    [Public Papers of the Presidents of the United States: William J. Clinton (1993, Book I)]
    [May 15, 1993]
    [Pages 671-673]
    [From the U.S. Government Publishing Office www.gpo.gov]

    The President's Radio Address
    May 15, 1993

        Good morning. As we all rejoice in this magnificent spring and the
    promise of renewal that it brings, we should also feel renewed as
    citizens, renewed by the progress that is being made in Washington, the
    progress we are making in strengthening the American economy to help us
    be more competitive, to grow, to work for the middle class again.
    Gridlock is on the way out, and our plan to rebuild the economy and
    restore opportunity for all Americans is moving through Congress.
        Look at the progress. Just 3 months ago, I submitted to Congress a
    balanced economic plan that asked everyone to work together to invest a
    little more in deficit reduction today, so that we can all enjoy better
    jobs and higher incomes tomorrow. It says we can do what no generation
    has ever been called upon to do before, that we can reduce our deficit
    sharply and still increase investment wisely in jobs and education and
    new technology, because we must do both to be a competitive America, to
    create more jobs and economic growth.
        We began by forcing real discipline on the big spenders by making
    deep and enforceable cuts in the Federal Government in over 200 specific
    programs. And believe me, these cuts are real. We've taken on spending
    groups and interest groups that have never been taken on. We've made
    tough decisions, and now Congress is working with me to make them stick.
    It wasn't easy.
        We'd made major reductions in the so-called entitlement programs
    like medical care, agriculture, Federal retirement programs. Virtually
    no area of domestic spending was left un-

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    touched. And we're now on our way to the largest deficit reduction
    package in American history. And we will not raise taxes without knowing
    that these spending cuts are part of the project.
        These cuts are real, and our plan is fair. The nonpartisan
    Congressional Budget Office has concluded that 75 percent of all the
    taxes in this plan fall on the top 6 percent of Americans, those earning
    $100,000 a year or more. It asked those who got a tax break in the
    1980's to pay their fair share in the 1990's. These proposals which
    reduce the deficit and increase tax fairness were adopted by all the
    important House of Representatives committees last week.
        But I'm asking the Congress to go further. This week I proposed that
    when we cut programs, we lock the savings up in a deficit reduction
    trust fund so that you can trust that the money can only be used to
    reduce the Federal deficit. That's right. No taxes without spending cuts
    and the spending cuts and the taxes put into a deficit reduction trust
    fund so that the money must be used to reduce the deficit.
        In addition to cutting the spending deficit, the other essential
    goal of our plan is to create opportunity in our society where hard work
    is supported and initiative is rewarded. That's why there were important
    tax incentives added to this plan: increasing the small business
    expensing provision to $25,000 a year, a goal long sought by the
    American small business community; a new venture capital gains tax; big
    investment incentives for larger corporations to invest in new plant and
    equipment to create new jobs. These and other initiatives to ease the
    credit crunch and to keep these interest rates at historic lows will
    mean billions of dollars of new investment into our economy in the near
    future.
        Our economic plan includes also a proposal to create empowerment
    zones in our most depressed urban and rural communities. We offer
    significant incentives to those who will go into those neighborhoods and
    build a business because they will be giving people a chance who haven't
    had one in a long time. There's not enough Government money in a country
    to rebuild our cities or our distressed rural areas, but we can do it
    through free enterprise if we have enough incentive. The Government in
    the empowerment zones will be the best partner the free enterprise
    system could have.
        This plan also deals with another important problem. No one in
    America should work hard at a full-time job with children in the home
    and still live in poverty. But millions of Americans do. Because our
    economy and our tax system hasn't been working, millions and millions of
    responsible people are among the working poor who still live below the
    poverty line. That's the wrong signal to send. That's an incentive to
    get on welfare, not to get off welfare.
        Our plan includes an earned-income tax credit that puts into law
    this basic principle: If you work 40 hours a week and you have a child
    at home, you will not be in poverty. This important proposal also is
    proceeding quickly to congressional approval. The Tax Code was also
    changed to protect those with incomes of under $30,000 from the impact
    of the proposed BTU or energy tax, and to phase that tax in so that the
    average family will pay about a dollar a month next year and about $5 a
    month the year after, with the full impact of the tax for people with
    incomes of $40,000 a year or above triggering in at about $16 to $17 a
    month in 1996.
        Just days after we offered our new approach to make college loans
    available to every qualified American student, regardless of income,
    this plan was also approved by the House Education and Labor Committee.
    This is a very important thing. It will save lots of money to taxpayers
    and make college loans available at lower interest rates and better
    repayment terms with mandatory repayment to all students in the United
    States. This is a change that we're working on, cutting wasteful
    spending, increasing taxes fairly, driving down the deficit while
    increasing the investment we make through private sector incentives and
    in education training and technology.
        These are the ideas which will make our economy strong and
    competitive. For every new dollar of investment in America and the
    American people, there are $3 in spending cuts. This is the right way to
    go. All told, we've come a long, long distance in the last 3 months, to
    restoring our economy and reaffirming the values of the middle class and
    to opening up our democracy again.
        I'm especially gratified that just this week we've passed the motor
    voter bill which will make it easier for people to register and vote.
    And I fervently hope it will bring more young people into the democratic
    process. It was the young Americans all across this country who

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    convinced me to redouble my efforts to work hard to pass this bill.
        The United States Senate has just passed a lobbying reform bill
    which will require all of our lobbyists to register for a change and
    require them to report any gifts beyond a very small amount that they
    give to any Member of Congress. And I've introduced the toughest
    campaign finance reform law ever, to lower the cost of campaigns, reduce
    the influence of political action committees, and open the airwaves to
    honest debate, all paid for by lobbyists, by repealing the lobbyist tax
    deduction.
        This is a bright and a hopeful day. We've come together not to
    better one group or one cause but to work together in the common cause
    of a reinvigorated America. We've been able to bring deep discipline to
    our budget, positive purpose to our spending, and created the sea change
    the American people voted for in November, or at least the beginning of
    that sea change. Now we've got to see through it all the way to the end.
    The rest of the road won't be easy, just as the last 3 months have not
    been. But we can do it, and then we'll have something to really
    celebrate when we've passed the budget, an economic plan, and gotten
    this country turned around.
        Even as we celebrate these changes, let's also remember why we're
    free enough to make them. May the 15th is Armed Forces Day. And I would
    like to conclude by honoring those who serve, whose bravery and
    sacrifice and devotion to country has preserved our liberties and made
    America the custodian of freedom's dream for the entire world.
        I speak for all in my administration in expressing gratitude and
    profound respect for each member of our Armed Forces, for their
    supportive families and for their mission. From my first months in
    office, I can assure you that America has the strongest, best trained,
    and most faithful Armed Forces in the world, men and women so worthy of
    the great responsibilities borne by them in our Nation. May God protect
    them and guide the United States.

    Note: The address was recorded at 8 a.m. on May 14 in the Map Room at
    the White House for broadcast at 10:06 a.m. on May 15.