[Congressional Record Volume 147, Number 24 (Tuesday, February 27, 2001)]
[Senate]
[Pages S1609-S1612]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




REPORT ON THE PROPOSED BUDGET FOR THE UNITED STATES OF AMERICA--MESSAGE 
                        FROM THE PRESIDENT--PM 8

  The PRESIDING OFFICER laid before the Senate the following message 
from the President of the United States, together with an accompanying 
report; which was ordered to lie on the table.

To the Congress of the United States:
  Mr. Speaker, Mr. Vice President, Members of Congress:
  It is a great privilege to be here to outline a new budget and a new 
approach for governing our great country.
  I thank you for your invitation to speak here tonight. I want to 
thank so many of you who have accepted my invitation to come to the 
White House to discuss important issues. We are off to a good start. I 
will continue to meet with you and ask for your input. You have been 
kind and candid, and I thank you for making a new President feel 
welcome.
  The last time I visited the Capitol, I came to take an oath. On the 
steps of this building, I pledged to honor our Constitution and laws, 
and I asked you to join me in setting a tone of civility and respect in 
Washington. I hope America is noticing the difference. We are making 
progress. Together, we are changing the tone of our Nation's capital. 
And this spirit of respect and cooperation is vital--because in the 
end, we will be judged not only by what we say or how we say it, but by 
what we are able to accomplish.
  America today is a nation with great challenges--but greater 
resources. An artist using statistics as a brush could paint two very 
different pictures of our country. One would have warning signs: 
increasing layoffs, rising energy prices, too many failing schools, 
persistent poverty, the stubborn vestiges of racism. Another picture 
would be full of blessings: a balanced budget, big surpluses, a 
military that is second to none, a country at peace with its neighbors, 
technology that is revolutionizing the world, and our greatest 
strength, concerned citizens who care for our country and for each 
other.
  Neither picture is complete in and of itself. And tonight I challenge 
and invite Congress to work with me to use the resources of one picture 
to repaint the other--to direct the advantages of our time to solve the 
problems of our people.
  Some of these resources will come from government--some, but not all. 
Year after year in Washington, budget debates seem to come down to an 
old, tired argument: on one side, those who want more government, 
regardless of the cost; on the other, those who want

[[Page S1610]]

less government, regardless of the need.
  We should leave those arguments to the last century and chart a 
different course. Government has a role, and an important one. Yet too 
much government crowds out initiative and hard work, private charity 
and the private economy. Our new governing vision says government 
should be active, but limited, engaged, but not overbearing.
  My budget is based on that philosophy. It is reasonable and it is 
responsible. It meets our obligations and funds our growing needs. We 
increase spending next year for Social Security and Medicare and other 
entitlement programs by $81 billion. We have increased spending for 
discretionary programs by a very responsible 4 percent, above the rate 
of inflation. My plan pays down an unprecedented amount of our national 
debt, and then when money is still left over, my plan returns it to the 
people who earned it in the first place.
  A budget's impact is counted in dollars, but measured in lives. 
Excellent schools, quality health care, a secure retirement, a cleaner 
environment, a stronger defense--these are all important needs and we 
fund them.
  The highest percentage increase in our budget should go to our 
children's education. Education is my top priority and by supporting 
this budget, you will make it yours as well.
  Reading is the foundation of all learning, so during the next 5 
years, we triple spending, adding another $5 billion to help every 
child in America learn to read. Values are important, so we have 
tripled funding for character education to teach our children not only 
reading and writing, but right from wrong.
  We have increased funding to train and recruit teachers, because we 
know a good education starts with a good teacher. And I have a 
wonderful partner in this effort. I like teachers so much, I married 
one. Please help me salute our gracious First Lady, Laura Bush.
  Laura has begun a new effort to recruit Americans to the profession 
that will shape our future: teaching. Laura will travel across America, 
to promote sound teaching practices and early reading skills in our 
schools and in programs such as Head Start.
  When it comes to our schools, dollars alone do not always make the 
difference. Funding is important, and so is reform. So we must tie 
funding to higher standards and accountability for results.
  I believe in local control of schools: we should not and we will not 
run our public schools from Washington. Yet when the Federal Government 
spends tax dollars, we must insist on results.
  Children should be tested on basic reading and math skills every 
year, between grades three and eight. Measuring is the only way to know 
whether all our children are learning--and I want to know, because I 
refuse to leave any child behind.
  Critics of testing contend it distracts from learning. They talk 
about ``teaching to the test.'' But let us put that logic to the test. 
If you test children on basic math and reading skills, and you are 
``teaching to the test,'' you are teaching . . . math and reading. And 
that is the whole idea.
  As standards rise, local schools will need more flexibility to meet 
them. So we must streamline the dozens of Federal education programs 
into five and let States spend money in those categories as they see 
fit.
  Schools will be given a reasonable chance to improve, and the support 
to do so. Yet if they do not, if they continue to fail, we must give 
parents and students different options--a better public school, a 
private school, tutoring, or a charter school. In the end, every child 
in a bad situation must be given a better choice, because when it comes 
to our children, failure is not an option.

  Another priority in my budget is to keep the vital promises of 
Medicare and Social Security, and together we will do so. To meet the 
health care needs of all America's seniors, we double the Medicare 
budget over the next 10 years.
  My budget dedicates $238 billion to Medicare next year alone, enough 
to fund all current programs and to begin a new prescription drug 
benefit for low-income seniors. No senior in America should have to 
choose between buying food and buying prescriptions.
  To make sure the retirement savings of America's seniors are not 
diverted to any other program--my budget protects all $2.6 trillion of 
the Social Security surplus for Social Security and for Social Security 
alone.
  My budget puts a priority on access to health care--without telling 
Americans what doctor they have to see or what coverage they must 
choose.
  Many working Americans do not have health care coverage. We will help 
them buy their own insurance with refundable tax credits. And to 
provide quality care in low-income neighborhoods, over the next 5 years 
we will double the number of people served at community health care 
centers.
  And we will address the concerns of those who have health coverage 
yet worry their insurance company does not care and will not pay. 
Together, this Congress and this President will find common ground to 
make sure doctors make medical decisions and patients get the health 
care they deserve with a Patients' Bill of Rights.
  When it comes to their health, people want to get the medical care 
they need, not be forced to go to court because they did not get it. We 
will ensure access to the courts for those with legitimate claims, but 
first, let us put in place a strong independent review so we promote 
quality health care, not frivolous lawsuits.
  My budget also increases funding for medical research, which gives 
hope to many who struggle with serious disease. Our prayers tonight are 
with one of your own who is engaged in his own fight against cancer, a 
fine representative and a good man, Congressman Joe Moakley. God bless 
you, Joe. And I can think of no more appropriate tribute to Joe than to 
have the Congress finish the job of doubling the budget for the 
National Institutes of Health.
  My New Freedom Initiative for Americans with Disabilities funds new 
technologies, expands opportunities to work, and makes our society more 
welcoming. For the more than 50 million Americans with disabilities, we 
must continue to break down barriers to equality.
  The budget I propose to you also supports the people who keep our 
country strong and free, the men and women who serve in the United 
States military. I am requesting $5.7 billion in increased military pay 
and benefits, and health care and housing. Our men and women in uniform 
give America their best and we owe them our support.
  America's veterans honored their commitment to our country through 
their military service. I will honor our commitment to them with a 
billion dollar increase to ensure better access to quality care and 
faster decisions on benefit claims.
  My budget will improve our environment by accelerating the cleanup of 
toxic Brownfields. And I propose we make a major investment in 
conservation by fully funding the Land and Water Conservation Fund.
  Our National Parks have a special place in our country's life. Our 
parks are places of great natural beauty and history. As good stewards, 
we must leave them better than we have found them, so I propose 
providing $4.9 billion in resources over 5 years for the upkeep of 
these national treasures.
  And my budget adopts a hopeful new approach to help the poor and 
disadvantaged. We must encourage and support the work of charities and 
faith-based and community groups that offer help and love one person at 
a time. These groups are working in every neighborhood in America, to 
fight homelessness and addiction and domestic violence, to provide a 
hot meal or a mentor or a safe haven for our children. Government 
should welcome these groups to apply for funds, not discriminate 
against them.
  Government cannot be replaced by charities or volunteers. And 
government should not fund religious activities. But our Nations should 
support the good works of these good people who are helping neighbors 
in need.
  So I am proposing allowing all taxpayers, whether they itemize or 
not, to deduct their charitable contributions. Estimates show this 
could encourage as much as $14 billion a year in new charitable 
giving--money that will save and change lives.
  Our budget provides more than $700 million over the next 10 years for 
a Federal Compassion Capital Fund with a focused and noble mission: to 
provide

[[Page S1611]]

a mentor to the more than 1 million children with a parent in prison, 
and to support other local efforts to fight illiteracy, teen pregnancy, 
drug addiction, and other difficult problems.
  With us tonight is the Mayor of Philadelphia. Please help me welcome 
Mayor John Street. Mayor Street has encouraged faith-based and 
community organizations to make a difference in Philadelphia and he has 
invited me to his city this summer, to see compassion in action.
  I am personally aware of just how effective the Mayor is. Mayor 
Street is a Democrat. Let the record show that I lost his city. But 
some things are bigger than politics. So I look forward to coming to 
your city to see your faith-based programs in action.
  As government promotes compassion, it also must promote justice. Too 
many of our citizens have cause to doubt our Nation's justice when the 
law points a finger of suspicion at groups, instead of individuals. All 
our citizens are created equal and must be treated equally. Earlier 
today I asked Attorney General Ashcroft to develop specific 
recommendations to end racial profiling. It is wrong. We must end it.
  In so doing, we will not hinder the work of our Nation's brave police 
officers. They protect us every day, often at great risk. But by 
stopping the abuses of a few, we will add to the public confidence our 
police officers earn and deserve.
  My budget has funded a responsible increase in our ongoing 
operations, it has funded our Nation's important priorities, it has 
protected Social Security and Medicare, and our surpluses are big 
enough that there is still money left over.
  Many of you have talked about the need to pay down our national debt. 
I have listened, and I agree.
  My budget proposal pays down an unprecedented amount of public debt. 
We owe it to our children and grandchildren to act now, and I hope you 
will join me to pay down $2 trillion in debt during the next 10 years.
  At the end of those 10 years, we will have paid down all the debt 
that is available to retire. That is more debt repaid more quickly than 
has ever been repaid by any nation at any time in history.
  We should also prepare for the unexpected, for the uncertainties of 
the future. We should approach our Nation's budget as any prudent 
family would, with a contingency fund for emergencies or additional 
spending needs. For example, after a strategic review, we may need to 
increase defense spending, we may need additional money for our 
farmers, or additional money to reform Medicare. And so my budget sets 
aside almost a trillion dollars over 10 years for additional needs . . 
. that is one trillion additional reasons you can feel comfortable 
supporting this budget.

  We have increased our budget at a responsible 4 percent, we have 
funded our priorities, we have paid down all the available debt, we 
have prepared for contingencies--and we still have money left over.
  Yogi Berra once said: ``When you come to a fork in the road, take 
it.'' Now we come to a fork in the road. We have two choices. Even 
though we have already met our needs, we could spend the money on more 
and bigger government. That is the road our Nation has traveled in 
recent years. Last year, government spending shot up 8 percent. That is 
far more than our economy grew, far more than personal income grew and 
far more than the rate of inflation. If you continue on that road, you 
will spend the surplus and have to dip into Social Security to pay 
other bills.
  Unrestrained government spending is a dangerous road to deficits, so 
we must take a different path. The other choice is to let the American 
people spend their own money to meet their own needs, to fund their own 
priorities and pay down their own debts. I hope you will join me and 
stand firmly on the side of the people.
  The growing surplus exists because taxes are too high and government 
is charging more than it needs. The people of America have been 
overcharged and on their behalf, I am here to ask for a refund.
  Some say my tax plan is too big, others say it is too small. I 
respectfully disagree. This tax relief is just right.
  I did not throw darts at a board to come up with a number for tax 
relief. I did not take a poll, or develop an arbitrary formula that 
might sound good. I looked at problems in the tax code and calculated 
the cost to fix them.
  A tax rate of 15 percent is too high for those who earn low wages, so 
we lowered the rate to 10 percent. No one should pay more than a third 
of the money they earn in Federal income taxes, so we lowered the top 
rate to 33 percent. This reform will be welcome relief for America's 
small businesses, which often pay taxes at the highest rate, and help 
for small business means jobs for Americans.
  We simplified the tax code by reducing the number of tax rates from 
the current five rates to four lower ones: 10, 15, 25, and 33 percent. 
In my plan, no one is targeted in or targeted out . . . every one who 
pays income taxes will get tax relief.
  Our government should not tax, and thereby discourage marriage, so we 
reduced the marriage penalty. I want to help families rear and support 
their children, so we doubled the child credit to $1,000 per child. It 
is not fair to tax the same earnings twice--once when you earn them, 
and again when you die, so we must repeal the death tax.
  These changes add up to significant help. A typical family with two 
children will save $1,600 a year on their Federal income taxes. Sixteen 
hundred dollars may not sound like a lot to some, but it means a lot to 
many families. Sixteen hundred dollars buys gas for two cars for an 
entire year, it pays tuition for a year at a community college, it pays 
the average family grocery bill for 3 months. That is real money.
  With us tonight, representing many American families, are Steven and 
Josefina Ramos. Please help me welcome them. The Ramoses are from 
Pennsylvania, but they could be from any one of your districts. Steven 
is a network administrator for a school district, Josefina is a Spanish 
teacher at a charter school, and they have a 2-year-old daughter, 
Lianna. Steven and Josefina tell me they pay almost $8,000 a year in 
Federal income taxes; my plan will same them more than $2,000. Let me 
tell you what Steven says: ``Two thousand dollars a year means a lot to 
my family. If we had this money, it would help us reach our goal of 
paying off our personal debt in two years.'' After that, Steven and 
Josefina want to start saving for Lianna's college education. 
Government should never stand in the way of families achieving their 
dreams. The surplus is not the government's money, the surplus is the 
people's money.

  For lower-income families, my tax relief plan restores basic 
fairness. Right now, complicated tax rules punish hard work. A waitress 
supporting two children on $25,000 a year can lose nearly half of every 
additional dollar she earns. Her overtime, her hardest hours, are taxed 
at nearly 50 percent. This sends a terrible message: You will never get 
ahead. But America's message must be different: We must honor hard 
work, never punish it.
  With tax relief, overtime will no longer be overtax time for the 
waitress. People with the smallest incomes will get the highest 
percentage reductions. And millions of additional American families 
will be removed from the income tax rolls entirely.
  Tax relief is right and tax relief is urgent. The long economic 
expansion that began almost 10 years ago is faltering. Lower interest 
rates will eventually help, but we cannot assume they will do the job 
all by themselves.
  Forty years ago and then twenty years ago, two Presidents, one 
Democrat and one Republican, John F. Kennedy and Ronald Reagan, 
advocated tax cuts to--in President Kennedy's words--``get this country 
moving again.''
  They knew then, what we must do now: To create economic growth and 
opportunity, we must put money back into the hands of the people who 
buy goods and create jobs.
  We must act quickly. The Chairman of the Federal Reserve has 
testified before Congress that tax cuts often come too late to 
stimulate economic recovery. So I want to work with you to give our 
economy an important jump start by making tax relief retroactive.
  We must act now because it is the right thing to do. We must also act 
now because we have other things to do. We must show courage to 
confront

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and resolve tough challenges: to restructure our Nation's defenses, to 
meet our growing need for energy, and to reform Medicare and Social 
Security.
  America has a window of opportunity to extend and secure our present 
peace by promoting a distinctly American internationalism. We will work 
with our allies and friends to be a force for good and a champion of 
freedom. We will work for free markets and free trade and freedom from 
oppression. Nations making progress toward freedom will find America is 
their friend.
  We will promote our values, and we will promote peace. And we need a 
strong military to keep the peace. But our military was shaped to 
confront the challenges of the past. So I have asked the Secretary of 
Defense to review America's armed forces and prepare to transform them 
to meet emerging threats. My budget makes a downpayment on the research 
and development that will be required. Yet, in our broader 
transformation effort, we must put strategy first, then spending. Our 
defense vision will drive our defense budget, not the other way around.
  Our Nation also needs a clear strategy to confront the threats of the 
21st century, threats that are more widespread and less certain. They 
range from terrorists who threaten with bombs to tyrants and rogue 
nations intent on developing weapons of mass destruction. To protect 
our own people, our allies and friends, we must develop and we must 
deploy effective missile defenses.
  And as we transform our military, we can discard Cold War relics, and 
reduce our own nuclear forces to reflect today's needs.
  A strong America is the world's best hope for peace and freedom. Yet 
the cause of freedom rests on more than our ability to defend ourselves 
and our allies. Freedom is exported every day, as we ship goods and 
products that improve the lives of millions of people. Free trade 
brings greater political and personal freedom.
  Each of the previous five Presidents has had the ability to negotiate 
far-reaching trade agreements. Tonight I ask you to give me the strong 
hand of presidential trade promotion authority, and to do so quickly.
  As we meet tonight, many citizens are struggling with the high costs 
of energy. We have a serious energy problem that demands a national 
energy policy. The West is confronting a major energy shortage that has 
resulted in high prices and uncertainty. I have asked Federal agencies 
to work with California officials to help speed construction of new 
energy sources. And I have directed Vice President Cheney, Commerce 
Secretary Evans, Energy Secretary Abraham, and other senior members of 
my Administration to recommend a national energy policy.
  Our energy demand outstrips our supply. We can produce more energy at 
home while protecting our environment, and we must. We can produce more 
electricity to meet demand, and we must. We can promote alternative 
energy sources and conservation, and we must. America must become more 
energy independent.
  Perhaps the biggest test of our foresight and courage will be 
reforming Medicare and Social Security.
  Medicare's finances are strained and its coverage is outdated. 
Ninety-nine percent of employer-provided health plans offer some form 
of prescription drug coverage . . . Medicare does not. The framework 
for reform has been developed by Senators Frist and Breaux and 
Congressman Thomas, and now, it is time to act. Medicare must be 
modernized. And we must make sure that every senior on Medicare can 
choose a health plan that offers prescription drugs.
  Seven years from now, the baby boom generation will begin to claim 
Social Security benefits. Everyone in this chamber knows that Social 
Security is not prepared to fully fund their retirement. And we only 
have a couple of years to get prepared. Without reform, this country 
will one day awaken to a stark choice: either a drastic rise in payroll 
taxes, or a radical cut in retirement benefits. There is a better way.
  This spring I will form a presidential commission to reform Social 
Security. The commission will make its recommendations by next fall. 
Reform should be based on these principles: It must preserve the 
benefits of all current retirees and those nearing retirement. It must 
return Social Security to sound financial footing. And it must offer 
personal savings accounts to younger workers who want them.
  Social Security now offers workers a return of less than 2 percent on 
the money they pay into the system. To save the system, we must 
increase that by allowing younger workers to make safe, sound 
investments at a higher rate of return.
  Ownership, access to wealth, and independence should not be the 
privilege of a few. They are the hope of every American . . . and we 
must make them the foundation of Social Security.
  By confronting the tough challenge of reform, by being responsible 
with our budget, we can earn the trust of the American people. And, we 
can add to that trust by enacting fair and balanced election and 
campaign finance reforms.
  The agenda I have set before you tonight is worthy of a great 
country. America is a nation at peace, but not a nation at rest. Much 
has been given to us, and much is expected.
  Let us agree to bridge old divides. But let us also agree that our 
good will must be dedicated to great goals. Bipartisanship is more than 
minding our manners, it is doing our duty.
  No one can speak in this Capitol and not be awed by its history. At 
so many turning points, debates in these chambers have reflected the 
collected or divided conscience of our country. And when we walk 
through Statuary Hall, and see those men and women of marble, we are 
reminded of their courage and achievement.
  Yet America's purpose is never found in statues or history. America's 
purpose always stands before us.
  Our generation must show courage in a time of blessing, as our Nation 
has always shown in times of crisis. And our courage issue by issue, 
can gather to greatness, and serve our country. This is the privilege, 
and responsibility, we share. And if we work together, we can prove 
that public service is noble.
  We all came here for a reason. We all have things we want to 
accomplish, and promises to keep. Juntos podemos, together we can. We 
can make Americans proud of their government. Together we can share in 
the credit of making our country more prosperous and generous and 
just--and earn from our conscience and from our fellow citizens, the 
highest possible praise: well done, good and faithful servants.
  Thank you. Good night. And God Bless America.
                                                      George W. Bush.  
The White House, February 27, 2001.

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