[Public Papers of the Presidents of the United States: George H. W. Bush (1992, Book I)]
[March 3, 1992]
[Pages 364-365]
[From the U.S. Government Publishing Office www.gpo.gov]



Exchange With Reporters

March 3, 1992
    The President. I just have a couple of brief statements here. But 
President Yeltsin, Boris Yeltsin of the Russian Federation, has accepted 
my invitation to pay a state visit to Washington, June 16th and 17th. I 
view this as an excellent opportunity to follow up on that historic 
February 1st meeting at Camp David. We're going to review progress on a 
wide range of issues including the ever-strengthening relationship 
between the two countries. We'll get into the nuclear and military 
questions and then the joint efforts in support of reform in Russia. It 
will give me yet another opportunity, this in a very formal visit, to 
pay my respects to Boris Yeltsin who is really doing a superb job there.
    The other news, and I don't want to put too much on it, is I was 
very pleased that this morning at 8:30 a.m., the leading indicators came 
out and they rose substantially, or rose by .9 percent in January. And I 
think it's a little better than had been expected. So, it's nice to have 
some encouraging news. And then our advisers, economic advisers, are a 
little more optimistic on the housing front as well. So, there we are, 
and just wanted to get those announcements out.

Taxes

    Q. Sir, do you feel that going along with taxes was the biggest 
mistake of your Presidency?
    The President. Well, I don't know about the biggest, but yes, I--you 
see, I'm very disappointed with Congress. I thought this one compromise, 
and it was a compromise, would result in no more tax increases. I 
thought it would result in total control of domestic discretionary 
spending. And now we see Congress talking about raising taxes again. And 
some in Congress are talking about trying to break down the spending 
caps. And so, I'm disappointed. And given all of that, yes, a mistake.
    Q. Is it a little late, Mr. President, to voice regret about this?
    Q. Why the change of heart now? All through New Hampshire you 
defended the 1990 budget----
    The President. Well, I explained why I did it. I don't know whether 
it was defending it.
    Q. But Pat Buchanan kept saying all through New Hampshire, ``Read my 
lips. Read my lips.'' And when you were campaigning up there you said, 
``I never signed

[[Page 365]]

that pledge that you wanted to----''
    The President. Well, we're talking about two different things. But 
what I'm saying is, on this deal when you see Congress now going for 
more taxes, my whole view is that that one compromise probably wasn't 
worth it, although I'm going to still stay very firmly on these spending 
caps.
    Q. Mr. President, though, the day before the primary, to say that 
you now regret having done this, isn't that a little bit late to do 
that, sir? And can it be seen as a little bit disingenuous?
    The President. I don't know whether it's late or not, it's just the 
way I feel given what's going on on Capitol Hill. It's getting intense. 
As you know, the House passed a tax bill which I'll veto. And now, much 
to my consternation, you see the Senate going about the same old 
business. So, this just gangs up on you, plus the political flak out 
there.

Economic Plan

    Q. With respect to your short-term growth package, many prominent 
economists, and including Federal Reserve Board Chairman Alan Greenspan, 
have said that given the economic realities it would be better not to 
tinker with the Tax Code at all, whether it's for tax incentives or for 
tax increases. How do you respond to that?
    The President. I don't know that Greenspan was addressing himself to 
our growth package, but clearly a lot of economists are opposing what's 
happening in terms of these broad across-the-board handouts. And our 
incentive program, I think, would have instant stimulation on the 
economy, instant. And it would restore confidence very quickly. It's 
getting increasingly difficult, given the votes up there, and that's one 
of the reasons that I'm as frustrated as I am.
    Q. If I may follow up, though. I think he was speaking in broad 
terms about any sort of short-term fiscal stimulus, whether it's your 
package or a Democrat's.
    The President. Well, you'll have to ask Greenspan what he's speaking 
about. I think short-term stimulus, such as I mentioned, would stimulate 
the economy and would be very good for housing. I think housing would 
lead this recovery much quicker. You know my view on capital gains. So, 
ask him about his view, and I've just given you mine.
    Yes? And I've got to get going.

Federal Government Personnel Reductions

    Q. You've been saying that Government has grown too big, spends too 
much. Have you looked at your Agriculture Department where the numbers 
of employees has grown?
    The President. Haven't had a chance to look at that lately, but I'll 
take a look at it. Is it getting--I mean, what we're doing is, total 
Government personnel, I believe you'll see, is down, a lot of that 
obviously coming from reductions in the Defense Department. But I 
haven't looked at the Ag Department.

Presidential Primaries

    Q. How do you think you'll do today, sir?
    Q. You say you were misled by the Democrats 2 years ago?
    The President. Huh?
    Q. How do you think you'll do in today's primaries?
    The President. I think I'll win them. I think I'll win them.

Taxes

    Q. Were you misled by the Democrats?
    The President. Well, I had the distinct feeling that that one deal 
would be the one-time compromise. And as far as I'm concerned, it is. 
I'm going to veto their tax bill. So, we'll just leave it there. But I'd 
like to see them move forward on these incentives that we're talking 
about.
    Q. Was it the biggest mistake, too, politically?
    The President. Well, I don't know. I don't know. We'll see.

                    Note: The exchange began at 9:53 a.m. on the South 
                        Lawn at the White House prior to the President's 
                        departure for Chicago, IL.