Weekly Compilation of Presidential Documents

Monday, August 9, 1993 Volume 29—Number 31 Pages 1507–1588

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Addresses to the Nation Executive Orders—Continued Economic program—1551 Federal Compliance With Right-To-Know Addresses and Remarks Laws and Pollution Prevention Confirmation of Judge Ruth Bader Requirements—1556 Ginsburg—1542 Interviews With the News Media Economic program legislation—1521, 1561, 1583, 1585 Exchanges with reporters Executive orders on budget control and deficit Capitol—1561 reduction, signing ceremony—1569 Oval Office—1569 Flood aid—1507 Roosevelt Room—1526, 1540 National Urban League—1564 Rose Garden—1542, 1580 Radio address—1523 Interviews Teachers Hall of Fame inductees—1580 Arizona media—1507 Appointments and Nominations California media—1514 Health and Human Services Department Louisiana media—1573 National Institutes of Health, Director— Nevada media—1545 1555 Newspaper editors—1526, 1531 Social Security Administration, Proclamations Commissioner—1555 Housing and Urban Development Helsinki Human Rights Day—1525 Department, Government National Mortgage Association, President—1584 Statements by the President U.S. International Development Cooperation Agreement on Pacific Northwest timber Agency, Agency for International sales—1555 Development, Assistant Administrator— Confirmation of Judge Ruth Bader 1584 Ginsburg—1544 Bill Signings Executive order on Federal pollution Government Performance and Results Act of prevention—1561 1993, remarks—1540 Senate action on national service legislation— 1544 Communications to Congress National emergency with respect to Iraq, Supplementary Materials message—1537 Acts approved by the President—1588 United Nations convention on international Checklist of White House press releases— trade law, message transmitting—1585 1587 Executive Orders Digest of other White House Budget Control—1570 announcements—1586 Deficit Reduction Fund—1573 Nominations submitted to the Senate—1587

WEEKLY COMPILATION OF regulations prescribed by the Administrative Committee of the Federal Register, approved by the President (37 FR 23607; 1 CFR Part 10). PRESIDENTIAL DOCUMENTS Distribution is made only by the Superintendent of Docu- ments, Government Printing Office, Washington, DC 20402. Published every Monday by the Office of the Federal Reg- The Weekly Compilation of Presidential Documents will be ister, National Archives and Records Administration, Washing- furnished by mail to domestic subscribers for $80.00 per year ton, DC 20408, the Weekly Compilation of Presidential Docu- ($137.00 for mailing first class) and to foreign subscribers for ments contains statements, messages, and other Presidential $93.75 per year, payable to the Superintendent of Documents, materials released by the White House during the preceding Government Printing Office, Washington, DC 20402. The week. charge for a single copy is $3.00 ($3.75 for foreign mailing). The Weekly Compilation of Presidential Documents is pub- There are no restrictions on the republication of material lished pursuant to the authority contained in the Federal Reg- appearing in the Weekly Compilation of Presidential Docu- ister Act (49 Stat. 500, as amended; 44 U.S.C. Ch. 15), under ments.

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Remarks on Flood Aid checks out very quickly, I think within a cou- July 29, 1993 ple of weeks after I can sign the bill. And that should be just in the next day or so. The President. I have made three trips In terms of the long run, we’ve already now to the Midwest during this flood. My got a group established to look at that. I met Secretary of Agriculture and the Director of with the Governors of the affected States FEMA have been there many, many more here in the White House just a couple of times. We’ve seen so many people who have days ago, and we’re going to work hard in lost their homes, their farms, their busi- the long run, too. I don’t want this to happen nesses, but they are carrying on very, very again to you or to anybody else. bravely. Q. [Inaudible] Here in Washington, we’re working hard The President. There is an 800 number to get a multibillion dollar emergency aid that gets several thousand calls a day just package through the Congress to help re- from Iowa, down in Texas. If you don’t have build the communities, the businesses, the it, I will arrange to have it called in while homes, to help to provide basic assistance. the telethon is going on. We’ve tried to set But the Federal Government can’t do it all. up a one-stop telephone so that all Americans Our country always has had a system in which who are affected by the flood could call. the National Government would come to the We’re going to do our best, as I said, to take need of States and communities and citizens care of this and also to take care of the long- when they needed help, but we’ve never term problems. I can’t control the weather, been able to cover all the costs, and we won’t but we’re going to work hard to help you. be able to now. That’s why we need your help. The Red Cross has done a magnificent job; NOTE: The President spoke at 8:15 p.m. via sat- so has the Salvation Army; so have the ellite from the Library at the White House. A por- churches and the other community groups; tion of these remarks could not be verified be- so have thousands of people, young and old cause the tape was incomplete. This item was not received in time for publication in the appropriate and all in-between, who have come to help. issue. But we need your help. And I hope that you, too, will contribute whatever you can afford to help these wonderful Americans put their lives back together. They need your encour- Interview With the Arizona Media agement and your support. We’ll do our part. July 30, 1993 We need you to help, too. Q. [Inaudible] The President. Thank you for joining me The President. The aid should be there by satellite. I’m glad to have the opportunity very soon. Of course, some of the emergency to speak with you and through you to the aid is there now. The Federal Emergency people of Arizona. I’d like to make a brief Management Agency and the Department of opening statement and then preserve as Agriculture have been giving cash and food much time as possible for your questions. stamps to people who are totally out of all The Senate and the House conferees are resources and money. But the big aid will nearing agreement on a budget program be there just as quickly as we can get it which preserves the essential principles that through the Congress. I think it will happen I began with in this whole endeavor back in very soon. And we’re all set up to move the February.

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First, it will reduce the deficit by about ing cuts, and too much of a tax burden on $500 billion with divisions equally between the middle class. All three of those things spending cuts and revenue increases. are wrong. Secondly, it will restore fairness to the Tax And finally, let me say just one other point, Code by asking 70 percent or more of the because I’ve had this conversation with Sen- burden of the new revenues to be borne by ator DeConcini so often. There’s a difference people with incomes above $200,000, the top in this plan and the plan that passed in 1990, 1.2 percent of our country, the people who which didn’t produce deficit reduction. First, received most of the economic gains of the we don’t have unrealistic revenue forecasts. last 10 years and got a tax reduction during We have cold-blooded, hard facts in our pro- that period. jections that are agreed to by all the expert Third, the burden on the middle class, analysts. Secondly, all this money goes into people with incomes above $30,000 for fam- a trust fund and can only be spent for deficit ily incomes, but less than $180,000, will be reduction. Thirdly, under the House version asked to pay a modest fuel tax, about 4.3 of the bill, there is an actual enforcement cents, which will be less than $50 a year on mechanism so that if we miss our deficit re- average for the average family. duction target in any of the next 5 years, the Fourth, for the first time ever, we will be President would be legally bound to correct able to say to working people with children the miss on the target, because nobody can that if they work 40 hours a week, if they foresee the future with absolute precision, play by the rules, they will not be taxed into and the Congress legally bound to vote on poverty but lifted out of it because of a dra- it or vote on another proposal to do the same matic expansion in the earned-income tax thing. credit. This is an essential downpayment on So we have some protections here that welfare reform, really rewards work and fam- have not been there before, that will bring ily, and it’s very, very important. this deficit down, revitalize our economy, and And finally, and perhaps most important enable us to go on to the other crucial issues of all, this plan brings down the deficit and facing this country, including health care, keeps interest rates down and at the same welfare reform, the crime bill, the immigra- time provides important new incentives for tion issue, a lot of the other things we need business investment and job growth and new to face. And I hope that your Members of incentive to invest in small businesses capital- Congress will support it. I thank Representa- ized at $50 million a year or less, very impor- tive English for doing so the first time tant to the high-tech community; a huge in- around. I’ll be glad to answer your questions. crease in the expensing provision for small businesses, meaning that 90 percent of the Deficit Reduction small businesses in America will actually be Q. Mr. President, thank you very much eligible for a tax reduction under this pro- for being with us by satellite this afternoon. gram if they reinvest in their businesses; And as we begin in the interest of fairness third, an expansion of the research and devel- and full disclosure to the viewing audience opment tax credit, very important to the and to the people listening on the radio, I growing economy; and fourth, something think it’s important to point out that the that will affect Arizona because you’ve got White House has imposed a ground rule here a lot of new people coming in there, some today that there will be no followup questions real incentives to revitalize homebuilding and from reporters. real estate in ways that will generate a lot That being said, Mr. President, it’s clear of a new jobs. that most Americans do want to see a deficit So for all these reasons, I very much hope reduction here. The plan which is likely to that this plan will pass. The more the Amer- come out of the Senate Conference Commit- ican people know about it, the more they are tee, maybe even yet today, is somewhat short likely to support it. Almost all of the opposi- of your $500-billion-dollar-over-5-year tar- tion has been generated by false claims that get. Arizona Senator Dennis DeConcini, this plan has no deficit reduction, no spend- whom you talked about just a moment ago,

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says that he can’t vote for it when it comes example, a big increase in homebuilding and up for a full Senate vote because there are, more people working in construction. quote, no assurances that new taxes will be But I think what you will see over the long used for deficit reduction—[inaudible]—re- run is a very strong stock market, highly reli- tire the debt. Those words were spoken by able bonds, and interest rates that will be him this morning. lower as long as we can keep inflation low, Now, I understand what you just said, but but that will grow with the economy. And obviously, he doesn’t believe it’s going to re- I think over the long run, what the senior duce the deficit far enough. What’s your re- citizens need is stable economic growth. sponse to that? They may have to balance their investment The President. I have a twofold response. portfolios more between equities and plain First of all, they are arguing about the details. bonds that depend on long-term interest They are talking about a deficit reduction rates. But I think all of us are helped over package somewhere in the range of $490 bil- the long run if we can keep long-term inter- lion to $496 billion or $497 billion; anything est rates down. in that range would be 98 percent of where we are. Economic Program Secondly, the taxes will not legally be able Q. Mr. President, why did you decide to to be spent on anything other than deficit do this in Arizona this afternoon? Is it be- reduction. They will be put into a trust fund cause your tax plan is in trouble here? Is it which must be spent on deficit reduction. because this morning Dennis DeConcini said They can’t legally be spent on anything else. again he wouldn’t vote for it and because the Now, Senator DeConcini wants a strong Republicans are busy running a bunch of budget control mechanism to go into the radio ads encouraging Karan English to vote plan. But as he pointed out to me, I sup- against it? ported his amendment, too, which is very The President. Well, it’s because I think much like the one we passed in the House. that I ought to answer these questions di- The only reason that the DeConcini amend- rectly and because, frankly, the Republicans ment did not pass in the Senate is that all have willfully misrepresented the truth and the Republicans voted against it because they the facts about this all over the country and don’t want us to have good budgetary control. especially in Arizona. I have been doing this, I don’t know why; you’ll have to ask them. however, in many other States. You’ve actu- But I’m going to have the strongest possible ally—you helped to support the Republican controls to guarantee that all the tax money rhetorical campaign by just what you said. goes to deficit reduction. If you put it into This is not a tax plan. This is an economic a trust fund and if we have to make annual plan. Fifty percent of the deficit reduction corrections if we miss the targets, that’s about is in spending cuts. We’re cutting the Federal as well as we can do, I think. work force by 150,000. We’re cutting every- thing from agriculture and veterans benefits Senior Citizens’ Investments to all kinds of other programs, all across the Q. Mr. President, the readers of my news- board. We have asked the wealthiest 1.2 per- paper are nearly all senior citizens. They’ve cent of the American people who got big tax seen the returns on their nest eggs decline cuts during trickle-down economics to pay considerably in recent years. Will your eco- over 70 percent of the tax burden. We’ve nomic plan strengthen their investments, and held families with incomes under $30,000 a if so, how? year harmless. We have actually rewarded The President. I think it will strengthen the working poor of whom there are many their investments by promoting economic in Arizona with a change in the Tax Code growth. A lot of senior citizens who have so that they’ll be lifted out of, not kept in, their investments in primarily interest-earn- poverty by taxes. And we’ve got big incen- ing accounts have had earnings drop as inter- tives for small business investment. est rates have gone down. But that’s one of I will say this again: The Wall Street Jour- the reasons that you’ve had in Arizona, for nal has now run three articles in the last 2

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weeks pointing out how a lot of these lobby- The President. My response is that there ing groups have willfully misrepresented the are 700,000 small businesses that are orga- facts of this program to the small business nized and pay taxes under the Tax Code as community. Over 90 percent of the small individual taxpayers. Of that, 94 percent of businesses in the United States of America them will have no income tax increase but will be eligible for a tax reduction under this will be eligible for a very big increase in their program if they reinvest in their businesses. expensing provisions, which means they’ll be And I think when people know the facts— eligible for a tax cut. Senator DeConcini pointed out to me in my I think for the top 6 percent to say they conversation with him 2 days ago—he said should have no responsibility in paying down it’s really too bad that people don’t know the the deficit is wrong. And for them to say facts. He said, ‘‘This program had real sup- they’re the only ones creating new jobs is port on February the 18th when you spoke wrong. All of them, anybody that’s that big to the Nation and went through the facts, has the option of converting to the regular point by point by point.’’ And now the pro- corporate status, and regular corporations gram is even better for average Americans don’t pay a tax increase in this until they have than it was then. We’ve improved it. But all taxable income in excess of $10 million. But they’ve been told by the Republicans is, no people who get the benefits that come from deficit reduction, all taxes. being taxed as individual taxpayers should be Let me just point out one other thing for taxed as individual taxpayers. They also have all the Republican ads that are being run. options to reinvest in their businesses and When this budget came up in the Senate Fi- get tax benefits down the road, I might add. nance Committee and the Republicans, with Economic Program all their talk about needing more budget cuts, were given their chance, the Republicans did Q. Mr. President, in the past few weeks not offer one nickel in budget cuts over the we’ve had interviews with Al Gore, with ones that I had already offered, not one red Bruce Babbitt, with David Wilhelm. All were cent. sent out to Arizona or called on the tele- When Senator Dole presented his plan in phone to talk about this program. And now the United States Senate it was a joke, from today we’re getting to speak with you. You people who thought we ought to have $500 seem to be expending a tremendous amount billion of deficit reduction. He had $100 bil- of political capital over this program. I know lion less than I did, and $66 billion of his you don’t like to think about this, but I won- spending cuts were, quote, unspecified, der, if the worst happens and this package meaning, ‘‘Trust me, I’ll figure that out later. loses, how big of a setback will it be for your I don’t want to make anybody else mad.’’ administration? Now, if you look at my spending cuts, The President. It will be a big setback they’re specific. There are 200 of them. for America. Let me remind you—this is an We’ve got a plan. All I want the people of interesting thing—that we had 67 business Arizona to know is the truth. When they get executives here in the White House a couple the facts, they can make their own conclu- of days ago endorsing this plan. About half sions. of them were Republicans. We had the heads of four energy companies here. Lod Cook, who was one of President Bush’s cochairs in Small Business 1992, was here endorsing our economic pro- Q. Mr. President, in the past week we’ve gram. heard from several small business groups This is not a partisan issue. Alan Green- who say increasing taxes on the most success- span, a Republican who is head of the Fed- ful small businesses, which according to fig- eral Reserve Board, has repeatedly said if we ures are 4 percent, would hurt those who don’t pass this deficit reduction plan, it are providing all of the new jobs, especially means higher interest rates, a weaker econ- here in Arizona. I want to know your re- omy, more uncertainty for America. What sponse to that. I’m trying to do is to cut through the incred-

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ible partisan fog that our adversaries have delegation clearly will not vote for the plan, created and look at the facts. Republican and three of the Democrats either will not business people who have looked at the facts or may not. I think we would all learn a little are overwhelmingly supportive of this pro- bit from the kind of personal interaction gram. The Republican head of the Federal you’re having with DeConcini, Coppersmith, Reserve Board is supportive of this program. and English to try to get them to be on your When I represented the United States in side. Tokyo recently and got an agreement from The President. Well, I’ve asked them all other countries to lower tariffs on our manu- to vote for the program, and I’ve told them factured products which, if we can get every- that I would do what I could to get the facts one in the General Agreement on Trade to out. But let me say this: There are two cat- sign off on by the end of the year, will put egories of people who are holding out now hundreds of thousands of manufacturing jobs and trying to make up their mind how to into America. I got that agreement because vote. There’s one group of people who des- we were bringing down our deficit. It was perately believed that this program ought to the first time in 10 years the leaders of the pass, but they’re simply afraid that they’ll other industrialized countries had not at- never be able to convince their own voters, tacked America in their statement, instead, because of all the sort of rhetoric that’s come they complimented us. out of the Republicans, that it’s good for This has nothing to do with party or with them. That is, I don’t know how many Mem- me personally. Look, I want to get on to bers of Congress have said to me, ‘‘This is other things. I’ll tell you what will happen a good deal for the people of my district. if we don’t do that. We’ll spend 60 days or If they knew the facts, they would like the 90 days fooling around with this. You’ll get program. I don’t know if I’ll ever be able less deficit reduction. You’ll get higher inter- to get them the facts because of the domi- est rates. And the United States Congress nance of the sort of ‘tax, tax, tax’ attack on will not go on to deal with health care, which it.’’ So I think for those folks, I have to get every American has a stake in seeing resolved out there and give them the facts. That’s what so that we can stabilize and make secure I’m trying to do here today with you. health care for all Americans and bring costs There are others who have certain specific within inflation. We won’t go on to welfare objections that I have tried to meet. One of reform. We won’t go on to the crime bill. We’ll just sit here and flail around, and it’ll them is the objection that Senator DeConcini be bad for America. I’ll get up and go to always raises, that we can’t go back to 1990. work the next day, try to get the Congress If we have a deficit reduction package, the to do its part. But I don’t think that’s going taxes have to go to reduce the debt, and we to happen. I don’t think the United States have to have an enforcement mechanism. Congress is going to let interest rates go up And we have done that, and we will do that. because of the fog of misinformation that’s Let me assure you: I’m doing this with a put out here. I think they’re going to trust lot of other States, too, for the same reasons. their people, go home and tell them the I want to try to at least explain to people truth. And I’ll tell you something else: I think directly what the issues are and what the facts the Republicans will begin to vote with us are so they can make up their own minds. on other issues. You can already see it now And I believe that, as President, I should be on national service. We’re going to pass the directly accountable not only to the people national service program I campaigned so but also to press out in the country and not hard on next week with broad, bipartisan just depend upon whatever the nightly con- support because people are tired of all this troversy is that dominates the evening news partisanship. and the political press corps here to get the Q. I’d like to go back to the question we information out, to you. I think I owe you talked about a moment ago, and that is why more than that, and I’m just trying to do my we’re doing this. Half of our congressional job.

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Manufacturing ing their careers on the line if they vote for Q. Mr. President, much of the economic this, what specifically can they tell their con- projections we hear about have to do with stituents, not in general terms but in very growth in the services industry. And yet many specific terms, what can they tell their con- of the economists tell us that America only stituents is in this package for them? moves its engine forward when industry pros- The President. First of all, they can tell pers, when manufacturing is doing its thing. their constituents that almost every small What plans do you have for rejuvenating and business in their district will be eligible for improving the manufacturing engine of the a tax reduction if they invest more in their United States? business. The President. Good question. Let me Secondly, they can tell their constituents mention, if I might, three things. First, let that California is a growing State with a vi- me compliment you on the question. I do brant population where a lot of new busi- think that services are important, but no nesses will be started. And this plan has dra- great nation can give up its manufacturing matically increased incentives for getting base. I’m working on three things. capital for new businesses. First of all, in this economic program, Thirdly, they can tell their constituents there are plain incentives for manufacturers, who are working hard for limited wages that tax incentives, to invest in new plant and this plan holds them harmless if they’re fami- equipment to be more competitive, or to lies with incomes of less than $30,000 a year, start new businesses, especially in the high- and actually if they’re at a low income and tech area. still working full time, they’ll get a tax break Secondly, in the budget we are actually out of this. Those are personal, immediate spending more on a couple of things. One benefits. of the most important things is more money And finally they can say that all of them on defense conversion to try to take advan- will benefit from low interest rates. How tage of the incredible skills of these compa- many Arizonans have refinanced their homes nies that have lost their defense contracts but since we’ve been able to bring interest rates have the capacity to produce for the high- down by taking on this deficit? How many tech, nondefense economy of the world. more will be able to do it in the next few The third thing we’re trying to do is to years or get a lower business loan or a lower find more markets for our manufactured car loan or a consumer loan or a college loan? products. The most important thing I did at These are personal, immediate, tangible ben- Tokyo was to get these other countries to efits. agree to drop their tariffs, in many cases The other thing they can say is that when eliminate their tariffs on everything from they do pay taxes to the Federal Govern- pharmaceuticals to electronics so that Ameri- ment, we won’t have to spend so much of cans can sell more abroad. And I might say it paying interest on the debt. We can spend that there is virtually no disagreement on more of it investing in the future of Arizona this. Everybody agrees that if the big seven and America. These are things that I hope nations can get what we agreed to into a your freshman Congressmen can say. world trade agreement by the end of the But let me say that the opponents have year, it will bring hundreds of thousands of a lot easier case. If you don’t care what the manufacturing jobs back to the United facts are and you just want to say ‘‘tax and States. So those are the three things we’re spend,’’ it’s an easy task. But let me just point really trying to hammer. out, it was under Republican Presidents that the debt of this country went from $1 trillion Economic Program to $4 trillion. And you can look at the evi- Q. Mr. President, given the job that the dence. The Congress actually appropriated opponents of this economic package have slightly less money than those Presidents done in selling it here in Arizona and else- asked them to spend over the last 12 years. where as a tax-and-spend plan, and we have And a lot of the people that are raising two freshman Democrats who are sort of lay- all this cain now helped us to get in the fix

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we’re in. I was a Governor during that period, areas that are quite poor or rural areas with- and you look at my record. My State was out access to other health care. always in the bottom five States in the coun- try in the percentage of income going to State Consumer Confidence and local taxes. We never had to raise any Q. Mr. President, I guess I want to go back money to pay off a debt. I don’t like this. to something you said just a moment ago. I hate the idea of raising taxes to reduce the You said no one believes that we can change deficit. But no one seriously believes that we things unless we reverse the policies of the can do what we need to do unless we reverse eighties, to paraphrase what you said. But some of the things that happened during the there’s something I don’t understand, and trickle-down years of the eighties. I’m doing that is why most Americans or many Ameri- the best I can to take the tough decisions cans at least don’t seem to agree that the now to free up our economy as we move to- consumer outlook, the economic outlook, is ward the 21st century. And I hope that Re- good. The consumer confidence level has publicans, independents, and Democrats in dropped to its lowest point in 10 months this Arizona who can think about that in terms July. And more importantly as they look out of the future will be supportive. over the next 6 months, consumers, accord- ing to most of the surveys, aren’t very opti- Health Care mistic about the economy and things improv- ing even with your economic plan. Q. Good afternoon, Mr. President. This The President. I think there are—[in- question maybe is not related to the budget audible]—reasons for that. First of all, keep plan, but it’s so important to the Hispanic in mind, America’s economic difficulties that community. Three days ago, you asked the most Americans face—that is, most people Congress for $172 million in order to rein- are working harder for lower wages and not force the immigration law and reduce the keeping up with inflation, while health care number of people that is coming illegally to and education and housing costs have out- this country. The majority of these people, stripped inflation—those trends have been in Mr. President, are not criminals but working the making for 20 years and are a function people. They are paying taxes. And they need of our inability to adjust as well as we should medical care. My question, Mr. President, is, have over those 20 years to the new chal- in your health care reform, is going to protect lenges of the global economy. Secondly, community health centers who right now there was a great deal of optimism right after treat illegal aliens here in Arizona? They are I was elected, but you can’t expect results the only one. Are you going to protect these overnight. These forces have been in play for centers? years and years. You can’t turn them around The President. The final shape of the overnight. Thirdly, most of these people have health care reform has not been decided. But been given an enormous amount of misin- I believe that the likelihood is that American formation about what is actually in the eco- citizens will be individually covered but that nomic plan. And finally as I tried to say in public health centers will also be funded and response to a lot of the very good questions that people who come into their doors will which have been asked, this economic plan be eligible for care. That’s what I think will alone is not the answer. It is an essential first happen. I think that is the likelihood. step. We still have to have a more aggressive I don’t think you can see that sort of enti- trade policy to sell our products. We’ve still tlement, the health care card that Americans got to reinvest in the skills of our people. might get otherwise, will go to illegal aliens. We’ve still got to have a good defense conver- I think that is probably not going to happen. sion policy. We’ve cut all these defense work- But I do think we will continue to fund public ers out without reinvesting in their potential health facilities, and I think we must. I think to contribute to the economy. that there are a lot of American citizens who So there are many other things we have would otherwise have no access to health to do. But once we do this, I think you’ll care if we did not do so, particularly in urban see an upturn in confidence: We can move

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on the health care; we can move on the other put in a trust fund so that the money cannot job-creating policies; we can move on to wel- legally be spent on anything else but deficit fare reform. And those things together will reduction. make a real difference in the economy and Secondly, the plan will ask of the tax in- a real difference in the outlook for most creases that 70 percent at least of those come Americans. from people with incomes above $200,000, But most folks in this country have had the top 1.2 percent of our economy, people a pretty tough time for 20 years now. And who got most of the economic gains and a I want to turn it around, but it is not going tax cut in the 1980’s. to happen overnight. And we have to have Thirdly, the middle class burden will be the courage and the fortitude and the con- quite modest. I wish there didn’t have to be stancy to take on a whole lot of issues and any middle class tax, but the deficit has got- not expect a silver bullet or an easy answer. ten much larger just since the election, and Q. Mr. President, I wish we had more we have to address it now. And that burden time, but thank you very much for being with us. will be for a middle class family of four with The President. Thank you, sir—[inaudi- an income of between $40,000 and $60,000, ble]—and thank you, ladies and gentlemen. less than $50 a year. Next, the plan holds working families with incomes of under NOTE: The interview began at 4:44 p.m. The $30,000 a year harmless and gives the work- President spoke via satellite from Room 459 of ing poor, those who still live below the pov- the Old Executive Office Building. In his remarks, erty line, actual tax relief so that we’ll be able he referred to Lodwrick M. Cook, chairman and to say for the first time, if you work 40 hours chief executive officer, ARCO, and David Wil- a week and you have children in your home, helm, chairman of the National Democratic Com- mittee. This item was not received in time for you’d be lifted above the poverty line. This publication in the appropriate issue. is a profoundly important thing. And next, and perhaps most important for California, the plan has real incentives for Interview With the California Media private sector business growth: Incentives July 30, 1993 that the high-tech community in California wanted very badly for investments in new Q. I know you’d like to start out this after- companies with $50 million a year or less in noon with an opening remark, sir. capitalization, big cuts for them; an increase The President. I would, and thank you in the expensing provision for small business very much for allowing me to join you in this that will give over 90 percent of the small way. I hope I’ll get back to the Central Valley business operations—and farms that qualify, in person before long. I had some wonderful too, I might add—a tax benefit, not a tax in- times there during the election, and I’m glad crease but a tax benefit when they reinvest to have the chance to visit with you directly. in their businesses; next, an increase in the As you know, in the next few days the Con- research and development tax credit; and fi- gress will take up a final vote on the eco- nally, some incentives to invest in areas that nomic plan, which they have been debating now since February. So far the Congress has are traditionally underdeveloped, both rural moved with great speed in trying to deal with and urban areas, to get free enterprise in this plan and trying to keep its essential fea- there to do that job. tures intact. I want to just review those fea- So for all these reasons, this economic plan tures today and why I think it’s important is good for the country, and it’s good for Cali- as a first step in our long-term efforts in rede- fornia. It is not the end-all and be-all. We veloping the American economy and the have to move on to health care. We have California economy. to move on to a trade policy that enables First, the plan will reduce the deficit by us to sell more of our products and services very close to $500 billion, equally divided be- abroad. We have to move on to welfare re- tween spending cuts and revenue increases, form. We have a crime bill. We have an im-

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migration initiative up. All these things are fornia is familiar with, by tightening the con- important. trol procedures and also increasing penalties Secretary Babbitt is working with the for that. And finally, we’re trying to deal with farmers in your area to resolve some of your illegal aliens coming into the country gen- water problems. But all these things cannot erally. We do have more border patrol people be brought to fruition completely until we coming in, 600 of them. California will get pass an economic plan and a budget and get a good number of them. And Senator Fein- this country moving again, keep the deficit stein and Senator Boxer were both particu- down, and keep the interest rates down. larly active in this regard. Let me finally say that this plan has the The second thing that I want to mention support of an enormous number of Repub- is that before any of this was done, we had licans and independents who are not politi- changed some Federal laws in this economic cians and have no stake in misrepresenting plan to give California some more money the facts. Earlier this week, about 67 business under existing laws because it has a dis- leaders from around the country, including proportionate burden of immigrants. So we’ll the heads of four energy companies, equally be giving you some more money over and divided pretty much between Republicans above this to handle the immigrant burden and Democrats, endorsed this plan. And one that’s already there. That will free up some of the people who endorsed it was Lod Cook, of your State money for other problems there the chairman of ARCO, who was a cochair- in California. man of President Bush’s campaign. So this I know you’ve had a lot of terrible budget is not a partisan effort on my part. It’s just problems. So we changed the formula by a tough decision to deal with problems that which the Federal Government gives money developed in Washington long before I to the States to deal with immigration, to put showed up. And I hope the people of Califor- more money into California because of your nia and the Central Valley will support it. extra problems. And Leon Panetta, who, as I’ll be glad to answer your questions. you know, used to serve California in the Congress and is now my Budget Director, Immigration had a lot to do with that. I hope that will Q. Mr. President, you mentioned just a help. I believe it will. moment ago immigration. I’d like to ask you about that. As you know, we in California Water Management are struggling with the problem of immigra- Q. Mr. President, I wanted to know—you tion, both legal and illegal. One-third of all mentioned a moment ago Secretary Babbitt new arrivals in the United States wind up coming to the Central Valley to talk about in California. I know you’ve asked for addi- water issues. And one of the big water issues tional funds to speed up asylum processing for us down here is the Endangered Species and hearings and also border patrol, but Act. What I wanted to know is, is the Act we’re wondering if $172 million in new dol- going to be changed at all in the next year lars is enough. Can you offer any specific ad- or so to allow for economic burdens that are ditional Federal help for California alone to being suffered on the west side of the valley? try and deal with the immigration problem? The President. Well, let me say first of The President. Well, I’m glad you asked all, the Act as it’s presently written has an that. Let me, first of all, just reiterate very economic impact provision, which has not briefly what you said. We’re trying to deal been used very often but which plainly can with, in effect, three different problems. be used. Secretary Babbitt asked me before We’re trying to deal with the problem pre- we commit to make any changes in that to sented by the fact that our airports are too give him the chance to work out the prob- porous and terrorists or potential terrorists lems that the farmers had. As you know, can get in, and we’re trying to tighten up we’ve had a drought for many years and the all those procedures in foreign airports and allocations this year, given the amount of here. We’re trying to deal with the problem water that’s out there since the drought went of alien smuggling, which is something Cali- away, has not satisfied a number of the farm-

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ers. And we know there are some other dis- gangs and were unsafe for children now open tributional issues. Some of them involve the for basketball for the kids. Endangered Species Act, but Bruce Babbitt We can do this. We’re going to have to believes, anyway, that he can work out a fair have more police. I hope that the crime bill treatment for the farmers without an amend- will enjoy broad bipartisan support. We can ment to the Act. And I think I ought to give bring it up if we can get this budget business him a chance to continue to work with the done. farmers before I commit to change it. So Agricultural Subsidies that’s the position I’m going to take. I want to wait and see how he does with his negotia- Q. Mr. President, what farm policy have tions with the farmers first and how they you and Secretary Espy outlined or are out- come out. lining? And would you consider any reduc- tions or elimination of farm subsidies and ir- Crime rigation subsidies? The President. Well, let me say, first of Q. Mr. President, we in Los Angeles, of all, if you look at our budget this year, be- course, have been crippled in terms of qual- cause there are $250 billion in spending cuts ity of life, and also economically, by burgeon- over the previous budget, we have reduced ing crime and not enough more police to some of the agricultural programs along with fight it. Our new Mayor, Richard Riordan, everything else. We’ve cut just about every- was recently in Washington, as was police thing, so there is some reduction in agri- chief Willie Williams, both of them begging culture. But I don’t think we should do any for assistance. Is there anything that your ad- more until we have an agreement on world ministration can do to help? trade. That is, I am reluctant to have more The President. Absolutely, there is. We unilateral reduction in agricultural programs intend to push a crime bill which, along with because I think that hurts our competitive some other legislation we’re pushing, will position. If we can reach agreement on a new have the Federal Government help local trade agreement with our competitors in communities to put up to 100,000 more po- which those nations that subsidize agri- lice officers on the street in this country over culture much more than we do also reduce the next 4 years. their subsidies, then I would also support This summer I got an emergency bill doing something here at home, because I’m through Congress which will provide funds convinced that on a level playing field our to Los Angeles and other cities to rehire po- farmers can compete with anybody in the lice officers that have been laid off and other- world. wise staff up a little bit. It’s a down payment So my answer to you, sir, would be I’m on that. As soon as this budget—economic hoping we can get a new trade agreement plan—is over in the Senate and in the House, by the end of the year which will permit some I will be developing a crime bill which will reduction in agricultural subsidies but only provide more funds to local communities for because our competitors will be reducing this purpose. We have got to get some more them even more. Otherwise, I think we’ll police officers on the street. have to wait ’til we reauthorize the farm bill When your new chief was a police chief in 1995 to look at these issues. in Philadelphia, he had some real success in I come from a farming State, and I really lowering crime rates in very tough neighbor- want to see us maintain our competitive posi- hoods by adopting community policing strat- tion in agriculture. I had to cut agriculture egies that included people actually walking some this year. I cut everything, but I don’t beats that previously had only been driven. want to cut it so much we are at a competitive I know this can work. I actually walked down disadvantage. some of those streets that the chief helped to change in Philadelphia, and I talked to 1990 Deficit Reduction Program the people who live in the houses there. So Q. Mr. President, I was wondering if you I know it can make a difference. I saw play believe that the deficit reduction plan of yards that had formerly been taken over by 1990 was successful in its goal of slashing the

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deficit. And if not, how can you assure Amer- I think all Americans know it would be ica that this year’s plan will work any better? hard for any business to estimate for 5 years What are the differences between the two in advance exactly what will happen, but we plans? haven’t had to correct ourselves. Now we’re The President. There are several dif- going to do that. ferences. First of all, the 1990 plan was not I will say this. Let me say this in my own completely successful for a couple of reasons, behalf. A reporter for the Philadelphia In- and I’d like to point out what was wrong with quirer a couple of weeks ago went around it. I’d also like, in fairness, to tell you a couple to all the budget experts for big private com- of good things about it. panies like big private accounting firms, and The main thing that was wrong with it is asked them what they thought of this. And that the administration and its supporters in the consensus was that we had a very good Congress, the people who were in Washing- chance to meet our deficit reduction targets. ton then, made too many claims for it. That The budget analyst for Price Waterhouse, the is, they said it would reduce the deficit by big accounting firm, said that it was the most $480 billion, and they based that on wildly honest budget presented to the Congress in optimistic revenue growth forecasts. We have more than a decade and that the only thing based our plan on very conservative revenue he thought I was wrong about is he thought forecasts, so that when the recession contin- we’d actually have more deficit reduction ued, they didn’t get the money they thought than we’re projecting. they were going to get out of any of the new So let’s hope he’s right. We’ve done our revenues. best to be very tough about this. The second problem they had was that health care costs in particular increased at Health Care a far more rapid rate than they had projected. We have attempted to deal with that by hav- Q. Mr. President, you mentioned the im- ing some stricter controls on health care portance of health care in the budget situa- costs. tion as we went through the nineties and into So those are the two things that really got the early nineties we’re in now. I’m wonder- them in trouble. The third thing, of course, ing what specifically we can look forward to was the economy just stayed in a slump for as regards to health care reforms within the a long time. Now, the one thing they did right next 6 to 8 months. that we’re also doing, except we’re doing it The President. You can look forward to even tougher, is they had some pretty stiff a plan which will, first of all, protect the caps on spending programs, domestic spend- health care benefits that Americans enjoy ing programs. So there were some greater now and enable people to move their jobs controls on spending after 1990 than had without losing their health coverage. One been the case in the past. I think I ought real problem we’ve got now is millions of to give them credit for that, and we’re trying Americans locked into their jobs because to live with those now. somebody in their family’s been sick. So I But we think we can do better. This plan think you can look forward to ending the job you have more specific budget cuts, better lock. People will be able to move jobs. We’ll controls on health care spending, and more have a system that will enable people to keep realistic revenue estimates. And you’ve got having health care for their families if they all this money being put in the trust fund, lose their jobs through no fault of their own. and furthermore, another big difference is If all the plan passes, we will reorganize I will be under the obligation if we miss the the insurance markets so that farmers and deficit reduction target to come in on an an- self-employed people who are in nonfarm nual basis and say, ‘‘Hey, we missed it a little. jobs will be able to purchase health insurance Here’s my plan to make sure we make it. at lower rates, more generous insurance be- Here’s where you’ve got to cut more. Here’s cause they’ll be able to purchase it more on what else you have to do.’’ We’re going to terms that people who work for big employ- do that every year. ers purchase it today.

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And we’ll also have a system that, if it all our State more attractive to manufacturing. goes through, will actually dramatically lower At a time when they said we were going to the rate of increase of health care. You know, lose manufacturing jobs, we didn’t even need health care costs have been going up at to try that. We were able to increase the per- roughly twice the rate of inflation or 3 times centage of our work force involved in manu- the rate of inflation, and we’ve got to bring facturing. that within inflation plus our population For the last 4 or 5 years we were among growth. And that will be good for business, the Nation’s leaders in job growth. In 1992 good for agriculture, and good for individual we ranked first or second in every month. Americans. So those are the main things And now the State has an unemployment we’re going to try to do. I think we’ll be able rate of about 5.2 percent. It took about 8 to do it. It’s very, very important. years to do that. But we did it, and it worked. Let me say that if you look at the American So you can increase your manufacturing budget now, the only thing that’s really going base. Now, what does the United States have up a lot in the Government’s budget is health to do to help California do that? I think in care costs for Medicare and Medicaid. The your case, three things. Number one, we’ve only way we can take this deficit from where got to do something to help you with all these it is now down to zero, which is where I want people who have been laid off or lost their it, is to do something to control health care jobs because of defense cutbacks. We started costs. This plan will lower it for 4 or 5 years, defense cuts in America in 1987. I wasn’t in after which it starts to go up again, unless Washington when it started, but it was un- you control health care costs. That is the conscionable to start cutting all these con- thing that is strangling the American econ- tracts with no plans for conversion to help omy long-term. And I believe we can do bet- companies, to help individuals, to help com- ter. That’s what the health care plan is de- munities to maintain a manufacturing base signed to do. And as soon as the economic in nondefense areas. We have an aggressive plan is over, we’ll be able to begin a great defense conversion plan that, if it’s done national discussion about that. right, will be greatly beneficial to California. We have already begun working on that. Jobs Number two, our economic program has Q. Mr. President, Governor Wilson pre- some significant incentives to promote man- dicts that in the next 2 years this State is ufacturing: incentives for bigger companies going to—rather, in the next 5 years, this to invest in new plant and equipment, incen- State is going to lose 2 million jobs. Your tives to start and capitalize smaller manufac- economic plan is boasting 1.9 million jobs, turing operations. yet we’re seeing an exodus of manufacturing The third thing we’re doing is finding new jobs from the Central Valley. What is your markets for American manufacturing. When plan proposing to do to try to keep some of I was in Tokyo recently, the world’s seven these companies from leaving not only the industrial powers agreed to lower or elimi- State but the country and taking jobs else- nate tariffs in a sweeping fashion, more than where? And what’s also being done in your has been done in years and years. And every plan to put more Californians to work? independent analysis says that if we can get The President. Let me talk about manu- all the countries of the world that are in our facturing specifically, if I might, about what trading group, the General Agreement on we can do and what you have to do. And Tariffs and Trade, to accept this by the end I’d like to establish my credentials. I was of the year, it will put hundreds of thousands Governor of Arkansas for 12 years. When I of manufacturing jobs back into the Amer- became Governor of my State, we had an ican economy in the next few years. unemployment rate nearly 3 percentage Now, if we do all that, that will help Cali- points above the national average; we were fornia. California also has to examine its situ- losing manufacturing jobs rapidly, plants ation. Why would someone close a plant closing down like crazy. And we devised a down in California and move it to another plan to retrain our work force and to make State? What do you have to do to make the

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State more attractive? There are some things are also the only advanced nation in the we can do on that. Our apprenticeship pro- world that spends more than 10 percent of grams, our worker training programs will its income on health care. We spend over help California. Our health care cost control 14 percent of our income on health care. programs may help you not only with health Only one other nation, Canada, is over nine. care but with the enormous cost of worker’s Our major competitor, Germany, is just over comp out there. 8 percent of their income. That means of But a lot of these decisions need to be every dollar made by anybody in this country, asked and answered in California. If Califor- we’re putting 6 cents more into health care. nia is losing manufacturing jobs to other That is a phenomenal amount of money that States, you need to think through what might be reinvested to create manufacturing changes can be made there to make you jobs, to strengthen agriculture, to strengthen more competitive. small business. So I believe the small business community Small Business as a whole will be dramatically strengthened Q. Mr. President, you said that your eco- by this, and I’m going to do everything I can nomic plan will provide most small busi- to minimize the burden on those that pres- nesses with a tax break. Won’t these breaks ently offer nothing to their employees. But be offset and surpassed by what you’re going it is not responsible for those who offer noth- to ask small business to pay to support your ing to ask everybody else to pay for the hos- new health care plan, and what kinds of in- pitals, the clinics, the infrastructure of health creases can small business expect? care that they then get to take advantage of The President. No, well, let me answer— when they need it. the short answer is no. Seventy percent of the small businesses in this country are pro- California Recovery viding some health coverage for their em- Q. Mr President, you talk about economic ployees. Many of them may wind up with growth by creating new jobs in California. lower costs because of the insurance reforms And we’re seeing, like we said earlier, we’re that we’ll recommend. Many of them are seeing a lot of jobs leaving the State. But paying way too much for limited coverage. from where you stand and from some of the For those who provide no coverage at all, things you pointed out, do you see a turn- I think there will be some requirement that around at all for California in the next year? they make a contribution to the coverage of The President. I do for a couple of rea- their employees and that the employees pro- sons. I think there will be a turnaround. I vide a contribution, too. But the burden is don’t want to pretend that this is going to likely to be far more modest than anything be an easy, quick miracle. I think there are I’ve been reading about. I’ve not signed off some things that are going to have to be done on all the final provisions yet, but we’re really to preserve your manufacturing base. I al- working hard to make sure anything we do ready said that. is phased in and the burden is kept as light But I think the likelihood is good that Cali- as possible on small businesses to help them fornia will turn around for a couple of rea- maintain their ability to generate jobs. sons. First of all, you have enormous human But let me just point out to you that every- and physical resources. That is, a lot of these body in this country can eventually get some people who have lost their jobs are very well- health care, even if they have no health insur- trained, very well-educated people, are high- ance. But if they don’t have any health insur- ly productive workers, even if they don’t have ance, they often get it when it’s too late and a lot of formal education. And have a huge too expensive and when it’s paid for by some- infrastructure that can be revitalized, that one else. We are the only advanced nation was built up in part by defense developments that does not have some system by which in the 1980’s. all people are covered for health care. Most Secondly, more than any other State in- countries require some contribution by em- volving trade, California’s tied not only south ployers and employees across the board. We of our border but also to the Pacific, and the

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Pacific is the area of the world most likely to succeed? What kind of jobs are going to to revitalize its economy quickest. One of the be created? And do you have a timetable for things that’s hurting you in California is that the job creation? it’s hard to make a lot of money off manufac- The President. Most of the jobs that we turing and service jobs tied to trade when believe, based on our economic analysis, will Japan’s in a recession, when Europe’s in a be created are private sector jobs that will recession. For the last 5 years, more than be full-time jobs. The private sector has got half of our new jobs in America have been to be the engine of economic growth. If you tied to trade. And if everything is flat every- look at this economic plan, we do invest some where else, it’s hard for us to grow when more money in partnerships for new tech- they’re not. It is more likely that the Pacific nologies and in defense conversion and to will grow more quickly and come out of this help companies train their workers. But most recession more quickly than the rest of the of the new jobs are going to be created by world. And that will disproportionately bene- the private sector. We want to invest in more fit California. jobs, in infrastructure building, road-build- So for all those reasons, I think there’ll ing, and things of that kind. be some turnaround by next year. But I don’t But the great vast bulk of these jobs will want to kid you. The California economy was be private sector jobs. Let me just give you built up over the last 20 years, with some some examples of how they’ll be created. things that will carry you right into the next First of all, to keep interest rates down, you’ll century and other things, like the defense create more jobs. Secondly, this plan pro- base, which have to be refigured if you’re vides economic incentives for people to in- going to have those folks doing well and mak- vest in new plant and equipment, for people ing a contribution to your economy. to invest more in their small businesses, for So we’re going to have to make some people to do more research and develop- changes. We can do it. But the intrinsic ment. All those things are directly related to health of the California economy, I think, is job development. If you have more invest- still there. ment in the private sector, you will have One last point about that. We’re also going more job development. So I see this as a pri- to have to make an extra effort to help the vate sector job initiative. areas that have been really hurt by base clos- And exactly on what timetable these jobs ings. The Bay Area, for example, which took will be created depends on the general recov- a big hit, I think that they’ll wind up net eco- ery not only of the American economy but nomic winners because of the enormous re- of the global economy. The one thing that sources there. could prevent us from meeting this goal is But we’re going to have to plan to do that. if the other countries of the world don’t join And we’re going to have to have incentives us in a new trade agreement and pursue fool- to invest in places like the distressed areas ish economic policies and collapse their own of Los Angeles to bring free enterprise in economies. In order to grow the American there. And I’ve offered a dramatic plan to economy, we need a growing world economy. create those kinds of enterprise zones. I call But I think we’re going to have some good them empowerment zones. It goes far be- success in coordinating our economic policies yond what previous administrations have rec- to generate more jobs. ommended. That plan is working its way Let me just say this. In spite of all the through Congress, and I think that will help. fits and starts in the economy since the be- ginning of the year, through the first 6 Job Creation months, we’ve had about 900,000 new jobs Q. To go back to jobs, you’re promising created, over 90 percent of them private sec- 8 million jobs nationwide and about 1.9 mil- tor jobs. And I hope that we can accelerate lion in California. Smaller citywide programs that pace in the months and years ahead. I like Build in Baltimore cost millions and think we can if we can get this economic plan failed miserably, creating low-paying temp passed and put the health care plan out and, jobs with no benefits. How is your plan going to respond to one of the earlier questions,

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to allay the fears of some of the people in spending cuts. The plan creates a trust fund the business community about the health in which all the spending cuts and all the care plan so they can see it will be good for tax increases are placed and dedicated by law business, not bad for business. Then I think for 5 years only to reducing our Nation’s you’ll see a lot more investment coming out debt. Every new dollar of taxes will be of the lower interest rates. matched by a dollar of spending cuts. And But most of this job growth is going to now, thanks to the efforts of the last few have to come in the private sector. The Gov- weeks, 80 percent of the new taxes will come ernment can’t do it. from individuals earning over $200,000 a Q. Thank you, Mr. President. We’ve flat year, the top 1.2 percent of our income run out of time. We were going to try and bracket, people who got most of the eco- squeeze in another couple of questions, but nomic benefits of the 1980’s and, unlike most I guess we can’t do it. Americans, also received tax cuts in that dec- The President. I’ll stay if you can. ade. No working family earning less than Q. Well, hey, we’ll stay. We’ll stay all night. $180,000 will pay a penny more in income No satellite. We lost the satellite. taxes. That will be a real change from the The President. They say we’re going to lose the satellite. I’m sorry. trickle-down economics of the past dozen years. NOTE: The interview began at 5:20 p.m. The Average families, that is, people with fam- President spoke via satellite from Room 459 of ily incomes above $30,000 and below the Old Executive Office Building. This item was $180,000, will be asked to pay but one tax, not received in time for publication in the appro- less than a dime a day, or about now $33 priate issue. a year, in an energy tax devoted entirely to reducing our deficit. I believe that is a mod- Remarks on the Economic Program est and fair price to pay for the change we July 31, 1993 seek and the progress it will bring. I pledged always in the beginning of this program to Good morning, and welcome to the Rose seek the least possible burden on middle in- Garden. come taxpayers, and I believe this is the least My fellow Americans, 5 months ago when possible burden we can have and still achieve I addressed the Congress in my State of the meaningful deficit reduction. Union Address, I pledged to the American Because we need the private sector to people that I would do my best to change grow, we also recommended investing in the the way Washington works; to revive our job creating capacity of American business economy by reducing our deficit; cutting and in the education and skills of our people. spending; reversing trickle-down economics This plan offers 90 percent of the small busi- and asking the wealthiest Americans to pay nesses in the United States of America the their fair share of our tax burden; increasing chance to actually reduce their tax burden incentives to business to create new jobs; if, but only if, they invest more in their busi- helping the working poor to stay out of wel- nesses to strengthen their businesses and fare and stay in the work force; and renewing their capacity to hire new people. The plan the skills and productivity of our workers, our students, and our children. I presented to offers new incentives, especially to high-tech, Congress an economic plan designed to high-growth companies, to invest more in re- achieve those objectives. search and development. It offers incentives Now the Members of both Houses of Con- to larger companies to invest more in new gress are close to deciding on a final version plant and equipment. It gives a ground- of an economic growth plan that meets these breaking new incentive to people of all kinds objectives. The plan will contain the largest to invest in new companies to help them deficit reduction plan in our Nation’s history, grow the economy. A significant percentage about $500 billion, with nearly a quarter of of new American jobs come from the cre- a trillion dollars in real and enforceable ation and expansion of new enterprises. And

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this plan will open the door of college edu- decisions. Once he did that and the employ- cation to millions of Americans by dramati- ees understood the big picture, they did bet- cally changing the way the student loan pro- ter at their jobs, they turned the company grams works. around. Their jobs and incomes were more And next week when the national service secure, and they’re making money. I met a plan passes, these two plans together will en- widow from Detroit with no prospect of a able us to say to the young people of this job, thinking she would have to go on welfare country: If you want to go to college now, because of her children, perhaps forever. In- you need not fear the costs. You can borrow stead, she found a job as a machinist after the money, but you won’t have to pay it back enrolling in a 6-year advanced training pro- until you actually have a job. And if the job gram. When she completes that program, in- is a lower paying job, you will not be asked stead of being on welfare she’ll have the to pay more than a certain fixed percentage equivalent of a master’s degree in engineer- of your income in paying back the loan. But ing. this time, you will have to pay it back, be- On Wednesday, I met with more than 60 cause the tax system will be used to help col- corporate executives from all over America, lect the loan. And if you want to work the from all kinds of companies. Many of these loan off, you can do some of that by partici- executives were Republicans who will have pating in a program of service to your com- to pay higher taxes under this plan. But they munity before, during, or after college. That had made the hard-headed decision that it will give us the chance to solve a lot of Ameri- was important to pass this economic plan be- ca’s problems and educate a whole new gen- cause they knew that their companies, their eration of young Americans. All this is done shareholders, and their country would be without imposing harmful cuts on older better off if we reduced the Federal deficit, Americans. We build a better future for our kept interest rates down, and got investment children without asking unreasonable sac- going back into the American economy. As rifice from their grandparents. the chief executive officer of one of these It is time for Congress to pass this plan. corporations said, it’s time to quit fooling It is time for Washington to show the courage around and act. to change. It is time for the Members of Con- And I want to tell you about one more gress to roll back the fog of misinformation group of people who are quiet heroes of this that has shrouded this whole debate for the economy. On Thursday, I met with three last 5 months. To the people who have told families who work hard for low wages from the American people there is no deficit re- the States of Georgia, Kentucky, and Okla- duction, there are no spending cuts, and the homa. Thanks to the earned-income tax cred- burden is on the middle class, the facts of it in our Tax Code, which reduces the tax this plan stand in stark contrast. This plan burden on low income workers, they are sup- will keep interest rates down and grow the porting their children instead of going on American economy. welfare. Now, this is very important, because This week I had the honor of meeting with 18 percent, almost one in five, of American many Americans from all walks of life who workers today actually work for wages that are taking personal responsibility for their will not support a family of four above the families, their workplaces, and their country. poverty line. This plan has a revolutionary On Monday, I attended a conference that our expansion of the earned-income tax credit so administration sponsored in Chicago where that for the first time ever, we can say to workers and managers talked about how they American workers: If you work full time and could work together to improve the quality you have children in your home, you will not of their goods and services and increase the live in poverty. The tax system will lift you security of their jobs and incomes. I met an out of poverty, not drive you into it. This executive from Missouri who turned around is the biggest incentive for people we have a failing plant by sharing information and giv- ever provided to get off welfare and go to ing a sense of ownership to workers who pre- work, to reward work and family and respon- viously had been totally shut out of all those sibility. It is not a partisan issue; it is an

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American issue. And it will empower all kinds our children, for our grandchildren. And of Americans to seize a better life for them- funny enough, this is something that will help selves. us all today, right now, too. I need your help, I’m proud a lot of Americans have decided and I hope you’ll tell your Senators and your to do what is right for themselves and their Representatives the time has come to move families. They’re looking for new skills, look- forward. ing for new ways to work with their bosses Thank you, and good morning. in the workplace. They’re choosing work over welfare. I’m proud so many people now are NOTE: The President spoke at 8:52 a.m. in the tired of the old divisions in our country. They Rose Garden at the White House. don’t want to see this country divided be- tween labor and management or Democrats and Republicans. They want us to unite as Americans. The President’s Radio Address As your Senators and Representatives con- July 31, 1993 clude work on this budget, I’d like to say a special word to those of you here in the Good morning. Five months ago in my Rose Garden and all of those listening to me State of the Union Address to Congress, I across the country. The time has come to pledged to the American people that I would act. Unless the Congress acts on this budget, do my best to fulfill the campaign commit- we cannot remove the uncertainty that exists ment of 1992 to change the way Washington in the economy, we cannot continue to bring works. That means reviving our economy by interest rates down, and we cannot possibly reducing our deficit; cutting spending; re- move on to the other challenges that await versing trickle-down economics by asking the us. We still have to provide security and wealthiest Americans to pay their fair share health care to all Americans and bring the of taxes; increasing incentives to business to cost of health care down within inflation. We create new jobs; helping the working poor; still have to face the fact that we have to and renewing the skills and productivity of reform our welfare system. We still have to our workers, our students, and our children. pass a crime bill to put 100,000 more police Now the Members of both Houses of Con- officers on the streets over the next 4 years. gress are preparing to decide on a final ver- There are many challenges awaiting this sion of my economic growth plan that meets Congress and our Nation, and we cannot the objectives I discussed when I presented move on unless we pass this plan. And most it 5 months ago. This plan will contain the importantly, we will not have a framework largest reduction in our deficit in the Na- within which we can work for jobs and higher tion’s history. With nearly one quarter of a incomes for the American people. trillion dollars in real, enforceable spending If you believe we ought to do it, now is cuts, every new dollar of taxes will be the time to make your voices heard. Your matched by a dollar of spending cuts. And Senators and Representatives have been sub- 80 percent of the new taxes now will be ject to an amazing amount of unfair pressure raised from individuals earning over and flat wrong and false information. I need $200,000 a year. No working family earning your help. Tell your Senators and your Rep- less than $180,000 will pay more in income resentatives if they have the courage to finally taxes. That will be a real change from the bring this deficit down and turn the country trickle-down economics of the past dozen in the right direction and create jobs, you years. The average family will pay only one would appreciate it, you will support it, and tax, less than a dime a day in an energy tax you will stand with them. Now is the time devoted entirely to deficit reduction. That’s to act. We have talked and dawdled for long about $33 a year for a family of four with enough. an income of $40,000 or $50,000 a year. I In 1980, this country had a $1 trillion na- think that’s a modest and fair price to pay tional debt after 200 years. Today, it is $4 for the change we seek and the progress trillion. We have got to turn this around for we’re making. We pledged to have the light-

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est possible burden on the middle class; and nomic growth plan. Many of them are Re- I think that, we have done. publicans who will have to pay higher taxes Because we need the private sector to under the plan. But they made the hard- grow, the plan provides investments in job- headed economic decision that their compa- creating capacities of American business and nies, their shareholders, and their country in the education and skills of our people. For will be better off with this economic plan be- example, the plan supports small business by cause it means lower deficits, lower interest dramatically increasing the tax incentive they rates, and a more stable environment to get to invest in their own operations. Under grow. As the chief executive officer of one this plan, more than 90 percent of the small of these corporations said, it’s time to quit businesses in America will actually be eligible fooling around and pass the plan. for a reduction in their taxes. The plan also And I want to tell you about one more gives other incentives to business for new group of people who are quiet heroes in our plant and equipment, to invest in research economy. On Thursday, I met with three and development for high-tech firms, to in- families who work hard for low wages. vest in new fast-growing firms that create so Thanks to the earned-income tax credit, many of our jobs. And perhaps most impor- which under this plan reduces the tax burden tant to many middle class families, this plan on low income workers, they can support opens the doors of college for millions of their children without going on welfare. This families by reforming the student loan pro- plan increases that earned-income tax credit gram and making college affordable again to so that we can finally tell every working par- all Americans. ent in America: If you work full time and We do all this without imposing harmful you have children at home, we will lift you cuts on programs that benefit older Ameri- out of poverty. This will have more to do cans, and building a better future for our with encouraging people to get off welfare children without asking unreasonable sac- and go to work than anything else we’ve rifice from their grandparents. It’s time for done. Congress to pass this plan. It’s time for Wash- I’m proud that so many people have the ington to show the courage to change, just courage to learn new skills, to choose work as people all across America are showing that over welfare, to look beyond the old divisions kind of courage. between labor and management, between This week I had the honor of meeting with Democrats and Republicans, to the things many Americans who are taking personal re- that unite us as Americans. These people are sponsibility for making their lives and our ready to change. country even better. On Monday, I attended As your Senators and Representatives con- a conference in Chicago where workers and clude work on our budget, I’d like to say a managers talked about how they can work special word to each of you listening to me together to improve the quality of their goods today. There’s been a lot of misinformation and services, increase the strength and secu- about this economic plan. Now you know the rity of their own jobs and incomes. I met truth: $500 billion in deficit reduction, equal- an executive from Missouri who turned ly divided between cuts and revenues; 80 around a failing plant by sharing information percent of the new revenue is going to the with employees about the company’s per- top 1.2 percent of our people; a trust fund formance. When the employees understood so that all the money goes to reduce the defi- the big picture, they did even better at their cit; real investments to help the working jobs. And I met a woman from Detroit who poor, to help middle class families sending got a job as a machinist after enrolling in their children to college, without undue cuts a 6-year advanced training program. When on the elderly. she completes the program, she’ll have the This is a new economic direction for our equivalent of a master’s degree in engineer- country. If you want it, if you want the jobs ing. it will provide and the growth for our econ- On Wednesday, I met with more than 60 omy, you must make your voices heard. Tell corporate executives who support my eco- your Senators and Representatives that this

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plan, with its deficit reduction, with its lower As we grapple with the great challenges interest rates, with its investment in private the CSCE faces, we reaffirm our belief that sector jobs, means more jobs and a better security cannot be divorced from respect for future for America, and it is time to pass it. human rights and the democratic process. Thank you for listening. We also reaffirm our commitment to the ad- vancement of the rights of individuals, for NOTE: This address was recorded at 8:40 a.m. in it was individuals who stood in front of tanks the Oval Office at the White House for broadcast and tore down the walls that split East from at 10:06 a.m. West. Individuals braved the wrath of repres- sive regimes in order to call on them to live Proclamation 6584—Helsinki up to their CSCE commitments. And indi- Human Rights Day, 1993 viduals today continue to struggle to build democratic societies at peace with their August 1, 1993 neighbors. The groundbreaking work of the CSCE in establishing human rights and other By the President of the United States standards to which all CSCE states have of America committed themselves has permanently strengthened European security. A Proclamation In recognition of the contributions of the Since its inception in the 1970’s, the Con- CSCE toward the expansion of human rights, ference on Security and Cooperation in Eu- the Congress, by Senate Joint Resolution rope (CSCE) has been the premier forum 111, has designated August 1, 1993, as ‘‘Hel- in which the ongoing struggle for human sinki Human Rights Day’’ and has requested rights and the dignity and worth of individ- the President to issue a proclamation in ob- uals in European nations has been waged. servance of this day. In the wake of the instability created by the Now, Therefore, I, William J. Clinton, outbreak of war in the former Yugoslavia, the President of the United States of America, CSCE states have embraced a strategy of do hereby proclaim August 1, 1993, as Hel- preventive diplomacy as a way of resolving sinki Human Rights Day and reaffirm the differences before they lead to conflict. The American commitment to upholding human CSCE’s approach of combining a strong em- dignity and freedom—principles that are en- phasis on human rights, preventive diplo- shrined in the Helsinki Final Act. As we macy, and multilateral action is an example Americans observe this day with appropriate of the kind of foreign policy I seek to pursue. programs and activities, let us remember our Yet, the dire situation in the former Yugo- courageous citizens who have made sacrifices slavia gives pause to those who want to be- to secure the freedoms that we enjoy. Let lieve that the CSCE’s principles will be re- us work together to encourage respect for spected in nations emerging from totalitarian human rights and democratic values in all rule. We must work with these nations in CSCE states. order to guide them toward the principles In Witness Whereof, I have hereunto set we hold dear. my hand this first day of August, in the year The CSCE has made a major contribution of our Lord nineteen hundred and ninety- even in areas of instability and conflict. three, and of the Independence of the Through conflict-prevention missions, mon- United States of America the two hundred itoring of sanctions, sponsorship of the and eighteenth. Nagorno-Karabakh negotiations, activities of the High Commissioner on National Minori- William J. Clinton ties, and the energetic program of the Office for Democratic Institutions and Human [Filed with the Office of the Federal Register, Rights, participating states have dem- 3:39 p.m., August 3, 1993] onstrated their collective political commit- ment to transform CSCE principles into re- NOTE: This proclamation was published in the ality. Federal Register on August 5.

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Exchange With Reporters Prior to a Economic Program Meeting With the Progressive Q. Are you going to win? Caucus The President. America is going to win. August 2, 1993 Not me, it’s not about me; it’s about the country. Bosnia NOTE: The exchange began at 10:14 a.m. in the Q. Mr. President, could you clarify U.S. Roosevelt Room at the White House. A tape was policy towards Bosnia? Is the U.S. prepared not available for verification of the content of this to unilaterally use military force to break the exchange. siege of Sarajevo and get humanitarian sup- plies in? Or will it work only in conjunction with the NATO allies? Interview With Newspaper Editors The President. Well, let me say, I think the stories this morning perhaps exaggerate August 2, 1993 our position a bit. Our position is we are The President. Hello? working with the allies. We’re going to try to work through to a common position. We believe we will be able to work through to Senator Herb Kohl a common position. And I don’t think it Q. Mr. President, I want to give you the serves much of a purpose to speculate what first question and to point out that the atten- might otherwise happen. tion you’ve given our Senator Herb Kohl in I don’t believe that the allies will permit the last couple of days has raised his level Sarajevo to either fall or to starve. I just don’t of notoriety to a point that he hasn’t known believe that will happen. So I think we’ll have since he was elected. Now, I know you a common position. There are some con- wouldn’t trade a vote, but is there anything cerns; there always have been by those who that you and Senator Kohl mutually want in have forces on the ground there, particularly terms of legislation or other benefits for Wis- those in the exposed positions. And I think consin that you have an interest in? we’ll work it through, and I want the talks The President. The main thing that Sen- to continue. My goal has always been to work ator Kohl was concerned about—he was in- with them and to proceed together, and I terested in two things, to be fair, and there think we’ll be able to do that. was—in the national interest. One was to Q. Are you concerned about the reports minimize the burden on middle class tax- that the talks may be delayed because the payers. And when he looked at the whole Bosnians expect you to come in on their side package and saw that working families with militarily? incomes under $30,000 were held harmless The President. No, I don’t think that will and that working families with incomes of happen. Let me say this: I think peace has $50,000 and $60,000 were looking at a $33- been delayed by the reverse perception that a-year burden with the spending cuts, I think because the allies have not done anything to that really made a big difference to him. try to stabilize the position. The situation has The other thing that he was interested in until very recently gotten much worse since that I think is certainly as significant over the they were all in Athens talking—because the long run is he wanted a program that had allies did nothing. Now, I think it’s getting some real economic growth incentives, that a little better again because, in part, because had some business help in it. And this pro- we’re talking about what ought to be done gram does a lot for small businesses. Over for humanitarian reasons and to protect our 90 percent of the small businesses in the own forces there, the U.N. forces. country are eligible for a tax reduction if they So I’m very hopeful. I think they’ve made reinvest more money in their businesses. It real progress in the peace talks, and I’m does more for research and development. It hopeful that will go on. I don’t think the Bos- does more for revitalizing homebuilding and nian Government will pull back. real estate. It does more across a whole range

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of issues. For the heavy industry in Wiscon- the previous administration’s rosy revenue sin, under this plan, there will be more incen- estimates. And no one really thought the rev- tives to invest in new plant and equipment enues would grow that much; so they didn’t. in Wisconsin to be competitive there as op- And then spending increased because the re- posed to going overseas. So all those things cession went on and more people were enti- were important. tled to Medicare and Medicaid. And between And then the third issue that he raised, those two things, they were in deep trouble. which I certainly agree with him on, is that Now, let me just address the major objec- we need to bring this deficit down to zero. tions Senator Boren has, because I think And in order to do that, we’re going to have what he says is right, but it’s not a good rea- to cut more. But to do that, we have to re- son to vote against this program. What he form the health care system. So the next issue says is that in order to take the deficit from is how to bring down health care costs so where we’re taking it down to zero, you have we can get this budget deficit down to zero to do something about the entitlement pro- and not just take $500 billion off of it. grams, especially about Medicare and Medic- Q. Have you convinced him, Mr. Presi- aid. Now, that is true. But the problem is dent, that these changes are enough to get if you don’t reform the health care system, his vote on this issue? that is, if you don’t fundamentally restructure The President. Well, I hope so. I’ve the system of the way health care is insured worked hard on that. That’s going to be up against and the way the—cutting out a lot to him, not me, and I don’t think I should of the paperwork and a lot of the things that speak for him. But let me say this: I think are more expensive in America than any- he has really done a good job here, and he where else that have nothing to do with has been very important in bringing a busi- health care, and you cut the medical ex- ness, projobs perspective to the whole de- penses of the Federal Government, all in the bate. So we’ll just see. But we’ve got a $495, world you’re going to do is have a hidden $496, $497—something in that range—bil- tax on the private sector because the provid- lion dollar deficit reduction package. We’re ers will do what they always do. They’ll pass now going to have more cuts than tax in- their costs on to people that have insurance. creases in the package. The top 1.2 percent So that, for example, the Daily Oklahoman of the American people, of people with in- would have its medical premiums go up more comes over $200,000 will pay more than 75 than otherwise would be the case because percent of the burden now. And there are the Government’s not paying the full cost of quantifiable spending cuts now in excess of its health care. $250 billion across the whole range of Fed- So I don’t disagree that we have to do eral programs. So it is a very important first something about health care costs and enti- step here. tlements. But the time to do that is in the context of a health care reform debate, which Senator David Boren we’re going to start as soon as we can get Q. Mr. President, you haven’t had quite this budget out of the way. If we don’t adopt as good a success with our Senator Boren, the budget, we’ll never get there. Everybody who, I think, like many people in Oklahoma who looks at it can see that this budget’s a are concerned that the spending cuts to come lot better deal than the one in 1990. The later—when we went through that in 1990, numbers are more realistic. The growth and they never came. Why should things be package is realistic. We’ve got new business different this time? capital gains tax in there and all kinds of other The President. Well, for one thing I’m incentives for small businesses to grow. Over going to have a trust fund and all the money 90 percent of the small businesses can get will have to be put into the deficit reduction a tax reduction under this plan because of package, both the spending cuts and the tax it. This is going to create some jobs, too. So increases. What actually happened in 1990, it’s a better package. Jim, to be completely accurate about it, is But you can’t solve all the problems of the that the Congress adopted a plan based on world in this bill. That’s my quarrel and dis-

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pute with Senator Boren. He’s right, you’ve to have a premium to cover their own em- got to get the entitlements if you want to ployees, we will limit how much of their pay- go to zero, but we’re going to have to do roll it can be, and it will be phased in over it in two steps, not one. a period of years. But let me flip it over to you on the other Spending Cuts side. Seventy percent of the small businesses Q. Mr. President, a lot of people are con- in America provide some health care cov- cerned with, out here, the fact that the erage for their employees, and almost all of spending reductions, the major ones, seem them pay much more than they should be- to come so late in the plan, and the tax in- cause we’re the only country in the world creases come so early. Wouldn’t it be better that forces employers who cover their em- to go back in and make another slash, even ployees to subsidize employers who don’t, if this means delaying the budget a little bit? and that’s what happens. Everybody in this The President. Here’s the problem with country gets health care, but if you don’t have it: First of all, there are going to be more health insurance and you can’t pay for it, you spending reductions all the way along. The get it too late when it’s too expensive. You House of Representatives has already ap- show up at the hospital; you get cared for, proved $10 billion in spending reductions and then the providers, the doctors and the over and above what’s in this budget, but hospitals, in effect, raise their costs to every- working with me. I’ve encouraged them. The body else. So you could argue that the small Vice President is going to have a reinventing business community as a whole in this coun- Government report out sometime next try is more hurt by the system we have than month, which will provide a lot more savings. by the one we’re moving to. So we’re just getting started on the spending Also, let me make one other point. We reductions. And then as I said, we’ll be able spend about 10 cents on the dollar more than to project a decade of spending controls in any other country in the administrative costs the health care area if we do health care re- of our health care system because we have form. 1,500 separate health insurance companies The problem is that no matter what you writing thousands of different policies, all do with that, the budget we have now and with different rules and regulations, so that the budget we’re going to have next year— the cost of compliance is staggering, and then we’re already preparing to cut more off next the Government aggravates it. year right now. But that is not an excuse not So I think the small business community to act now. Still the big reductions in spend- will wind up ahead on this. But we’ve tried ing are those that aggregate up over time. to send some clear signals that we’re not That is, if I cut $10 billion this year and $10 going to pop them with a big payroll tax, and billion next year, then that’s $20 billion over I do think employers who don’t provide any- this year’s figure and then $30 billion and thing for their employees should bear some $40 billion. You see what I mean? So the responsibility through the private insurance spending cuts are always going to look bigger system. But it ought to be limited and phased in the out-years because they compound one in so that nobody goes broke doing it. another. Small Business Getting the Message Out Q. Mr. President, we’re relaying some of Q. Mr. President, on Friday, last Friday our readers’ questions. One of them was, how we had a conversation with Roger Altman can the job market grow when small busi- about your budget plan, and one of the ques- nesses are afraid new taxes and the health tions we asked him was what the administra- plan will put them out of business? tion would have done differently to sell this The President. Well, first of all, new taxes plan. And he was very frank about it. He said, and the health plan won’t put them out of ‘‘We would have started a lot earlier.’’ And business. We’ve tried to send a clear signal I’m curious in terms of your strategy why you to the small business community that there didn’t really start giving everybody the hard won’t be a tax problem here. But if they have sell a lot earlier.

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The President. You mean not in the Con- to justify keeping the interest rates down gress but in the country? even when there’s economic growth because Q. Yes, talking to the people. the Federal Government will be taking less The President. Well, actually we did a lot capital away from the markets, and therefore, of that, but we didn’t have our war room set there won’t be as much competition for it, up, and we were, frankly, just overwhelmed and we ought to be able to keep lower inter- by the day-to-day news coverage of Repub- est rates. That’s our theory. He has constantly licans carping about taxes and unable to kind and consistently supported the deficit reduc- of break through about what the facts of the tion efforts of this administration in very ex- program were. plicit terms. So I would be surprised to see I worked hard—for 2 months after I made him raise interest rates when we’re doing my State of the Union Address I went out something to support the reverse. If we were into the country once a week. I did my best having 4 or 5 percent growth and inflation to talk about the program. But we didn’t have was getting out of hand, I could understand the kind of organized disciplined effort we’ve it. But there’s no grounds for it now. had for the last few weeks in reaching out to local newspapers and television and radio Economic Program stations and bringing in opinion leaders and Q. Mr. President, obviously, in this part doing all these things we’re doing now. And of the country it would have been more pop- I think we did lose control of the debate. ular to cut spending first, raise revenue later. Also, to be fair to them, to Roger Altman You used the early year forecast of the deficit and the others, an issue like this tends to to go back on your pledge for a middle class go through cycles. I told the people about tax cut. Since, there have been other esti- it on February 17th, and they liked it. Then mates, why haven’t you gone back to a cut the sort of negative rhetoric took over. Now spending first program? we’re kind of coming back to reality, and all The President. Well, first of all, we are the surveys show we’re bringing it back our cutting spending. We are cutting spending. way now. This idea that we’re raising taxes—taxes come in constant amounts, whether it’s a fuel Interest Rates tax or an income tax. Q. Mr. President, Alan Greenspan has This is a dodge. David Stockman, who pio- been giving some subliminal signals about neered Reagan’s program in 1981, has now raising interest rates. Wouldn’t that sort of admitted in repeated interviews that they cut derail your plan for reducing the deficit if taxes twice as much as they meant to because the interest rates went up? And are you wor- they got into a bidding war with Congress, ried about that? that there is no way to restore any kind of The President. Yes, I am. I don’t think fairness to the Tax Code or reduce the deficit you should raise interest rates until there’s to zero unless there is a revenue component. real economic growth that brings on real in- So if I were to say, ‘‘Okay, we’ll put these flation. I mean, there’s no real inflation in spending cuts in for a couple of years, and this economy, and we can have growth with- then we’ll raise taxes,’’ all we would do by out inflation. And I think we may be reading doing that is basically have a bigger deficit too much into his remarks. in the first years because we’d have the Q. Have you talked to him directly about spending cuts but not the taxes, and we what he did mean since he made those re- would have higher interest rates, and we’d marks? have slower economic recovery. The President. No, but I talk to him fairly Let me just say, in the year that I’m in often, and I’m scheduled to have another ses- now—which I’m not even responsible for this sion with him pretty soon. I know him pretty budget until October the 1st—our deficit is well, and my read on what he said was if going to be about $25 billion less than it was inflation warranted it, he might raise interest predicted to be when I became President. rates. But if you think about it, what we’re But to go back to the middle class tax argu- trying to do in bringing the deficit down is ment, after the election but before I took

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office, the previous administration said, ‘‘Oh, Q. Is there any chance, do you think, that by the way, the deficit’s going to be $165 this bill will go down? Is there any chance billion bigger over the next 5 years.’’ So I that it will not pass in the Senate? always in that campaign said I am not going The President. Well, sure there is. But to say ‘‘read my lips’’ because I’ve run a gov- I think it will pass. And the reason I think ernment long enough at the State level to it will pass is this: I think most of those peo- know that sometimes circumstances can ple are going to say, is this a better bill than change on you. I’ve been very candid with we’ve ever had before and better than we the American people about that. I think most had in 1990? And the answer to that will be, people with incomes of $50,000 a year don’t yes. Is this fairer to average Americans than think $33 a year is too much to pay. I think the ones we’ve been considering? The an- what most people have believed is, they’ve swer to that will be, yes. Does this restore been told that they’re going to be paying a some economic growth incentives for small fortune. And—— business, for new high-tech businesses, for Q. Mr. President—— housing, for real estate that we haven’t had The President. Now, wait a minute. Let in the Tax Code for 7 or 8 years? And the me just finish this. I want to make this point. answer to that will be, yes. Does this bill lift I’m going to be President 4 years. We’ve got the working poor out of poverty and encour- opportunities to have even more fairness in age people to get off welfare, not with a Gov- the Tax Code if we’re bringing down the defi- ernment program but by using the tax system cit and we are opening up economic growth. to reward people who work, even at very low There are all kind of options to do things wages? The answer to that will be, yes. And over the next 4 years. But the most important then the last question is, do we want to hang thing now is to do something about the defi- around here in Washington for 60 or 90 more cit. The truth is that all these people who days and debate this, and either come back say they want to cut spending now, what they here and pass something very like it or some- really want is an accounting practice which thing that’s so much weaker that we’ll have still would have all the spending cuts come in the 3d, 4th, and 5th year of this budget higher interest rates, more uncertainty, and cycle. we’ll waste 2 or 3 months when we could What they’re really saying is let’s pass a be dealing with health care, with welfare re- bill that says it’s going to cut spending later form, with a crime bill, with things that will now before we raise taxes. They don’t pro- grow this economy with a new world trade pose more spending cuts in these first years agreement, all these things we need to get than I do, none of them do. And to go back on about the business of doing. to Senator Boren’s bill, particularly the one We are literally paralyzed here. We can’t he offered in the Senate didn’t have nearly get anything else done. The only other major as much support as the one I offered, be- initiative that’s going to come out of this is cause it didn’t have the kind of deficit reduc- the national service bill that I’ve been work- tion unless you did what he proposed to do, ing on for a long time. Other things cannot which was to take more out of Medicare for even be dealt with. middle class people. And even then it wasn’t And again I want to say to those of you going to happen for the 3d, 4th, or 5th year, interested in the cut issue, keep in mind the most of it. Vice President is going to issue our reinvent- So the people that say cut spending now ing Government report within 60 days. The are saying, ‘‘We don’t want to cut any more Congress is still cutting some other spending spending than Bill Clinton does right now, with my strong support. We are going to have but we want to pass a bill that cuts spending more cuts even than we have now. But to in the 3d, 4th, and 5th year in health care delay this program is a great mistake. All it without health care reform and then talk will do is paralyze the Government, paralyze about whether we should tax the wealthiest the financial markets, and leave us with un- Americans later.’’ That’s what they’re really certainty. We’ve been talking about this since saying. February. It’s time to move.

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NOTE: The interview began at 3:25 p.m. The against this program or have announced President spoke via satellite from Room 459 of against it—not the Republicans, that’s almost the Old Executive Office Building. Participating entirely a political deal; the Republicans have in the interview were the editorial page editors even opposed the conservative amendments of the Milwaukee Sentinel, the Milwaukee Jour- nal, the Arizona Republic, and the Reno Gazette to our budget to control entitlements and im- Journal. pose discipline. But the Democrats basically fall into two categories: There are those who think it’s the right thing for the country, but Interview With Newspaper Editors they’re afraid there’s been so much misin- August 2, 1993 formation out there about it that they’ll get beat if they vote for it. And then there are those who think that it’s a good first step, Economic Program but it doesn’t go far enough. Q. As you are well aware, Louisiana’s Sen- The only thing I would say to the latter ator, Bennett Johnston, is or was at last report group is that we do have to do something among the small, key group of Democrat on entitlements, but we can’t get there until Senators who’ve indicated reluctance to vote we do something to reform health care for your deficit reduction package. What are spending overall, and that this is a major step you doing or what can you do to get Senator that will stabilize the financial markets, keep Johnston’s vote? And do you think you will interest rates down, and enable us to move ultimately get it? on to health care reform, to getting a world The President. I don’t know the answer trade agreement, to welfare reform, to the to the last question, but what I’ve done is crime bill, to all these things that are out to try to take the strengths of both House there crying for attention that we can’t even and Senate versions of the bill and try to put address if we don’t go ahead and get this them together. The strength of the Senate budget out of the way. And also, there will version was it had fewer overall taxes and be further budget cuts. The Vice President’s was even more progressive. The strength of report on reinventing Government is due the House version was it had much more eco- next month. It will have many more sug- nomic incentives, more economic growth in- gested budget cuts. And the House of Rep- centives, for research and development, for resentatives has already cut another $10 bil- investment in new firms, for small business, lion off the budget that we can’t fully count the things of that kind. yet because the Senate hasn’t acted. But So the argument that I’m going to be mak- when they do, we’ll have even more cuts. ing to all these Senators is that this plan now clearly has $500 billion in deficit reduction; Deficit Reduction and Taxes it will now have more spending cuts than tax increases in it; it will have over 75 percent Q. Mr. President, good afternoon. of the new tax burden now borne by people The President. Good afternoon. with incomes above $200,000; that the mid- Q. Let me pass on to you a question I’m dle class tax burden is now down to $33 a getting increasingly from Constitution read- year; and that the economic growth incen- ers. How can you assure that your tax in- tives qualifying, for example, 90 percent plus crease package does not have the same result of the small businesses in the country for a as Mr. Bush’s 1990 tax increase package, reduction in taxes if they invest more in their which is to say no result at all except higher companies; and enabling the working poor taxes? through the earned-income tax credit to lift The President. I can do that in two ways. themselves above poverty by working full First of all, let’s look at what happened in time, these are very, very important things. 1990. Why did the deficit reduction package And the time has come to act. in 1990 not produce the deficit reduction it Now, let me say just as a generic thing, was intended to? There were basically two since this may help to shape some of the or three reasons. But one big reason is that other questions: The people who are leaning they overestimated how much the revenues

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would bring in; that is, they had some very, rejected so Members of Congress can go very liberal revenue estimates, and those rev- back home, visit with their constituents, get enues did not materialize. So that within 60 a better feel for the spending cuts that would days after the package passed, they revised be accepted, come back in September and downward the amount of deficit reduction cut some more. Why should that not be by $130 billion. Now, we have instead taken done? the most conservative revenue estimates we The President. Well, because we’ve al- could get. ready got more spending cuts than revenue The second thing is that I have pledged increases, number one; because we’re going to the Congress that by Executive order, I to keep cutting spending, as I have said. But will put all of this money, the spending cuts no one who looks at this budget deficit be- and the revenue increases, into a trust fund lieves it can seriously be brought under con- and that every year if we miss the deficit re- trol unless there are some revenue increases. duction target, I will come forward to the And you know, I think it’s pretty funny— Congress and give them a plan to meet the I mean, I’ve got a 4.3 cent gas tax in my target, that is, to have further cuts to meet plan. Ross Perot proposed a dime a year for the target, and ask them to vote on it. I might 5 years or a 50 cent gas tax increase in his say that we had those requirements in the plan, something he was running from yester- law, and through the parliamentary rules of day on television. I have more verifiable the Senate, the Republicans took it out of spending cuts than he proposed in his plan. the law. One hundred percent of the Repub- We have done what we need to do here to licans agree with that budgetary discipline, get a budget out. and they took it out because they thought Here is the problem: Nothing precludes it was good politics for them to take it out us from cutting more spending. We’re going and weaken the bill further. So I’m going to cut more spending. But until we pass this to do it by Executive order. So it is different. budget, we are paralyzed from going on to Now, let me say, there was one other thing the next big problem with the deficit, which different from 1990. Because this plan has is health care costs and entitlements there. been taken much more seriously by the fi- And that’s got to be dealt with in the context nancial markets, it has already had a big im- of health care reform. We can’t get to health pact in bringing down long-term interest care reform; we can’t consider the next big rates, and that has led millions of people to round of spending cuts through reinventing refinance their homes and their business Government; we can’t do the crime bill, loans. And I’m convinced once we actually which is very, very important; we can’t do pass the plan, we’ll release a lot of investment welfare reform; we can’t do anything until into the economy. The other thing we do that we pass a budget. And we’ve debated this was not done in 1990 is have investment in- from February to August. These Members centives: the 75-percent in small business ex- have been going home every weekend. There pensing—that will qualify over 90 percent of will be more spending cuts. There will be the small businesses in the country for a tax more spending cuts in every year I’m here. cut if they invest more in their business; a But the time has come to pass this budget new business capital gains tax which will real- and get on with it. The tax burden is fair. ly help in high technology areas; we’ve got Spending cuts now will exceed the tax in- incentives to reinvest in homebuilding and creases. And we’re going to put it all against to reinvest in new plant and equipment the deficit. And we’ve just got to do this so through changes in the alternative minimum we can go on and do the rest of it. To keep tax. So there are a lot of pro-growth incen- wallowing around in it won’t serve anybody tives in this plan that were not there in 1990, very well. and those are the principal differences. Q. What do you do about Mr. Perot? The President. Well, nothing. He doesn’t Ross Perot and the Economic Program have a vote in Congress. I think what was Q. Mr. President, good afternoon. Ross done yesterday was wonderful. The press Perot is saying that this proposal should be kept saying, ‘‘Well, what would you do?

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Here’s your plan; how can you criticize the be passing a crime bill to help make our President? Yours was off by $400 billion. streets safer; that we could be dealing with You’re going to raise the gas tax by 50 cents.’’ welfare reform; all these things to strengthen And so I don’t have to do anything. I think, the economy. None of this can be done un- you know, it was nice to see him answer some less we get this out of the way. questions for a change. There’s nothing for me to do. I’ve got a plan, and it’ll work, and Spending Cuts I want to pass it. And it’s good for the coun- Q. Sir, there’s been a good bit of discus- try. sion about the timing of the spending cuts, Let me just say this: We had 67 business particularly saying that they mostly come in executives here from big and small compa- the later years. Could you please comment nies last week, 4 energy company execu- on the timing of the spending cuts? tives—half of them were Republicans, one The President. Well, they weren’t timed of them was President Bush’s cochairman— to do that. The fact is that we have more supporting this plan. And every one of them control—when I took over this budget— said we’ve got to do it because we’ve got to these budgets are done on a 5-year cycle. bring the deficit down, we’ve got to keep in- If you’re going to make deep cuts, it’s easier terest rates down, we’ve got to stabilize the to plan for them if you have a little time to economy, we need some incentives to plan for them. And also under the previous grow—every one of them. I mean, there is budget that we inherited, the budgets were very broad support for this program among already tighter in the early years, and they people who really understand it. were much looser, I thought, in the later When I went to Tokyo to meet with the years. leaders of other industrial nations at the But I assure you, we’re not waiting for that. G–7 summit, for 10 years the statement com- I’ve already given instructions to my Cabinet ing out of that meeting had criticized the to prepare more budget cuts for the coming United States for its budget deficit. For the year. We have reduced the deficit in this year first time in 10 years, they complimented the since I’ve been in office, mostly because of United States. And they agree with me that lower interest rates, by about $25 billion over we ought to go and try to get the 111 coun- and above where it was projected to be. So tries that are in the General Agreement on there are budget cuts in the early years, but Tariffs and Trade to lower tariffs on a whole it’s like planning anything else. If you’re range of issues, eliminate them on a lot of going to take big whacks out of a large organi- other products. And everybody concedes, zation, the longer time goes on, the more who’s studied this, that this could add hun- you have to plan, the bigger the cuts you can dreds of thousands of jobs to the American make. manufacturing sector this year. Why? Be- Now, let me say one other thing. Other cause we’re doing something about our defi- people talk about ‘‘cut first and tax later;’’ cit. most of their cuts are in the later years, too. We have got to move. We don’t need to They just want to pass them first and then delay this another month or 2 months or 3 avoid the tough decisions on the taxes. But months. That’s what they did in 1990, by the if you look at the cuts that are proposed by way. One of your questions was what didn’t others, if you look at Senator Boren’s cuts work in 1990. In 1990 they said, well, we on entitlements, almost all of them come in just can’t make up our mind, so we’ll delay. the later years, the meaningful ones. That’s So instead of adopting it in August, they where they come, except the proposals that adopted it at the end of October. That’s 90 would have raised the costs of health care precious days almost from the first week in to middle class Medicare recipients or upper August to the end of October, 90 days we class ones. I’m not against, for example, rais- could be dealing with health care; we could ing the premiums on Part B. That’s what he be passing the Vice President’s recommenda- called a spending cut. But if you’re going to tions on reinventing Government, which do it, it ought to be done in the context of would be even more spending cuts; we could overall health care reform and not just trying

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to get more money from those folks. I think ing cuts, not more tax increases beyond we need to reform the health care system. where we are. I agree with that. But my point The people who talk about spending cuts is you don’t get to that until you do this first. first are basically saying this. If you ask the You’ve got to pass the budget first, then re- people who say they’re opposed to this but form the health care spending in the country. they understand the budget, they will tell you Otherwise, what’s going to happen with the following things: We are cutting defense health care cuts, it’s going to be very, very sharply and about all we can. I’m concerned unfair to the elderly on Medicare or to peo- that we should not do more. We’ve cut it ple who are paying private insurance. They’re quite deeply. There is an overall freeze on going to bear the costs. domestic spending. For example, that means every dollar we increase Head Start, every Space Station and Super Collider dollar we increase education and training for Q. Mr. President, down here you’re talking workers that have been displaced by defense about budget cutting in Texas; that means plants closing down, every dollar we put into two things basically, the SSC and the space new technologies for defense conversion— station. How do you see their future? Are those are the three areas where we basically they going to hang in there? And if push have increased—we have to cut in veterans comes to shove, how would you put them affairs, in agriculture, in all these other areas. in priority of importance if you have to keep Already we have a budget that will reduce one and get rid of one? the Federal work force by over 100,000 peo- The President. Well, let me just say this. ple in the next 5 years, and there will be They’re both very important to me for dif- more cuts coming to that, so that’s flat. ferent reasons. And I think they’re both im- The only thing that’s increasing in this portant to the country. I think, if you’re ask- budget are the so-called entitlements, and ing how they’re doing now, I think the space that’s basically Medicare and Medicaid and station is more secure than the super collider, Social Security cost of living. We have re- because the space station passed a House strained Federal pay increases and Federal vote. It was a narrow vote, as you probably pension increases below where they have know, the first time. The second time we got been under the previous administrations. some more votes. But the first time we only They are getting some cost of living, but less carried it by a couple of votes when two good than they ordinarily would, and I called for friends of mine who went down to vote a freeze in the first year. So the real growth against it stayed to the end and changed their is in Medicare and Medicaid, in the health vote so we could save it because they knew care programs. If you put a lid on them now it was important to me and, I think, to the without reforming the health care system, country, as I said. you must do one of two things that I think So we have redesigned the space station are not good. One is to charge middle class after a serious review by an eminent team elderly people more for their Medicare and of national scientists. It is very important to much more if you’re going to make them pay maintain our leadership in space technology. it all. Or the second is to not charge them It’s very important in terms of new partner- any more, just limit how much the Federal ships with Russia to keep them involved in Government pays, and force the doctors and this kind of technology, to reduce the incen- hospitals to shift all the costs to the private tive they have to sell weapons and keep them sector, which would raise the health insur- taking their nuclear force down. But most ance premiums of every newspaper on this important, it’s a big economic boom to us. telephone. That’s what’s been going on for If we get out of this, the Europeans will move years. right in, take this over, and have a lot of those I guess I need to say this as clearly as I high-wage jobs that Americans should have. can: I do not dispute those who say if you So I think it is critically important. want to take the deficit from where I take The super collider is important, in my it to down to zero, you have to deal with judgment, for science and for research, not entitlements. And it will require more spend- so much for applied technology now. We

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don’t know for sure what it will produce, but Economic Program we know that it has the potential to produce Q. You spoke about now having more a great deal, and we know that other major spending cuts than tax increases. I wonder science research projects like this have often if you could give us the figures, the current had unintended benefits. state of affairs. It’s in more trouble now. And frankly, The President. Well, you know, they’re whether we can save it or not depends en- still negotiating. It could change, but the last tirely on whether we can save it in the Sen- time I talked to Senator Mitchell it was about ate. And the climate’s not as good as it was $254 billion in spending cuts and about $242 last year when it was saved. I think then- billion or $241 in taxes, or something like Senator Bentsen clearly saved it in the Senate that. They were at about $496 billion. And last time. It got beat by 70 more votes in like I said, it could change in the next few the House this time than it did last year. I days, but—I mean in the next day or so. You really don’t know whether that’s the real sen- know, let me close by, if I might—you asked timent of the House or not. And then I don’t me a question when you started, and I didn’t know how much that had to do with the fact really give you a very good answer about how that, at the moment they were voting on the I could get Senator Johnston’s vote. I think, super collider, your Senators and Mr. Perot frankly, he’s worried about looking like he were out on the steps of the Capitol scream- reversed himself from voting against it the ing at them to cut more spending, at the very first time, and I can understand that. moment the bill came up. I don’t know But let me say, without identifying any- whether that had anything to do with it or body, if you look at the people who have op- not, but I know it lost by 70 more votes than posed the program or the people who voted it did last year. for it with reluctance, their basic objections break down into two categories. One is a po- And you know, it’s pretty tense in the Sen- litical one, pure and simple: ‘‘I think this is ate now over a lot of these issues. But I am the right thing to do for the country, and strongly supporting it. I’m going to do what I hope it passes, but I’m scared I’ll get beat I can to pass it, and I think we’ve got a chance if I vote for it.’’ And we have tried to help to pass it. The key to passing it, frankly, is in several ways: first of all, by recreating an asking the Senate to look at the national in- aggressive communications strategy, more terest and look at the fact that we have to like what we did in the campaign, to try to make a significant investment in nondefense combat what we think are false claims against research and development and technology. this plan and just to get the information out Now that we’ve cut defense a great deal and about it; and secondly, to ask everybody to we have not offset all the cuts in technology imagine what it’s going to be like, not the with domestic investments in technology, day after the vote but after we’ve had a and that’s where a lot of these high wage chance to continue our spending cut program jobs of the future come from, we can’t permit through the Vice President’s reinventing this to become a debate where the people Government initiative and through other cuts in California took 40 percent of the base clos- that will come when we’ve got a chance to ing cuts last time and they complained that deal with health care and welfare reform and Texas took no cuts and that they’re voting the crime bill and these other issues. for new revenues and the Texas Senators Then there’s a whole second category of want—I mean, if it becomes a deal, you people who say that this is okay, this is a know, a State-by-State deal, I think it’s gone. legitimate and honest effort to do better, and The only way we can save it is if people will it does, but it doesn’t do enough. Senator recognize that it is in the national interest Nunn, for example—we’ve got the Atlanta to do so. I’m hoping we can do it. Journal on here—Senator Nunn is sort of in Q. There’s time for one more question. that category, you know, said you’ve got to The President. I can’t believe all these deal with entitlement costs, too. And my ar- editorial writers don’t have another question. gument to that group of people—and that’s [Laughter] the argument that Senator Boren made yes-

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terday—is that you’re right, it doesn’t do with the Government’s part of this respon- enough. But that’s not a good reason to vote sibility, which is how to provide health care against this because what it does is very good, for the unemployed uninsured. indeed. And unless you do this, you can’t get Now, the other big question that the small to the second stage. That is, I completely business community raised is what’s going to agree we have to control entitlement costs happen to the employed uninsured, virtually and that that begins overwhelmingly with all of whom work for small businesses. And Medicare and Medicaid costs. I just don’t I don’t, myself, think that it’s right to raise think it’s fair or right to do it unless it’s part everybody else’s taxes to cover those people of an overall health care reform plan which because everybody else is paying too much brings down the cost of health care to all already. I do think that if we’re going to join Americans and stops cost-shifting and doesn’t the ranks of every other advanced country impose unfair burdens on elderly people on in the world and we’re going to bring our Medicare. And my argument is, we’re just costs down, we’ve got to cover everybody. beginning this process; we’re not ending it. An employer should bear some responsibility But if we don’t pass this budget now, we’ll for their employees. And the employee fool around here for 60 or 90 more days de- should bear some responsibility, too. But my bating the same old thing. We’ll wind up with own view of that is that the best way to do a program that may be marginally different that is to limit the ultimate cost to small busi- than the one we’ve got, but it will in all prob- ness and phase any new requirements in over ability have much less deficit reduction if we a period of years so that nobody is adversely have to go into some sort of situation where affected too much. we’re paralyzed on this. But let me say on that point, it’s important So the real issue here—I think the reason to remember that 70 percent of the small that we’ve had so many Republican as well businesses in America already provide some as Democratic business leaders supporting coverage to their employees. Most of them this is that they want a decision, they want pay too much for too little coverage because certainty, they want real deficit reduction, of the way our insurance market is organized. and they think this meets all those criteria Most of them, in other words, are disadvan- and also has some real incentives to grow the taged by the present system. For those who economy, and it will free us to move on to don’t provide any coverage for themselves or these other things. That’s what I keep em- their employees, they still get health care. phasizing to Members of Congress who say But if they can’t pay for it, the cost of that this is not perfect. I say, look, we’ve got a health care is simply shifted onto everybody 4-year contract here to deal with all these else by the providers. problems, and you can’t expect this one bill So my argument there is that we’re going to solve all the problems of the country. It to do this with extreme sensitivity to the won’t carry that much water. But this is very, economy. I think that most business groups very important, but only a first step. will like this program. I think most provider groups will like the program. And I think ev- Health Care Reform erybody recognizes that there’s something Q. Mr. President, since you brought up badly wrong when we’re spending over 14 health care reform, what do you say to reas- percent of our income as a country every year sure Americans—looming over this budget on health care and no other country in the package with its various tax increases is the world except for Canada is even over 9. specter of more increases to pay for health They’re just barely over 9. We’re competing care. How can you reassure Americans that with the Germans, who are at 8, and the Jap- they’re not getting ready to get hit by a one- anese, who are 8 percent of their income. two punch? And with no discernible effect on our life The President. First of all, I think we expectancy or anything else—we’ve got some tried to be pretty clear from the beginning serious problems they don’t have. that a cigarette tax was just about the only Now, we’ll never get down to where they thing we had under consideration to deal are because we have more poor people, more

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violence, and because for good reasons we ices of Iraqi origin, as well as the exportation emphasize more technology and break- of goods, services, and technology from the throughs. So we’ll never get down to where United States to Iraq. The order prohibited they are, but we have got to bring these costs travel-related transactions to or from Iraq under control or the deficit will never get and the performance of any contract in sup- down to zero, and we can’t really restore the port of any industrial, commercial, or govern- competitiveness of our private sector. mental project in Iraq. U.S. persons were So I would say that people should look for- also prohibited from granting or extending ward to this with eagerness. Also, this is not credit or loans to the Government of Iraq. going to be jammed through the Congress overnight. We’re going to have an honest and The foregoing prohibitions (as well as the open debate on this. I want the American blocking of Government of Iraq property) community to sit down and really visit about were continued and augmented on August this health care thing and talk it through. This 9, 1990, by Executive Order No. 12724, is not going to be some sort of a blitzkrieg which was issued in order to align the sanc- deal. We’re going to take some time and real- tions imposed by the United States with ly discuss it and debate it, just as we have United Nations Security Council Resolution for the last 6 months. 661 of August 6, 1990. Thank you very much. Executive Order No. 12817 was issued on October 21, 1992, to implement in the NOTE: The interview began at 3:49 p.m. The United States measures adopted in United President spoke via satellite from Room 459 of Nations Security Council Resolution 778 of the Old Executive Office Building. Participating October 2, 1992. Resolution 778 requires in the interview were the editorial page editors of the New Orleans Times-Picayune, the Atlanta U.N. member states temporarily to transfer Journal, the Daily Oklahoman, the Dallas Morn- to a U.N. escrow account up to $200 million ing News, the Houston Chronicle, and the Hous- apiece in Iraqi oil sale proceeds paid by pur- ton Post. chasers after the imposition of U.N. sanctions on Iraq. These funds finance Iraq’s obliga- tions for U.N. activities with respect to Iraq, Message to the Congress on Iraq including expenses to verify Iraqi weapons August 2, 1993 destruction, and to provide humanitarian as- sistance in Iraq on a nonpartisan basis. A por- tion of the escrowed funds will also fund the To the Congress of the United States: activities of the U.N. Compensation Com- I hereby report to the Congress on the de- mission in Geneva, which will handle claims velopments since my last report of February from victims of the Iraqi invasion of Kuwait. 16, 1993, concerning the national emergency The funds placed in the escrow account are with respect to Iraq that was declared in Ex- to be returned, with interest, to the member ecutive Order No. 12722 of August 2, 1990. states that transferred them to the United This report is submitted pursuant to section Nations, as funds are received from future 401(c) of the National Emergencies Act, 50 sales of Iraqi oil authorized by the United U.S.C. 1641(c), and section 204(c) of the Nations Security Council. No member state International Emergency Economic Powers Act, 50 U.S.C. 1703(c). is required to fund more than half of the total contributions to the escrow account. Executive Order No. 12722 ordered the immediate blocking of all property and inter- This report discusses only matters con- ests in property of the Government of Iraq cerning the national emergency with respect (including the Central Bank of Iraq), then to Iraq that was declared in Executive Order or thereafter located in the United States or No. 12722 and matters relating to Executive within the possession or control of a U.S. per- Orders Nos. 12724 and 12817 (the ‘‘Execu- son. That order also prohibited the importa- tive Orders’’). The report covers events from tion into the United States of goods and serv- February 2, 1993, through August 1, 1993.

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1. There have been no amendments to the out of a contract for the sale of furnaces by Iraqi Sanctions Regulations during the re- plaintiff to the Iraqi Ministry of Industry and porting period. Minerals, an Iraqi governmental entity. In 2. Investigations of possible violations of connection with the contract, the Iraqi de- the Iraqi sanctions continue to be pursued fendants opened an irrevocable letter of and appropriate enforcement actions taken. credit with an Iraqi bank in favor of Consarc, These are intended to deter future activities which was advised by Pittsburgh National in violation of the sanctions. Additional civil Bank, with the Bank of New York entering penalty notices were prepared during the re- into a confirmed reimbursement agreement porting period for violations of the Inter- with the advising bank. Funds were set aside national Emergency Economic Powers Act at the Bank of New York, in an account of and Iraqi Sanctions Regulations with respect the Iraqi bank, for reimbursement from the to transactions involving Iraq. Bank of New York if Pittsburgh National Bank made a payment to Consarc on the let- 3. Investigation also continues into the ter of credit and sought reimbursement from roles played by various individuals and firms the Bank of New York. Consarc received a outside Iraq in the Iraqi government pro- down payment from the Iraqi Ministry of In- curement network. These investigations may dustry and Minerals and substantially manu- lead to additions to the Office of Foreign As- factured the furnaces. No goods were sets control’s listing of individuals and organi- shipped prior to imposition of sanctions on zations determined to be Specially Des- August 2, 1990, and the United States as- ignated Nationals of the Government of Iraq. serted that the funds on deposit in the Iraqi 4. Pursuant to Executive Order No. 12817 bank’s account at the Bank of New York, as implementing United Nations Security well as the furnaces manufactured for the Council Resolution 778, on October 26, Iraqi government or the proceeds of any sale 1992, the Office of Foreign Assets Control of those furnaces to third parties, were directed the Federal Reserve Bank of New blocked. The district court ruled on Decem- York to establish a blocked account for re- ber 29, 1992, that the furnaces or their sales ceipt of certain post-August 6, 1990, Iraqi proceeds were properly blocked pursuant to oil sales proceeds, and to hold, invest, and the declaration of the national emergency transfer these funds as required by the order. and blocking of Iraqi government property On May 18, 1993, following the payment of interests. However, according to the court, $1,492,537.30 by the Government of the due to fraud on the part of the Ministry of United Kingdom to a special United Nations- Industry and Minerals in concluding the sales controlled account, entitled United Nations contract, the funds on deposit in an Iraqi Security Council Resolution 778 Escrow Ac- bank account at the Bank of New York were count, the Federal Reserve Bank of New not the property of the Government of Iraq. York was directed to transfer a corresponding The court ordered the Office of Foreign As- amount of $1,492,537.30 from the blocked sets Control to unblock these funds, and re- account it holds to the United Nations-con- quired Consarc to block the proceeds from trolled account. Future transfers from the the sale of one furnace and to hold the re- blocked Federal Reserve Bank of New York maining furnace as blocked property. On account will be made on a matching basis January 27, 1993, the Office of Foreign As- up to the $200 million for which the United sets Control complied with the court’s order States is potentially obligated pursuant to and licensed the unblocking of $6.4 million United Nations Security Council Resolution plus interest to Consarc. On March 9, 1993, 778. the court affirmed its ruling in response to 5. Since the last report, there have been Consarc’s motion to clarify the December 29 developments in two cases filed against the order and the Office of Foreign Assets Con- Government of Iraq. Another ruling was trol’s motion to correct the judgment to con- issued in Consarc Corporation v. Iraqi Min- form to the December 29 opinion. The Of- istry of Industry and Minerals et al., No. 90– fice of Foreign Assets Control and Consarc 2269 (D.D.C., March 9, 1993), which arose have each appealed the district court’s ruling.

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In Brewer v. The Socialist People’s Repub- is maintaining economic sanctions against lic of Iraq, No. 91–5325 (D.C. Cir., 1993) Iraq because the Iraqi regime has failed to the United States Court of Appeals for the comply fully with United Nations Security District of Columbia Circuit affirmed the dis- Council resolutions, including those calling trict court’s ruling denying appellant’s mo- for the elimination of Iraqi weapons of mass tion to attach U.S.-located assets of the Gov- destruction, the inviolability of the Iraq-Ku- ernment of Iraq and its state tourism organi- wait boundary, the release of Kuwaiti and zation. Following the holding of Dames & other third country nationals, compensation Moore v. Regan, 453 U.S. 654 (1981), the for victims of Iraqi aggression, long-term court upheld the power of the President to monitoring of weapons of mass destruction freeze foreign assets and prevent their at- capabilities, and the return of Kuwaiti assets tachment by private litigants in times of na- stolen during Iraq’s illegal occupation of Ku- tional emergency. wait. The U.N. sanctions remain in place; the Unite States will continue to enforce those 6. The Office of Foreign Assets Control sanctions under domestic authority. has issued a total of 391 specific licenses re- garding transactions pertaining to Iraq or The Baghdad government continued to Iraqi assets since August 1990. Since my last violate basic human rights by repressing the report, 54 specific licenses have been issued. Iraqi civilian population and depriving it of Licenses were issued for transactions such humanitarian assistance. The United Nations as the filing of legal actions against Iraqi gov- Security Council passed resolutions that per- ernmental entities, for legal representation of mit Iraq to sell $1.6 billion of oil under U.N. Iraq, and the exportation to Iraq of donated auspices to fund the provision of food, medi- medicine, medical supplies, and food in- cine, and other humanitarian supplies to the tended for humanitarian relief purposes. people of Iraq. Under the U.N. resolutions, 7. The expenses incurred by the Federal the equitable distribution within Iraq of this Government in the 6-month period from assistance would be supervised and mon- February 2, 1993, through August 1, 1993, itored by the United Nations. The Iraqi re- that are directly attributable to the exercise gime so far has refused to accept these reso- of powers and authorities conferred by the lutions and has thereby chosen to perpetuate declaration of a national emergency with re- the suffering of its civilian population. Dis- spect to Iraq are estimated at about $2.5 mil- cussions on implementing these resolutions lion, most of which represents wage and sal- resumed at the United Nations on July 7, ary costs for Federal personnel. Personnel 1993. costs were largely centered in the Depart- The policies and actions of the Saddam ment of the Treasury (particularly in the Of- Hussein regime continued to pose an un- fice of Foreign Assets Control, the U.S. Cus- usual and extraordinary threat to the national toms Service, the Office of the Assistant Sec- security and foreign policy of the United retary for Enforcement, and the Office of the States, as well as to regional peace and secu- General Counsel), the Department of State rity. Because of Iraq’s failure to comply fully (particularly the Bureau of Economic and with United Nations Security Council resolu- Business Affairs, the Bureau of Near East tions, the United States will therefore con- and South Asian Affairs, the Bureau of Inter- tinue to apply economic sanctions to deter national Organizations, and the Office of the Iraq from threatening peace and stability in Legal Adviser), and the Department of the region, and I will continue to report peri- Transportation (particularly the U.S. Coast odically to the Congress on significant devel- Guard). opments, pursuant to 50 U.S.C. 1703(c). 8. The United States imposed economic sanctions on Iraq in response to Iraq’s inva- William J. Clinton sion and illegal occupation of Kuwait, a clear act of brutal aggression. The United States, The White House, together with the international community, August 2, 1993.

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Remarks on Signing the Government Vice President said, an important first step Performance and Results Act of 1993 in the efforts to reform the way the Federal and an Exchange With Reporters Government operates and relates to the August 3, 1993 American people. It may seem amazing to say, but like many big organizations, ours is The President. Thank you very much. primarily dominated by considerations of Thank you. Ladies and gentlemen, when I input, how much money do you spend on took this office with a real determination to a program, how many people do you have engage in what we’ve come to call reinvent- on the staff, what kind of regulations and ing Government around here, it was really rules are going to govern it, and much less encouraging to me to see that there were by output, does this work, is it changing peo- Members of the Congress who had been ex- ple’s lives for the better, can we say after amining these questions for years and seri- we take money and put it into a certain en- ously trying to address them. I want to say deavor that it was worth actually having it a special word of thanks to Senator Glenn, away from the taxpayers, into this endeavor, in his absence, and to Senator Roth; to my and their lives are better? These may seem friend Congressman Conyers and Congress- like simple questions, but for decades they man Clinger and the other Members who haven’t been answered in a very satisfactory have worked so hard to try to put us on the way. We are determined to do that. road to seriously reexamining how this Gov- ernment works. It is important to restore the I think it’s fair to say that most Americans confidence of the American people in their will understand that no organization as large Government. It is important because, to the and complex as the National Government extent that our Government works with can be transformed overnight. I also want to greater efficiency and effectiveness and less say that a lot of the things that this Govern- unnecessary cost, it will strengthen the ment does, it does pretty well, and there are American economy as well as the bonds of a lot of dedicated employees out there who our citizenship. do their jobs well. But everyone who has ever This law holds a lot of promise to do both spent any time looking at how we do things, things. The legislation itself mainly involves how decisions are made, how they tend to the inner workings of Government, things pile one on top of the other, year-in and year- that most people don’t think about and out, without ever being examined in total or maybe don’t ever want to think about. It re- in terms of their effect would say that this quires the formulation of strategic plans, of is an effort that is long, long overdue. setting yearly goals and targets for every pro- So I ask, as I sign this bill, for the support gram, of measuring and reporting how well of the American people to continue the work programs actually perform compared to the of reinventing Government and for their targets set for them, and more accountability careful attention to the report that the Vice for achieving results. But we should view this President will present to me next month. I structure in much simpler terms, terms that ask for the support of the Congress in being every American should be able to identify willing to reexamine all of our assumptions with. The law simply requires that we chart and to try to take a fresh look at the way a course for every endeavor that we take the we spend the people’s money. And I ask for people’s money for, see how well we are pro- the support of the fine people who work for gressing, tell the public how we are doing, the Federal Government to try to find a new stop the things that don’t work, and never spirit of renewal and change that I think will stop improving the things that we think are make their jobs more satisfying, and I know worth investing in. will help to restore the credibility and con- Earlier this year I met with our staff to fidence of the American people in the public discuss this. The Vice President and I were enterprise. both enthusiastic about this bill, and I am very, very pleased that it has passed so rap- Thank you very much. idly. I do want to point out that it is, as the [At this point, the President signed the bill.]

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Income Tax Increases good package; it’s solid; it’s clearly real num- bers. It’s very different from the 1990 pack- Q. Mr. President, sir, on the subject on age in many ways. So I feel quite good about which you’re not getting bipartisan support, it. on the budget, can you respond to Repub- lican, very sharp Republican criticism of the Bosnia retroactivity of the income tax increases? Q. Mr. President, what message is being The President. Well, as you know, we had sent to Bosnian Serbs and Muslims with this supported moving it up for 6 months. But agreement that NATO has reached? in the conference committee there was a very strong demand to do some other things that The President. The message is, first of made it very difficult not to put it back retro- all, that the allies are determined to protect actively, apparently. For example, the con- the United Nations forces there, determined ference wanted to raise the income threshold to secure the humanitarian relief program. to which Social Security recipients were sub- And the other message is that we would very ject to higher income taxes so that now no much—all of us—like to see a successful one on Social Security, and I think it’s about agreement and a fair peace agreement that the bottom 90 percent, will not be subject can then be enforced. We’d like to see an to any higher taxes. end to the fighting. There should be an end to the shelling of Sarajevo, an end to the mis- And the people that we have to get votes ery before we go through another winter with from asked for the following: They said, we grave, grave difficulties ahead. And I hope want the economic incentives in, we want the message will be there. I feel very good $495 billion of deficit reduction, and we don’t about what happened yesterday, and I appre- want a higher energy tax number. And I think ciate the support of the allies for the United the conferees—I don’t think any of them States position. were very happy about that, but I think they thought that since that had been announced Q. How long do the Serbs have before air in January, or February, since a lot of people strikes would begin? were already making adjustments on the The President. Thank you very much. basis of that, that that was a fairer way to do it than to run the risk of dropping below Spending Cuts $490 billion in deficit reduction and, frankly, Q. Did you notice they kept the honeybee not being able to pass the program. subsidy, the one thing you had promised to Q. Won’t it be underwithheld, and won’t get rid of? it be a drag on the economy—— The President. We’ll eventually get it. The President. It depends on what else The Vice President. Phil Lader and I are we do. We think we have some options to going to get rid of that. offset it, but it is ironic that the same people The President. Let me tell you, there will who filibustered the jobs program earlier this be many more budget cuts. This is the begin- year are worried about a drag on the econ- ning, not the end. The House has already omy. They had a chance to put a half a mil- embarked on that course. There will be lion Americans to work and turned away more. from it. This money will be spent to reduce the NOTE: The President spoke at 9:43 a.m. in the deficit and to provide economic incentives Roosevelt Room at the White House. S. 20, ap- to many of those same people who will pro- proved August 3, was assigned Public Law No. vide the higher taxes. So I think that, on bal- 103–62. ance—I understand the decision the con- ferees made. I wish it hadn’t been necessary. The Office of the Press Secretary issued a state- But part of it was just dictated by the size ment on August 2 concerning the NATO decision of the deficit reduction package we wanted on air strikes against the Bosnian Serbs, with the and the low energy number. I think it is a text of the NATO resolution attached.

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Remarks With Judge Ruth Bader country. And last time I was here I don’t Ginsburg and an Exchange With think there was an opportunity for any ques- Reporters tions. So if one of you has a question, I’ll August 3, 1993 do my best to respond. Q. Justice Ginsburg, what do you think The President. Good afternoon. My fel- that you’ll bring to the Court that has not low Americans, today we heard the sound been present before in the Court? What in- of gridlock breaking in Washington, and I sights, what experience, what background? liked what I heard. Today the Senate passed Judge Ginsburg. I think you must reserve our national service program, one of my top judgment. I’ll do the very best I can in this legislative priorities. Within months, thou- job, and then you can write a review of my sands of young people will be at work in their performance in a year or so from now. communities helping our country and help- Q. You’ve been called a liberal; you’ve ing to pay for their own education. And mid- been called a conservative; you’ve been dle class students everywhere will have an called a moderate. What are you? easier time affording college. Judge Ginsburg. I think you could report Also today, the Senate Judiciary Commit- on that, too. But I don’t believe that every tee voted unanimously to confirm Judge child that’s born alive is either a little liberal Louis Freeh to be Director of the FBI. This or else a little conservative, except in Gilbert support for a crime fighter of iron will and and Sullivan. unshakable integrity affirms that he is clearly Q. But you’re not a child. the right person for the job. Judge Ginsburg. That’s every child that But I am most gratified today by the over- grows to become a woman or a man, yes. whelming vote in the United States Senate to confirm Judge Ruth Bader Ginsburg to Economic Program be Associate Justice of the United States Su- Q. Mr. President, even though this is Jus- preme Court. Too often in the past, judicial tice Ginsburg’s moment, could we ask you nominations have prompted a partisan brawl what you hope to accomplish with your and generated more heat than light. Today speech tonight? What persuading do you we’ve put aside partisanship, and the national need to do? What misperceptions perhaps interest won out. are there? I have no doubt that Ruth Ginsburg will The President. Well, I think there is still be a great Justice. She has the opportunity a continuing job to do to make sure the to move the Court not left or right but for- American people know again exactly what is ward. Her legal brilliance, wisdom, and deep in this program and why I think it is good devotion to justice has brought our Nation for the country, and what it means in terms together around her nomination. When I an- of our long-term economic health and well- nounced her appointment, she spoke about being to regain control over our economic her grandchildren. Someday, I believe my destiny; to keep interest rates down; to have grandchildren will benefit from and learn these economic incentives to create jobs; to from the contributions she is about to make. lift the working poor out of poverty; to enable We’ve done some good work today, but us to move on to deal with health care, with there’s more to do. Tonight I will address welfare reform, with an important crime bill. the Nation about my plans to put our eco- All these things will help to strengthen our nomic house in order. I hope that my re- efforts at economic recovery. And therefore, marks will be persuasive. But this afternoon, this moment in this debate is very, very im- I just wanted to take a few moments to con- portant because it’s decisionmaking time, not gratulate now Justice Ginsburg and to give delay time. And I hope that I can persuade her a chance just to say a sentence or two the American people that that time has come. about this very important day in her life and Q. Mr. President, throughout the budget the life of our Nation. process, people have seemed to be able to Judge Ginsburg. I am so glad to be part roll you and get away scot-free. Senator of what has been a very good day for the Boren, the prime example, got you to back

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away from the broad-based energy tax and to have persuaded any Senators to come to now says he won’t support the deal. That your side. Do—— begs the question, sir, how can you expect The President. We’ll wait—watch and people to support a very—or take a very po- see. See if we win. litically difficult vote when there doesn’t Q. Why do you think you’ve had such a seem to be any penalty for those who won’t? hard time persuading the Democrats in your The President. How can you expect me own party? to answer a question which is not credibly The President. Well, I think for one thing, put? He had a veto on the Senate Finance I think we’ve shown a lot more party cohe- Committee, didn’t he, because the Repub- sion than the Republicans have. You know, licans refused to engage in responsible budg- more Republicans voted against the House etary discussions? So I didn’t agree to do any- Republican budget than Democrats voted thing. He didn’t roll anybody. He exercised against mine. And last year, 75 percent of his vote, and his vote was enough. And that’s the Republicans voted against President the way the legislative process works, near Bush’s budget. So I think we’ve done pretty as I can tell, from the beginning of the coun- well. And also they’ve had to do it against try. Now, perhaps you know more than I do. a withering barrage of misinformation from You know, I saw a lot of people talking the Republicans, trying to convince people about Lyndon Johnson. When Lyndon John- there were no budget cuts, no deficit reduc- son was the Senate majority leader, a Senator tion, all the taxes on the middle class, all could not introduce a bill unless he signed things that were totally untrue that they just off on it. Would you like to return to that kept saying. I think that the Democrats that system? Would the press favor that? That are with us have shown a remarkable amount would give us a little more party discipline of political courage. around here if no Republican or Democrat It’s hard to get people to be brave when should introduce a bill unless they signed off they see for 12 years we took the debt from on it. I’ve done the best I can. I think we’ve $1 to $4 trillion and reduced investment in got a very good program. our future. And people made those decisions Look at the principles that we’ve got. Look and were rewarded by them by just always what we started with. We’ve got $500 billion taking the easy way out. I’m not asking them in deficit reduction. We’ve got a very pro- to do something easy. I’m asking them to do gressive tax program that asks, now, 80 per- something hard. And I’m proud of the ones cent of the money will come from people that are doing it. And I think when they vote, with incomes above $200,000. The middle there will be a majority. I feel very good class, that is, couples with incomes of under about it. $180,000 down to $30,000, will be asked to pay this gas tax. It’s about $33 a year. Fami- lies with under $30,000 of income will be Partisanship held harmless. Q. Mr. President, I don’t want to detract We have the economic incentives that we from your beautiful day, but you said that have long asked for: for small business, over partisanship had been set aside; but almost 90 percent of them getting a tax break; the unprecedented is the way the Republican working poor lifted out of poverty; new in- Party in both Houses has united against you vestments for children and for families. This on this bill. Do you think it’s personal? Do is a very good program very much like what you think that there is some—over and be- I recommended and very different from what yond the political implications? we’ve been doing for the last 12 years. And The President. No, I think it’s all politics. if it passes, I will be very glad. And to do I think that the guiding spirit there is incred- it with no help from the opposition party will ible partisanship. I think they think their job be remarkable. is to hurt the Democrats in Congress politi- Q. Do you have the votes yet for this plan? cally and hurt the President politically on this And you’ve been waging this full-court press bill. I don’t think it has anything to do with now for several weeks, and it doesn’t seem principle, and I don’t think it’s personal.

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But I’ll tell you this: I don’t think it will Statement on the Confirmation of happen again. I think if you look at Judge Judge Ruth Bader Ginsburg Ginsburg’s vote; if you look at the national service vote and the fact that they didn’t sus- August 3, 1993 tain the filibuster all the way through until I am extremely pleased at the swift and we voted on the economic program; if you determined action by the U.S. Senate in look at the genuine dialog that’s occurred on overwhelmingly confirming Ruth Bader health care; if you look at the bipartisanship Ginsburg to the United States Supreme we’ll have on trade issues, on the crime bill, Court. I want to thank Chairman Biden, Sen- on welfare reform, and I think on future ator Hatch, and their colleagues on the Judi- budgets; if we prove we can take the tough ciary Committee and the Senate as a whole decisions now and we’re rewarded for it by for prompt consideration of her nomination. resuming control of our own destiny, I don’t think we’ll have this level of partisanship on As President, I am proud of having nomi- any other issue. nated such an outstanding jurist who dem- Q. Why not? onstrated in the confirmation process tre- The President. Because there will be no mendous intellect, integrity, comprehension incentive for them to do it. The only way of the law, and compassion for the concerns they can win with this strategy is if the of all Americans. I am confident that she will Democrats don’t adopt the program. Once be an outstanding addition to the Court and this is done, all the rhetoric goes away and will serve with distinction for many years. the reality takes place. People will see that the middle class are not burdened, that they’re benefited by the program. They’ll see Statement on Senate Action on that the wealthiest Americans who can afford National Service Legislation to pay are carrying the lion’s share. They’ll see the spending cuts. They’ll see the work- August 3, 1993 ing poor rewarded. They will see the reality. I am extremely pleased by action taken The only thing that benefits them now is today by the Senate in passing the National delay and denial and more of what we’ve had and Community Service Trust Act. I am also for too long. And I think if we move tonight gratified that Republicans and Democrats and move tomorrow and move the next day were able to work together to turn this land- and move this week on this program, then mark legislation into reality. we’ll get this country back on a forward movement. The momentum will be there to National service will take on our Nation’s face the health care crisis, to face the welfare most pressing unmet needs while empower- crisis, to face these other problems. And I ing a new generation to serve as leaders of believe we will do it in a bipartisan manner. change. National service is about enhanced I’m very, very hopeful about it. educational opportunity and rebuilding the Thank you. American community. Most importantly, na- tional service is about getting things done. Address to the Nation A number of Senators played crucial roles Q. So have you finished the speech al- in helping pass this bill. In particular, I would ready? Are you still writing or is it done? like to thank Senator Kennedy for the leader- The President. I’ll fool with it some more, ship and dedication he has shown throughout but I’m done. this process. Thanks to the efforts of the Sen- Q. Is it a good speech, sir? ate today and the House last week, young The President. I’ll give the Judge Gins- people will soon be serving their country in burg answer: That’s for you to determine. It’s their communities here at home. what I believe. I’ve always said national service is the American way to change America. I com- NOTE: The President spoke at 4:44 p.m. in the mend the United States Congress for taking Rose Garden at the White House. action that will prove that true.

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Interview With the Nevada Media will be lifted above poverty, not by a Govern- August 3, 1993 ment program but by reductions in the tax system. This is a program that will get Amer- The President. Thank you, Gary, and ica on the move. thank you, Paula. First of all, let me thank Finally, I want to say that if we do what all of you for giving me a few moments of others ask and just delay, we might run the your time today in order that we might to- risk of what happened in 1990, fooling gether communicate directly with the citi- around for 3 months, wasting valuable time zens of Nevada about a whole range of issues, when we ought to be dealing with the health but especially about the economic program care crisis, with welfare reform, with a new that the United States Congress will be vot- crime bill, with urgent matters that will bring ing on in the next few days. more jobs into this economy, and winding I’ve worked hard to put together a pro- up with a program as in the 1990’s that gram that would achieve the very important doesn’t work. This is a good, fair bill. It will principles I outlined when I became Presi- make a good difference to America. And I dent. We want to reduce the deficit by $500 hope that the Senators and the Congressman billion. We want to do it in a way that focuses from Nevada will support it. I hope, most on specific spending cuts, over 200 of them, importantly, that the people of Nevada will and has at least as many cuts as new taxes. support it. We want the new tax burden to be fair. And I’ll be glad to answer your questions. in this program, now over 80 percent of the Q. Mr. President? burden will be borne by people with incomes The President. Yes. above $200,000. The average cost for a mid- Q. Hi, Mr. President. Greetings from Ne- dle class family with an income of about vada. $60,000 a year will be $33 a year in the 4.3 The President. Thank you. percent fuel tax. Working families with in- comes of under $30,000 will be held harm- Economic Program less. The fourth thing we want to do is to Q. First of all, many Nevadans appear to make sure that this program promotes jobs be losing some trust in Washington. At the and growth. After all, that’s the objective. If same time, too, Nevada has been a State that we pass the program, we’ll keep interest rates has created quite a few jobs over the past down and that will make it possible for peo- few years. But now you offer a budget pack- ple to refinance their homes and businesses age that seems to hurt our big business, in and invest at low interest rates for high other words, tourism, with the gas hike. Why growth. should Nevadans buy into this gas hike? We also have incentives in this program The President. Well, for several reasons. that I think are very important. Number one, First of all, it is a modest one, and gasoline over 90 percent of the small businesses in is at its lowest real price in 30 years. In other America will be eligible for tax reductions words, if you adjust for inflation, gas is cheap- if they invest in their businesses and in new er now than it has been for 30 years. This jobs and growth and opportunity. Number fuel tax increase is quite modest and, for ex- two, we support research and development. ample, will be a much lower burden on fuel Number three, we support new firms, espe- than the Btu tax which the House of Rep- cially new high-tech firms, and their attempts resentative originally passed. to get new capital by giving a capital gains Secondly, there are offsetting benefits to break of 50 percent for people who invest the job-generating engine that Nevada has in these new and small firms for 5 years or become. As I said, over 90 percent of the more. And finally, this program lifts up work small businesses are eligible for an actual tax and family, supporting most importantly the reduction. Bigger businesses will be able to working poor. For the first time ever if this get incentives to invest in new plant and program passes, through the tax system, peo- equipment. There are all kinds of other ple who work hard, have children in their things that really help the business commu- homes, and are still below the poverty line nity. That’s why the Home Builders, the Re-

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altor Association, the American Electronics ers to trigger in, I believe what would happen Association, any number of business groups is that you’d have a substantial increase in have endorsed this program, because it will interest rates as all these people who thought create jobs. And keeping interest rates down we were serious about reducing the deficit while there’s so much building going on in will say, well, there they go again. So we are Nevada is very important because you have going to cut spending more and more and to borrow money to finance construction. So more, but we need the revenues, too. that also will have a big boon to the Nevada economy. You will get a lot more out of it Senator Richard Bryan than the 4.3 cent gas tax will cost. Q. Mr. President, are you disappointed Spending Cuts that a moderate Democrat like Dick Bryan Q. Mr. President, we’ve been taking phone is not supporting your budget? And what calls from our viewers for the past 24 hours, message does that send? and the overwhelming percentage have been The President. Well, I’m always dis- asking, why not cut spending more first be- appointed if we don’t get 100 percent of the fore raising these taxes? votes. But I think that Senator Bryan had The President. First of all, we do cut some questions about the bill that was in the spending at the same time. There are $255 Senate last time that I hope that this con- billion in spending cuts over a 5-year period ference report will answer. And let me just and about $241 billion in taxes over a 5-year mention a few things that I think will make period. They are going into a trust fund so the bill more attractive to him, and I hope the money can’t be spent on anything else. may still secure his vote. And if we miss the reduction targets, every For one thing, there are clearly more year I will be bound by the system we’re now spending cuts and tax increases in this bill. following to come in and correct this. Sec- For another, there is a provision in this bill ondly, there will be more spending cuts. We that—it does something that many of the are going to have a report in September from people in the hotel business, the restaurant the Vice President’s Commission on Rein- business have wanted for some time, which venting Government, which will recommend gives them a credit against the Social Security some substantial increases in spending cuts. taxes they have to pay on their waiters’ tip And finally, as we deal with health care, we’ll income, which is an important thing that’s be able to deal with the exploding costs of been passed by the Congress before but entitlement spending on health care to our never actually written into law because it was Federal budget. But the only fair way to do vetoed previously. Thirdly, the economic in- that is to provide health security and to re- centives that were in the House of Rep- form the health care system. So I assure you, resentatives bill that were not in the Senate there will be more spending cuts coming up. bill have now been put back in, for research But let me finally say that no person who’s and development, for high-tech industry, studied this believes that we can bring this new business capital gains. We almost double deficit down and eventually get it down to the expensing for 94 percent of the small zero unless we also ask primarily those peo- businesses in America. ple who got most of the income gains in the A lot of things that are in this final bill 1980’s, that is, the top 11⁄2 percent of our in much greater degree than they were in income earners; they got most of the benefits the bill that Senator Bryan voted against. So of the eighties, and they got the tax cuts of I’m hopeful that these things plus the fact the eighties. All we’re trying to do here is that we are going to have this trust fund, to restore some fairness and ask those who which was not in the Senate bill, to guarantee can pay to do so. Together these things will that the money goes to deficit reduction, will make a balanced package. We can’t get there be enough for him to say that the bill has with just spending cuts. If I were, for exam- improved to the point where he can join Sen- ple, to take all the revenue increases out, just ator Reid and Congressman Bilbray in sup- have the spending cuts, and wait for the oth- porting it.

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Reaganomics The President. I don’t know that history Q. Mr. President, can you respond to has proven that. Under President Bush’s ad- former President Reagan, who wrote in to- ministration, where he railed against taxes day’s New York Times that he felt your budg- and finally signed a program in 1990 which et plan was unwise and would plunge the was basically a middle class tax increase that 1 economy into the deep doldrums? had 2 ⁄2 times the burden on the middle class The President. Sure. When President that this program does, we didn’t have new Reagan became President, we had a $1 tril- jobs. There were times in American history lion debt. We now have a $4 trillion debt. when we had much higher tax rates than we For the last 10 years under Presidents will have under this program, much, much Reagan and Bush, we have pleaded with our higher, where we were creating any number allies to work with us to support a higher of jobs. rate of growth to create more jobs in all the I think what has killed this economy is that rich countries of the world, and they have so much of our money is going to deficit fi- said publicly for 10 years the biggest problem nancing that that has kept interest rates high. is the American deficit: ‘‘You won’t do any- People have not been able to afford money thing to get your own house in order; don’t to borrow and to invest, and we have seen tell us what to do.’’ This year, the allies, Ger- ourselves losing control of our financial fu- many, Japan, all these other countries, for ture. So I don’t think all taxes are by defini- the first time in 10 years when I met with tion bad for the economy. Do I think you them complimented the United States for fi- can overtax the economy? Sure I do. But we nally doing something about our deficit and still are going to have, on the whole, lower said now we’re going to be able to work to- taxes than our major competitors and much gether to grow the economy and create jobs. lower taxes than we’ve had at times past And finally, we saw the end of Reagan- when we created more jobs. I think we will omics in the last 3 or 4 years, where we had lose more if we do nothing now and let this 4 years with only a million new jobs coming deficit get out of hand and run the interest into the economy. And the record came in rates back up. I think that will be much on the eighties, where 60 percent of the eco- worse. If I didn’t, I wouldn’t recommend nomic growth went to the top one percent this. of the people. And we didn’t grow very many Let me just make one point here by way jobs compared to previous decades. of just kind of trying to establish my credibil- So my answer is that President Reagan’s ity on this issue. Before I became President, program, which was to cut taxes and increase I was Governor of a State for 12 years where spending and have a huge deficit and try to we never had to raise taxes to balance the borrow and spend our way out of our eco- books, where I routinely cut spending—I ran nomic problems worked pretty well in 1983 a tight balanced budget—and where, in every and 1984, but after that, it began to have year I was Governor, our State was in the serious problems. And for 6 or 7 years, it’s bottom five in the country in the percentage now apparent that we can no longer borrow of our people’s income taken up by State and and spend our way to prosperity. We have local taxes. The only time we ever raised any to have some more discipline in our national new taxes was when we had heavy majority life. support for dedicated support for either schools or roads. That’s it. Now, what we’re facing now in this country Taxes is a situation not of my own making. I wasn’t Q. Good afternoon, Mr. President. You’ve in Washington the last 12 years, in either said that your plan will create 8 million jobs, party, voting to run the debt from $1 trillion but half of the proposed deficit reduction to $4 trillion. But I have to face the fact that package comes in the way of new taxes. How that’s where it is. And we’re either going to do you plan to reconcile those two, when his- do something to regain control of our own tory has proven that increased taxes does not destiny, or we’re going to let the economy create new jobs? continue to spin out of control and we’ll be

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helpless to influence it. So it’s just a question to the magna site, I have asked the EPA to of whether we’re going to do this for the long accelerate review of that. It’s in an economi- run or not. cally depressed area. If we can find a way And let me just make one final comment, to permit that in an environmentally respon- because it relates to the last two questions. sible way, I think we ought to do it sooner If you go back and look at Japan in the mid- rather than later. And if we can’t do it, we 1970’s, they had a deficit about as big as ours ought to tell the people sooner rather than now, a big part of their income. They decided later. So I’ve asked the Government to expe- they would balance their budget over a 10- dite review of that. year period. They brought it down with a dis- With regard to the nuclear testing site, as ciplined balance of tax increases and spend- you know, I have called upon the other nu- ing cuts. It did not hurt their economy; it clear powers of the world to observe a mora- strengthened their economy. And I think if torium on nuclear testing. If that holds up, we take the long view, we will see we’ve got I think we have an obligation to work with to get ourselves out of debt and invest in you to try to find ways for the resources there job growth and our future. and the people there to find other forms of And keep in mind, most new businesses economic activity. And with regard to Yucca and most existing businesses can have their Mountain, we’ve already ordered an inde- taxes reduced under this program. Only the pendent financial management review. top 4 or 5 percent of the businesses and the We’re working on an independent manage- top 11⁄2 percent to 2 percent of the income ment review. And the Governor and your earners are going to pay any substantial in- congressional delegation have also talked to come tax increases under this program. me very often about the question of the sci- There are no income tax increases for busi- entific basis on which Yucca Mountain was nesses earning under $180,000 or for couples selected, and we have under review what we earning less than that. ought to do about that. So I think we’re on top of all three of those The Environment and the Economy issues. And I believe ultimately, sound envi- Q. Good afternoon, Mr. President. Nevada ronmental policy is good for the economy, poses some interesting possibilities here in and I think we’ll find a way to create more terms of the jobs and growth that you’ve jobs than we lose out of it if we do it right. talked about. But there are also a number Next question. of environmental concerns. We have it at Yucca Mountain and also at the Nevada test Nuclear Testing Sites site in nuclear terms. Then in northeast Ne- Q. Mr. President, you just mentioned the vada, there is a mine whose reopening has Nevada test site. And as you know, the Ne- been delayed because of environmental con- vada congressional delegation has several cerns. What can Nevadans expect from the suggestions for different types of activity that White House in terms of any overall policy would go on there. There’s 8,000 jobs at whenever the environment clashes with the stake. They have all kinds of ideas, from solar economy? energy research facility to plutonium storage. The President. You can expect an honest Could you be more specific about what plan attempt to do what the Secretary of the Inte- you have for the test site? rior, Bruce Babbitt, and the EPA Director, The President. No, I can’t, because I Carol Browner, are doing all over the coun- didn’t know until just a few weeks ago, as try, to try to do our best to reconcile the you know, that we would not be resuming two in ways that are good for the economy, nuclear testing. I had not made a final deci- in that if the environment has to foreclose sion on that, and I had not had a chance some economic activity, we believe the Fed- to consult with our allies. eral Government has a responsibility to try I can tell you this—let me say this again to help open another avenue of activity. as clearly as I can. I think that your congres- You mentioned those three things, so let sional delegation and your Governor will me run through them quickly. With regard come up with some very good ideas. I believe

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we have a strong obligation to work with and also to process those people much more them to develop alternative economic activi- quickly than they have been in the past. ties for the site. First of all, the United States Then the third problem is just the problem has a great investment there. And secondly, of large numbers of illegal aliens coming. The we have an obligation to the people of Ne- big States that receive them now are Califor- vada. nia, Texas, and Florida, but many, many And let me say, for 2 or 3 years now, long other States also have a large number of ille- before I even started running for President, gal aliens. We’re going to have 600 more bor- I was complaining that the Federal Govern- der patrol operations, faster review, and ex- ment started cutting defense spending way pedited review and return of people that we back in 1987 with no plan for helping the find who are illegal. We will observe their people affected to convert and succeed in constitutional rights. We will be as precise a domestic economy. We are now trying to and fair as we can, but we’re going to expe- deal with that and play catch up on defense dite the review. cuts. I don’t want the same thing to happen I support legal immigration. I think immi- in Nevada at the nuclear testing sites. So I’ll grants have made an enormous contribution do what I can to help and to be there and to this country and have made us a stronger work with your local leadership. nation and a much better prepared nation Next question. to face the 21st century because we have so many different racial and ethnic groups in Immigration America. But you can only keep America safe for legal immigration if you do something Q. Mr. President, I’d like to know a little firmer than we’ve been doing for years on bit about what you plan to do about illegal illegal immigration. So that is the basic out- aliens coming into our country. There’s been line of the plan. We’re proceeding with vigor a big hue and cry about that nationwide, peo- to implement it. And we’re looking at what ple settling into California, Arizona, and Ne- other options we have to do more. vada. It’s becoming an increasing problem. Yes, sir. I’d like to know if you have a plan for getting these people either legal or helping to keep Economic Program them from our shores and our borders. Q. Mr. President, if I might, sir, I’d like The President. I do, and about 10 days to revisit a question or perhaps broaden the ago I announced a plan and presented it to scope a bit of a question a moment ago. You the Senate. And I’m very proud of the fact hold the distinction, sir, of being the first that this is one of those issues where we Democratic candidate to run for President haven’t had any gridlock. The Senate passed who won the State of Nevada in 28 years. a major part of our immigration reform bill, That said, why then do you deserve the con- 87 to 13, just a couple of days ago. tinued support of Nevadans when your budg- Let me tell you essentially what we’re deal- et package adversely affects tourism here by ing with. Basically, there are three substantial increasing fuel taxes, asking more money for alien problems. There is the problem of ac- resort companies, the engine of job growth cess to our country by terrorists or potential here, and lowering deductions for meal ex- terrorists or people who will work with ter- penses? rorists. And we have enacted some reforms The President. Because Nevada will also to change the way we exercise security at air- benefit from this. Every small business in ports here in the United States and security your State has a chance to lower its tax bur- at other airports. den by investing more in its business. Every Secondly, there’s the problem of all these person who wants to invest in a new business people being smuggled in in, in effect, slave in Nevada capitalized at $50 million or less boats, all the folks coming in from China, has a chance to cut their tax burden by 50 for example. We have a plan designed to deal percent by investing for 5 years in such a with that now and to impose a much stiffer business. There are all kinds of incentives to penalty on those who do that kind of thing grow jobs in Nevada. And the most important

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thing is all Americans benefit when we re- response to the young man who asked the duce this deficit and keep our interest rates previous question about the fuel tax. I believe down. that most people or at least a huge percent- If you look at what has happened to long- age of people who come to Nevada to vaca- term interest rates since I’ve proposed the tion or to convention, fly there. And one of deficit reduction plan and it started making the things that Congress and the administra- its way through Congress and since Alan tion were very concerned about was the im- Greenspan, the head of the Federal Reserve pact of this on an already troubled airline Board and a Republican, consistently said industry, on whether that would lead to big that this is what we need to do more than increases in fares, which really might have anything else to get control of our deficit. had an adverse impact on you. And as a result The cost of borrowing to all those Nevada of that, relief was granted from airline fuel businesses you just mentioned are going— from this tax. So I think that was a big conces- by and large, for any of them that have to sion that I think will be very helpful to you borrow any substantial amount of money or and will avoid any adverse damage. who can go out and refinance their business Now, to go back to the other question, sin- debt, they will save much more than they gle parents who work and have children in will be hurt by the extra burdens imposed the home, have family incomes of under by the changes here. So there are national $30,000, all of them will be held harmless interests at stake which will benefit people from the impact of the fuel tax by an offset in Nevada, and there are specific things in their income tax. Those who are at or near which will benefit people in Nevada. We the poverty line may actually get a refund have to decide—if we’re going to do some- on their income tax to make sure that they thing about this deficit, we’re all going to will be lifted above the poverty line if they’re have to contribute. working 40 hours a week and they have chil- You know, I come from a State which has dren in the home. the highest, or second or third highest Interestingly enough, this expansion of the amount of gasoline usage per vehicle in the earned-income tax credit, which has received United States of America. But the fact re- relatively little attention, is probably the most mains that gasoline is at its lowest price in significant social reform that is profamily and 30 years and that the average person’s annual prowork that the Congress has enacted in 20 bill is going to be around $35 for this. And years, because it will say to people like the I don’t think that’s going to keep anybody very person you’re talking to: We know from coming to Nevada to vacation. you’re out there working hard. We know you don’t need any more taxes. We know you’re Single Parent Families doing everything you can to support your Q. We took calls this morning from our children. And because of the way the income audience to find out what to ask you, and tax system will be changed, if you’re making we had so many different calls about, ‘‘Hey, a pretty good income, that is, let’s say ask him to come and play his saxophone for $29,000, $28,000, $27,000, something like us in Las Vegas, the entertainment capital that, you’ll be held harmless from this. We’ll of the world.’’ But—— give you an income tax offset for the gas tax The President. I’d love to do that. increase. But if you make lower wages and Q. ——on a more serious note, we did if you’re down around the poverty line, we get a lot of calls from single parents that will give you a tax refund so you can be lifted wanted to know what your economic plan above the poverty line and support your chil- will do to help reward them; say, they are dren in dignity. Now, this will really help us raising a child, a full time job, and you al- to encourage people to move off welfare and luded to that earlier in the opening. Could into work. you be more specific on this topic, please? One of the next things that I want to take The President. Sure, very specific. up, along with health care, when this is over, If I might, I’d like to answer that question, is a fundamental reform of the welfare sys- but I’d like to also say one other point in tem that will literally end welfare as we know

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it. In order to do that, you’ve got to take glad to know this—I’m trying to find a way all the incentives out of welfare and put them to play golf once a week, in spite of all this into work and enable people to be successful work I’m doing. And most weeks I get it parents and successful workers. So this is a done. And maybe I can come out there and very, very important part of this provision. enjoy some of your courses once I get a little And that’s one reason I would hope all the of this work out of the way. single parents in America will support it. Al- Q. We have some great courses. Thank most all of them will benefit from it. you, Mr. President. I’ve always wanted to say that. Administration Accomplishments The President. Thank you. Q. Mr. President, this will be the last ques- Q. Thank you, Mr. President, for spending tion. I know we’re supposed to be Mike Wal- this half hour with us. I think this is the best lace here and ask you all these important kind of television there is, and we get a little questions. But it’s been a pretty rough first longer than the sound bite that we’re used 6 months for you. Is it what you expected, to. and are you having fun? The President. I am having a great deal NOTE: The interview began at 5:09 p.m. The of fun. I’m excited by this job. I knew it President spoke via satellite from Room 459 of would be rough if we came in and tried to the Old Executive Office Building. In his remarks, change a bunch of things at once, because he referred to Gary Wadell and Paula Francis, it’s easier if you don’t try to do much and Nevada journalists. A tape was not available for you just kind of take it easy; then you can verification of the content of this interview. make sure you don’t have so much rough sledding. But I feel good about it. I mean, today Address to the Nation on the my appointee to the Supreme Court, Ruth Economic Program Bader Ginsburg, was confirmed by a 96-to- August 3, 1993 3 vote in the Senate. I think she will be an historically important Justice. Today the Good evening. Tonight I want to report United States Senate on a bipartisan basis to you on the progress we’ve made and to adopted one of the heart-and-soul ideas from ask for your help on our Nation’s most urgent my 1992 campaign, the national service bill, priority, reviving the American dream by re- which will enable hundreds of thousands of storing the American economy. our young people, as we get it up and going, It’s been at least 30 years since a President to earn credit against their college costs by has asked Americans to take personal respon- doing service for their communities, enable sibility for our country’s future. It’s been 25 people at the grassroots level in Nevada, for years since our Government had a balanced example, to work with their friends and budget. For at least 20 years, middle class neighbors to solve problems and earn credit incomes have been nearly stagnant, with too against college while doing it. I am very ex- many Americans working nights, weekends, cited about that. We passed the family leave and holidays just to make ends meet. For law, which becomes effective this week, at least 10 years costs in our health care sys- which protects the right of people to go home tem have exploded while millions of Ameri- if their child is sick or their parents are ill cans go to bed each night worrying that if without losing their jobs. We’ve gotten an they lose their jobs or their children get sick, awful lot done. their health insurance will be taken away. So I think we’re moving in the right direc- And for the last several years our economy tion. And we’ve got a health care bill, a crime has failed to generate jobs, good jobs that bill, and a welfare reform bill ready to go pay enough to own a home, buy a car, pay when we get the budget out of the way. So the bills, educate your children, and retire change is always hard, but I am very excited with dignity. about it, and I am having a good time. And For too long, our Government has failed believe it or not—Governor Miller will be to tackle these problems. We’ve been given

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the politics of entitlement, Government than $250 billion. We cut more than 100,000 handouts without asking anything in return. positions from the Federal payroll by attri- And we’ve been given the politics of aban- tion. We freeze discretionary spending for 5 donment, cutting taxes on the well-off and years. We limit pay increases for Federal em- asking nothing of them in return either, while ployees. raising taxes on the middle class to pay more Why must we take extraordinary action for the same Government, instead of invest- now? Well, this chart shows you why. Amer- ing in our jobs and our future. The results: ica faces a choice. We can continue on the fewer jobs, stagnant incomes, a massive debt path of higher deficits and lower growth, or for ourselves and our children, higher cost we can make a fundamental change to im- and greater insecurity in health care, and a prove our Nation’s economy by adopting my host of problems simply neglected. economic plan. Well, tonight we’re on the verge of break- Now, it won’t be easy, and it won’t be ing out of that old false choice, between tax- quick. But it is necessary. Without deficit re- and-spend and trickle-down; between aban- duction, we can’t have sustained economic donment and entitlement; on the verge of growth. Economists and business leaders a new way of doing things grounded in our alike warn us that growth will falter if we most enduring values, a philosophy that says don’t take dramatic steps to tame this deficit, America owes all of us an opportunity if we’ll and soon. With so much at stake it would assume responsibility for ourselves, our com- be irresponsible not to take decisive action. munities, and our country. No more some- With this plan in place, the economy will thing for nothing. We’re all in this together. grow, and more than 8 million new jobs will This means we must make Government be created in the next 4 years. Without it, work for the people who pay the bills. All we put the economy and our standard of liv- of us have been awed in the last few weeks ing at further risk. if we take this important by the vast power of the Mississippi River first step now, over the long run we will see breaking its banks and the devastation that deficits go down and jobs go up. has followed. But we’ve also been awed by The second principle of this plan is fair- the courage of the flood victims and the com- ness. Those who have the most contribute passion of other Americans who have joined the most. As this chart shows, we asked the them in fighting back the waters and trying well-off to pay their fair share, requiring that to restore normal life. I’m especially proud at least 80 percent of the new tax burden that this time the Federal Government has fall on those making more than $200,000 a been fighting alongside the people. year and very little on any other Americans, That is what we must do on all fronts. We not to punish the successful but simply to must do more, much more, to turn this coun- ask something of the very people whose in- try around. and now we have the chance to comes went up most and whose taxes went change. We’re on the eve of historic action. down during the 1980’s. For working families This week, Congress will cast a crucial vote making less than $180,000 a year, there will on my plan for economic recovery. In a com- be no income tax increase. I repeat: For prehensive economic plan, there are always working families making less than $180,000 places for give and take, but from the first a year, there will be no income tax increase. day to this day, I have stood firm on certain The third principle is that we must protect ideas and ideals that are at the heart of this older Americans from punitive cuts in Social plan. Security, Medicare, and veterans benefits Tonight I can report to you that every one that some have proposed. While all Ameri- of those principles is contained in the final cans must do their part, I will not balance version of the plan: first, the largest deficit the budget on the backs of older Americans reduction in history, nearly $500 billion, with while protecting the wealthy. Every alter- more spending cuts than tax increases. Rath- native offered by the opponents of change er than the games and gimmicks of the past, begins with deep cuts in the health care of this plan has 200 specific spending cuts, and older Americans. I believe we must build a it reduces Government spending by more better future for our children without sac-

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rificing the security of their grandparents. to finance a college education. And we make We can control health care costs, but only bold changes in worker training so that high by reforming the health care system, not sim- school graduates can get high-skilled, high- ply by hurting the elderly. wage jobs. The fourth principle is that we must keep Perhaps most important, this plan rewards faith with the hard working middle class fam- work over welfare, by lifting out of poverty ilies who are the heart and strength of our every parent with children at home who Nation. We’ve worked hard in this plan to chooses full-time work over lifetime welfare. ensure the lowest possible tax on the middle We do this through the earned-income tax class. The plan asks an average working fam- credit, which reduces taxes for 20 million ily to pay no more than $3 a month in new working families and households earning less taxes, less than a dime a day, with a 4.3-cent- than $27,000 a year. It does this without cre- a-gallon increase in a gas tax. This is the only ating a new Government bureaucracy and new tax working people will pay. simply using the Tax Code. Let me be plain about where the deficit This sends an enormously powerful mes- reduction comes from. Look at this chart: out sage to the people who struggle against great of every $10 in deficit reduction, $5 and actu- odds to raise themselves and their families. ally a little more comes from spending cuts, It empowers them. It says we’re on the side $4 comes from taxes on incomes of those of people who work and care about their chil- with more than $200,000 a year in income, dren. It’s pro-work. It’s pro-family. And it is and just $1 comes from everyone else. This a critical first step to one of my most impor- plan is fair. It’s balanced. And it will work. tant priorities, ending welfare as we know it. Finally, we must have an economy that Every element of this plan is a departure creates jobs and lifts up the American people. from business as usual. And if there’s any- In the past, deficit reduction efforts have thing our country needs, it’s to put business failed because they neglected incentives for as usual out of business. I know full well that business growth and investments to make Americans are very skeptical of any claim by Americans smarter and stronger and safer. the Government. You must wonder if these This plan is very different. It generates jobs. cuts are for real and whether the taxes will In fact, over 90 percent of the small busi- really be used to pay down the deficit. Well, nesses in this whole country are eligible for our plan is fundamentally different from tax reductions, tax cuts, if they invest in their business as usual. Here’s why: future and create new jobs. First, the plan is based on conservative es- If you have the courage to invest in a new timates of future revenues. It presents line business and the vision to hold that invest- by line, year by year, specific cuts in Govern- ment for 5 years, this plan will cut your cap- ment spending. And it offers new incentives ital gains tax in half. If your business invests so we can expand the economy and generate in research and development, this plan will jobs. It minimizes the burden on the middle reward you. If your small business creates class and asks the wealthy to pay their fair new jobs and buys new equipment, this plan share. And finally, it puts into place two clear will provide incentives for growth by nearly safeguards to keep a watchful eye on future doubling the expensing provision for new in- Federal spending while protecting the sav- vestments. ings produced by this plan. While we make deep cuts in spending, we All the money we save will be locked away also make room for some needed invest- in a deficit reduction trust fund so the savings ments. Our plan invests in people and makes will not be spent on politicians’ pet projects. special investments in our children and in Because some in the Senate have used tech- our families through Head Start, nutrition for nicalities to block Senator DeConcini’s pregnant mothers, and immunizations for amendment to create the deficit reduction poor children. These things pay for them- trust fund and frustrated the efforts of many selves in healthy, growing, strong children. other Senators and a clear majority of the We will revolutionize the student loan pro- House of Representatives who support it and gram so that all Americans can better afford who support controls on annual spending and

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entitlement programs, I will sign Executive Our opponents want to bring the plan orders tomorrow putting both these safe- down. The guardians of gridlock will do any- guards in place so that you know the money thing to preserve the status quo, to serve spe- must be spent on deficit reduction. And if cial interests, and to drag this thing out. They we miss our deficit reduction targets over the practice partisanship when we need progress. next 5 years, I will be obliged to present a They call for delay when we’ve been waiting plan to correct the course to make sure we for 12 years and working on this project for keep doing what we’re telling you we’re months. They talk and talk about what to do, going to do. Now, this is a new direction. instead of doing what must be done. This plan has been carefully examined by When I was the Governor of Arkansas, our the most conservative and skeptical critics of State had one of the lowest tax burdens in all, those who run our Nation’s financial mar- the country. I inherited this big Federal defi- kets. They’ve studied the plan and deter- cit just like you did. And I don’t like taxes mined that over the long term, paying down any more than you do, but our Nation is in the deficit will be good for the country. And economic danger, and now we’ve got to take as we have made progress in enacting this this problem we inherited, you and I, and plan, the markets have lowered interest rates. do something about it. We have to take re- Lower interest rates, in turn, make it easier sponsibility for change. Passing this plan will to own a home, finance a business, buy a be a bold step and the first step on a longer car, pay off credit cards, and borrow for col- journey toward giving our Nation a com- lege. For example, if you are a middle class prehensive national economic strategy. family with a $100,000 mortgage at 10 per- This economic strategy begins with putting cent interest, you should be able to refinance our house in order, but it cannot end there. the mortgage today down to 7.5 percent and We must also have the courage to reform save $175 a month right away, as millions of Americans have already done. our health care system, so never again will The chief executive officers of 80 of our a family be denied health care or a business country’s most successful companies, Repub- be bankrupted by health care costs. licans and Democrats alike, have also sup- Let me show you this first chart one more ported this plan; so have many small business time. If you look at this deficit, under our organizations from the National Small Busi- plan we can bring the debt down solidly for ness United and the National Association of 5 years. If you want the deficit to go down the Self-Employed, to the National Venture to zero, as I think almost all of you do, we Capital Association. The men and women have got to challenge the health care system. whose business it is to create jobs and growth It is bankrupting the private sector, bank- have been solid in their support of this his- rupting the public sector, and millions of toric endeavor. Americans live in insecurity and constant fear At this exceptional moment of promise, of losing their health care. So dealing with why are so many in Washington so reluctant health care is good for the economy, good to take action? Why is it so hard for so many for bringing the deficit down further, and in this city to break the bad habits of the good for the American people. past and take the steps we all know we have We also have to end welfare as we know to take? For 5 months our critics had the it. We can move millions of idle Americans chance to offer alternatives, and all the major off the welfare rolls and on to the work rolls plans came up with the same thing: less defi- if we’ll change the system. And we’ve got to cit reduction or more paying for older Ameri- revolutionize Government itself, cleaning out cans or both; protections for the wealthy waste, corruption, bringing state-of-the-art from paying their fair share of the taxes; and management that will give more saving to the no new incentives for business to create jobs taxpayers, have Government work better and or investments in the American people. And put it back in charge of the people who are every one of these alternatives was soundly paying the bill. And we must continue to rejected in the Congress. Now there are only work to open foreign markets to create two choices, our plan or no plan. American jobs.

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All of these things come together to form available for verification of the content of this ad- an economic strategy that will give oppor- dress. tunity to every American, and ask respon- sibility from every American. But we can’t take any of the steps if we don’t take the first step. Statement on an Agreement on That’s why the decision Congress must Pacific Northwest Timber Sales make this week is so terribly important. We August 3, 1993 cannot afford not to act. I need your help. I need for you to tell the people’s representa- We are committed to working to enhance tives to get on with the people’s business. the long-term economic and environmental Tell them to change the direction of the health of the region. That commitment economy and do it now, so that we can start means a responsible forest management plan growing again, producing jobs again, and and a responsible but determined effort to moving our country forward again. get timber moving back into the mills. We In the last 6 months, we’ve won some im- have offered an innovative, comprehensive, portant battles here: a new family and medi- and balanced plan to solve a difficult set of cal leave law just taking effect that allows problems. Now we are taking steps to imple- young parents to take time off to care for ment that plan and get timber to the mills. a new baby or a sick child or an ill parent without losing their jobs; a new national serv- ice corps that will help tens of thousands of NOTE: This statement was part of a White House our young people to pay for college through press release announcing the agreement. service to their country in their communities; a new Supreme Court Justice confirmed just today without partisanship or rancor; new Nominations for Commissioner of policies to develop high-technology jobs into Social Security and Director of the converted defense facilities and plants to pro- National Institutes of Health ductive civilian purposes, expanding jobs and opportunity. And, from a summit in Van- August 3, 1993 couver, Canada, to help save Russian democ- racy, to a summit in Tokyo to help revive President Clinton announced his intention the world economy, there are many new op- today to nominate Texas Woman’s University portunities for Americans and a new respect president Shirley Chater to be the Commis- for America’s leadership. sioner of Social Security and Nobel laureate We Americans are a people both privi- Harold Varmus to be the Director of the Na- leged and challenged. We were formed in tional Institutes of Health at the Department turbulent times, and we stand now at the be- of Health and Human Services. ginning of a new time, the dawn of a new ‘‘It gives me great pleasure to announce era. Our deeds and decisions can lift America these nominations today,’’ said the President. up so that in our third century we will con- ‘‘Shirley Chater is an accomplished adminis- tinue to be the youngest and most optimistic trator with a strong background in health of nations; a people on the march once again, care issues. I am convinced that she will do strong and unafraid. If we are bold in our an outstanding job of running this enormous hopes, if we meet our great responsibilities, and enormously important Agency. Likewise, we will give the country we love the best as one of the world’s leading medical re- years it has ever known. searchers, Harold Varmus will bring great Good night, and may God bless you all strength and leadership to the National Insti- on this journey. tutes of Health.’’

NOTE: The President spoke at 8 p.m. from the NOTE: Biographies of the nominees were made Oval Office at the White House. A tape was not available by the Office of the Press Secretary.

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Executive Order 12856—Federal innovative pollution prevention programs Compliance With Right-To-Know must be broad to adequately address the Laws and Pollution Prevention highest-risk environmental problems and to Requirements take full advantage of technological opportu- August 3, 1993 nities in sectors other than industrial manu- facturing; the Energy Policy Act of 1992 Whereas, the Emergency Planning and (Public Law 102–486 of October 24, 1992) Community Right-to-Know Act of 1986 (42 requires the Secretary of Energy to work U.S.C. 11001–11050) (EPCRA) established with other Federal agencies to significantly programs to provide the public with impor- reduce the use of energy and reduce the re- tant information on the hazardous and toxic lated environmental impacts by promoting chemicals in their communities, and estab- use of energy efficiency and renewable en- lished emergency planning and notification ergy technologies; and requirements to protect the public in the Whereas, as the largest single consumer event of a release of extremely hazardous in the Nation, the Federal Government has substances; the opportunity to realize significant eco- Whereas, the Federal Government nomic as well as environmental benefits of should be a good neighbor to local commu- pollution prevention; nities by becoming a leader in providing in- And In Order To: formation to the public concerning toxic and Ensure that all Federal agencies conduct hazardous chemicals and extremely hazard- their facility management and acquisition ac- ous substances at Federal facilities, and in tivities so that, to the maximum extent prac- planning for and preventing harm to the pub- ticable, the quantity of toxic chemicals enter- lic through the planned or unplanned re- ing any wastestream, including any releases leases of chemicals; to the environment; is reduced as expedi- Whereas, the Pollution Prevention Act of tiously as possible through source reduction; 1990 (42 U.S.C. 13101–13109) (PPA) estab- that waste that is generated is recycled to lished that it is the national policy of the the maximum extent practicable; and that United States that, whenever feasible, pollu- any wastes remaining are stored, treated or tion should be prevented or reduced at the disposed of in a manner protective of public source; that pollution that cannot be pre- health and the environment; vented should be recycled in an environ- mentally safe manner; that pollution that can- Require Federal agencies to report in a not be prevented or recycled should be treat- public manner toxic chemicals entering any ed in an environmentally safe manner; and wastestream from their facilities, including that disposal or other release into the envi- any releases to the environment, and to im- ronment should be employed only as a last prove local emergency planning, response, resort and should be conducted in an envi- and accident notification; and ronmentally safe manner; Help encourage markets for clean tech- Whereas, the PPA required the Adminis- nologies and safe alternatives to extremely trator of the Environmental Protection Agen- hazardous substances or toxic chemicals cy (EPA) to promote source reduction prac- through revisions to specifications and stand- tices in other agencies; ards, the acquisition and procurement proc- Whereas, the Federal Government ess, and the testing of innovative pollution should become a leader in the field of pollu- prevention technologies at Federal facilities tion prevention through the management of or in acquisitions; its facilities, its acquisition practices, and in Now Therefore, by the authority vested supporting the development of innovative in me as President by the Constitution and pollution prevention programs and tech- the laws of the United States of America, in- nologies; cluding the EPCRA, the PPA, and section Whereas, the environmental, energy, and 301 of title 5, United States Code, it is hereby economic benefits of energy and water use ordered as follows: reductions are very significant; the scope of Section 1. Applicability.

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1–101. As delineated below, the head of information needed to comply with this order each Federal agency is responsible for ensur- from such contractors. ing that all necessary actions are taken for Sec. 2–2. Definitions. the prevention of pollution with respect to 2–201. All definitions found in EPCRA that agency’s activities and facilities, and for and PPA and implementing regulations are ensuring that agency’s compliance with pol- incorporated in this order by reference, with lution prevention and emergency planning the following exception: for the purposes of and community right-to-know provisions es- this order, the term ‘‘person’’, as defined in tablished pursuant to all implementing regu- section 329(7) of EPCRA, also includes Fed- lations issued pursuant to EPCRA and PPA. eral agencies. 1–102. Except as otherwise noted, this 2–202. Federal agency means an Executive order is applicable to all Federal agencies agency, as defined in 5 U.S.C. 105. For the that either own or operate a ‘‘facility’’ as that purpose of this order, military departments, term is defined in section 329(4) of EPCRA, as defined in 5 U.S.C. 102, are covered under if such facility meets the threshold require- the auspices of the Department of Defense. ments set forth in EPCRA for compliance 2–203. Pollution Prevention means ‘‘source as modified by section 3–304(b) of this order reduction,’’ as defined in the PPA, and other (‘‘covered facilities’’). Except as provided in practices that reduce or eliminate the cre- section 1–103 and section 1–104 below, each ation of pollutants through: (a) increased effi- Federal agency must apply all of the provi- ciency in the use of raw materials, energy, sions of this order to each of its covered fa- water, or other resources; or (b) protection cilities, including those facilities which are of natural resources by conservation. subject, independent of this order, to the GOCO provisions of EPCRA and PPA (e.g., certain 2–204. means a Government- Government-owned/contractor-operated fa- owned/contractor-operated facility which is cilities (GOCO’s), for chemicals meeting owned by the Federal Government but all EPCRA thresholds). This order does not or portions of which are operated by private apply to Federal agency facilities outside the contractors. customs territory of the United States, such 2–205. Administrator means the Adminis- as United States diplomatic and consular trator of the EPA. missions abroad. 2–206. Toxic Chemical means a substance 1–103. Nothing in this order alters the ob- on the list described in section 313(c) of ligations which GOCO’s and Government EPCRA. corporation facilities have under EPCRA and 2–207. Toxic Pollutants. For the purposes PPA independent of this order or subjects of section 3–302(a) of this order, the term such facilities to EPCRA or PPA if they are ‘‘toxic pollutants’’ shall include, but is not otherwise excluded. However, consistent necessarily limited to, those chemicals at a with section 1–104 below, each Federal Federal facility subject to the provisions of agency shall include the releases and trans- section 313 of EPCRA as of December 1, fers from all such facilities when meeting all 1993. Federal agencies also may choose to of the Federal agency’s responsibilities under include releases and transfers of other this order. chemicals, such as ‘‘extremely hazardous 1–104. To facilitate compliance with this chemicals’’ as defined in section 329(3) of order, each Federal agency shall provide, in EPCRA, hazardous wastes as defined under all future contracts between the agency and the Resource Conservation and Recovery Act its relevant contractors, for the contractor to of 1976 (42 U.S.C. 6901–6986) (RCRA), or supply to the Federal agency all information hazardous air pollutants under the Clean Air the Federal agency deems necessary for it Act Amendments (42 U.S.C. 7403–7626); to comply with this order. In addition, to the however, for the purposes of establishing the extent that compliance with this order is agency’s baseline under 3–302(c), such made more difficult due to lack of informa- ‘‘other chemicals’’ are in addition to (not in- tion from existing contractors, Federal agen- stead of) the section 313 chemicals. The term cies shall take practical steps to obtain the ‘‘toxic pollutants’’ does not include hazardous

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waste subject to remedial action generated amount as to which the 50 percent reduction prior to the date of this order. goal applies shall be the aggregate amount Sec. 3–3. Implementation. of toxic chemicals reported in the baseline 3–301. Federal Agency Strategy. Within 12 year for all of that Federal agency’s facilities months of the date of this order, the head meeting the threshold applicability require- of each Federal agency must develop a writ- ments set forth in section 1–102 of this order. ten pollution prevention strategy to achieve In no event shall the baseline be later than the requirements specified in sections 3–302 the 1994 reporting year. through 3–305 of this order for that agency. (c) Alternatively, a Federal agency may A copy thereof shall be provided to the Ad- choose to achieve a 50 percent reduction goal ministrator. Federal agencies are encouraged for toxic pollutants. In such event, the Fed- to involve the public in developing the re- eral agency shall delineate the scope of its quired strategies under this order and in reduction program in the written pollution monitoring their subsequent progress in prevention strategy that is required by sec- meeting the requirements of this order. The tion 3–301 of this order. The baseline for strategy shall include, but shall not be limited measuring reductions for purposes of achiev- to, the following elements: (a) A pollution ing the 50 percent reduction requirement for prevention policy statement, developed by each Federal agency shall be the first year each Federal agency, designating principal in which releases of toxic pollutants to the responsibilities for development, implemen- environment and off-site transfers of such tation, and evaluation of the strategy. The chemicals for treatment and disposal are statement shall reflect the Federal agency’s publicly reported for each of that Federal commitment to incorporate pollution pre- agency’s facilities encompassed by section 3– vention through source reduction in facility 301. In no event shall the baseline year be management and acquisition, and it shall later than the 1994 reporting year. The base- identify an individual responsible for coordi- line amount as to which the 50 percent re- nating the Federal agency’s efforts in this duction goal applies shall be the aggregate area. amount of toxic pollutants reported by the (b) A commitment to utilize pollution pre- agency in the baseline year. For any toxic vention through source reduction, where pollutants included by the agency in deter- practicable, as the primary means of achiev- mining its baseline under this section, in ad- ing and maintaining compliance with all ap- dition to toxic chemicals under EPCRA, the plicable Federal, State, and local environ- agency shall report on such toxic pollutants mental requirements. annually under the provisions of section 3– 3–302. Toxic Chemical Reduction Goals. 304 of this order, if practicable, or through (a) The head of each Federal agency subject an agency report that is made available to to this order shall ensure that the agency de- the public. velops voluntary goals to reduce the agency’s (d) The head of each Federal agency shall total releases of toxic chemicals to the envi- ensure that each of its covered facilities de- ronment and off-site transfers of such toxic velops a written pollution prevention plan no chemicals for treatment and disposal from fa- later than the end of 1995, which sets forth cilities covered by this order by 50 percent the facility’s contribution to the goal estab- by December 31, 1999. To the maximum ex- lished in section 3–302(a) of this order. Fed- tent practicable, such reductions shall be eral agencies shall conduct assessments of achieved by implementation of source reduc- their facilities as necessary to ensure develop- tion practices. ment of such plans and of the facilities’ pollu- (b) The baseline for measuring reductions tion prevention programs. for purposes of achieving the 50 percent re- 3–303. Acquisition and Procurement duction goal for each Federal agency shall Goals. (a) Each Federal agency shall estab- be the first year in which releases of toxic lish a plan and goals for eliminating or reduc- chemicals to the environment and off-site ing the unnecessary acquisition by that agen- transfers of such chemicals for treatment and cy of products containing extremely hazard- disposal are publicly reported. The baseline ous substances or toxic chemicals. Similarly,

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each Federal agency shall establish a plan Federal agency’s facility without regard to and goal for voluntarily reducing its own the SIC code of the activity leading to the manufacturing, processing, and use of ex- release, transfer, or waste. All other existing tremely hazardous substances and toxic statutory or regulatory limitations or exemp- chemicals. Priorities shall be developed by tions on the application of EPCRA section Federal agencies, in coordination with EPA, 313 shall apply to the reporting requirements for implementing this section. set forth in section 3–304(a) of this order. (b) Within 24 months of the date of this (c) The first year of compliance shall be order, the Department of Defense (DOD) no later than for the 1994 calendar year, with and the General Services Administration reports due on or before July 1, 1995. (GSA), and other agencies, as appropriate, 3–305. Emergency Planning and Commu- shall review their agency’s standardized doc- nity Right-to-Know Reporting Responsibil- uments, including specifications and stand- ities. The head of each Federal agency shall ards, and identify opportunities to eliminate comply with the provisions set forth in sec- or reduce the use by their agency of ex- tions 301 through 312 of EPCRA, all imple- tremely hazardous substances and toxic menting regulations, and future amendments chemicals, consistent with the safety and reli- to these authorities, in light of any applicable ability requirements of their agency mission. guidance as provided by EPA. Effective dates The EPA shall assist agencies in meeting the for compliance shall be: (a) With respect to requirements of this section, including iden- the provisions of section 302 of EPCRA, tifying substitutes and setting priorities for emergency planning notification shall be these reviews. By 1999, DOD, GSA and made no later than 7 months after the date other affected agencies shall make all appro- of this order. priate revisions to these specifications and (b) With respect to the provisions of sec- standards. tion 303 of EPCRA, all information necessary (c) Any revisions to the Federal Acquisi- for the applicable Local Emergency Planning tion Regulation (FAR) necessary to imple- Committee (LEPC’s) to prepare or revise ment this order shall be made within 24 local Emergency Response Plans shall be months of the date of this order. provided no later than 1 year after the date (d) Federal agencies are encouraged to de- of this order. velop and test innovative pollution preven- (c) To the extent that a facility is required tion technologies at their facilities in order to maintain Material Safety Data Sheets to encourage the development of strong mar- under any provisions of law or Executive kets for such technologies. Partnerships order, information required under section should be encouraged between industry, 311 of EPCRA shall be submitted no later Federal agencies, Government laboratories, than 1 year after the date of this order, and academia, and others to assess and deploy the first year of compliance with section 312 innovative environmental technologies for shall be no later than the 1994 calendar year, domestic use and for markets abroad. with reports due on or before March 1, 1995. 3–304. Toxics Release Inventory/Pollution (d) The provisions of section 304 of Prevention Act Reporting. (a) The head of EPCRA shall be effective beginning January each Federal agency shall comply with the 1, 1994. provisions set forth in section 313 of EPCRA, (e) These compliance dates are not in- section 6607 of PPA, all implementing regu- tended to delay implementation of earlier lations, and future amendments to these au- timetables already agreed to by Federal thorities, in light of applicable guidance as agencies and are inapplicable to the extent provided by EPA. they interfere with those timetables. (b) The head of each Federal agency shall Sec. 4–4. Agency Coordination. comply with these provisions without regard 4–401. By February 1, 1994, the Adminis- to the Standard Industrial Classification trator shall convene an Interagency Task (SIC) delineations that apply to the Federal Force composed of the Administrator, the agency’s facilities, and such reports shall be Secretaries of Commerce, Defense, and En- for all releases, transfers, and wastes at such ergy, the Administrator of General Services,

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the Administrator of the Office of Procure- trator shall establish a ‘‘Federal Government ment Policy in the Office of Management Environmental Challenge Program’’ to rec- and Budget, and such other agency officials ognize outstanding environmental manage- as deemed appropriate based upon lists of ment performance in Federal agencies and potential participants submitted to the Ad- facilities. The program shall consist of two ministrator pursuant to this section by the components that challenge Federal agencies; agency head. Each agency head may des- (a) to agree to a code of environmental prin- ignate other senior agency officials to act in ciples to be developed by EPA, in coopera- his/her stead, where appropriate. The Task tion with other agencies, that emphasizes Force will assist the agency heads in the im- pollution prevention, sustainable develop- plementation of the activities required under ment and state-of-the-art environmental this order. management programs, and (b) to submit ap- 4–402. Federal agencies subject to the re- plications to EPA for individual Federal quirements of this order shall submit annual agency facilities for recognition as ‘‘Model progress reports to the Administrator begin- Installations.’’ The program shall also include ning on October 1, 1995. These reports shall a means for recognizing individual Federal include a description of the progress that the employees who demonstrate outstanding agency has made in complying with all as- leadership in pollution prevention. pects of this order, including the pollution Sec. 5–5. Compliance. reductions requirements. This reporting re- 5–501. By December 31, 1993, the head quirement shall expire after the report due of each Federal agency shall provide the Ad- on October 1, 2001. ministrator with a preliminary list of facilities 4–403. Technical Advice. Upon request that potentially meet the requirements for and to the extent practicable, the Adminis- reporting under the threshold provisions of trator shall provide technical advice and as- EPCRA, PPA, and this order. sistance to Federal agencies in order to foster 5–502. The head of each Federal agency full compliance with this order. In addition, is responsible for ensuring that such agency to the extent practicable, all Federal agencies take all necessary actions to prevent pollution subject to this order shall provide technical in accordance with this order, and for that assistance, if requested, to LEPC’s in their agency’s compliance with the provisions of development of emergency response plans EPCRA and PPA. Compliance with EPCRA and in fulfillment of their community right- and PPA means compliance with the same to-know and risk reduction responsibilities. substantive, procedural, and other statutory 4–404. Federal agencies shall place high and regulatory requirements that would priority on obtaining funding and resources apply to a private person. Nothing in this needed for implementing all aspects of this order shall be construed as making the provi- order, including the pollution prevention sions of sections 325 and 326 of EPCRA ap- strategies, plans, and assessments required plicable to any Federal agency or facility, ex- by this order, by identifying, requesting, and cept to the extent that such Federal agency allocating funds through line-item or direct or facility would independently be subject to funding requests. Federal agencies shall such provisions. EPA shall consult with Fed- make such requests as required in the Fed- eral agencies, if requested, to determine the eral Agency Pollution Prevention and Abate- applicability of this order to particular agency ment Planning Process and through agency facilities. budget requests as outlined in Office of Man- 5–503. Each Federal agency subject to this agement and Budget (OMB) Circulars A– order shall conduct internal reviews and au- 106 and A–11, respectively. Federal agencies dits, and take such other steps, as may be should apply, to the maximum extent prac- necessary to monitor compliance with sec- ticable, a life cycle analysis and total cost ac- tions 3–304 and 3–305 of this order. counting principles to all projects needed to 5–504. The Administrator, in consultation meet the requirements of this order. with the heads of Federal agencies, may con- 4–405. Federal Government Environ- duct such reviews and inspections as may be mental Challenge Program. The Adminis- necessary to monitor compliance with sec-

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tions 3–304 and 3–305 of this order. Except Sec. 7–7. General Provisions. as excluded under section 6–601 of this 7–701. Nothing in this order shall create order, all Federal agencies are encouraged any right or benefit, substantive or proce- to cooperate fully with the efforts of the Ad- dural, enforceable by a party against the ministrator to ensure compliance with sec- United States, its agencies or instrumental- tions 3–304 and 3–305 of this order. ities, its officers or employees, or any other 5–505. Federal agencies are further en- person. couraged to comply with all state and local William J. Clinton right-to-know and pollution prevention re- quirements to the extent that compliance The White House, with such laws and requirements is not other- August 3, 1993. wise already mandated. 5–506. Whenever the Administrator noti- [Filed with the Office of the Federal Register, fies a Federal agency that it is not in compli- 4:37 p.m., August 4, 1993] ance with an applicable provision of this order, the Federal agency shall achieve com- NOTE: This Executive order was released by the pliance as promptly as is practicable. Office of the Press Secretary on August 4, and 5–507. The EPA shall report annually to it was published in the Federal Register on August the President on Federal agency compliance 6. with the provisions of section 3–304 of this order. Statement on the Executive Order on 5–508. To the extent permitted by law and Federal Pollution Prevention unless such documentation is withheld pur- August 4, 1993 suant to section 6–601 of this order, the pub- lic shall be afforded ready access to all strate- With this Executive order, the Federal fa- gies, plans, and reports required to be pre- cilities will set the example for the rest of pared by Federal agencies under this order the country and become the leader in apply- by the agency preparing the strategy, plan, ing pollution prevention to daily operations, or report. When the reports are submitted purchasing decisions, and policies. In the to EPA, EPA shall compile the strategies, process, Federal facilities will reduce toxic plans, and reports and make them publicly emissions, which helps avoid cleanup costs available as well. Federal agencies are en- and promotes clean technologies. couraged to provide such strategies, plans, and reports to the State and local authorities NOTE: This statement was part of a White House where their facilities are located for an addi- press release announcing the signing of Executive tional point of access to the public. Order 12856. Sec. 6–6. Exemption. 6–601. In the interest of national security, Remarks and an Exchange With the head of a Federal agency may request Reporters on the Economic Program from the President an exemption from com- August 4, 1993 plying with the provisions of any or all aspects of this order for particular Federal agency The President. Thank you very much. Let facilities, provided that the procedures set me just briefly say I had the opportunity to forth in section 120(j)(1) of the Comprehen- meet with the House caucus today. We have sive Environmental Response, Compensa- been informed that several Members who tion, and Liability Act of 1980, as amended voted no when the bill came up the first time (42 U.S.C. 9620(j)(1)), are followed. To the for different reasons had decided to vote yes maximum extent practicable, and without on the bill this time. Some of them are here compromising national security, all Federal with us today, and others are not. It was a agencies shall strive to comply with the pur- very good meeting. poses, goals, and implementation steps set I told them that for the last couple of forth in this order. months, and even last night in speaking to

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the American people, I felt much as I did The economic incentives that were in the when I was a young man in school and I House bill are in the final conference for job belonged to all these little clubs who would growth. They have been slightly scaled back try to earn money for club events by washing because we reduced the tax burden by over cars. I felt like a lot of what I was doing was $40 billion and reducing the energy tax. And trying to clean dirt off of windshields so that that’s another that some of the economists the American people could see out of the said that we ought to do. windshield again. There has been so much So I think that you’ve got the same deficit misinformation put out about this plan, about reduction. You’ve got the economic growth who bears the burden of it and whether it incentives. You have real fairness in the Tax reduces the deficit, exactly how it’s going to Code, and you made 90 percent of the small be done, that a lot of what we have been businesses in this country eligible for a whole doing in the last 6 weeks or so was just trying wide range of tax reductions if they invest to get the facts out. All the evidence is that in their businesses. So I think it’s a good plan, the more facts we get out, the better we do. and I think that they’re wrong. And so I am encouraged on what has hap- Q. You’re not concerned about the num- pened in the last few days. I’m very hopeful. ber of deals that have been cut to get this The fact remains that every other plan through? which has been raised has gotten more oppo- The President. No, absolutely not. Since sition and less support than the administra- when has a big piece of legislation like this tion’s plan. Every other one had less fairness ever moved through the Congress and/or less deficit reduction. And now the unamended? I mean, give me one example choice is whether we’re going to do this, or of that. Most things of this magnitude, when do nothing and flail around for another 60 you turn the country around, take years to to 90 days. get done. We put it together in just a few I think it is clear that the Congress will months. vote to act and to move forward and to make I think that the things that I cared about this enormous downpayment on solving the are there. The plan has $500 billion in deficit deficit problem and giving some incentives reductions. There are now more spending to the economy to grow. I’m very hopeful cuts than taxes. The tax system is very fair, about it, very optimistic today. And I want indeed, more progressive than it was when to thank the Speaker and the leadership and I presented it. Now 80 percent of the burden the members of the House caucus for hear- falls on couples with incomes above ing me today. $200,000. There are enormous incentives in Mr. Speaker, you may want to say another here for business growth which were not in word or two before we take questions. But any of the Republicans’ plans—a new busi- this was a very, very good meeting this morn- ness capital gains tax; there are research and ing. development incentives; we nearly double [At this point, House Speaker Thomas S. the expensing for small businesses in this Foley made brief remarks.] country. Then finally, the thing which I think will really have a huge difference in terms Economic Program of our society: The earned-income tax credit Q. Mr. President, what would you say to lifts working families out of poverty. It’s a those economists who say that this deal had huge incentive to leave welfare and go to been so diluted with compromises and deals work. So the big guts of the things that I that it would be ineffective? proposed way back in February have sur- The President. I don’t believe any econo- vived this whole legislative process. And I mists are saying that. My response is, look feel good about it. what happened to interest rates after the Q. Mr. President, you’ve apparently pad- speech last night and then after the progress ded the margin here on the House side. But we were making yesterday. I mean, the inter- obviously the really, really close vote is going est rates once again were lowered in anticipa- to come on the other end of this building. tion of the plan’s successful passage. What are your feelings at this point? Does

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it still come down to that one vote over worst thing this country could do would just there? Is there any other outlook for you at be to flail around for 60 to 90 days, instead this point? of moving on with all the things that are there The President. I think it depends upon, before us: the health care issue, further ef- obviously, what happens in the next couple forts to deal with the budgetary problem. of days. I think if we carry the House, I think Helen Thomas. Mr. President, did you we’ll carry in the Senate. I don’t think the hear Senator Dole’s rebuttal, and what did Senate will let this plan go down. I don’t you think of it? think they will do that to the country. The President. My response to Senator There are two groups of Senators that basi- Dole’s rebuttal is to wish you a happy birth- cally are either declared against or leaning day. [Laughter] against, some who have said forthrightly to Ms. Thomas. Oh, no. [Applause] Thank me, ‘‘This is the right thing for the country, you. but there’s been so much misinformation The President. I would like to respond about it, people will never know the real to a couple of those things. First of all, Sen- truth, and I will never recover politically if ator Dole says too many of our budget cuts I vote for it, even though it’s good,’’ and oth- are in the latter half of our plan. My response ers who say that ‘‘This is a very good first to that is he has a higher percentage of his step, but it doesn’t do everything that needs to be done. Therefore, I won’t vote for it.’’ budget cuts in the last 2 years than we do. And my argument to the second group is That is a smokescreen to continue the intran- going to be that this bill cannot possibly be sigent Republican position that we should expected to carry the burden of solving all not ask the wealthiest Americans to pay their the problems of the last 12 years; that we fair share of the burden, even though they do have to control entitlement spending; we got the tax cuts in the eighties and received do have to control health care spending. I well over half the economic gains of the will be for such controls in the context of eighties. reforming the health care system, and I still Secondly, my response to Senator Dole’s think we’ve got a shot to get a lot of those. claim that this bill imposes burdens on peo- Also, the spending reductions, for those ple who are no longer living—you heard all who say there ought to be more spending that—that implies that somehow the Demo- cuts, I remind them that the House of Rep- crats are voting to raise the estate taxes on resentatives has already adopted over $10 bil- people who have—estate taxes are not im- lion in spending cuts in excess of those in posed on people who have no estate, that a reconciliation bill which the Senate will is, who have not yet died. But that is totally have a chance to adopt. The Vice President’s misleading. All the Congress did was to ex- report on reinventing Government is coming tend the estate tax rates imposed back in the up, and the health care debate is coming up. late eighties. And I haven’t checked this this There will be further spending reductions by morning, but I believe Senator Dole voted this Congress and this administration. for that. I believe that this bill extends the So I’m going to keep making that argu- estate tax rates that Senator Dole voted for. ment to them, and I think we’ll prevail. I believe that. In any case, the Congress Q. What’s it going to take for you to get voted for it. He knows that this bill does not in the Senate the security that you apparently somehow increase taxes on citizens after they now feel in the House? die. That is totally misleading. The President. I don’t know if that will Let me see what else he said. Oh, he said ever happen. [Laughter] We need the votes we didn’t cut the deficit enough. My answer to win over there, and as I said, I believe to that is we don’t cut it all the way to zero, that the Senate will pass the plan if the but we will. And we cut the deficit much House does. I think that there clearly is a more than the Dole plan did, and we do it majority in the Senate who know that this specifically. We have a lot more deficit re- is far better than the alternative—there is no duction than he did, and in his plan he had other available alternative—and that the $66 billion in, quote, unspecified cuts. He

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wouldn’t even say where the tough cuts were coma or Sacramento, when people would coming from. threaten your own John Mack in Los Ange- Q. Retroactivity is what he—— les, when people would seek again to divide The President. Well, the retroactivity, my us by race instead of to take the hard and answer to that is twofold. Number one, on difficult path of making the changes we all the merits, it applies to the same couples with need to make together as a country, we need incomes above $200,000, individuals with in- the Urban League. America needs it. The comes above $150,000 to $160,000; that they President, the Congress, the politicians alone will be given 3 years without penalty, a subse- cannot do nearly as much as you can do to quent 3 years to pay the taxes; that all the reach to the truth of the human heart and tax cuts are retroactive and some of the tax stand up against bigotry. But there are things incentives go back to the middle of 1992, not that we can do. I know the Attorney General just to the first of ’93. appeared before you in this conference, So those would be my answers to the at- along with at least four other members of tacks he made on the program. my Cabinet. No wonder I couldn’t find any NOTE: The President spoke at 10:07 a.m. in Statu- of them this week. They were over here. ary Hall at the Capitol. A tape was not available [Laughter] for verification of the content of these remarks. But I tell you, one of the reasons that we picked Judge Louis Freeh from New York Remarks to the National Urban to head the FBI is that he was not only com- League mitted to continuing the long overdue work of opening the FBI to women and minorities August 4, 1993 but also because he had successfully, hero- Thank you very much. Reg Brock, John ically, and determinedly prosecuted the Jacob, distinguished dais guests, and ladies criminals who murdered a Federal judge and and gentlemen. It was just about a year ago a civil rights leader in the South when others that we were together at the Urban League had given up and thought it could not be convention in San Diego. What a difference done. a year makes. I am especially in debt to the Urban Many of you in this audience have been League because the Urban League not only friends of mine for a very long time. Those gave to the Nation such great leaders as of you from my home State of Arkansas have Whitney Young, but you gave to me a lifelong worked with me in partnership there for friendship and the service in this administra- many years. I know what the Urban League tion of Vernon Jordan and Ron Brown. I can do to make a difference in the lives of would have never met either one of them people and in the minds and hearts of peo- if it hadn’t been for the Urban League. ple. I also want to say to all of you that it is I want to say at the outset today that while terribly important as we seek to bring Amer- I came here to talk about what we’re trying ica together that we continue our struggle to do in Washington, what we can do in to remind the doubters and the naysayers Washington is in no small measure deter- that we can go forward together. mined by what lives in the hearts and minds and visions of Americans throughout this There was an especially reassuring article, land. I know that the Urban League, for at least to me, in the Washington Post a few more years than I have by far, has struggled days ago by the distinguished columnist Wil- to remind Americans that, without regard to liam Raspberry, in which he pointed out that our race or creed or station in life, we must when I said I wanted a Cabinet that looked go forward together; that there is no place like America I was subject to ridicule in many for hatred or division. quarters, who claimed that I was about to And yet we know today that we are chal- diminish the quality of the Government by lenged by that on every hand. When people imposing some sort of quota system on the would bomb the NAACP headquarters in Ta-

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Cabinet. Well, it turned out that I produced that nuclear weapons will ever be used and a Cabinet with more women and more mi- by opening up future markets there; that the norities than had ever served in a President’s United States would be able to go to a meet- Cabinet. And most people think it’s one of ing of the great industrial nations of the the best Cabinets that ever served the United world in Tokyo and for the first time in a States of America. decade not be attacked because we are a drag And as Mr. Raspberry pointed out, when on world growth because of our deficit, and Janet Reno speaks as Attorney General now, instead, we would be complimented and they people don’t think of her as the first woman would agree with us to lower tariffs on goods Attorney General. When Mike Espy’s out in a way that every American analyst con- there up to his ears in mud in the middle cedes will add hundreds of thousands of jobs, of the Mississippi River Valley flooding, and good, high-paying manufacturing jobs, to the people are saying we’ve got the best response world economy if we can get all the other to a national emergency they’ve ever seen, nations to agree with it; and that in the mid- nobody says he’s the first black Secretary of dle of this budget debate we would pass the Agriculture; he’s somebody out there helping program for national service which will give the farmers to put their lives back together. Americans a chance to bridge the gaps of In the last 6 months, a great deal has hap- race and income and earn credit against their pened in this town. The pace of change has college education by dealing with the human been dizzying. And with all the change there problems of Americans at the grassroots has been strong opposition, and it’s been a level—I’d say that’s a pretty good record for little ragged around the edges from time to 6 months, and I think the American people time. But let me ask you this: If on Inaugura- ought to be proud of it. tion Day someone had told you that this ad- But let me say to you that there is much, ministration, with the most diverse Cabinet much more to be done. And whether we can in history, would work with the Congress and get about the business of doing it will be de- with our allies in the country and around the termined in the next 48 hours or 72 hours world to produce the Family and Medical or so by how the Congress of the United Leave Act, twice vetoed by the previous ad- States responds to the challenge presented ministration, which became effective this by the economic plan. week, to guarantee that working people can I thank the Urban League for its early en- take a little time off when a baby’s born, a dorsement and support of this plan, and I child’s sick, or a parent’s ill, won’t lose their would remind you here briefly how you did jobs; would produce the motor voter bill, it, what is in it, how it makes a difference which is a significant advance in voting rights to ordinary Americans. Remember that for for the young, the poor, and the dispossessed; 20 years now, literally 20 years in 1993, most would produce a bill with the National Insti- working Americans have seen the power of tutes of Health, which would take the politics their incomes eroded. Wages for wage earn- out of medical research and finally do what ers have been virtually stagnant for 20 years ought to be done in medical research with as the cost of health care, housing, and edu- regard to women and their health care prob- cation had exploded. lems; would produce a dramatic change in In 1980, we had a Presidential election environmental policy, which would be ap- which said that this problem that the Amer- plauded all around the world for putting the ican people were having paying their bills United States back in the forefront of energy and dealing with global economic forces was conservation, of responsible efforts to deal a problem of too much Government in with the population explosion, of all kinds of America and what we needed to do was to efforts to reconcile the conflicts between the cut taxes, get Government out of the way, environment and the economy; if someone and everything would be wonderful. What had told you that we would take the lead that rhetoric masked was an old-fashioned at- in trying to keep democracy alive in Russia tempt to cut taxes and increase spending, ex- in ways that would be good for ordinary cept it was done in a different way. We cut Americans by continuing to reduce the threat taxes on the wealthiest Americans, increased

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primarily defense spending, and got out of If we pay the deficit down—look what the way. happened against yesterday. It looks like And for a couple of years it worked. We we’re going to pass the plan—the interest had a couple of years in which jobs came rates dropped to an all-time low. I’m telling into the economy because we were spending you, folks, we need to have a consensus in a lot more than we were taking in and putting America without regard to race or political a lot of people to work in defense industries. philosophy that we have to gain control over But after that, the patterns imposed on the our economic destiny again and stop being United States by the realities of the global paralyzed. If we don’t do something about economy returned with a vengeance and this, within 5 years we’ll be spending all of were made worse by the decisions made in our money paying more for the same health the early eighties where we cut taxes on the care and interest on the debt. And there will wealthy, ran the deficit up. be nothing to grow America and grow our What happened later? When the Congress people and bring us together. That is the first and the President started going back at it, issue. we had a decade in which taxes were cut on The second thing is that this plan is fair. the wealthy, and the top one percent got This plan is fair: 80 percent of the new reve- more than half of the income gains on the nues will come from people with incomes 1980’s. Taxes were raised on the middle class above $200,000—80 percent—80 percent; whose incomes were going down. We re- no income tax increases on couples with in- duced our investment in our children, their comes below $200,000, actually $180,000 in education, our economy, and our future. We adjusted gross income. The 4.3-cent gas tax cut defense spending without reinvesting in that is in this plan amounts to about $35 a California, Connecticut, Massachusetts, and year for a family of four with an income of the other States that were hurt. And all of $50,000. Working families with incomes of the money went to pay more for the same under $30,000 are held harmless. This is a health care, to pay more interest on the mas- fair plan. In 1990 when there was virtually sive debt, and to deal with the fact that we no burden on the wealthiest Americans in were creating a whole new class of poor peo- the budget plan, the burden on the middle ple. It reached the point that by 1992, 1 in class was 21⁄2 times as great as this. 10 Americans was on food stamps. The third point I want to make is, unlike So I say to you, that path didn’t work very 1990 and unlike the other plans which have well. We now have evidence that it didn’t been offered to the Congress this year, this work. In the last 4 years, only a million new plan has real incentives for economic growth jobs came into the economy. We are 3.5 mil- that will affect a lot of you in this room. Every lion jobs behind where we would have been small business in America will be eligible to in a normal economic recovery. increase their expensing provision by almost And so I presented a plan to the Con- double. What does that mean in plain terms? gress—and I have asked them to adopt it, It means that over 90 percent of the small and I asked the American people to support businesses in this country are going to get it last night—which brings down the deficit a tax cut out of this bill if they reinvest more by $500 billion over the next 5 years. Why money in their business. Now, that’s some- should liberals be for that? Why should peo- thing the Republicans haven’t told you in the ple in urban constituencies be for that? I’ll last few weeks: Over 90 percent will get a tell you why. Because as long as that deficit tax cut. keeps getting bigger, we’ll spend more and For those of you who live in California and more of your tax money, hard-working mid- are worried about the economy out there, dle class people’s tax money, paying bond this plan increases the incentives for compa- payments to wealthy bond holders instead of nies out there to invest in research and ex- investing in reinvigorating the American perimentation. That’s where a lot of it is economy. Interest rates will go back up, and going on. That will create more jobs. For we won’t be able to provide the things that those of you who live in Michigan, Ohio, people need. other States with heavy industry, this plan

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gives those big companies some relief from do anything to cut the deficit. It taxes the the minimum tax provisions if, but only if, middle class, not any different from what they invest in new plant, new equipment, and we’ve done, before.’’ It is just not so. And they do things that will make them more I ask you in these closing hours if you have competitive and able to hire more people and a Senator or a Representative who is poten- create new jobs. tially a vote for this, call them and tell them This plan gives a sweeping new investment you’ll be with them. incentive for people with the courage to in- I’ve spent a lot of time talking to the Mem- vest in new and small businesses. It says if bers of Congress. I hear two arguments from you do it and hold the investment for 5 years, people who say they may not or they won’t you get a 50 percent cut in the tax you’d vote for the program. Argument number one otherwise have to pay to get people into that. is a terrible indictment of democracy, but a This plan will grow the economy. lot of them have said it: ‘‘This is a good pro- Finally, let me say this plan is fair to people gram; it’s good for America; it’s good for my who deserve our support. There is some district, but our people don’t believe it. So more money in this plan for Head Start, to much misinformation has been put out. They help pregnant mothers, to start people off don’t believe there’s any deficit reduction. well, to invest in the apprenticeship training They don’t believe there’s any spending cuts. of our young people, to help to pay for na- They believe the middle class is paying the tional service, and for more access to college taxes. They don’t think there’s any incentives education. And the most important thing of for growth. And we’ll never convince them all, which has received very little attention of that. So even though it’s good for America, until the last few days, this plan arguably has I can’t vote for it because my people are not the most important piece of social reform in capable of hearing the truth.’’ I think that the last 20 years because it puts $21 billion is wrong. into the earned-income tax credit program, As soon as this bill passes, we will clear which means we can say to the working poor, away the murky fog of misinformation and if you have children in your house and you reality will take over. And we’ve been doing work 40 hours a week, you will be lifted out a better job of that in the last month. But of poverty. We are tired of seeing people you need to give courage to those people. work their heads off and work their fingers There are others who say, quite rightly, to the bone and be in poverty. that ‘‘This bill doesn’t solve every problem That is something that every conservative America has, and therefore, I won’t vote for in this country who’s talked about how well it.’’ Well, we’ll never vote for any bill if that’s the welfare system is for years ought to em- the test. brace with tears of joy. Think about it. For It is true, this bill brings the deficit down the first time in the history of the country for 5 years, and then it will start going up we can say, ‘‘If you go out and work hard again unless we do something about health and play by the rules and you’re still living care costs. But the time to do that is when in poverty’’—and almost one in five, 18 per- we reform the health care system and pro- cent of the workers in this country work for vide affordable health care to all Americans a wage that will not support a family of four and control health care costs in the private above the poverty line—this says ‘‘the tax sys- sector as well as the public sector. It is not tem, not a Government bureaucracy, not a fair to say we’re going to control health care program, the tax system will lift you out. You costs and doing it by slashing Medicare bene- will be rewarded for your work.’’ fits to middle class elderly people or by sim- That is a dramatic advance. It will change ply shifting the costs onto the private sectors. the lives of millions of Americans who are Now, I want to say this again. This is some- out there just killing themselves to raise their thing we all have a common interest in. We kids and to obey the law and to do what is do spend too much on health care. We spend right. And that, too, is in this program. it in the private sector and in the public sec- But when they say, our opponents, ‘‘This tor. We spend over 14 percent of our income thing doesn’t do anything for jobs. It doesn’t on health care. Only Canada, of all the other

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countries in the world, spends as much as Our television news is filled at night with 9 percent of their income on health care. Ev- horrible incidents of violence in Bosnia and erybody else is less. And we spent it partly other places in the world that break our because the whole system costs too much to heart. Twenty-four people were killed in this administer—it is a bureaucratic nightmare— town, our Nation’s Capital, in one week last and because we are the only advanced coun- month. We have to get on with that. try that doesn’t provide some quality cov- You had Hugh McCall here the other day, erage to all of our citizens and security of my friend, Hugh McCall, one of the most people so that they’ll have health care cov- enlightened bankers in America, a supporter erage even if they lose their jobs or if they of our community development banking pro- move jobs or if somebody in their family has posal. We’ve got to prove we can bring free been sick before. We have to deal with this. enterprise and investment back to distressed But if we did what these folks are saying urban and rural areas in this country. That and tried to solve the health care problem is out there waiting for action. None of this now by slashing what we spend on Medicare stuff is going to be addressed until we get and Medicaid without reforming the system, this budget economic plan passed and get do you know what would happen? We’d ei- it behind us and move forward. ther hurt the middle class elderly or the poor, The Vice President is going to present a or we’d keep on doing what’s been done in stimulating plan to reorganize the Federal this country now for about 15 years: We’d Government in ways that serve you better be sending the bill to the private sector. All at the grassroots level and still save the tax- of you who are in the private sector—most payers money. We are not done with trying of you are paying health insurance premiums to control the budget. But we cannot move that cost too much already. If we just cut forward unless we act on this now. what the Government pays, you’ll pay more. And so I say to you, my fellow Americans, So I say to those people who say we have we have tried delay, denial, gridlock. We’ve to do something about these entitlement pro- had all this tough talk and easy action. I’ve grams and health care, you are right. Let’s been criticized in some quarters for not talk- do it right. Let’s not use that as an excuse ing tough enough. My theory is if you do not to move forward with this program. the tough things, your actions can speak There’s too much good in it. louder than your words. We’ve had too many And finally, let me say we have a lot more words that didn’t mean a thing in this town to do. We have to move on to health care. for too long. We have to move on to welfare reform. We So I ask you as Americans to continue your have to move on to the crime bill, which will support of these endeavors. I ask for your do a great deal to help us to put more police partnership for the future. Let’s make the officers on the street in community policing national service program work and make it settings where we will be working with peo- an instrument of healing and unity and real ple in the community to make them safer problemsolving, just what the Urban League and to prevent crime from occurring in the has always been about. Let’s prove we can first place. We need to pass the Brady bill. deal with the health care issue in America, We have fooled around with this too long. that we don’t have to be the only advanced It is time to pass it. country in the world that can’t seem to find I had a heartbreaking conversation over a way to either control health care costs or the weekend with a friend of mine who is provide security to our families. Let’s prove a Member of Congress who had a friend that we can bring our deficit down and grow whose son was shot in one of these blind, our economy. mad encounters between children over the In short, let us prove that together we will weekend where four young boys got in a fight assume more responsibility, create more op- with four others, and they didn’t know the portunity, and come together again in this other guys had guns. And finally they just great American community. I am tired of took out the guns and started shooting them. hearing about all the things we cannot do. This is crazy. This is crazy. I am tired of hearing about cynicism and

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skepticism being the excuse for inaction and We have a budget deficit, we have an in- paralysis. vestment deficit, and we clearly have a trust This is a very great country. And when you deficit in America. I am determined to do travel abroad and you see the problems that something about all three. I know the Amer- these other nations are having and you see ican people are doubtful about any claim by all these other rich countries with higher un- our Government, and I know they wonder employment than we have, you know that if the cuts that we are proposing are real and there is nothing before us that we cannot deal if the taxes will really be used to pay down with if we simply have the vision and the the deficit. That’s why I want to go the extra will to do it. We are being given a chance mile to ensure that this plan is fundamentally now to demonstrate that vision and that will. different from what has been done in the It is consistent with everything the Urban past. League has ever stood for or done. This plan is based on conservative revenue I ask for your prayers, your support, and estimates of future revenues, with year-by- your memory that—President Kennedy once year, line-by-line specific spending cuts; new said it better than I ever could, ‘‘Here on incentives to expand the private sector’s con- Earth, God’s work must truly be our own.’’ tribution to economic growth; minimizes the Our work is before us. I’m trying to do my burdens on the middle class; and now creates part. I hope you will do yours. two safeguards to keep a watchful eye on fu- Thank you, and God bless you all. ture spending, especially in entitlements, while protecting the savings produced by the NOTE: The President spoke at 10:48 a.m. at the plan. Washington Convention Center. In his remarks, We owe the Executive orders I am about he referred to Reginald K. Brock, Jr., chairman and chief executive officer, Time, Inc.; John Jacob, to sign to the hard work of the Members president and chief executive officer, National of Congress who are here today. The House Urban League, Inc.; and John W. Mack, presi- included both provisions in its version of the dent, Los Angeles Urban League. A tape was not reconciliation bill. The Senate would have available for verification of the content of these done the same with similar amendments sup- remarks. ported by Senator DeConcini, Senator Fein- gold, recommended publicly by Senator Bradley and others, but for the procedural Remarks on Signing Executive maneuvering by people who feed the public Orders on Budget Control and cynicism by talking about deficit reduction Deficit Reduction and an Exchange on the one hand and nonetheless have pre- With Reporters pared to block action for these needed re- forms on the other. August 4, 1993 The fact that the Senate required these The President. Before I sign these orders, Executive orders today, that we could not do I’d like to make a brief statement, if I might. it by statute, is something that should be de- Nothing has done more to erode the con- bated at a later time. But I want to make fidence of the American people in our Gov- it clear that the Senators who are here and ernment than our chronic failure to manage others, strongly support what is being done. our finances and to stabilize the economy so These orders are almost completely iden- that it can create jobs. Year after year, the tical to the provisions adopted by the House public has been told that sustained economic and approved by a majority in the Senate. growth and deficit reduction would come The deficit reduction order creates a deficit from actions taken here. And as deficits have reduction trust fund, an account in the Treas- grown larger and incomes have shrunk, the ury that guarantees that the savings from the people have become more and more skep- reconciliation bill are dedicated exclusively tical, even cynical, about everything that is to reducing the deficit. This locks in deficit said and done here even with the best of in- reduction and mandates all members of the tentions. executive branch to follow these procedures.

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The entitlement and review order requires who care about this that I am prepared to that entitlement spending be limited to the strongly support a separate legislation to estimated levels included in the reconcili- achieve these objectives in the law. And I’d ation bill. If those levels are exceeded, I will like to see it brought up just as quickly as present recommendations to Congress on we can after the August recess is over. corrective action. No longer can we permit Thank you. entitlement spending to soar out of control Q. Mr. President, did you know it before without some concrete action being taken to now that Senator DeConcini had not made restrain it. up his mind yet? These Executive orders are the product of The President. Senator DeConcini and I years of hard work by the men and women agreed that this press conference would be represented here today. I am grateful to about this, and not—— them for their inspiration and their tenacity in getting this work done. NOTE: The President spoke at 12:39 p.m. in the As important as this plan is for reducing Oval Office at the White House. A tape was not the budget and investment deficits, these Ex- available for verification of the content of these ecutive orders deal also with the trust deficit. remarks. They are the assurance to the American peo- ple that our good words about deficit reduc- tion and economic growth will be matched Executive Order 12857—Budget by good works as well. Control [At this point, the President signed the Execu- August 4, 1993 tive orders. Senator Dennis DeConcini then made remarks.] By the authority vested in me as President of the United States by the Constitution and the laws of the United States of America, in- Economic Program cluding section 1105 of title 31, United States Q. Mr. President, what have you of- Code, it is hereby ordered as follows: fered—— Section 1. Purpose. The purpose of this The President. Good Government. order is to create a mechanism to monitor [Laughter] total costs of direct spending programs, and, Q. Can you have the—will you have the in the event that actual or projected costs vote without him? exceed targeted levels, to require that the The President. I guess I ought to say one budget address adjustments in direct spend- other thing about this. I still think these ing. things should be adopted in the law. And I Sec. 2. Establishment of Direct Spending would be prepared to support, as quickly as Targets. (a) In General. The initial direct we can get it up and voted on, a separate spending targets for each of fiscal years 1994 piece of legislation to do these things. And through 1997 shall equal total outlays for all I do want to emphasize that. direct spending except net interest and de- These Executive orders are identical, vir- posit insurance as determined by the Direc- tually identical, word for word, for what the tor of the Office of Management and Budget Congress, the majority in the Congress, (Director) under subsection (b). wanted. They clearly bind the executive (b) Initial Report by Director. (1) Not later branch just as much as an act of Congress. than 30 days after the date of enactment of But I think it would be better, from the point the Omnibus Budget Reconciliation Act of of view of the public trust and also more 1993 (OBRA), the Director shall submit a binding on Congress, if we can pass a sepa- report to the Congress setting forth projected rate piece of legislation. direct spending targets for each of fiscal years So I do want to make it clear that while 1994 through 1997. I support these ideas strongly and I will faith- (2) The Director’s projections shall be fully adhere to them in the Executive order, based on legislation enacted as of 5 days be- I have also told the Members of Congress fore the report is submitted under paragraph

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(1). To the extent feasible, the Director shall (A) Proposed legislative changes to reduce use the same economic and technical as- outlays, increase revenues, or both, in order sumptions used in preparing the concurrent to recoup or eliminate the overage for the resolution on the budget for fiscal year 1994 prior, current, and budget years in the cur- (H. Con. Res. 64). rent year, the budget year, and the 4 out- (c) Adjustments. Direct spending targets years. shall be subsequently adjusted by the Direc- (B) Proposed legislative changes to reduce tor under Section 6. outlays, increase revenues, or both, in order Sec. 3. Annual Review of Direct Spending to recoup or eliminate part of the overage and Receipts by President. As part of each for the prior, current, and budget year in the budget submitted under section 1105(a) of current year, the budget year, and the 4 out- title 31, United States Code, the Director years, accompanied by a finding by the Presi- shall provide an annual review of direct dent that, because of economic conditions or spending and receipts, which shall include for other specified reasons, only some of the (1) information supporting the adjustment of overage should be recouped or eliminated by direct spending targets pursuant to Section outlay reductions or revenue increases, or 6, (2) information on total outlays for pro- both. grams covered by the direct spending targets, (C) A proposal to make no legislative including actual outlays for the prior fiscal changes to recoup or eliminate any overage, year and projected outlays for the current fis- accompanied by a finding by the President cal year and the 5 succeeding fiscal years, that, because of economic conditions or for and (3) information on the major categories other specified reasons, no legislative of Federal receipts, including a comparison changes are warranted. between the levels of those receipts and the (3) Any proposed legislative change under levels projected as of the date of enactment paragraph (2) to reduce outlays may include of OBRA. reductions in direct spending or in the dis- Sec. 4. Special Direct Spending Message cretionary spending limits under section 601 by President. (a) Trigger. In the event that of the Congressional Budget Act of 1974. the information submitted under Section 3 Sec. 5. Proposed Special Direct Spending indicates— Resolution. If the President recommends (1) that actual outlays for direct spending reductions consistent with subsection in the prior fiscal year exceeded the applica- 4(b)(2)(A) or (B), the special direct spending ble direct spending target, or message shall include the text of a special (2) that outlays for direct spending for the direct spending resolution implementing the current or budget year are projected to ex- President’s recommendations through rec- ceed the applicable direct spending targets, onciliation directives instructing the appro- the Director shall include in the budget a priate committees of the House of Rep- special direct spending message meeting the resentatives and Senate to determine and requirements of subsection (b) of this Sec- recommend changes in laws within their ju- tion. risdictions to reduce outlays or increase reve- (b) Contents. (1) The special direct spend- nues by specified amounts. If the President ing message shall include: recommends no reductions pursuant to Sec- (A) An explanation of any adjustments to tion 4(b)(2)(C), the special direct spending the direct spending targets pursuant to Sec- message shall include the text of a special tion 6. resolution concurring in the President’s rec- (B) An analysis of the variance in direct ommendation of no legislative action. spending over the adjusted direct spending Sec. 6. Adjustments To Direct Spending targets. Targets. (a) Required Annual Adjustments. (C) The President’s recommendations for Prior to the submission of the President’s addressing the direct spending overages, if budget for each of fiscal years 1995 through any, in the prior, current, or budget year. 1997, the Director shall adjust the direct (2) The recommendations may consist of spending targets in accordance with this Sec- any of the following: tion. Any such adjustments shall be reflected

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in the targets used in the report under Sec- submitted under Section 4, the Director shall tion 3 and message (if any) under Section adjust direct spending targets for the current 4. year, the budget year, and each outyear (b) Adjustment for Increases in Bene- through 1997 by— ficiaries. (1) The Director shall adjust the di- (1) increasing the target for the current rect spending targets for increases (if any) year and the budget year by the amount stat- in actual or projected numbers of bene- ed for that year in that reconciliation bill (but ficiaries under direct spending programs for if a separate vote was required by Congres- which the number of beneficiaries is a vari- sional rules, only if that vote has occurred); able in determining costs. and (2) The adjustment shall be made by— (2) decreasing the target for the current, (A) computing, for each program under budget, and outyears through 1997 by the paragraph (1), the percentage change be- amount of reductions in direct spending en- tween (i) the annual average number of acted in that reconciliation bill. beneficiaries under that program (including (e) Designated Emergencies. The Director actual numbers of beneficiaries for the prior shall adjust the targets to reflect the costs fiscal year and projections for the budget and of legislation that is designated as an emer- subsequent fiscal years) to be used in the gency by Congress and the President under President’s budget with which the adjust- section 252(e) of the Balanced Budget and ments will be submitted, and (ii) the annual Emergency Deficit Control Act of 1985. average number of beneficiaries used in the Sec. 7. Relationship to Balanced Budget adjustments made by the Director in the pre- and Emergency Deficit Control Act. Rec- vious year (or, in the case of adjustments ommendations pursuant to Section 4 shall in- made in 1994, the annual average number clude a provision specifying that reductions of beneficiaries used in the Director’s initial in outlays or increases in receipts resulting report under Section 2(b)); from that legislation shall not be taken into (B) applying the percentages computed account for purposes of any budget enforce- under subparagraph (A) to the projected lev- ment procedures under the Balanced Budget els of outlays for each program consistent and Emergency Deficit Control Act of 1985. with the direct spending targets in effect im- Sec. 8. Estimating Margin. For any fiscal mediately prior to the adjustment; and year for which the overage is less than one- (C) adding the results of the calculations half of 1 percent of the direct spending target required by subparagraph (B) to the direct for that year, the procedures set forth in Sec- spending targets in effect immediately prior tion 4 shall not apply. to the adjustment. Sec. 9. Means-Tested Programs. In making (3) No adjustment shall be made for any recommendations under Section 4, the Di- program for a fiscal year in which the per- rector shall seriously consider all other alter- centage increase computed under paragraph natives before proposing reductions in (2)(A) is less than or equal to zero. means-tested programs. (c) Adjustments for Revenue Legislation. Sec. 10. Effective Date. This order shall The Director shall adjust the targets as fol- take effect upon enactment of OBRA. This lows: order shall apply to direct spending targets (1) they shall be increased by the amount for fiscal years 1994 through 1997 and shall of any increase in receipts; or expire at the end of fiscal year 1997. (2) they shall be decreased by the amount William J. Clinton of any decrease in receipts, resulting from receipts legislation enacted after the date of The White House, enactment of OBRA, except legislation en- August 4, 1993. acted in response to the message transmitted [Filed with the Office of the Federal Register, under Section 4. 10:15 a.m., August 5, 1993] (d) Adjustments To Reflect Congressional Decisions. Upon enactment of a reconcili- NOTE: This Executive order was published in the ation bill enacted in response to a message Federal Register on August 6.

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Executive Order 12858—Deficit (ii) The amounts in the Deficit Reduction Reduction Fund Fund as set forth in subsection (b) that result August 4, 1993 from increases in total revenues and spend- ing reductions shall not be available for new By the authority vested in me as President spending or to finance measures that in- of the United States by the Constitution and crease the deficit for purposes of budget en- the laws of the United States of America, in- forcement procedures under the Balanced cluding sections 1104 and 1105 of title 31, Budget and Emergency Deficit Control Act United States Code, it is hereby ordered as of 1985 (2 U.S.C. 901–922). follows: (d) Effect on Other Funds. Establishment Section 1. Purpose. It is essential to guar- of and transfers to the Deficit Reduction antee that the net deficit reduction achieved Fund shall not affect trust fund transfers that by the Omnibus Budget Reconciliation Act may be authorized or required by provisions of 1993 is dedicated exclusively to reducing of the Omnibus Reconciliation Act of 1993 the deficit. or any other provision of law. Sec. 2. Deficit Reduction Fund. (a). Estab- Sec. 3. Requirement for the President To lishment of the Fund. There is established Report Annually on the Status of the Fund. a separate account in the Treasury, known The Director of the Office of Management as the Deficit Reduction Fund, which shall and Budget shall include in the President’s receive the net deficit reduction achieved by Budget transmitted under section 1105 of the Omnibus Budget Reconciliation Act of title 31, United States Code, information 1993 as called for in subsection (b) of this about the Deficit Reduction Fund, including order. a separate statement of amounts in and Fed- (b) Amounts in Fund. Beginning upon en- eral debt redeemed by that Fund. actment of the Omnibus Budget Reconcili- Sec. 4. Implementation. The Secretary of ation Act of 1993, the Deficit Reduction the Treasury and the Director of the Office Fund shall receive any increases in total reve- of Management and Budget shall each take nues resulting from enactment of such Act such actions as may be necessary, within their on a daily basis. In addition, on a daily basis, respective authorities, promptly to carry out the Secretary of the Treasury shall enter into this order. such account an amount equivalent to the Sec. 5. Effective Date. This order shall net deficit reduction achieved as a result of take effect upon enactment of the Omnibus all spending reductions resulting from such Budget Reconciliation Act of 1993. Act. The cumulative fiscal year amounts for William J. Clinton the combination of all such revenue increases and spending reductions shall be equal to: The White House, August 4, 1993. (1) for fiscal year 1994, $60,292,000,000; (2) for fiscal year 1995, $70,437,000,000; [Filed with the Office of the Federal Register, (3) for fiscal year 1996, $92,061,000,000; 10:30 a.m., August 5, 1993] (4) for fiscal year 1997, $125,881,000,000; (5) for fiscal year 1998, $146,939,000,000. NOTE: This Executive order was published in the Within 30 days of enactment of the Omnibus Federal Register on August 6. Budget Reconciliation Act of 1993, the fore- Interview With the Louisiana Media going amounts may be adjusted by the Direc- tor of the Office of Management and Budget August 4, 1993 to reflect the final scoring of such Act. (c) Status of Amounts in Fund. (i) The Economic Program amounts in the Deficit Reduction Fund shall Q. Do you have a commitment from Bob be used exclusively to redeem maturing debt Kerrey or did DeConcini do it for you? obligations of the Treasury of the United The President. I think I should always let States held by foreign governments in the the Senators speak for themselves. I’ve al- amounts specified in subsection (b). ways believed that if the program passed in

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the House, it would pass in the Senate. I Q. We’ve heard all day about how good don’t think they will let it go down. this plan is for Louisiana. Yet, many Louisi- If you listen to the criticisms of—for the ana Democrats, two in the House, maybe people who are voting no, they all basically three, and of course Senator Johnston, plan say, at least in private what they say, they to vote against it. Disappointed, considering say one of two things: They either say that that—— this is a good program; it’s serious deficit re- The President. Sure, I’m disappointed, duction; it’s progressive; it has incentives for But you know, they took a terrible licking on all the sort of negative attacks on the plan growth and new jobs; 90 percent of the small early on. Senator Johnston told me, he said, businesses in the country get a tax break if ‘‘I know there are a lot of good things in they invest in their businesses; the working this plan, but the people of Louisiana don’t poor are lifted out of poverty. That affects know it. And I don’t think they will know 390,000 taxpayers in Louisiana, working fam- it.’’ ilies. But they say that the adversaries have I don’t know how in the world we could put so much bad news on the people and ever make any decisions in this country if they’ve convinced so many people that it we made decisions on that basis. But you doesn’t reduce the deficit, it doesn’t cut know, the truth is that 15,000 Louisianians, spending, and it taxes the middle class, that according to our research, will pay the higher we can’t ever fix it. So it’s just bad politics income tax rates, and 390,000 Louisianians even though it’s good for the country. will benefit from the earned-income tax cred- The other argument is that it doesn’t solve it reductions for the working poor, and over every problem. We still have to control 90 percent of the small businesses will be health care costs. We still have to deal with eligible for substantial tax reductions if they that to bring the deficit down to zero. That invest in their businesses. I mean, those are is true, but you can’t do that in this bill. You the facts. And the average family of four with have to reorganize and reform the health an income of $50,000 will pay $35 a year care system to do that. You’ve got a classic under this program, and all the money goes example with Charity Hospital or with any to reduce the deficit. And there are now of your health care providers that get Medi- more spending cuts than tax increases in the care funds. If we did what some of our critics deficit. say here and we just slash Medicare, put a All I can do is take the people who have cap on it without reforming the underlying not declared and keep hammering home the health care system, one of two things would facts. And I hope we will get those—but a happen: We would either really hurt middle lot of your House Members said the same class Medicare recipients plus the hospitals thing to me. They said they were just afraid and other providers of Medicare, or those that the public had been so misinformed that providers would take the shortfall and pass it would never get all straightened out. My it on to your employers so that everybody argument is that it will get straightened out who has private health insurance would pay if it passes, because once the bill passes, re- more. ality takes over and the rhetoric shrinks. I So I think most people know this is a good mean, either you are affected by it, or you program. It’s good for the country, and I aren’t. You know how it works, or it doesn’t. think it’ll pass. Q. Mr. President, what about Congress- man—— Q. So that means that DeConcini did lock The President. No, go ahead. I’ve got to it up for you, then? give other questions. The President. I believe it will pass. I’m not going to—all the Senators will have to Spending Cuts speak for themselves. I believe if the House Q. How do you expect the Congressmen passes it, the Senate will pass it, I believe. to go along with the spending cuts in the But we haven’t passed the House yet. That’s long run? I mean, if they vote tomorrow yes, tomorrow’s test. they’re voting for, what, $255 billion——

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The President. Billion dollars, that’s right. is just like any other big company. It needs Q. ——billion in tax cuts. But, I mean, to go through a period of restructuring now. you down, down the road—I mean, we’ve But this Government has not fundamentally seen this happen before and—— been reexamined since Herbert Hoover’s The President. Well, I want to make two civil service report in the late fifties. So there points about it and what’s different about it will be more cuts coming there. this time. The third thing I want to say, because I The first point is that today I issued an know there’s a lot of skepticism about the Executive order which is legally binding on Congress that you should know, that Con- my Government, which requires all the tax gress will have further opportunities between increases and all the spending cuts to be now and September 30th to cut spending in spent on deficit reduction for the 5-year life the regular appropriations process. In other of the budget. And that has the force of law. words, what this bill says is they have to cut So if any of our people divert from that, they at least this much spending, at least $255 bil- are breaking the law. lion. That’s what this bill does. But they can The second thing is that if we miss the cut more. The House of Representatives has target in any given year, because it’s impos- already approved more than $10 billion in sible for any of us to calculate to the dollar spending cuts over and above what we re- what’s going to happen to our enterprises for quire and sent it on to the Senate. And I’ve 5 years, any year we miss it I have to come been working for the last 2 days on trying back in with a plan to fix it. to organize a Senate-House effort to con- In addition to that, I told the House Mem- tinue to cut spending when this is over. So, bers today that we were going to try to pass we’re just getting started. This is the first these requirements as a separate piece of leg- step, not the end of this road. islation in September, and I feel confident we will. The Republicans essentially—we could have put it on the budget, but the Re- Conservative Democrats publicans in the Senate threatened to fili- Q. Congressman Stenholm announced buster it if we did. I don’t know why, because that he would not vote for the plan. Mr. they were for it, I thought. McLarty said don’t cut him out yet. He may Now, the other point I want to make about be—put him in a middle column. My first the spending cuts: There are three other op- question is, are you going to try to attempt portunities we’re going to have to cut spend- to persuade Mr. Stenholm to join the yes vot- ing to continue to drive the deficit down. Op- ers? And the second question is, do you think portunity number one is in the health care Mr. Stenholm can pull away enough conserv- debate. If we reform the health care system ative Democrats who were perhaps going to properly, over this decade we will spend less vote for the plan if Stenholm did, so they money on Medicare and Medicaid than we could say ‘‘a good conservative Democrat like otherwise would. But if we do it right, then Stenholm voted yes so I can, too.’’ Do you we’ll be saving money for the private sector think he can pull away enough that will as well as the public sector. For example, we threaten passage in the House? spend about 10 cents on the dollar in admin- The President. I don’t think he can. I istering the health care system, because of think he could, but I don’t think he will. That all the various insurance and governmental is, I think he is in a very unique position. regulations that no other country spends. We I like and admire him very much. He was can do better. We can cut health care spend- very disappointed when the parliamentary ing. maneuvers by the opposition party in the Second, the Vice President has a reinvent- Senate made it impossible for us to put these ing Government report coming to me next budget control mechanisms on the final bill. month which will recommend a substantial But he came over today to the White House amount of reorganization of the Government when I issued the Executive orders, and he to eliminate both waste and corruption, that said he would do everything he could to pass will bring us new savings. The Government it.

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He made a statement that he’s sort of stuck est back without taxation. So I wish they with now. And I think it’s a statement that would come with us, because I know that he thought was responsive to his constitu- there are Republicans who want to vote for ents. He said, ‘‘Look, I voted for the Btu tax, this. and I’m from Texas, but it raised $70 billion. I have talked to Republicans in the Senate If you’re going to have this gas tax, which who tell me they think that this is a good only raises $23 billion, that’s the only thing plan and better than the alternatives anyway. the Republicans can claim we’re doing to the And I regret it. But, you know, the leadership middle class. Why don’t we just get rid of basically have said they were all going to go it.’’ on strike, and that’s what they’ve done. The problem is with getting rid of it is that But let me say this. I think if we pass this we also have a whole lot of Democrats who plan tomorrow and the next day, I do not will only vote for deficit reduction if it’s the believe this will ever happen again, because biggest package in history and if it’s over then the dynamics of every other debate $495 billion. They want it to be real deficit favor broadening the base of the country and reduction. And we couldn’t ever get a major- the party. If you look at health care, the ity weigh to make up that $23 billion to get crime bill, the welfare reform bill, the trade rid of the fuel tax. So I think Stenholm has issues, there will be supporters and perhaps taken some public positions which narrow his opponents in both parties on all issues. We options. And he knows that several people will really be able to have a more bipartisan who voted no before have declared yes today. coalition. And every budget issue we have We had three of them in a press conference to deal with in the future that I can foresee today, including Charlie Wilson from Texas. will be nontax spending control issues. And But there are at least two others from Texas they won’t have the maneuverability, I don’t who are changing from no to yes. think, to control all those Republicans. I So I believe we’ll have enough to pass it think you’ll see more of what we saw in the in the House. But I will say again to you, national service bill, which Senator Breaux to respond to your question, the key in my and I worked very hard on, where we did judgment is the House. I do not believe the get Republicans who broke the filibuster in Senate will let the bill fail and let the whole the Senate, got a big Republican vote in the thing come apart if the House passes it. But House, and a nice group of Republicans sup- we’ve got to keep our focus on first things porting us in the Senate. I think you’ll see first. more of that. Republican Opposition Economic Program Q. How disappointed are you that all 215 Q. Mr. President, tell me—people that we members of the GOP delegation in Congress see in our polls just don’t believe that higher are united against your plan? taxes and Government cutting is going to The President. Oh, I’m terribly dis- help them. I mean, that’s what the polls appointed. Let me give you an example. show, and obviously you’re trying to change There are 20 to 30 Republicans in sort of that. Can you tell people in Shreveport, Lou- a moderate caucus in the House who told isiana, and Hope, Arkansas, and Longview me in the beginning that they didn’t mind how directly their lives will be better next voting for taxes on upper income Americans, year than they are right now because of this? that their problem was the Btu tax and the The President. Yes, and I can tell you Social Security tax, you know, extending the three or four specific reasons. Number one, income tax to some Social Security income. if we bring down this deficit, we will be able So we took the Btu tax out, and now the to keep these interests rates down at histori- Social Security tax only affects the upper 10 cally low levels. Interest rates started to drop percent of Social Security recipients who from the minute we announced this program. have a net worth, average net worth in excess And every time we’ve made progress on it, of $1 million, and who will still get what they they dropped some more. And every time put into the Social Security system plus inter- there was some rumor that we were going

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to lose control of it, interest rates spiked up million a year, and every year more and more a little bit. of our tax money will go to pay interest on If you have low interest rates stable for the debt instead of to invest in education and a couple of years, what happens is people other things. refinance all this huge debt from the eighties, The other thing this plan does, I think it’s their home loans, their business loans. That worth pointing out, that’s very helpful to lowers their cost of carrying that debt, puts Louisiana and Arkansas is it invests more money directly in their pocket. And if they money in Head Start; in early childhood know it’s going to be stable, then they turn health programs, which are real problems in around and reinvest it. So there are already our two States; in job training programs; in millions of Americans who have refinanced defense conversion programs for people who their home loans because of these low inter- have been hurt by military cutbacks to train est rates that the deficit fight has brought them for new jobs and to help communities about. If we can keep it back down for a adjust; and in making college more available year, then a lot of that money will be rein- to young people. So those are the specific vested. So they will benefit directly if they ways that people will be benefited by it. refinance their homes or their business loans Q. Certainly, Mr. President, there’s an or take out a lower loan for consumer credit antitax sentiment out there. The Btu tax was or college or a car or if they reinvest it. scrapped. Now we have a 4.3-cent gas tax. The second thing is that, I will say again, Why should Louisianians feel good about 90 percent of the small business people in that? this country are eligible—which is probably The President. They shouldn’t necessarily more than 90 percent in Arkansas and Louisi- feel good about that; they should think it’s ana—are eligible for significant and retro- a price worth paying to get the deficit down active tax reductions if they invest in their and to get these incentives for the economy business. We almost doubled the expensing to grow. If you look at it, gasoline in real provision for small businesses. That means dollar terms—that is, adjusted for inflation— that over 90 percent will have a net tax cut is at its lowest price in 30 years. So this is if they reinvest. the least burdensome time to put this on. We increase incentives for people to invest Let me compare it. If you compare the tax in new businesses and small businesses. If burden imposed on the middle class in the you hold the investment for 5 years, you cut 1990 tax bill and this one, that bill imposed your income tax rate by half. And the smaller a burden 21⁄2 times greater than this one. businesses, the newer ones, are the ones that So we tried to minimize the burden on the created the jobs. So that will directly affect middle class, hold working families with in- them. comes under $30,000, which is a big percent- Then, the last thing I want to say is that age of Louisiana and Arkansas, harmless over a quarter of the working families of Lou- from the tax increase and asked the people isiana will be eligible for relief under the in the upper 1.5 percent, people with in- earned-income tax credit, because they earn comes above $200,000, to pay 80 percent of less than $30,000 a year. And working fami- the taxes, because they got a majority of the lies with children with earnings of less than income gains of the 1980’s; literally the top $30,000 a year will be held harmless from 1 percent got over 60 percent of the income the gas tax through income tax cuts. And if gains and got a tax cut. they’re much lower than that, they’ll actually So I think this is a fair program. The main get a tax break out of it. thing is, we’re going to lock all this money So there will be more cash in Louisiana, up and put it to bringing the debt down. And in Shreveport and more economic incentives we all win if that happens. to invest in the economy. And a lower deficit helps everybody. Spending Cuts Otherwise, let me say what happens if we Q. Mr. President, why are so many of your don’t do this. If we don’t do it, this deficit spending cuts postponed for 4 or 5 years? will move up toward $500 billion and $600 And will they really ever take place?

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The President. Oh, yes. They’re legally of the budget, unless you control that, the bound to take place. But let me say this in deficit starts to go up again. response to what Senator Dole said last night. If you want to bring it down to zero, what You ought to go study the program he pre- we have to do is to make sure we reform sented the Senate. A higher percentage of the health care system and do it in a way his cuts occur in the last 2 years than mine. that by the time this budget ends it cycle The reason for that is that these cuts tend in the 5th year, you start having health care to be cumulative. That is, if you start right costs go down. And believe me, health care now and you want to shave a program—let costs—in this budget, what that means is me give you a program that I tried to shave health care would go up at the inflation rate that we are going to cut, the subsidy for peo- plus population. Or in other words, if we ple who grow wool and mohair, you know? could take it up to 6 percent a year instead The wool and mohair subsidy is $600 million. of 9 percent a year, we could bring the deficit It’s money that can’t be justified. It goes back down to zero in about 9 years. to the Korean war. Because the people that And let me say, that would be a very good represent those farmers didn’t want to elimi- thing. You can contract the economy too nate it altogether, we’re phasing that in. If much. Let me just say there are a lot of you cut farm subsidies, which we’re doing, economists who say, not conservative econo- it’s fairer to phase that in. You want to give mists but traditional progressive economists, people time to prepare for that. who say in all periods of slow growth you The other reason, frankly, is that we have should cut taxes and increase spending. The already gotten for next year and the year after problem is our debt is so big we can’t do in our budget virtually flat spending from this that, that’s crazy. So how can we reduce the year. So if you want to go from flat spending deficit and grow the economy? By keeping to big cuts, you’ve got to give people time the interest rates down and having people to adjust to that. But these cuts are absolutely refinance. But you can’t do it too fast. real, and they have to be put in. So if you go back and look, we’re about The only thing that could derail this budg- where Japan was in 1975. They were in the et is if there’s a big recession and the reve- same fix we’re in now. They had a deficit nues don’t come in or we don’t with dis- that was about the same percentage of their cipline, deal with the health care issue, which income. And they said, ‘‘We’re going to bring I intend to do. this thing down to zero. We’re going to do it in 10 years.’’ And 10 years later they did Deficit Reduction it. And now they’ve run a balanced budget Q. You said the debt would be going down or had a small surplus for the last 5 years just a second ago. But isn’t it true it will actu- as a result of that, even though their economy ally be going up but at a slower rate? is growing slower than ours. They have more The President. No, the deficit, the annual flexibility to deal with their system than we deficit will go down. But since there will be do. So we’ve got to do this. And I feel very a deficit, the national debt will go up but good about it. I think it’s going to work. But at a much lower rate. we’ve just got to realize we didn’t get into What we need to do is to work toward this fix overnight; we’re not going to get out bringing the deficit down to zero. If you look of it overnight. at my little chart that I was showing last Let me just close with this. There are two night, what it shows—and by the way, all issues here. One is, what’s the condition of charts show this. Anybody else’s chart would the economy and what caused it? The second show the same thing, the other plans would is, what’s the proper response from Govern- show the same thing. You can bring this defi- ment? The economic problems we face have cit down substantially in 5 years, but because been developing over a 20-year period. Aver- of the exploding cost of Medicare and Medic- age workers’ wages in this country peaked aid and because health care spending is going in 1973, if you adjust for inflation. Since ’73 up at twice the rate of inflation or more, after more than half of the American people have 5 years that becomes such a big percentage been working harder for the same or lower

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wages, while they paid more for health care, those things. And that’s one way that we’re housing, and education. That’s because of all going to keep jobs and incomes up in this these changes in the global economy. That’s country. We’re going to have to continue to run through Republicans and Democrats. invest—that’s a Government program, if you That’s a fact of this age and time. will, that in my judgment is not waste. We The Reagan response, which was contin- have to continue to invest in these things. ued by President Bush, was cut taxes, tilted And I will do what I can to see that we keep heavily to the wealthiest Americans on the the investments on schedule. Especially be- theory that they would reinvest it, and spend cause of where I’m from, I can’t be in the more money on defense because that will position myself of picking the routes. But I balloon the high-tech economy at home. think the Congress will do that, and it looks What happened was, when we had to start to me like you’re in pretty good shape on bringing down defense at the end of the cold that score. war, by that time health care costs were going up faster than defense was going down. We Deficit Reduction had to keep spending money on the same health care and interest on the debt. And Q. Mr. President, an old friend of yours because they were unwilling to cut other and a man who many Louisianians admire spending or to ask the wealthiest Americans very much said today at noon, I heard him: who got the big tax cuts in the eighties to ‘‘His deficit reduction plan just won’t work,’’ just restore some—we don’t even restore all unquote, Buddy Roemer. What can we take of it. Tax rates are still going to be lower back—[laughter]. than they were in 1980 before this happened. The President. Spoken like a good Re- Because we were unwilling to do that, we publican. Let me say, I believe first of all had this big imbalance. that what the Republicans have done, they So what I’m trying to do is to say—I’m ran this Government for 12 years. We went not blaming anybody for the larger economic from a $1 trillion to a $4 trillion deficit. Now, things. These are 20 years in the making. We the Democratic Congress has voted for that, can turn it around, but we have to have a but you need to know that under both the different response. We have to change from Reagan and Bush administration Congress trickle-down economics to an invest-and- actually appropriated a little bit less money grow economics. And that means bringing than the Presidents asked for. the deficit down and targeting investments My answer to you, sir, is that not very long for business, because that’s what we’re trying ago one of our Nation’s newspapers, the to do. Philadelphia Inquirer, went around and interviewed what you might call neutral ex- Public Works Projects perts on the deficit reduction plan, basically Q. One last question, Mr. President. I the budget analysts for the big accounting cover Eldorado and Monroe, and you’ve in- firms and other big finance firms. And they flated a lot of people’s appetites with all the all concluded that my budget was the most talk of the interstate coming through there, honest one presented in a decade, the first I–69. Eldorado doesn’t have one. Northeast Presidential budget to be taken seriously by Louisiana would like to get more than its Congress since the first Reagan budget. And share because it’s through Senator Johnston’s the budget analyst for Price Waterhouse, the wording in the bill—the proposal’s going big accounting firm, whom I have never met through Shreveport. What assurances can and don’t know and obviously doesn’t work you give us in northeast Louisiana and south- for me, said that my budget was the best ern Arkansas that we get a fair share of the budget in more than a decade, and the only public works project? thing I was wrong about is that it would re- The President. Well, the Congress, of duce the deficit more than I was saying, not course, will ultimately approve the route. But less. So let’s just hope he’s right. I think he I can tell you that basically if you look at is. my record at home, I’ve always supported Thank you.

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NOTE: The interview began at 5:32 p.m. in the I can pronounce this, and I’m from Arkansas, Red Room at the White House. A tape was not I should be able to pronounce this—she available for verification of the content of this served the Calcasieu—is that right?— interview. Calcasieu Parish schools for 18 years as an elementary school teacher and library/media Remarks Honoring Teachers Hall of specialist. Today she is the principal of Fame Inductees and an Exchange Westwood Elementary in Westlake, Louisi- With Reporters ana. She’s made technology a part of the total August 5, 1993 elementary curriculum and has brought such innovative learning projects to her State that The President. Thank you, Mr. Secretary, the president of the Louisiana Association of and good afternoon to all of you. I’m sorry Teachers credits her for setting the standard we started a little late, but I think you know in Louisiana for instructional technology. I’ve been in there on the telephone to the The second winner is Anna Alfiero of Congress. Norwichtown, Connecticut, who has taught It’s a great pleasure to welcome all of you science and math at Clark Lane Junior High here, especially the inductees into the Na- in Waterford, Connecticut, for 31 years. She tional Teachers Hall of Fame. I’d also like has found new ways to bring economics to to thank the representatives of Emporia State the classroom and to make math real to her University, the Emporia public schools, and enthusiastic students. This is particularly im- the city of Emporia, Kansas, for all their hard work in establishing the National Teachers portant because one of our Nation’s most Hall of Fame. Recognizing our teachers is pressing educational challenges is to improve a wonderful idea, and I hope I can help to the math skills of the next generation. do it every year I’m here. Third is Helen Case from El Dorado, Kan- We’re here to honor the spirit and the sas. She attended a one-room rural school dedication of teaching that motivates this in the early 1900’s. I hate to say that. [Laugh- wonderful group of educators, people who ter] And she has dedicated her life to serving every day in small towns and large cities others. She began teaching at the tender age bring to our young people the gift of learning. of 17 and went on to teach in the Kansas Every one of us has a memory of a teacher public school system for 45 years. She inte- who literally changed our lives. A good teach- grated innovative teaching methods into her er does more than pass on information. A curriculum long before they became widely good teacher inspires a thirst for learning that popular. I hear she used to hold mock ses- lasts a lifetime, instilling confidence, convey- sions of Congress, national party conventions, ing values, shaping our understanding of the and elections in her classes. Maybe she can world around us. I’m reminded of a quote give me a tip or two today. [Laughter] from Henry Brooks Adams: ‘‘A teacher af- I’d next like to acknowledge Shirley fects eternity; he can never tell where his Cunningham Naples from Detroit, Michigan. influence stops.’’ During each of her 23 years in the schools The 10 men and women we recognize of Ferndale, Michigan, Mrs. Naples issued today, chosen from hundreds of nominees, are examples of our Nation’s finest teachers. a challenge to her students to be the best. Not only do they bring a special gift for And every year they did just that, because teaching, they’ve all made other contribu- she did. Parents in Ferndale started planning tions to their communities. Each of them has as early as kindergarten for their children to a unique style of teaching and a vision for be in her class because of the personal com- the role of education that must be played mitment she made to the education of each now and well into the 21st century. and every one of her students. She also con- I’d like to acknowledge each of these in- tributes her teaching skills to help immigrant ductees, beginning with the ones from 1992. boat children become successful English- First, Sheryl Abshire from Lake Charles, speaking members of the school community. Louisiana. She served—I’m going to see if

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Next is Joseph York of Memphis, Ten- Next, Ida Daniel Dark of Philadelphia, nessee, who teaches senior English at Pennsylvania. During 31 years of teaching Adamsville Junior-Senior High School. Prac- music, she has been dedicated to providing tically no one in his community is beyond a culturally rich learning environment to all his reach. In addition to teaching his regular of her students, including physically and students during the day, he tutors other mentally challenged children. She’s devel- teachers and children and teaches 4 nights oped a music curriculum for severely and a week at area universities, including the re- profoundly impaired children which is now gional State prison. This incredible energy being used throughout the United States and and devotion to teaching stems from his be- Canada and has established a program that lief that a student’s learning ability is directly allows inner-city students to attend theater, related to his or her self image. art, and music presentations on the week- Let’s give them all a hand. [Applause] ends. And now, the 1993 inductees: Leslie Black Next is James K. Jackson, Sr., of from Northport, Alabama. During her 25 Wauconda, Illinois, a true visionary, an in- years of teaching, Mrs. Black has been recog- dustrial education teacher at Mundelein nized for her efforts to strengthen and en- High School who’s made students and par- courage a better link between home and ents part of his dream of building and flying school, something that I believe very strongly airplanes. He’s found imaginative ways to in, as I had experience in my State with a teach technology-advanced subjects that can help students prepare for the rigors of a rap- preschool program that my wife brought to idly changing world. His students built the Arkansas called the home instruction pro- airplane that he flew to the National Teach- gram for preschool youngsters. Mrs. Black ers Hall of Fame induction ceremony in Em- has brought individualized instruction to the poria. Now, that’s real confidence in your classroom and has worked to integrate music, students. [Laughter] Is that true? the arts, and cultural awareness into the daily And finally, Christine Lungren-Maddalone curriculum. She was also awarded the 1992 of Long Beach, California, an elementary Presidential Award for Excellence in mathe- teacher at John Greenleaf Whittier Elemen- matics. tary School in Long Beach. After the Los An- Next is Stewart R. Bogdanoff of Yorktown geles riots in 1992, she set up after-school Heights, New York. For 28 years a physical self-esteem enhancement classes for her stu- education teacher for the Lakeland Central dents and talked to them about the need for School District in Thomas Jefferson Elemen- a responsible change in the aftermath of the tary School, he’s helped develop the physical riots. She tries to teach her students to learn fitness curriculum and after-school programs from life’s experiences and has proven that that not only enriches the lives of students all children, when given the chance, can suc- but also provides stimulating learning envi- ceed. ronments as well. He’s dedicated countless Let’s give them a hand, too. [Applause] hours to working with disabled athletes and Good for you. received the Point of Light award from Presi- I do want to say that in recognizing and dent Bush for his dedication to community honoring these teachers, I know they would projects. want us to, through them, honor the con- I’d like to say just parenthetically, I be- tributions of teachers throughout our Nation. come more and more concerned about the These teachers are reminders that we must physical health of our people as we enter into allow teachers to do what they do best, to this great debate about national health care. teach. And we must struggle here in Wash- I think it is very important that we not over- ington and in every State capital and in all look the fact that it is my judgment a real the central offices of all the school districts mistake to cut back on physical education for to empower teachers to teach and not to all students in schools at a time when we’re break them down with the burdens of bu- trying to build better health habits in all the reaucracy and requirements that have noth- American people. ing to do with whether their children can

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learn. We have to allow teachers and prin- spending cuts and revenue increases and for cipals and parents to make more of their own an economic plan that will grow the econ- decisions, to set the agendas and to chart the omy. And no one I have talked to, including future course of their schools and their chil- people who say that they may not vote for dren’s education with clear standards so they it, has suggested that anybody believes seri- can know whether our children are doing as ously that a better result will occur if the they should in a tough, global environment. bill does not pass. So I feel pretty good. We in Washington are trying to recommit Q. ——convene a special conference to ourselves to making the Federal Government find more budget cuts or a session of Con- a real partner in education. That’s why Sec- gress, similar to what Kerrey is proposing? retary Riley and I have worked so hard to The President. I’ve been working with make the national education goals the foun- them for 2 or 3 days. And I’m very much dation of true reform. We have to make sure open to that. We have to do something like that our children start school ready to learn that anyway to deal with the Vice President’s and have the opportunity to succeed. And reinventing Government report. And what we have to challenge all of them to meet rig- we had planned to do was to suggest that orous, world-class standards of learning. We there be a bipartisan commission, including owe this to them, to their future, and to all Members of both parties of Congress, to re- the rest of us as well. That’s why I’m so proud view these recommendations. So we can cer- to be here to honor the achievements and tainly accommodate this. dedication of these wonderful teachers. What I keep trying to tell all the Members I thank them for coming, and I’d now like is this is the beginning of this process, not to invite here Robert Glennen, the President the end. There’s a whole lot more work to of the National Teachers Hall of Fame, to be done. We’ve just been here 7 months. You the stage to make a few remarks. Mr. know, finally they’ve got somebody here Glennen. who’s serious about responsible budgeting [At this point, Mr. Glennen made brief re- instead of just talking about it. And the argu- marks.] ment I’m making to them is there is no alter- native. And every alternative we saw from Economic Program the other side had less deficit reduction, Q. Mr. President, can we ask you what more bogus spending cuts, and did not ask you’re telling these Congress Members the wealthy to pay their fair share. And there you’re on the phone with, what appeals are were no economic growth incentives. And you making, and what more can you do? after all, the whole purpose of this is to gen- erate jobs and revitalize the economy. So I The President. Well, we’ve done a lot of feel pretty good about it. work today to try to sketch out what will hap- pen in the next couple of months after this Q. Have you spoken to Senator Kerrey, process. And the argument I’m making is that sir? And whether you have or not, do you this is the beginning, not the end, of our ef- know where he is on this? forts to have responsible budgeting. There The President. I’m going to follow my will be one more round of budget cuts. There ironclad rule on this. I’m going to let the will be the unveiling of the Vice President’s Members speak for themselves. Yes, I have report on reinventing Government, which spoken to him. will have billions of dollars in further savings that can be achieved. There will be the op- Bosnia portunity to control health care costs in the Q. ——Sarajevo, it looks like the siege is context of the health care reform bill in a getting worse and may not be able to wait way that will not be unfair to older people until Monday. Do the allies and the United on Medicare. States need to move it up to protect the city So, what I am suggesting to them is that before it falls? this is clearly the best chance for real deficit The President. I can’t answer that now, reduction, for a fair apportionment of the because I haven’t been briefed on it. But I

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may have something to say about it later. I’m in the world that had achieved any kind of sorry. standard of living that didn’t provide this basic protection for families. I think it will Economic Program increase productivity in the work force, in- Q. Have any of the Members you’ve spo- crease the morale of workers, and people will ken with made it a prerequisite that there make a lot more money out of it than it will be a so-called budget session or whatever for cost them by sticking up for the families. them to vote for this package? The President. Well, let me say, I have NOTE: The President spoke at 4:20 p.m. in the offered a whole series of things that are con- Rose Garden at the White House. A tape was not sistent with what I have believed in all along. available for verification of the content of these I mean, a lot of the Members want a separate remarks. bill which contains the budget control meas- ures that the House adopted, that the Senate rules wouldn’t permit. They want further op- Remarks on Action by the House of portunities to shave the budget, which I have Representatives on the Economic committed to and which I strongly support, Program have from the beginning. They want oppor- tunities for other issues to be debated be- August 5, 1993 tween now and the end of the year relating The President. I want to congratulate the to the structure of the budget, all of which Members of the House and their leaders for I have agreed to. So I think there is no ques- breaking gridlock tonight and entering a new tion here—there is no serious suggestion that era of growth and control over our destiny. we could get a better result if this bill does In the future, the American people will thank not pass. So I think that we’ve got a very them for their commitment to moving away good chance to pass it. But you know, I never from the horrendous legacy of debt, under- predict until they vote. investment, and slow growth of the 1980’s Thank you. and putting the national interest ahead of the Q. Any Republican votes, Mr. President? narrow interest, putting tomorrow ahead of The President. A lot of them want for it. today’s pressure. Q. How do you know that? The margin was close, but the mandate The President. ——several of them say was clear. I will continue to fight for this eco- they’d like to vote for it—— nomic package with everything I have. And I urge the Members of the Senate to act on Q. Who did you talk to today—round it in a positive way tomorrow. The fight is number? still on, and we have just begun to fight. The President. I don’t know, a bunch. This economic plan represents an impor- Family and Medical Leave Act tant first step in changing America. For the first time in a very long time we are making Q. ——today, what do you say to the peo- a meaningful downpayment on the Federal ple, the businessmen who are now complain- deficit, with deep spending cuts locked away ing about this new mandate? in a trust fund that cannot be spent for any- The President. That if we’re going to be thing else. For the first time in a dozen years prowork and profamily, we have to make it the tax burden that is a part of the deficit possible for people to succeed as parents and reduction trust fund will be borne largely by as workers. We cannot force people to those best able to bear it, with 80 percent choose between the two. Most parents have of the new revenues coming from those with no choice but to work. But parenting is still incomes above $200,000. And still, there will the most important job of society. be shared contributions. The middle class is And all these nations with which we com- asked to make a modest contribution to pay- pete provide for those kind of family sup- ing down the deficit and growing the econ- ports. We were one of the very few nations omy. For the first time in a decade we are

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making a serious effort to invest in our chil- follow their lead. And I look forward to con- dren, reward work over welfare, strengthen tinuing the battle tomorrow. our families, and give genuine incentives to Good evening. business to grow new jobs. These incentives are very, very important because the purpose NOTE: The President spoke at 10:55 p.m. in the of bringing the deficit down is to keep inter- Rose Garden at the White House. A tape was not est rates down, be able to control our finan- available for verification of the content of these cial destiny, and permit people with the right remarks. incentives to put the American people back to work. Finally, as I said, this is just a first step Nomination for an Assistant to putting our financial house and our eco- Administrator at the Agency for nomic house in order. This program is shared sacrifice for shared benefit. We’re all in this International Development together, but we have just begun. August 5, 1993 If the Senate acts favorably tomorrow, and as soon as the August recess is over, I am The President announced his intention committed to further steps for discipline in today to nominate career Foreign Service Of- the Federal budget, in getting rid of unneces- ficer John F. Hicks to be Assistant Adminis- sary spending and waste, including reenact- trator of the Agency for International Devel- ing the controls that the House originally opment, U.S. International Development passed and that I embodied in my Executive Cooperation Agency, and Director of AID’s orders of yesterday. After that, we will move Africa Bureau. on to the Vice President’s report on reinvent- ‘‘John Hicks is a dedicated and capable ing Government, which will contain a myriad professional who is one of the Foreign Serv- of exciting possibilities for making the Gov- ice’s leading experts on African develop- ernment more efficient and reducing unnec- ment,’’ said the President. ‘‘I expect him to essary and inefficient spending. do an outstanding job in this position.’’ Then we will move on to deal with the health care issue, to provide the security of NOTE: A biography of the nominee was made affordable health care to all families and to available by the Office of the Press Secretary. lower the growth in health care costs over the long run, without which we will never bring this budget into balance or restore real Nomination for President of the financial health to the private sector. Then Government National Mortgage there is the process of ending welfare as we Association know it, making our streets safer, and most important of all, putting all this together in August 5, 1993 a program to restore jobs and growth for the American people. The President announced today that he in- We have set our sights high, but for 20 tends to nominate Dwight P. Robinson to be years our people have struggled harder on the President of the Government National stagnant wages with too little investment and Mortgage Association in the Department of too few new jobs and exploding debt. For Housing and Urban Development. 12 years we have tried trickle-down econom- ‘‘Throughout his career in Michigan and ics while the debt went up and investment here in Washington, DC, Dwight Robinson went down. Now we want a new direction has distinguished himself as a leader in the to invest and grow this economy. housing field. I am grateful for his service,’’ We began by seizing control of our destiny said the President. on a daily basis with this heroic vote today by the House of Representatives. I congratu- NOTE: A biography of the nominee was made late those who voted. I urge the Senate to available by the Office of the Press Secretary.

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Message to the Senate Transmitting Remarks on Senate Action on the a United Nations Convention on Economic Program International Trade Law August 6, 1993 August 6, 1993 Thank you. Thank you very much. What we heard tonight at the other end of Pennsyl- To the Senate of the United States: vania Avenue was the sound of gridlock With a view to receiving the advice and breaking. It was the sound of progress and consent of the Senate to accession, I transmit change which can now resound throughout herewith the United Nations Convention on every corner of our great and beloved Na- the Limitation Period in the International tion. Sale of Goods done at New York on June I want to thank the United States Senators 14, 1974, and the Protocol amending the who voted for change tonight, especially the Convention done at Vienna on April 11, Senate majority leader, George Mitchell, for 1980. Also transmitted for the information his untiring efforts, and all the others who of the Senate is the report of the Department worked so hard for so long to see this night of State with respect to the Convention. come about. I want to thank the Vice Presi- This is the second Convention in the field dent for his unwavering contribution to the of international sales of goods law produced landslide. I thank the economic team who by the United Nations Commission on Inter- worked so hard on this from last November: national Trade Law (UNCITRAL) that has Leon Panetta, who is here; Secretary Bent- been transmitted to the Senate for its advice sen; Mr. Rubin; and all the people who work and consent. The first, the 1980 United Na- with them. I thank Mr. McLarty and all the tions Convention on Contracts for the Inter- members of the White House staff. I thank national Sale of Goods, was ratified by the Mr. Altman and the war room for the work United States and entered into force for this they did in the last several weeks. I thank country on January 1, 1988. Both of these especially Howard Paster and Steve Ricchetti Conventions establish uniform international and all those who worked for us in the Sen- standards in the commercial law of sales of ate. I hope that they will get some well-de- goods in order to facilitate commerce and served rest. trade. Both benefit the United States by re- After 12 long years, we can say to the moving artificial impediments to commerce American people tonight we have laid the that arise from differences between the na- foundation for the renewal of the American tional legal systems that govern international dream. The days of endless gridlock, rising sales of goods. deficits, and trickle-down economics are The Secretary of State’s Advisory Commit- over. The days of economic growth and real tee on Private International Law, on which opportunity for the working families of this 11 national legal organizations are rep- country have begun. resented, in May 1989, and the House of Delegates of the American Bar Association, This was not easy, but real change is never in August 1989, endorsed U.S. accession to easy. It is always difficult. It is always easier the Convention and amending Protocol, sub- to sustain the status quo and to talk as if you ject to a U.S. declaration permitted under were changing. But that is not why I was Article XII of the Protocol. The declaration elected President, nor is it why we were sent is set forth with reasons in the accompanying here. report of the Department of State. When we came here, our national debt had I recommend that the Senate promptly quadrupled in 12 years, and the incomes of give its advice and consent to accession to our forgotten working families had been stag- this Convention together with its amending nant for nearly 20 years. Our heritage of in- Protocol. vestment in our people and our economy had been gradually forsaken and the people of William J. Clinton our Nation questioned whether anyone here The White House, in this city would take responsibility for our August 6, 1993. future, change the direction of our country,

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and ensure a better life for them and their rightfully belongs to every American willing children. to work hard, play by the rules, and take care After a long season of denial and drift and of their children. We are determined that the decline, we are seizing control of our eco- next generation of Americans will inherit a nomic destiny. To be sure, as I have said re- brighter future than we have known, just as peatedly, this is just the beginning, just the we did from our parents. For more than two first step in our attempts to assert control centuries, that has been the promise of the over our financial affairs, to invest in our fu- American dream. Tonight, because of the ture, and to grow our economy, to deal with bold action taken by courageous men and the health care problems, the welfare reform women in the House and the Senate, that problems, the problems of crime in the dream will not be deferred but rather be ful- streets, and the other things that deal with filled. the daily fabric of life for our people. But I am profoundly grateful tonight for the make no mistake about it, this is a very, very opportunity to stand here not simply as Presi- important beginning. dent but as an American citizen seeing our The economic program that Congress Nation once again roll up our sleeves to- passed tonight puts $500 billion into a trust gether, tackle our problems, and march to fund locked away for deficit reduction; $255 tomorrow. billion in specific, real, enforceable spending Thank you, and God bless you all. cuts; tax cuts for 20 million working Ameri- cans with marginal incomes who are trying NOTE: The President spoke at 11:05 p.m. at the to raise their children. This will reward their North Portico at the White House. A tape was desire to choose work over welfare. It is an not available for verification of the content of these remarks. important advance in the fabric of oppor- tunity and responsibility in this country. This new direction includes new opportu- nities for the sons and daughters of middle class families to go to college because it re- Digest of Other forms the student loan programs in ways that White House Announcements make student loans more accessible to more people and cuts the cost in the program through waste reduction. It provides immu- The following list includes the President’s public nizations to give a healthy start to millions schedule and other items of general interest an- of American children. It provides significant nounced by the Office of the Press Secretary and new incentives for small businesses to grow not included elsewhere in this issue. and expand. In this sharp departure from business as usual, this program will create August 3 jobs, reduce the deficit, and put the Amer- In the morning, the President went jog- ican people first. ging with Democratic National Committee In the lifetime of this country, the courage ‘‘Break the Gridlock’’ student volunteers. In and wisdom of the American people in dif- the late afternoon, the President met with ficulty have always prevailed when we faced Oklahoma State leaders. In the evening, he a challenge and needed a change. Sometimes attended a dinner honoring Representative in the past they have prevailed by the narrow- Jack Brooks at the Hyatt Regency Hotel on est of margins in the beginning but always Capitol Hill. picking up steam, always marching con- The President announced his intention to fidently toward the future. That will be true nominate Robert Fossum to be Assistant Sec- in this time as well. retary of the Air Force for Space Policy and We’re determined not to let the American Ernest Dubester to be a member of the Na- dream founder. We are determined to stop tional Mediation Board. He also announced avoiding our problems and start facing them, that he has designated Jessica L. Parks as to embrace them as challenges, to turn them Vice Chair of the Merit Systems Protection into opportunities, to seize the future that Board.

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August 6 be Ambassador Extraordinary and Pleni- The President extended his condolences to potentiary of the United States of America Queen Fabiola and the people of Belgium to the Republic of Bulgaria. on the death of King Baudouin I. The White House announced that former President John Roggen Schmidt, Gerald Ford will lead the delegation to the of Illinois, for the rank of Ambassador during funeral on August 7 in Brussels. his tenure of service as the Chief U.S. Nego- tiator to the Uruguay round.

John J. Hamre, of South Dakota, to be Comptroller of the Nominations Department of Defense, vice Sean Charles Submitted to the Senate O’Keefe, resigned. Reed E. Hundt, The following list does not include promotions of of Maryland, to be a member of the Federal members of the Uniformed Services, nominations Communications Commission for a term of to the Service Academies, or nominations of For- 5 years from July 1, 1993, vice Alfred C. eign Service officers. Sikes, resigned.

Jean C. Nelson, Submitted August 2 of Tennessee, to be an Assistant Adminis- William Green Miller, trator of the Environmental Protection Agen- of Virginia, to be Ambassador Extraordinary cy, vice E. Donald Elliott, resigned. and Plenipotentiary of the United States of Nora Slatkin, America to Ukraine. of Maryland, to be an Assistant Secretary of Submitted August 4 the Navy, vice Gerald A. Cann, resigned.

Reginald Bartholomew, of the District of Columbia, a career member of the Senior Foreign Service, class of Career Checklist Minister, to be Ambassador Extraordinary of White House Press Releases and Plenipotentiary of the United States of America to Italy. The following list contains releases of the Office Roger R. Gamble, of the Press Secretary that are neither printed as of Virginia, a career member of the Senior items nor covered by entries in the Digest of Foreign Service, class of Minister-Counselor, Other White House Announcements. to be Ambassador Extraordinary and Pleni- potentiary of the United States of America Released August 2 to the Republic of Suriname. Transcript of a press briefing by Press Sec- retary Dee Dee Myers Mark Gregory Hambley, of California, a career member of the Senior Statement by Press Secretary Dee Dee Foreign Service, class of Counselor, to be Myers on the NATO decision on air strikes Ambassador Extraordinary and Pleni- on Bosnian Serbs potentiary of the United States of America to the Republic of Lebanon. Released August 3 Transcript of a press briefing by Press Sec- William Dale Montgomery, retary Dee Dee Myers of Pennsylvania, a career member of the Sen- White House statement on administration ior Foreign Service, class of Counselor, to action on timber sales

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Released August 4 H.R. 1347 / Public Law 103–58 Transcript of a press briefing by Director of To modify the boundary of Hot Spring Na- the Office of Management and Budget Leon tional Park Panetta H.R. 2683 / Public Law 103–59 Transcript of a press briefing by Director of To extend the operation of the migrant stu- Communications Mark Gearan dent record transfer system White House statement on the Executive order on Federal compliance with right-to- S.J. Res. 54 / Public Law 103–60 know laws and pollution prevention require- Designating April 9, 1994, as ‘‘National ments Former Prisoner of War Recognition Day’’

Released August 5 S.J. Res. 111 / Public Law 103–61 Transcript of a press briefing by Press Sec- To designate August 1, 1993, as ‘‘Helsinki retary Dee Dee Myers Human Rights Day’’

Released August 6 Approved August 3 Transcript of a press briefing by Deputy Sec- S. 20 / Public Law 103–62 retary of the Treasury Roger Altman and Government Performance and Results Act of Council of Economic Advisers Chair Laura 1993 D’Andrea Tyson Transcript of a press briefing by Press Sec- S. 1311 / Private Law 103–1 retary Dee Dee Myers For the relief of Olga D. Zhondetskaya Approved August 4

H.R. 63 / Public Law 103–63 Acts Approved Spring Mountains National Recreation Area Act by the President H.R. 236 / Public Law 103–64 Approved August 2 To establish the Snake River Birds of Prey National Conservation Area in the State of Idaho, and for other purposes H.R. 843 / Public Law 103–56 Cave Creek Canyon Protection Act of 1993 Approved August 6

H.R. 847 / Public Law 103–57 H.R. 416 / Public Law 103–65 To provide for planning and design of a Na- To extend the period during which chapter tional Air and Space Museum extension at 12 of title 11 of the United States Code re- Washington Dulles International Airport mains in effect, and for other purposes

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