[Public Papers of the Presidents of the United States: George H. W. Bush (1992, Book I)]
[February 14, 1992]
[Pages 245-248]
[From the U.S. Government Publishing Office www.gpo.gov]



The President's News Conference in Belcamp, Maryland

February 14, 1992
    The President. Let me just make a quick statement here. Today many 
families all across America share the same hope of owning their own 
home. But hard times have put a hold on the dream. And to these young 
families I made a pledge, and that is that we will help you get your 
dream within reach.
    And I submitted to Congress an action plan to help the economy, not 
hurt the taxpayer. And I sent this plan to the House and the Senate. 
Brought it along, great big thing here. It includes a $5,000 tax credit 
for first-time homebuyers and a tax break for middle-class families. 
It's all there.
    And we do not need to raise taxes in order to get this economy 
moving again. We need to cut the taxes and cut spending. And I've asked 
Congress for nothing flashy, just common sense, good common sense. And 
as I told these people I've been working with, construction workers and 
would-be homebuyers, I want that $5,000 tax credit for first-time 
homebuyers and penalty-free withdrawals from IRA's for the purchase of a 
first home. I want a modification in the tax rules that currently 
discourage real estate investors; it's known as the passive loss rule. 
And furthermore, I want a cut in the capital gains tax to boost real 
estate values and heat up the housing market, especially with interest 
rates at such low levels.
    And I told them that my plan will work. They're the experts here, 
but some representatives of the National Association of Home Builders 
are with us today also. And that organization, and I'll let them speak 
for themselves, but that organization estimates that if Congress passes 
my plan by March 20th, we will create 415,000 new construction industry 
jobs and generate $20 billion in new economic activity, these figures 
from the experts.
    And so I would ask you to ask one expert right here standing with me 
here, John Colvin, and he tells me that if Congress passes my plan by 
March 20th, he expects to add an additional 90 homes to the 256 he 
already plans to sell and build in 1992. Now, that's 355 new homes here 
at Arborview, homes within reach of the middle-class buyers.
    Two days after the State of the Union I sent a plan to Congress to 
get our economy moving this spring. Now, let me tell you what happened 
to the plan this week. Wednesday, the majority, the Democrats on the 
Ways and Means Committee in the House voted against my plan twice. And 
just yesterday in a closed meeting the Democrats surfaced a scheme that 
raises taxes and, more importantly for you, everyone here, I think, 
kills my plan to help these first-time homebuyers.
    Many firms in the housing industry have reached the make-or-break 
point. And so I've set a deadline for the Congress to act, you heard it 
in the State of the Union, March 20th, 35 days from today. Make a

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note of that date.
    But remember, anyone who wants to buy a home like this, under my 
plan, would get a $5,000 tax credit. And under the Democrats' current 
package, they would get zero. And I've asked these good people here 
today to tell Congress not to send me a package that I have to veto on 
carrying a tax increase. The Democrats refuse to pass my plan out of the 
committee, and instead they are considering a package that would raise 
these taxes. And because it's not paid for, it would trigger cuts in the 
Medicare benefits.
    The American people, I really believe, want action. And they will 
not stand for this maneuver there in the committee. I'm hoping the whole 
House of Representatives--Helen will do a better job on this, and Wayne, 
our other Congressman with me here today--they need to pass this plan 
and to quit playing kind of partisan, election-year politics.
    So I'm glad to take this opportunity to encourage the Congress to 
move. And on this bill, this rifleshot approach that we have, it can be 
done almost overnight. It literally--it is not that complicated. There 
are seven stimulative tax provisions in here, and it will get the job 
done. It will really move this economy.
    And so, I hope that everybody, regardless of political affiliation, 
will weigh in with the Congress and help us get this done.
    So that is it. And thank you all very, very much.
    Everybody read this, and I'm going to give you a quiz now on this. 
[Laughter]

Economic Plan

    Q. Mr. President, the Democrats say your March 20 plan is too front-
end loaded for the rich.
    The President. That doesn't look like it to me, a $5,000 tax credit 
for first-time homeowner. That doesn't seem to me to be helping the 
rich. It seems to me to be helping people own a home. It seems to me to 
be stimulating the housing business.
    So that's the charge, I understand, but I wish they'd get out here 
and talk to some people that are working in these buildings and maybe 
talk to some that aspire to own a home. You know, there's plenty of time 
for politics later on, after March 20th. We ought to pass this one. Ask 
the head of the Home Builders, Jay down here. I mean, this is their 
business, and they'll tell you that that alone will have an enormously 
stimulative effect.
    So, I'm asking them to say, let's set aside the politics as usual, 
get this part done, and then I'll go to battle stations with them on how 
I think the rest of this program should be enacted. But it's too urgent 
now. The economy's getting ready to move. Interest rates are down. 
Inflation is down. Everything's not all gloomy. But what it needs is a 
stimulative push right now. And it's good for the homebuyer. It's good 
for the homebuilder. It's good for the community.
    Each one of these jobs, I was told in here, each one of these houses 
stimulates a lot of other jobs, whether it's in landscaping business or 
finishing these units out or all kinds of things, highway construction, 
whatever it might be. So that's what I would say.
    Q. Mr. President, what's wrong with a tax increase on the wealthy as 
part of that?
    The President. We don't need any tax increases. What we need to do 
is stimulate the economy. And every time they aim at the wealthy, you 
hit these guys. That's just the way it works. And so why divide, kind of 
keep trying to divide America class against class? Why not get on with 
stimulating this economy so everybody's going to have a piece of a 
bigger pie? That's the way I look at it.
    Q. Are you trying to compromise with them, though, Mr. President, to 
sit down and----
    The President. I don't want to compromise. I want them to pass this, 
and then we'll get into a negotiation on this big baby here. And there's 
a lot of things in there that are very important. I'm all for the 
provision on the child care credit, for example. But what I think is 
most important to the country now is to stimulate the economy where it 
will begin to move forward on jobs.
    This will restore confidence. One of the problems we've had in this 
economy is the lack of confidence. And a couple of guys standing over 
here near this truck said, ``Well, I'm beginning to get a little better

[[Page 247]]

feel for it. This will give it a boost.'' And I really think that's the 
approach we ought to take. Get this done, and then let's have the debate 
wherever it may be, on taxing the rich or taxing somebody else.
    Marlin predicted yesterday to you all, they're going to come out 
with a tax increase. It was 12 hours later that I read in the paper a 
great big bill that was going to do just exactly that. And so, I'm just 
going to keep urging and trying to get the support of the American 
people to go for this stimulative package. I really think that's what's 
needed.
    Q. Mr. President, did you just say that you're open to negotiating a 
tax increase once----
    The President. No. No. I'm glad you put that--I said I'm glad to be 
talking about this whole package later on, but not negotiating a tax 
increase. Thank you for letting me clear that up.
    Q. But you appeared to leave the door open, sir.
    The President. Well, let me close it right here: Wham! [Laughter] We 
don't need it.
    Thank you. Thank you, Jim [Jim Miklaszewski, NBC News]. No, I'm glad 
he raised it because sometimes they think I'm a little less than clear 
in what I say.
    Q. Do you agree with Marlin's characterization of the Democrats on 
the tax and Ways and Means Committee as weasels?
    The President. Well, I thought--I can't remember exactly what he--I 
thought it was eloquent, but I don't want to agree with him until I go 
back and review exactly what he said.
    Q. Are they weasels?
    Q. Are you confirmed that a tax cut now will do long-term damage to 
the economy?
    The President. No, I don't think so. I think this kind of 
stimulative effect, which is paid for under our plan, is a good thing to 
do. And I also think that if the economy does what I think it will when 
stimulated, it will just create more and more jobs, and that, of course, 
would mean more and more revenues.

Robert Goodwin

    Q. James Cheek sees a hostile environment following the dismissal of 
Robert Goodwin who heads your office, your initiative on black colleges 
and universities. Do you know why Robert Goodwin was fired?
    The President. No, but I certainly have a lot of respect for Dr. 
Cheek and would like to talk to him about that. But I don't.

New Hampshire Primary

    Q. Mr. President, Pat Buchanan says your proposal is a cynical 
betrayal of the middle class.
    The President. Well, I'd vowed to try to get through this election 
without responding to him, and I think I've got a good chance because 
the election is Tuesday up there. And I'm going to keep on doing that, 
keep my sights focused on what's going to help this economy, country; 
what's going to help, in this instance, stimulate the housing industry. 
And then I'll be prepared to engage. But this is too important. And I 
really mean it.
    So, I've been able to absorb these shots in New Hampshire from all 
sides. It's not just him. They're all having a field day. But what I'm 
trying to do is get the country moving, and then I'll come out with my 
dukes up and ready to do battle. But this is too important to get it 
caught up in charge and countercharge; it really is.
    And I'm a competitor, and I don't like being the javelin catcher. 
But I really believe this, I really believe that if we can somehow--if I 
can preserve the climate in which to get this done, that's the best 
politics, and I know it's the best approach for our country. So, I'm 
going to stay with this.
    Q. How competitive are you going to be in New Hampshire, Mr. 
President?
    Mr. Fitzwater. Final question, please.
    The President. How what?
    Q. How competitive will you be in New Hampshire? How will you do?
    The President. Well, I think I've got a good chance to win. Is that 
what you mean? [Laughter]
    Q. Well, how well do you think you'll do? Will Pat Buchanan get 42 
percent of the vote?
    The President. Oh, I'm going to stay out of the prediction business. 
A guy asked me the other day, he said, ``What do you have to have to 
win?'' I said, ``Help me will you. What does it take to win the Super 
Bowl? I

[[Page 248]]

can't remember.'' The guy said ``One point.'' Thank you very much, thank 
you very much. [Laughter]

                    Note: The President's 121st news conference began at 
                        2:35 p.m. at the Arborview at Riverside 
                        construction site, Belcamp, MD. In the news 
                        conference, the following persons were referred 
                        to: John Colvin, president of Questar Builders; 
                        Representatives Helen Delich Bentley and Wayne 
                        T. Gilchrest; Jay Buchert, president of the 
                        National Association of Home Builders; James E. 
                        Cheek, chairman of the President's Board of 
                        Advisors on Historically Black Colleges and 
                        Universities; and Robert K. Goodwin, executive 
                        director of the White House initiative on 
                        historically black colleges and universities. 
                        Following the news conference, the President 
                        returned to Washington, DC.