[Public Papers of the Presidents of the United States: GEORGE W. BUSH (2001, Book I)]
[March 28, 2001]
[Pages 322-326]
[From the U.S. Government Publishing Office www.gpo.gov]



Remarks in a Meeting With Technology Industry Leaders
March 28, 2001

    Thanks for coming. I appreciate that warm welcome. And welcome to 
the people's house. It's a nice place to live. [Laughter] And I'm glad 
I'm living here.
    I want to thank Lezlee for all her hard 
work in putting together this group of leaders from around the country. 
I want to thank the members of the Cabinet who are here, some of whom 
you'll hear from in a little bit. Elaine Chao 
and Spence Abraham and Paul O'Neill and Don Evans really 
represent the best of the country, and I really appreciate the fact that 
they've left their--left the private sector to serve the country. We've 
got a really good Cabinet. One of the lessons I learned in the private 
sector was, it's important to set an agenda and to delegate to good, 
honest people. And I have done so.

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    I was going to say, thanks for all the Members of the Congress who 
are here, but I see Members of the Senate who are here. Thank you all 
for coming. Senator Hatch, Burns, and Allen are some of the 
very best public servants our country has got to offer, and I want to 
thank you all for coming. I'm looking forward to working with you on the 
budget. [Laughter]
    I first want you all to know that this administration has great 
confidence in the future of our technology industry. We recognize, like 
you do, that the stock market may be sending a little different message 
right now, that people have suffered losses and there are some difficult 
times for some of the companies in the high-tech world. But the 
accomplishments of the industry are rock-solid. The future is incredibly 
bright.
    You've changed the way we work and communicate, and you've changed 
the way we learn. You've done for America--economic leadership in the 
21st century--what heavy industry did for America in the 20th century. 
And all the difficulties you face today really don't cloud a future that 
is so optimistic and bright.
    The social benefits from the tech industry are as sweeping as the 
economic potential--telemedicine for the sick, distance learning and 
assistive technology for individuals with disabilities, for example. 
Your companies symbolize the innovation and optimism of this great 
Nation. Your success fills us all with confidence in the continued 
growth of our economy. You make us all a little prouder to be Americans.
    You've done so much for your country; it's time for your country to 
do something for you. I oftentimes say that the role of Government is 
not to create wealth; it's to create an environment in which the 
entrepreneurial spirit can continue to flourish.
    First things first: We've got to restore consumer confidence. We can 
help in Washington by returning tax money to the people who pay the 
bills this year.
    We can restore investor confidence by building a better business 
environment for years to come, starting with having a realistic, sound 
energy policy, a policy that says, of course we can conserve better, but 
we need new supplies. We need to aggressively seek new supplies. And not 
only do we need new supplies of natural gas, for example, we need new 
pipelines to move natural gas. We need new powerplants. We need an 
aggressive, forward-thinking energy policy that balances the needs of 
our environment with the needs of the people of the country.
    We can also help by having a world of free trade. You know that one 
of the concerns is if the economy were to slow down like ours, the 
protectionist sentiments around America might start bubbling to the 
surface. Ours is an administration dedicated to free trade. I hope the 
Congress gives me trade promotion authority as soon as possible, so I 
can negotiate free trade agreements. We should not try to build walls 
around our Nation and encourage others to do so. We ought to be tearing 
them down. Free trade is good for America, and it will be good for your 
industry, as well.
    And finally, we need to have lower taxes instead of bigger 
Government. We're having a big debate here, but one thing you can't 
debate is, this is an administration that has put together a pro-growth 
tax relief agenda, the first one in a long period of time. I mean, not 
only do we need to get money in consumers' hands as quickly as possible, 
we need to reduce all rates so that entrepreneurs can plan. I can't 
think of anything worse than to say, ``We'll get money into consumers' 
hands quickly and then kind of change the rate structure.''
    And so I want to reduce all rates: the bottom rate from 15 percent 
to 10 percent; the top rate from 39.6 to 33 percent. People say, ``Why 
would you want to drop the top rate?'' Well, let's start with this 
simple fact, that thousands of small businesses pay taxes at the highest 
rate. The businesses

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who are unincorporated, the sole proprietorships, the companies that 
have started in somebody's garage pay at the 39.6 percent tax rate. And 
by dropping the top rate from 39.6 to 33 percent, we will send a clear 
message that the role of Government is to create an environment in which 
the entrepreneur can flourish. By cutting the top rate, we'll provide 
more cashflow for small businesses to provide more employment.
    You know, I've heard all the rhetoric, but the truth is, dropping 
all rates will be good for our economy, good for planners, good for 
those who want to think long term. And we can afford it. That's the 
thing that Congress and the people must hear: We can afford it.
    There's a lot of issues with the budget, starting with this: that 
you now have a President who believes in fiscal sanity when it comes to 
the people's money; that we've increased discretionary spending by 4 
percent in our budget. Now, that may sound like a lot to a lot of you 
all who are now managing your cash accounts and managing your cashflow. 
After all, a 4 percent increase is greater than the rate of inflation. A 
4 percent increase in a budget is greater than most working--the raises 
working people have gotten this year.
    Except the problem is, here in Washington, it's half of--exactly 
half of what was increased--how the discretionary accounts increased 
last time. You see, they had a bidding contest, a bidding war last time. 
It was like, the person who bid the highest got to go home. And 
therefore, the discretionary accounts increased by 8 percent, and we 
can't afford that kind of spending in Washington, DC.
    So a President and an administration has come along and says, 
``Let's set priorities, and let's focus, and let's always remember whose 
money we're spending. It is not the Government's money; it's the 
people's money.'' And for those who say we can't afford meaningful, real 
tax relief that will stimulate the economy, they're the ones who want to 
increase the size and scope of the Federal Government. They trust the 
Government to spend people's money. And that's not the philosophy of 
this administration. Once we've set priorities, we trust the people to 
spend their money. We trust the entrepreneurs with enhanced cashflow. We 
trust the working people to manage their own accounts.
    And that's the debate here in Washington, and I'm asking for your 
help. I would like for you to e-mail your Senators. You don't have to 
worry about the Members of the House. And by the way, you don't have to 
worry about--don't e-mail these three; they're solid. [Laughter]
    I'm optimistic. I'm very optimistic. The terms of the debate have 
somewhat shifted. I can remember campaigning in your neighborhoods, and 
people would say, ``Well, he's just talking about tax relief, and he 
really might not mean it. People don't want tax relief.'' The debate is 
no longer whether or not we're going to have tax relief; the debate is, 
how quickly and how big? And I'm optimistic we can get a good package.
    Today the House is voting on the budget. Next week the Senate will 
vote on the budget. It's going to be a tough vote, but all of us are 
working hard on behalf of the working people of the country and the 
entrepreneurs and small-business people of the country, to get a good 
budget out of the Senate.
    Today, as well, I'd like to announce that--a cochairman of the 
President's Council of Advisors on Science and Technology. He is here 
with us; his name is Floyd Kvamme. And I'm 
honored, Floyd, that you'd take on the position.
    Science and technology have never been more essential to the defense 
of the Nation and the health of our economy. I will hear the best 
scientific and technological advice from leaders in your field. And I 
can think of no better coordinator than Floyd. He is an entrepreneur. He is a risk taker. He

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understands risk and reward. But more importantly, he knows the players, 
the people that can bring good, sound advice to this administration, and 
I'm honored to have you on board.
    As well, I've got some good news, and you may have been watching the 
Senate Banking Committee. But after a lot of work with industry leaders 
and the administration and Members of the Senate, the ``Export 
Administration Act,'' a good bill, passed the Banking Committee, 19-1.
    The technology that you all have helped develop, obviously, gives us 
an incredible military advantage, and that's going to be important. And 
it's an advantage, by the way, that we tend--want to develop, to make 
sure we can keep the peace, not just tomorrow but 30 years from now. 
We've got to safeguard our advantages, but we've got to do so in ways 
that are relevant to today's technology, not that of 20 years ago. The 
existing export controls forbid the sales abroad of computers with more 
than a certain amount of computing power. With computing power doubling 
every 18 months, these controls had the shelf life of sliced bread. They 
don't work.
    So in working with the Senate, we're working to tighten the control 
of sensitive technology products with unique military applications and 
to give our industry an equal chance in world markets. And I believe 
we've got a good bill. It's a bill that I heard from you all during the 
course of the campaign. The principles we discussed are now a part of 
this bill. I want to thank Senator Phil Gramm for 
his hard work in working with us and industry and some Members of the 
Senate to make sure the bill that has been crafted is a good bill. And I 
urge the Senate to pass it quickly.
    Likewise, we want the R&D credit to be permanent, and we're working 
with Members of the Senate to do so. A lot of us in this administration 
have been in the world of taking risk. We understand that one of the 
most important parts about Government policy is that there be certainty 
in the policy. And I think making the R&D credit a permanent part of the 
Tax Code is part of creating certainty, so people can more wisely make 
investments with cashflow in their capital accounts.
    And finally, we have a word about education. We're making great 
progress in education. I know it's a subject dear to you all's hearts. 
It should be. Your industry thrives on not only capital, dollars and 
cents, but it also thrives on human capital. And our Nation must do a 
better job of educating all children.
    The principles inherent in the reform package that we're moving 
through the Senate and the House are these: One, we expect there to be 
high standards in public education. To put it this way, every child can 
learn, and systems that don't believe so need to be changed.
    Secondly, I strongly believe in aligning authority and 
responsibility at the local level. I know full well when you 
disassociate the two, it provides convenient excuses for failure. A 
school district will say, ``Oh, gosh, I would have done it differently, 
but the centralized authority made me do it this way.'' It's time to get 
rid of all the excuses for failure inherent in our school systems. And 
one way to do so is to pass power out of Washington, to trust local 
folks to set the path for excellence for the children in the districts 
in which they live, in which the local folks live. What I'm trying to 
say is, the Government closest to the people is that which works best.
    And finally, we need to have a results-oriented system all around 
the country. Here's the way I'm doing it. I'm saying if you receive 
Federal money, you've got to measure. If you receive help at the Federal 
level, you, the local district or the State, must measure third through 
eighth grade. And Sandy Kress will describe what 
we're trying to do.
    But the point is pretty simple. How do you know if children are 
learning unless you test? The accountability systems are not designed to 
punish folks. It's designed to

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make sure children just simply are--are not simply shuffled through the 
system. We've got to end that practice of giving up on children early.
    And so we start early; we measure early; we provide money for 
remedial education. Every child counts, and every child can learn. And 
the whole crux of reform is accountability. And when we measure and find 
success, we'll praise it. But by measuring, you also--one can also 
detect failure, and that becomes the catalyst for reforms at the local 
level. We're going to make good progress on education.
    And finally, I believe we're making progress in Washington about 
changing the culture up here. There is now a--people are beginning to be 
able to debate in a respectful tone. The country isn't interested in the 
old style--at least, the politics of the past, where the person who 
screamed the loudest or had the cutest sound byte was the one that 
appeared to be the most effective. The country wants there to be a level 
of respect in our debate. And this is an administration that is working 
hard to provide that. We're not always going to agree, but we'll agree 
to be--we'll disagree in an agreeable way, in a way that brings pride to 
the system.
    There is also becoming a culture of accomplishment in Washington. 
Things are getting done. I signed some legislation that had been 
incredibly onerous for small businesses and large business alike, when 
the Congress moved quickly to get rid of an ergonomics regulation that 
just--the cost far outweighed the benefits. It would have been harmful 
to the private sector. It would have been harmful to those who want to 
employ people. And they got the people's work done quickly and got it 
through.
    Slowly, but surely, we're beginning to get people to focus on 
results. You see, I know there's a time for politics, and there's a time 
for policy, and now is the time for good public policy on behalf of the 
citizenry of the country.
    And finally, I hope we'll be able to start a culture of 
responsibility, that all of us in this country must be responsible for 
the communities in which we live. I see Barksdale sitting over here. He is a person who sent a clear signal 
about what it means to be a responsible citizen by supporting public 
education, and I know many of you all in the audience feel the same way. 
But responsibility is not only sharing the wealth that has been 
generated in important programs, but it's also being responsible as a 
mom or a dad; responsible for activities that say to a child, ``Somebody 
loves you''; responsible for encouraging mentoring programs in your 
companies or in your neighborhoods or in your churches or synagogues or 
mosques.
    And we're making good progress in the country. And the reason why 
is, because this is a fabulous country, that's why. This is a country 
that has got great heart, great spirit, great vision, and great 
compassion. And I'm proud to be the President.
    God bless you all.

Note: The President spoke at 2:45 p.m. in the East Room at the White 
House. In his remarks, he referred to Lezlee Westine, Deputy Assistant 
to the President and Director of Public Liaison; Sandy Kress, Senior 
Education Adviser, Domestic Policy Council; and Jim Barksdale, partner, 
The Barksdale Group, and former president and chief executive officer, 
Netscape Communications Corp.