on this measure. We've worked together from the start to what I hope is the finish soon. Congress needs to finish this work. The conference needs to come together. The House conferees and the Senate conferees need to meet, reconcile their differences and get the bill to my desk before public education starts next fall. It's time to act, and it's time to act with meaningful, real reforms. (Applause.)

All of us recognize that education spending should be increased. I realize that; the Senate realizes that; the House recognizes that -- but only where we're certain that the money will be well-spent. Additional resources must be tied to demonstrated progress and results. As Congress writes the final bill, I trust that members of both parties will stay true to that principle. We must not repeat the mistakes of years past, confusing spending money with progress. We must keep the focus on reform and results. It's the least we owe the work force of tomorrow, the very least -- which is a good, sound education.

But at every turn, federal policy must keep pace with changes of our work force. This morning I took one step, with an executive order formally establishing an Office of the 21st Century Work Force within the Department of Labor. (Applause.) This office will be charged with identifying new challenges and new opportunities for American workers.

My executive order also creates a presidential council to advise on labor issues, and especially on those issues affecting the lives of workers and their families. Every working person is entitled to expect fair treatment from the employers they work for. Wherever possible, we should find ways to remove conflicts between home and work.

For example, more workers should be able to take advantage of comp time. Federal workers already enjoy this privilege and private sector employees deserve the same. (Applause.) Many hardworking people would prefer to be able to choose a few extra days at home instead of a few extra dollars on payday. We've got to trust the workers of America to make the decisions that's best for their families.

Until fairly recently, many Americans have never known paydays at all, nor the other rewards that work brings. They have been denied jobs on account of a disability. And one of the great advances in our time is that persons with disabilities have been more welcomed in the workplace. But there's still more to do. We must speed up the day when the last barrier has been removed to full and independent lives for every American, with or without disability.

I've sent to Congress a set of proposals called the New Freedom Initiative. (Applause.) It's an important step to ensuring that all Americans with disabilities can participate more fully in the life of their communities and of our country. We'll help our fellow Americans gain greater access to assistive technology. We'll also help them gain access to public transportation and to the workplace, itself, in keeping with the requirements of the Americans With Disabilities Act.

I've also asked Congress to create a fund to help people with disabilities to buy the equipment they need to telecommute. We'll provide tax incentives to encourage employers to provide such equipment. And we'll protect home offices from needless OSHA regulations. (Applause.)

Tens of millions of Americans today work out of their homes. For most, it's a convenience. For workers with disabilities, it is a revolution. And we want as many Americans as possible to share in this revolution of independence. (Applause.)

An urgent issue for many workers today is quality health care. Like education reform, this issue is reaching an hour of decision, and before this year is out, I want to sign into law a patients' bill of rights. (Applause.) And let me be specific again about the type of bill I'd like to sign. It must cover everyone, all patients and all private health care plans.

The standards should be strong enough to protect everyone, yet flexible enough to preserve the good work that has been done in many states. It must guarantee all patients important rights -- the right to get emergency treatment at the nearest emergency room; the right to see a specialist when they need one. A woman should be able to visit her gynecologist, and parents, their children's pediatrician, without going through a gatekeeper.

In any bill that receives my signature, patients will have the right to a fair and immediate review when medical care is denied. If a health care plan denies care, you should be able to appeal immediately to an independent, impartial review panel of medical doctors. And if they say you need the care, your health care plan must provide it, period. (Applause.)

It's important for Americans to know, with that kind of strong, independent review process, most disagreements will not wind up in court. The law should allow the review process to work, not short-circuit it by inviting unnecessary lawsuits. (Applause.)

I believe that an HMO that wrongly denies coverage to a patient should be held liable in court. But we must keep our eye on the purpose. We want to give patients the care they need when they need it. The idea is to serve more patients, not to create more lawsuits in America. (Applause.) We can provide meaningful remedies to patients without driving up the cost of health care, or forcing employers to drop coverage.

Measured against this criterion I've described, there are some good bills and some bad bills. And I want to thank Senators John Breaux, Democrat; Senator Bill Frist, Republican; Senator Jim Jeffords, independent -- (laughter) -- for working hard to come up with a reasonable solution to this very important problem. (Applause.)

Finally, the end of a working life should not be the beginning of worry and hardship. The tax reform package I signed into law two weeks ago will help in several ways. For starters, it leaves more money in every working person's pocket. We remember whose money it was we're spending up here -- it's the working people's money. (Applause.) And it gives workers the chance to put more of their own money into an IRA or a 401(K) plan.

The tax bill also eased the IRS limits on pension benefits that you're allowed to receive. We heard from many unions and employers about the need for these changes, and we listened. (Applause.) This will help our workers prepare for later years, sending less money to Washington and putting more money in their own savings accounts.

And I've also established a bipartisan commission to save and strengthen Social Security. With this help and with the support of Congress -- we need to get beyond the years of delay and finger-pointing and quarreling about this incredibly important issue. The days of shifting blame must end in order to save this important system.

To those who are retired and near-retired, a promise made will be a promise kept by this government. But to the younger workers who wonder whether or not there is going to be a Social Security system around, you have an administration and a vehicle now that's willing to think differently, to trust you with your own money, to say it's your money to begin with, so that you can build your own nest egg that you can pass from one generation to the next. It's time. (Applause.)

One of the great virtues of the country is the value we place on hard work -- it really makes America unique, in a different place -- and the respect we have for those who work hard. Mine is an administration that understands the important resource of the men and women of America, the hardworking people who make this country grow. And ours is an administration that will always value hard work, and trust the individual and understand the limitations of government.

I want to thank you all for giving me a chance to come by and visit with you. It is a huge honor to be the President of the greatest nation on the face of the Earth. And it's a huge honor to be the President of a nation full of decent, hardworking, caring and compassionate people. I thank you for the privilege. God bless. (Applause.)

END 9:50 A.M. EDT

 


 

REMARKS BY THE PRESIDENT ON MEDICARE-- July 12, 2001
The Rose Garden
9:51 A.M. EDT

THE PRESIDENT: Thank you all very much. Today I'm here to talk about our most important commitment to our seniors, the health of our seniors and how we can modernize and strengthen Medicare.

I'm also here to announce an exciting new plan to provide every senior on Medicare an opportunity to better afford prescription drugs by the beginning of next year.

I want to thank the members of both political parties -- of all three political parties -- (laughter) -- who are here today. It shows us firm commitment to make sure our nation fulfills a solemn pledge to our seniors, and that is that our seniors have the best possible health care available for them. So, thank you all for coming. We've got many members of the House and the Senate; most notably, Senators Breaux and Thomas -- I mean, Senators Breaux and Frist, and Congressman Thomas, all three members who worked hard on Medicare reform in the past and are joining with the administration to promote Medicare reform this year.

Thirty-six years ago this month -- and thank you, as well, Mr. Secretary, for being here. Thirty-six years ago this month, President Lyndon Johnson flew to Independence, Missouri, to sign Medicare into law, and to present the first Medicare registration card to former President Harry Truman. President Johnson spoke that day about what Medicare would mean for our country, and here is what he said: "No longer would older Americans be denied the healing miracle of modern medicine. No longer would illness crush and destroy the savings that they have so carefully put away over a lifetime, so that they may enjoy dignity in their later years."

He went on to say that "no longer will young families see their own incomes and their own hopes eaten away simply because they are carrying out their deep moral obligations to their parents, and to their uncles, and to their aunts."

Medicare has lived up to President Johnson's vision. It has improved the health of America's seniors, and it's eased the financial anxieties of retirement, reduced the burden on younger generations, and fulfilled our nation's commitment.

Medicare is a binding commitment. The Medicare promise we made in 1965 will never change. And as medicine advances and the needs of our seniors change, Medicare, too, must advance, and it, too, must change. This generation of leaders must honor and renew the promise of Medicare, by strengthening Medicare for the future.

In 1965, health care usually meant hospital care. Today we understand how important it is to prevent people from getting sick in the first place. Yet Medicare does not fully cover preventative medicine.

In 1965, prescription drugs meant antibiotics. Today illnesses that could once only be treated by invasive surgery are treated instead with effective new drugs. But these new drugs can be very expensive. And under the current system, Medicare doesn't pay for them.

In 1965, medicine could offer people diagnosed with cancer and other dangerous diseases little hope. Today, we can defeat many once incurable diseases, but too often at a costly price that Medicare will not pay in full.

In 1965, the pace of medical progress was relatively slow. Today, hardly a day goes by without news of an exciting advance to extend life or improve health. Yet Medicare takes way to long to authorize new treatments. We must act now to ensure that the next generation of medical technology is readily available to America's seniors, from medicines tailored exactly to an individual's disease, to Internet diagnosis that will allow patients to be treated by experts on the other side of their continent without the patients having to leave their living rooms.

In 1965, Medicare's finances were based on assumptions that quickly proved wrong. This has had enduring consequences. Medicare has too many limits on coverage. Seniors enrolled in Medicare are responsible for a nearly $800 deductible every time they visit a hospital. And they find themselves responsible for paying thousands more if they are seriously ill.

Medicare's funding structure doesn't make sense -- two different parts, one of which appears to have a surplus, even though the other has a much bigger shortfall. And Medicare's costs are rising too fast, which creates anxieties about the program's stability.

It may be that cars don't get any better than the 1965 Mustang. But even the '65 Mustang didn't have power windows or anti-lock brakes. When it comes to cars, and when it comes to health care, 1965 is not the state of the art. We need to bring Medicare into the 21st century, to expand its coverage, improve its services, strengthen its financing, and give seniors more control over the health care they receive.

Medicare's most pressing challenge is the lack of coverage for prescription drugs. Several people here with us this morning know from personal experience what that means. Frank Van der Linden was a newspaper reporter, and a good one. Now he's being squeezed behind Medicare premiums and drug costs. Or Bobby Cherry, he's a senior coordinator at the Florida Avenue Baptist Church, right here in Washington. He pays close to 40 percent of his income for prescription drugs and Medicare co-payments. Or Gwendolyn Black, who spends $2,400 a year to put four healing drops a day into each of her eyes.

Today I announce the first step toward helping American seniors get the prescription drugs they need and deserve -- a new national drug discount program for seniors that will begin early next year. Every senior on Medicare can receive a new drug discount card. It won't cost much, at most a dollar or two a month, and will work like the cards you already have for, say, your groceries. Present the card at a participating pharmacy, and you receive a substantial discount. It's as simple as that, and it's convenient.

The new drug discount plan combines the purchasing clout of millions of seniors to negotiate lower prices than under the current system. And under my plan, participating pharmacies will get new customers, and seniors will get high-quality drugs at a lower price.

It's a plan similar to the plan that brings discounts to many Americans who have private insurance. And the leaders of the companies that have been so successful in providing drug discounts in private plans are here with us today, and will brief the press on the savings about our strategy.

The drug discount plan is the first necessary step to provide immediate help to seniors without destabilizing Medicare's finances. It is the first step, but it is not a substitute for a drug benefit and for strengthening Medicare. And that's why my administration has developed, with a bipartisan group of legislators, a framework for strengthening and expanding Medicare for the long-term.

This framework will guide us as Congress takes up Medicare in the coming months. And here are its main elements: First, seniors already enrolled in Medicare and those near retirement must have the option of keeping their Medicare exactly the way it is today. No senior will see any change that he or she does not want or does not seek. If you like things the way they are, that's just the way they'll stay.

Second, all seniors today and tomorrow will be offered a range of new Medicare plans, including an improved and updated government plan, as well as others offered by non-government insurance plans. All the Medicare plans must offer benefits at least as comprehensive as the government plan. All will be regulated by the federal government, and all of them must offer prescription drug coverage.

Third, everyone enrolled in Medicare will have the power to choose -- power to choose -- which plan works best for him or her.

The plans will compete with each other, forcing to offer better service, extra benefits, and lower premiums. All seniors in America should enjoy the same freedoms that federal employees have today when it comes to choosing their health care plans. (Applause.) We must trust seniors to make the right decisions for themselves.

Fourth, Medicare must become more responsive to seniors, especially to seniors on low incomes and with unusually high medical costs. Sometimes people discover Medicare's gaps when they need Medicare most. Under the current system, the sickest Americans pay a higher percentage of their bill than others do. And that's not right. And under our approach, that will stop. We'll put a stop loss limit on the amount any senior can be asked to pay in any year.

Too many seniors feel compelled to purchase costly Medigap policies to cover what Medicare does not. Take, for example, Mr. Cuyler Taylor, who's with us today. The Taylors spend more than $10,000 a year on drugs and Medigap insurance. Our framework will not only cover drugs, but it will reduce the need for costly, extra insurance. The gaps in Medicare bear especially hard on low-income people, and extra help will be available to them, as well.

And finally, we must put Medicare on a sustainable financial footing for future generations.

The two parts of Medicare must be combined into one. When popular alternative plans are established, the government's contribution to any one Medicare plan should eventually be tied to the average cost of all Medicare plans, preventing any one plan from driving up the cost that all Americans must pay.

So these are the main principles for strengthening and improving Medicare. Nobody on Medicare will see any change in Medicare unless he or she wants it. There will be new Medicare choices, and all of these new choices will offer prescription drugs.

Medicare plans will compete by offering better service and lower premiums. Medicare will respond better to the needs of seniors, and especially low-income seniors and seniors with high medical bills. And Medicare will be put on sound financial footing.

These are principles which will strengthen one of our nation's most sacred obligations, the health of our senior citizens. We'll protect seniors now, offering exciting new services and more choices to seniors in the future, and guarantee prescription drug coverage. And we will do it without overtaxing our children and our grandchildren.

Medicine is constantly improving. Medicare must keep pace. That's my administration's commitment today, and its exciting new vision for health care in America.

Thank you all for coming. (Applause.)

END 10:04 A.M. EDT








Remarks by the President to Families Gathered at the Target Retail Store, Kansas City, Missouri-- August 21, 2001
Target Snack Bar
Kansas City, Missouri

 

President with Missouri family
White House photo

 

THE PRESIDENT:  Good morning, everybody.  I'm excited to be here at Target.  A lot of these folks have -- some of the folks have got their rebate check, some of them are getting them.  But I suggest you talk to the Target people about what the rebate check has meant for their business. One of the main reasons why we insisted that people get money back was to provide a second wind for our economy.  And the other reason why is because we recognize that these good folks spend their money just as wisely, if not more wisely, than the government can.

     I remember in the debate, people said, well, $600 doesn't mean much. Well, I suggest you ask people who got the $600 what it means.  It seems to mean a lot to a lot of folks.

                                   * * *

     THE PRESIDENT:  Okay.

     Q    Mr. President, would you like to see Social Security kind of taken out of the budget equation?  You are going to have like a billion dollar surplus just from general revenues tomorrow.  Do you think that's a fair way of figuring out the surplus?

     THE PRESIDENT:  I think what I said in the speech was what I mean, that Social Security ought to be spent on Social Security and OMB numbers show that that's the way it's going to be.  That hasn't been the case. Seven out of the last eight budgets have used Social Security for -- they used Social Security funds for other matters.  And we worked with Congress -- see, here's the problem.  A lot in Congress are upset that we passed money back to the people because they wanted to spend it on pet projects, on bigger appropriations.  And what I am saying is, that battle's over with.

     We cut the taxes, it was the right thing to do, it was the right thing to trust the people with the money.  It was the right thing for our economy.  And Congress now needs to understand that there are some new parameters.  When you pass money back to the people, it means there is not that much money available for additional programs, and they need to be fiscally sound.

     We've got a good budget.  And the fundamental question is, will the appropriators stick to the budget, and I am confident they will if they listen to the people.  And one of the reasons why we came here is to highlight the fact that the tax relief plan is important to hardworking Americans.

     Some people said, you know, thanks for giving us the money.  Well, it's their money to begin with.  That's the point I keep making.  It's not the government's money; it's the people's money.  And these good folks have got a reason to spend it.  A lot of them are going to spend it on school supplies.  But it's not only important for them, it's important for our economy.

     Q    Sir, the ad team for Al Gore's last campaign put out an ad today for the Democratic National Committee accusing you of raiding the Medicare trust fund and asking you to take Harry Truman's plain spokenness and tell the people the truth.  Is that fair?

     THE PRESIDENT:  Well, you know, there's a lot of people still want to politicize the budget.  They like the old-time wars of zero-sum politics. There are a lot of big spenders, a lot of highly partisan people that really didn't like the tax cut to begin with.  They want the government to have the people's money.  They believe in bigger government.  And all I do is rest my case with the people.

     And the people wanted tax relief.  The people want fiscal sanity in Washington.  The people want all the money going into Medicare to be spent on Medicare and that's what my budget does.  And people also want a good defense for our country.  And I hope, at the very minimum, the leadership in the Congress will give us the Defense appropriation number and the Education appropriation number early in the process so that we don't rob defense or rob education by holding those appropriation bills late.

     Q    Sir, where do you draw the line in terms of using your veto power this fall--  Is it sticking to the budget resolution numbers?  Or ?

     THE PRESIDENT:  The budget resolution number's a good place to begin. Because if we appropriate, of course, for the budget, we will not only be able to afford the tax relief, but we won't touch Social Security and we will be able to fund the nation's priorities, including education and defense.

     As you know, you heard my speech yesterday -- should have heard my speech or will pay to hear my speech -- and whether or not you listen to it is another question -- but we have -- I have requested a good deal of money for defense and it's needed.

     Q    Sir, you know, in the Clinton administration, they had some battles up there.  They had to shut down the government from overspending, they wanted more money.

     THE PRESIDENT:  Yes.  Right.  A new sheriff in town.

     Q    If it comes down to a showdown about closing down government, are you prepared to ?

     THE PRESIDENT:  I am confident we won't have to shut down the -- shut down the government.  There are things such as continuing resolutions. There's ways for us to make sure that the budget -- I mean the government doesn't get shut down over a budget fight.

     You're right, the last administration was anxious for the government to spend more money.  I want the government to spend the right amount of money.  And we have achieved a good balance.  It's not only money to fund priorities such as education, defense and health care, but it is money available for the taxpayers.  It's their money to begin with.

     And our economy needs -- I love the discussion, you know, the tax cut means there's less money available to spend.  Well, what the tax cut is, it means that we've been given an opportunity to revitalize our economy, so that the tax revenues that have been lost because of economic slowdown come back into the Treasury.

     Q    Mr. President, do you think that the purchasing of school supplies and things people would buy ordinarily will, in fact, jump start the economy?

     THE PRESIDENT:  No, I think it's a cumulative.  If you try to look at one isolated incident, it's easy to belittle $600 in a person's pocket. But $600 of additional disposable income all across America that amounts to billions of dollars will provide a part of the equation for economic recovery.  Of course, if somebody buys a pencil, somebody's had to make it. But it is not just school supplies.  That maybe kind of diminishes the effect of billions of dollars getting into the economy in a very quick period of time.

     I want to remind you all about a year ago, the discussion about tax relief was sometimes in political circles belittled as an impossibility. No one would have dreamed that we would not only have gotten tax relief but this amount of money injected into the economy as quickly as we did.  And it's a part of the equation.

     Q    You broke bread with Governor Graves last night.

     THE PRESIDENT:  I did.

     Q    Why Governor Graves, and what did you talk about?

     THE PRESIDENT:  Well, I was hoping I could maybe get him to buy my meal.

     Q    He didn't?

     THE PRESIDENT:  He didn't, no.  Please record the fact that I paid, much to my chagrin.

     We talked about just politics.  He and Linda are friends of mine. He's done a great job as the governor of Kansas and he's one of my best friends that I've made in politics amongst the governors.  Just had a nice visit.

     Q    Have a future with you some day ?

     THE PRESIDENT:  You know, we didn't spend much time talking about that.  He has not finished his term yet.  Maybe, you know.

     Q    Mr. President, what are you going to do with your tax rebate?

     THE PRESIDENT:  Charity.

     Q    Really?  Which one?

     THE PRESIDENT:  I don't know yet.

     Q    You haven't gotten it?

     THE PRESIDENT:  Not to my knowledge.

     Q    Why charity?

     THE PRESIDENT:  Why?  Because it's something people ought to do.  And I believe in supporting charities.  As you know, every year when I put out my income tax returns, you see the fact that I do give to charities, give to my church.  I haven't made up my mind yet.

     Thank you all for your time.

     Q    Are you going to talk to us -- you going to talk to us tomorrow? Play golf and maybe talk to us?

     THE PRESIDENT:  Do what?

     Q    You're going to have the budget review tomorrow.  Do you think you might talk to us from the golf course or someplace?

     THE PRESIDENT:  I won't be playing golf tomorrow.  Probably -- I may -- just keep loose this week.  I may have a discussion with you on some matters later on this week

     Q    Military matters, perhaps?

     THE PRESIDENT:  I ain't telling.

     Q    Buildings with five sides?

     Q    No more hints?

     THE PRESIDENT:  No, the last time we -- I'm trying to get a picnic organized so you all can come out to the ranch.  Is this the -- are you the last shift?

     Q    Yes.

     THE PRESIDENT:  Okay, last shift.  Up until when we go.  We're leaving Thursday now.  We're going back Thursday morning, the 30th.

     Q    Wow, even earlier?

     Q    The 30th?

     THE PRESIDENT:  We're going back on the 30th.  Laura wants to get back a day early.

     Q    How's the bass fishing going?

     THE PRESIDENT:  They've actually gotten up to about a pound.  They're growing.  The lake's evaporating because it's so hot.

     Okay, see you there. END 

 


         

President and Minority Leader Discuss Fall Priorities-- September 4, 2001
Remarks by the President and Senate Minority Leader Trent Lott
During Photo Opportunity
The Oval Office

1:40 P.M. EDT

Bush with Lott
White House photo

 

THE PRESIDENT: I'm honored to welcome my friend Senator Lott to the Oval Office. He is just back from an active month. I'm meeting with him and I'm meeting with Senator Daschle a little later on today. I look forward to talking about our need to work together to accomplish some important goals.

Two goals I'd like to talk about with both Senators. One is to make sure we get an education bill on my desk quickly. Many children are starting school today. Some have started prior to Labor Day. We need to get a bill. And Senator Lott worked with me very closely. And we got a good bill out of the Senate. I'm confident that the conferees can reconcile their differences, and get a bill to my desk quickly.

And secondly, we're going to talk about the budget. There's been a lot of noise about the budget. I hope the budget -- the appropriations process discards the old-style politics of trying to scare seniors. Our seniors have got to know that every Social Security promise will be fulfilled, and Social Security checks will arrive on time and that there's not much difference in the overall numbers than what we proposed, what some others have proposed. I'm confident we can come together and get a good budget together, one that will reflect the priorities of the nation, which will be education and defense.

There's been a lot of talk over August about the tax relief plan. Half the rebate checks have gone out. There are still more checks to go out. And I believe it's going to provide good stimulus for our economy, when the plan is fully implemented, and then of course come January, there will be an overall rate reduction, another rate reduction, which will be a part of the fiscal stimulus package that we all worked on.

Some are arguing that maybe we ought to roll back the taxes. I guess they're saying that. They're now against tax relief, and if you're against tax relief, it must mean you're for maybe rolling it back. I think that would be terrible for the economy. Most Americans understand that as well.

At any rate, I've had a good chance to recharge my batteries in Crawford. I'm glad to see my old friend. I look forward to working with him.

SENATOR LOTT: Mr. President, it's my pleasure to be with you. As you have been doing all year, you're starting off by making a point of meeting with the leaders of the Senate and the House this week. And it's going to be a very busy week, with our visiting President from Mexico, President Fox. We look forward to seeing him.

I think it's appropriate that we had these discussions, talk about the fall schedule, about getting the appropriations bills done and the non-appropriations issues that we want to be sure to address, including trade promotion authority, an energy package, in addition to completing work on the education bill that's already in conference and the patients' bill of rights.

So we've got a full agenda, but one that I'm sure that we can get accomplished, and hopefully we can do it in the most cooperative way.

Q Mr. President, speaking of stimulating the economy, do you agree with Republican lawmakers, including your guest here, that a capital gains tax cut would stimulate the economy, injecting revenue into a very tight budget?

THE PRESIDENT: Well, I think -- I agree with the assessment that a capital gains tax relief would pile up some revenues early in the process. As I mentioned, only half of our rebate checks have gone out, and the stimulus package that we all worked on prior to the recess is not fully in place yet.

What I'd like us to do is take a look-see to make sure that the stimulus package that we've now -- are implementing works. And I'm open-minded. I look forward to speaking to the Senator about it, and to Speaker Hastert about it as well.

Q Mr. President, you can't say for certain whether the tax cut will stimulate the economy the way you think it needs to. Even Alan Greenspan supported the idea of a trigger on the tax cut, if surpluses didn't materialize the way everybody thought they would. Why not consider that, given the fact that, in fact, the surpluses have vanished?

THE PRESIDENT: We've got the second largest surplus in the nation's history. And according to CBO, we'll have even a bigger surplus next year. We've got ample money to meet our nation's needs. What we need is fiscal discipline in Washington, D.C. We need to make sure we have -- prioritize the spending, and not overspend. No question tax relief was the right thing to do at this point in our nation's history.

And I repeat, I reckon some of them up here want to roll it back. But they're going to meet strong opposition, I know, from the White House and I know from Senator Lott as well.

Q Mr. President, do you agree with President Fox's assessment that immigration reform would take four to six years? And are you going to -- why won't you have a guest worker deal at the summit this week?

THE PRESIDENT: Well, I look forward to talking with my friend again about this subject. Immigration reform is a very complex subject. It's one that obviously entails dealings with Mexico, but there are other immigrants in the nation -- other folks from countries other than Mexico.

I have explained to the President that there's no appetite for blanket amnesty in Congress. I've also told him our desire is to make it easier for an employer looking for somebody who wants to work and somebody who wants to work to come together. But that in itself is a complex process. And so this is a complex issue. This is going to take a while to bring all the different interests to the table.

But we've made good progress so far. And I'll tell him that this administration -- I know many members of Congress are committed to treating Mexicans with respect when they come to our country. We want them to be treated like you'd want any neighbor to be treated.

Secondly, that we've got to do a better job of making our borders more safe. Thirdly, that we'll look at a guest worker program that will benefit America as well as benefit the Mexicans. But there's a lot of work to be done. But we're making good progress. You're going to find that this is a -- two administrations that are cooperating more closely than other administrations in the past have. And it's a -- we've got a great relationship. You just happened to mention one issue that's quite complex.

SENATOR LOTT: If I could just comment briefly on that, this is the first joint session of Congress that we've had in quite some time, certainly the first one this year. And I think that is a show of respect for the visiting President you are having here for an official state visit. And I think it is important that the Congress also hear directly from him, as we are going to hear from you, about the plans you're working on. And I think this is a very positive development.

THE PRESIDENT: The other thing we will confirm is that there is a need to stay focused on the long term as well. Trade with Mexico benefits American workers; it also benefits Mexican workers. The best way to take pressure off our border is for Mexico to grow a middle class. And the avenue for Mexico to grow a middle class is trade.

And that's why -- and not only do we need trade with Mexico, I need trade promotion authority. And I look forward to working with the Senator on that. I hope Senator Daschle will move a bill as quickly as possible. There seems to be a consensus forming amongst Republicans and Democrats for the need for free trade as a part of an economic stimulus package as well. And I look forward to working with members of Congress.

Q A quick question on timing. For some time, economists said the second half of this year the economy would be coming back. Here we are about to -- we're moving into the final quarter of the year. When do you think -- barring any other changes by Congress, when do you think Americans will see the economy improve to the point where they can feel it?

THE PRESIDENT: You know, this economy has been slow now for a year. The economic slowdown started last summer, right in the middle of our campaign. And growth is anemic. It's been about one percent for the year, and that's very disappointing.

We looked at that fact, and worked with Congress to pass a package of tax relief that hopefully will stimulate the economy as quickly as possible. I guess if I knew the answer, I'd be an economist, not the President. But I will tell you that we made the right decision.

And of course, there will be second-guessers here in Washington. And I suspect those who are second-guessing really are saying, we'd like to get rid of that tax relief, we'd like to roll back the tax relief. And I'm going to resist that mightily, and I call upon the leadership on both sides of the aisle not to fall prey to a false set of economic assumptions that say if you raise taxes it'll help the economy. It will hurt the economy.

But Ann, to answer your question, I hope soon. But I'm not a forecaster, and evidently there are not many good forecasters around.

Q What kind of growth rate, sir, do we need to see to get Washington out of the fiscal straitjacket that it is in now?

THE PRESIDENT: Well, you know, it's interesting -- the question was what kind of growth rate we need. I would put it this way: we need a new attitude, that in order to earn the confidence of the American people, Congress must set good priorities. And I know the Senator and I share the priorities of national defense and education. Those are our priorities, and we ought to meet those priorities.

There is a new attitude in Washington, D.C. It used to be, let's see how much we can spend. Now it's going to be, let's show the American taxpayer we can be smart with taxpayers' money. And Congress is just going to have to adjust their appetites, and realize they can't spend their way out of town. And I'm willing to work with them on that.

But we've got ample money to meet our priorities. Interestingly enough, if you'll look at the CBO revenue forecast, and OMB's revenue forecasts, we're off by $1 billion for the year 2002. There's only $1 billion difference.

There's a lot of money coming into the Treasury of the United States -- $2.135 trillion is what we project; $2.134 trillion is what CBO projects. Now, surely we can fit our desires and our appetites within those numbers without affecting the Social Security checks that go to the American people.

And I understand how politics works up here. There's always that scare tactic, trying to tell the American people that the budget process is going to lead them to not get their Social Security check. That's just ridiculous. It's just not right.

Q Can you say definitively that you will veto any appropriations bill that taps into the Social Security surplus?

THE PRESIDENT: I can say definitively every Social Security recipient is going to get their check. And that's what the American people need to understand. And I can also say definitively, we've got ample money to meet our needs.

And I can thirdly say, tax relief was the absolute right thing to do to make sure our economy grows. What we ought to be thinking about is how do we grow the economy of the United States? And the Senator is going to have some ideas, and I'm interested in listening to them.

But we took action. This economy started slowing down 12 months ago. And this administration saw a problem, and we worked with our friends and allies on the Hill, and we addressed it. And one half of the stimulus package is out the door for this year, and then, of course, there will be another part of the stimulus package kicking in in January of next year.

Q -- address that one question?

THE PRESIDENT: I addressed your question.

Q Will you veto or will you not?

Q You're not changing policy there, though, are you? Would you veto a bill that dips into Social Security?

THE PRESIDENT: I answered your question.

END 1:54 P.M. EDT


President Voices Concern Over Economy-- September 7, 2001
Remarks by the President On the Unemployment Numbers
Outside the Oval Office

3:07 P.M. EDT

THE PRESIDENT: Thank you all for coming. Today, visiting with the Speaker and the Leader, it's the end of a long week of discussing how to make sure our economy begins to grow again.

I want to appreciate Danny and Trent for coming down again. They've been visiting with their members and I've been visiting with them and their members. I also had a good discussion today with Minority Leader Gephardt and, of course, Senate Majority Leader Daschle the other day, as well, about how we can kind of get away from all the distractions that tend to dominate Washington and focus on a pro-growth agenda for this fall.

The unemployment numbers today are evidence that I've seen firsthand as I travel the country; and that is, too many people are losing their jobs as a result of a slowdown that began when Dick and I were campaigning across our country last summer. This slowdown is real and it's affecting too many lives and we're concerned about it.

Any American out of work is too many Americans out of work. And that's why it's absolutely essential that we work together to put a growth plan in place to create jobs for hard-working Americans. It starts with having a responsible budget that meets our nation's obligations without affecting Social Security or dipping into Social Security.

We made a great step toward economic growth when we worked together to pass tax relief. One-half of the checks have gone out; more relief is on the way this fall, which should help our economy. Beginning in January 1st, Americans will see lower tax rates, lower withholding from their paychecks and a larger tax credit.

Tax relief is just now making its way in the economy, and there are some, it seems like, who are beginning to say, maybe we ought to raise taxes. But I can assure you, the four of us on this stage are not going to let anybody pick the pockets of the American taxpayer.

To help get our economy moving again, Congress needs to enact an energy plan which will lower energy costs and create jobs. To get the economy moving again, Congress needs to enact trade promotion authority, so we can open up new markets for American products.

We've got a plan to get our economy moving so Americans can find work. And, today, I want to thank the leadership of the Congress from the Republican side that came and strategized with the Vice President and me as how to get this plan moving. I want the American people to know we're deeply concerned about the unemployment rates and we intend to do something about it.

Thank you all very much.

END 3:13 P.M. EDT

 

 


     
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