    [Public Papers of the Presidents of the United States: William J. Clinton (1997, Book II)]
    [July 12, 1997]
    [Pages 951-952]
    [From the U.S. Government Publishing Office www.gpo.gov]

    [[Page 951]]

    The President's Radio Address
    July 12, 1997

        Good morning. I'm speaking to you from Copenhagen, Denmark, on the
    last day of what has been an historic week in Europe. For nearly 50
    years, the NATO alliance has kept America and Western Europe secure in
    its peace. This week, we made NATO stronger to help keep America and all
    of Europe secure and at peace for the next 50 years by preparing NATO to
    take on new security challenges, reaching out to new partners like
    Russia and Ukraine, and inviting in new members, starting with Poland,
    Hungary, and the Czech Republic.
        Enlarging NATO will not be cost-free, but it will cost far less in
    lives and money to broaden our alliance than to fight another war in
    Europe. These new members will add to NATO's strength. Membership will
    help them lock in democracy and free markets. Their example will
    encourage other new democracies in Central Europe to stay on the path of
    reform and settle the kinds of disputes that have sparked two World
    Wars. And enlarging NATO will help to erase the artificial line drawn by
    Stalin that has divided Europe for nearly 50 years.
        Next year, I will ask the Senate to ratify changes to the NATO
    treaty so that we can welcome in the first new members by 1999. This is
    a serious step. It requires a full discussion I intend to lead with the
    American people. I firmly believe enlarging NATO is in America's
    interest. The countries we want to add to NATO are ready to help us
    defend freedom because they know the price of losing freedom.
        My trip to Europe has been about building American security for the
    21st century. In the weeks to come, we have an opportunity at home to
    better prepare our families for that 21st century, to build greater
    security from the inside out. Our expanding economy and declining
    deficit provide us the chance both to balance the budget and to give the
    middle class a responsible tax cut targeted to education, children, and
    families. Today I want to discuss the right way and the wrong way to cut
    taxes.
        When I became President, our economy was stagnant, with high
    unemployment, low job growth, and an out-of-control deficit. In 1993 we
    put in place a new economic strategy--what I call invest-and-grow
    economics--a strategy to prepare our people for the 21st century. It had
    three principal elements. First, we reduced the deficit, which led to
    lower interest rates and greater investment. Second, we invested in
    education, training, and technology and made special efforts for high
    unemployment areas so that all our people can reap the rewards of
    growth. And third, we've worked hard to make the global economy work for
    us, tearing down foreign barriers and opening new markets to American
    products.
        Four years later, our economic strategy is working. The deficit has
    fallen by over 77 percent. More than 12 million jobs have been created.
    And millions of Americans who once were dependent on welfare now have
    the dignity and security of the paycheck. Exports have surged to a
    record level. Unemployment is the lowest in 24 years, inflation the
    lowest in 30 years. We've had the biggest drop in inequality among
    working families in 27 years.
        Our prosperity is real. It's based on investment, not debt. More
    Americans than ever are living the American dream of a good job, a home
    of their own, a better life for their children. This progress was not
    predestined; it was earned with the right strategy and the right
    choices, including tough budget cuts. And while we can be pleased with
    our progress, we can do better, and we must, because our work is not
    finished.
        First, we must finish the job of balancing the budget. I'm pleased
    that our balanced budget agreement, which is in balance with our values
    as it invests in education, science and technology, research, and health
    care for our children, is moving through Congress with strong majorities
    in both parties. The balanced budget plan also sets aside funds for a
    tax cut. If done properly, the tax cut will increase economic growth,
    help working families to improve their lives and educate their children,
    and enable us to keep the budget in balance, unlike the tax cuts of the
    early 1980's, which increased our deficit by 4 times and crippled our
    economy.

    [[Page 952]]

        That kind of good tax cut is the one our balanced budget agreement
    promised the American people in quite specific terms. Unfortunately, the
    tax plan recommended by the Congress offers too little relief to the
    middle class and fails to live up to the budget agreement.
        Before I left for Europe I put forward my own tax cut plan, which I
    believe is the right one for America. It focuses on higher education--
    the key to opportunity in the new economy--with $35 billion in tax cuts,
    as called for in the budget agreement, with the biggest increase in
    college aid since the GI bill 50 years ago. The congressional plan would
    deny 7 million students tuition tax credits. And Congress' plan gives
    families little help to pay for the last 2 years of college or graduate
    school or training throughout a career. My tax cut will keep the budget
    balanced. But tucked away in the congressional plan are time-bomb tax
    cuts that risk exploding the deficit in years to come.
        My tax cut plan will give families a $500-per-child tax credit. The
    congressional plan denies the child credit to up to 4.8 million families
    who make less than $30,000 a year. But these families work hard, pay
    their taxes, and play by the rules. They're teachers, firefighters,
    nurses, maybe your neighbors. They deserve a tax cut, too.
        I was pleased that the Senate Democratic caucus this week wrote me
    in support of my tax cut plan. We will stand together to make sure a tax
    cut reflects the priorities I have set out and the ones agreed to by the
    leaders of both parties in the balanced budget agreement.
        I'm determined that our tax cut, like the rest of the balanced
    budget, honors our values and values our families. The tax cut must be
    fair, giving middle class families the help they need to raise their
    children, send them to college, buy and sell a home. It must not contain
    provisions which will lead to big budget deficits in years to come.
        This is the kind of tax cut I'm coming home to work with Congress to
    pass. The hard work and hard choices of the American people have given
    us a chance to enter the new century strong and vibrant and optimistic.
    If we stand firm for the right principles, if we stick to a strategy
    that has secured our prosperity--invest and grow--we can prepare our
    people for the bright new century ahead.
        Thanks for listening.

    Note: The address was recorded at 11 a.m. on July 12 at the U.S. Embassy
    in Copenhagen, Denmark, for broadcast in the United States at 10:06 a.m.
    on July 12.