    [Public Papers of the Presidents of the United States: George W. Bush (2004, Book I)]
    [April 15, 2004]
    [Pages 580-591]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks in Des Moines, Iowa
    April 15, 2004

        Thank you for having me. Please be seated. Thanks for the warm
    welcome. Thanks for the warm weather. [Laughter] I really am glad to be
    able to come and talk to you about how to make sure people have a chance
    to make a living. That's what we're really here to talk about: How can
    people put food on the table; how can communities be vibrant and grow.
        Chuck Grassley said I appreciate
    rural America. I do, so much so that I call Crawford, Texas, my home.
    That's rural America. I think we've got about 661 people--until I
    arrive. [Laughter]
        I appreciate the Federal Home Loan Bank of Des Moines for hosting
    this. I know we've got people from States other than Iowa, like
    Missouri, Minnesota, South Dakota, North Dakota. Glad you all are here.
    Thanks for coming by and giving me a chance to visit.
        My attitude about rural America is--from the President's
    perspective--is that if we can make the economy strong, rural America
    will benefit. It's hard to talk about the health of rural America unless
    the overall economy is growing. I mean, it's nice to have kind of
    visions about how to bring development to your community, but if the
    economy is stagnant, it's hard to get there.
        So what I want to do today is talk about the economy of the United
    States and how we can leave lasting prosperity, to make sure that you
    understand what I think the role of the Federal Government is, which is
    to create an environment in which the farmer and rancher can make a
    living, in which the small-business person can realize their dreams.
    Because the truth of the matter is, when you really think about rural
    America, rural America's vitality depends upon the health of the
    agricultural sector. The economy of our rural America depends upon the
    vitality of small businesses.
        Sure, you get some big businesses to move into your communities, and
    that's good, and I'd work hard to try to recruit them if I were you. But
    true economic vitality, the vitality that will last beyond just an
    economic spurt is one that recognizes the importance of the entrepreneur
    and the farmer and the rancher.
        I want to thank my friend Chuck Grassley for introducing me. I've spent some quality time with
    Senator Grassley here in Iowa. You might remember the 2000 caucuses. He
    showed me a lot of the State--by car. [Laughter] I'll never forget
    driving the backroads of Iowa, and Chairman Grassley--I call him ``Mr.
    Chairman''--he's a powerful guy, so I put a fancy title to his name--the
    chairman says, ``I know that farmer there.'' And then he'd go by and
    say, ``I remember meeting that farmer there.'' He knew every farmer on
    the back roads of Iowa. No wonder he's such a popular person in this
    great State. He's doing a great job, by the way. I appreciate working
    for him. He is--he brought some of those good Iowa values to the

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    Congress. And Mr. Chairman, it's great to be with you, and I want to
    thank you for your continued leadership.
        I also had the honor of meeting Randy Newman, and I want to thank Randy for being the chairman of the
    FHLB board of directors. I want to thank the members of the board who
    are here as well and associate members from around the Midwest.
        I had the honor of landing at the airport and also being greeted
    today by the other Senator from the State of Iowa. Senator Tom
    Harkin is with us. Mr. Senator, thank you for
    your hospitality and your graciousness for coming out to the airport.
    I'm pleased you're here.
        I thank Congressman Tom Latham as well as
    Congressman Leonard Boswell. Boswell made
    sure I knew that I was in his district. [Laughter] I want to thank both
    Members of the Congress for serving your State.
        I want to thank--I'm a member of the ex-Governors club. Those are
    those of us who are fortunate to be Governors of a State. I'm a member,
    proud alumnus. I see another member of the ex-Governors club with us
    today. That would be former Governor Bob Ray
    of the State of Iowa. Good to see you, Bob. Thank you for coming.
        Also when I landed, I met an interesting person named Sarah
    Sindlinger. Sarah is right there. You don't
    know Sarah yet, but you're about to find out about this remarkable
    American. She is a 16-year-older. She has volunteered over 150 hours of
    time. See, she's a high school junior, and she said, ``What can I do to
    make my community a better place?'' And instead of just asking the
    question, she's actually acted on the question. She has volunteered in a
    daycare center. She has volunteered in a library. She understands the
    value of mentoring. She has worked in a hospital. She's been a best
    buddy to a fellow student in the special education program.
        You know, the reason I bring up Sarah
    is this: There's a lot of talk about the strength of America, and we're
    strong. We're plenty strong. We're strong militarily. I will keep us
    strong militarily. We're strong economically, and we need to get
    stronger economically. But the true strength of the country is in the
    hearts and souls of our citizens. See, that's the really good strength
    of America. You know that if you live in rural America. You know what
    I'm talking about, the notion of people taking time out of their lives
    to make their community a better place.
        Sarah is here because she is a soldier
    in the army of compassion. She's a part of the true strength of the
    country. She's a soul who's willing to dedicate her time to love a
    neighbor just like she'd like to be loved herself. My call to you as you
    do your work in your community is to continue to rally that compassion
    to help change America, one heart, one soul, one conscience at a time.
        Sarah, I'm honored you're here. Thank
    you for setting such a fine example, and may God continue to bless your
    soul and your spirit.
        It is nice of you all to welcome somebody from the Federal
    Government on tax day. [Laughter] There's a lot of people filling out
    their tax--putting in their taxes today. Laura
    and I put in ours a little early. See, the newspapers wanted to see what
    I paid. That's just part of the job. [Laughter] People expect that from
    their public servants, and I'm more than happy to participate in that
    aspect of public life. People also expect from their public service a
    wise stewardship of the taxpayers' money. People also expect that we
    keep the Federal tax burden as low as possible, which was one of my
    pledges to the American people. I take that responsibility seriously.
    And I want to thank Senator Grassley for
    his help in reducing the tax burden on the American people.
        Tax day is something most people really don't look forward to. But
    this year, it's a little better because of the tax relief we

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    delivered, and the economy is stronger for it.
        I mentioned small businesses as a part of the strategy to make sure
    rural America is strong. A major component of the tax relief was aimed
    at our small businesses. See, most small businesses are Subchapter S
    corporations or limited partnerships and, therefore, pay tax at the
    individual income-tax rate. And therefore, when you heard the fact that
    we lowered individual income taxes, I want you to think about more money
    in the pockets of small businesses so they can expand and hire new
    people.
        A lot of the tax relief that we passed was aimed at our seniors. By
    reducing the taxes on dividends, we've helped our seniors. You've got
    seniors living in rural America. It's good that they have a little more
    money in their pocket.
        A lot of the tax relief we passed was aimed at people with children.
    We've raised the child credit to $1,000. Some of the tax relief we
    passed was trying to mitigate the effects of the marriage penalty. It
    didn't seem like--make much sense to me that we would tax marriage in a
    country where we are trying to encourage marriages and stable families.
        The tax relief we passed is driving--helping to drive the economy
    forward, and it came at about the right time--just the right time, for
    that matter--because we're emerging from a period of incredible economic
    challenges. Rural America has been challenged economically, just like
    the rest of America has been challenged economically. We went through a
    recession. The recession hurt. It hurt in all sectors of our country.
    Recession means that we had negative growth for three quarters. Negative
    growth meant it was hard for people to find work. Negative growth meant
    it was hard to be optimistic about the future. And yet, we overcame that
    recession. I will argue that the tax relief made the recession one of
    the most shallow in American economic history.
        Right after we started recovering from that, we got attacked. The
    attacks hurt us all. The attacks on America hurt every single American.
    The attacks on America hurt our economy. We lost nearly one million jobs
    in just 3 months after September the 11th, 2001. Some of those jobs were
    in rural America.
        It also affected our way of thinking about the world. We grew up
    thinking that oceans could protect us. We learned a horrible lesson on
    that day, that we were no longer immune from threats that might be
    gathering overseas. I vowed that day that I would take whatever action
    was necessary to stay on the offensive to protect America. We'll do
    everything we can at home to protect us. But the best way to secure the
    homeland is to bring the killers to justice, one person at a time. And
    that's exactly what the United States of America will continue to do.
        We're a tough country and a compassionate country. We refuse to be
    intimidated by the terrorists. It took us a while to kind of figure out
    what was going on, but when we figured it out, this country started
    moving forward again. See, the people of this country are resolute, and
    they're strong. It doesn't matter whether you live in urban America or
    rural America; there's a wonderful strength, the fiber of the people of
    America.
        Then we found out another challenge to our economy, and that is
    there were some people that forgot to be responsible citizens and didn't
    tell the truth. They were CEOs that betrayed the trust. And that
    affected us. It really did, when you think about it. It created a
    challenge that we had to overcome. I appreciate the Members of Congress
    from both political parties working together to pass good reforms that
    made it very clear that this country will not tolerate dishonesty in the
    boardrooms of America. I think the American citizens now believe that
    the laws we passed are beginning to work. After all, you're looking on
    your TV screens and seeing some of those

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    who betrayed the trust being held to account.
        And then, as you know, I made a difficult but necessary decision to
    help defend America and make the world more peaceful. One of the lessons
    of September the 11th is anytime an American President sees a gathering
    threat, we must deal with it. We must take it seriously. I saw a threat,
    based upon intelligence, in the form of Saddam Hussein. The Congress, by the way, looked at the very same
    intelligence and saw a threat. The United Nations Security Council
    looked at the same intelligence, and it saw a threat as well.
         I went to the U.N., as you might remember, and said, ``There is a
    threat. September the 11th changed--Saddam Hussein is--must be viewed in a different light, at least from
    the American perspective, than before. He's a serious threat to us.'' I
    based that upon the intelligence but also upon the knowledge that he had
    used chemical weapons against his own people, the knowledge that he was
    paying for suicide bombers to go kill, the knowledge that he hated our
    country. So I called the United Nations--at the United Nations, I called
    for them to collectively deal with the threat, and they agreed to, in a
    unanimous decision. They said, ``This man is a threat.'' They passed a
    Security Council resolution that said, ``Disarm, or face serious
    consequences.''
        Now, anytime an American President says, ``Disarm, or face serious
    consequences,'' the American President better mean it. When the
    Commander in Chief speaks for the country, I believe the person ought to
    speak clearly and mean what he says. And so I acted on those sentiments
    as well. I said, ``Mr. Saddam Hussein,
    disarm, or face serious consequences.'' He chose not to. He defied the
    world again. Given the lessons of September the 11th, I was faced with a
    choice, either to trust the word of a madman, a tyrant, a dictator, or
    defend the country. Given that choice, I will defend America every time.
        That decision created an economic hurdle that we had to cross,
    because marching to war is not conducive for economic growth and
    vitality. The lenders who are here know what I mean. I mean, it's kind
    of hard to lend into an environment when you know the country is
    preparing for war. War is negative, not positive. We're now marching to
    peace. But that march is tough; it's hard work.
        These last weeks have been tough weeks for America. We've
    encountered--I say ``we''; it's just not American forces. It's coalition
    forces and innocent Iraqi citizens, by the way, have encountered serious
    violence in parts of Iraq. The different factions, former
    Saddam loyalists, some foreign fighters,
    Sadr, who is a radical cleric, and his gangs
    have a common goal. They want to stop the march to democracy in Iraq.
    The idea of a free society really bothers them. Freedom is something
    they can't stand, and they want to run us out of Iraq. That's what they
    want to do.
        I--we're not going to be run out of Iraq. We're not going to let a
    ruthless power grab affect that which is important. See, it's in our
    national interest that Iraq be free and peaceful. It's in our national
    interest, the long-term interest of this country, that right in the
    heart of the Middle East there be a free society, one that will help
    spread hope and opportunity. See, I believe free societies are peaceful
    societies.
        I also am motivated by this American value, that says freedom is not
    our gift to the world; freedom is the Almighty's gift to every man and
    woman in this world. That's what I believe. And I believe--Iraq will
    either be peaceful and democratic, or it will be a source of violence, a
    source of instability, a source of hatred, and a threat to free
    societies.
        I'm proud of those who have served our Nation and are serving our
    Nation. Our military is doing incredibly good work. They've been given a
    hard job. They've been given a tough job, and they're performing
    brilliantly. See, the transition from

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    torture chambers and rape rooms and mass graves and fear of authority is
    a tough transition. And they're doing the good work of keeping this
    country stabilized as a political process unfolds.
        We saw yesterday Mr. Brahimi from the
    United Nations begin to lay out the specific strategy necessary to,
    first, pass sovereignty and then eventually put a constitution in place
    and then free elections in Iraq. We're moving toward democracy, but the
    situation on the ground, I readily concede, is tough work. And we've got
    good people there working it. And some have paid the highest price of
    all. Some of the people there in Iraq have made the ultimate sacrifice
    on behalf of a more stable and peaceful world.
        Tom Latham told me about coming from the
    funeral of Marine Lance Corporal Ben Carman from Jefferson, Iowa. My deepest sympathies go to the
    Carman family. I know how incredibly difficult it is for them to put
    their loved one into the ground. Ben Carman's father said this, he said, ``He knew that America was in
    danger''--he, talking about his son, the dad talking about his son--he
    said, ``He knew that America was in danger, and it was time for guys
    like him to step up to the plate.'' That's what his dad said about his
    courageous son.
        Mr. Carman must know that our prayers are
    with him and with those of others who have lost a loved one in Iraq and
    that the mission that his son was on was a noble and important mission
    for peace and freedom and for the security of America. And we will stay
    the course in Iraq so that his son did not die in vain.
        We've overcome a lot of challenges, when you think about it. Rural
    America has overcome a lot of economic challenges. In 3 short years,
    we've been through a recession and, by the way, a stock market
    correction. That affected people in rural America. We've been through an
    attack on our country, a national emergency. We've been through
    corporate scandals. We're making the world more peaceful and secure.
        Those are challenges that are hard for any economy to overcome. But
    this is America. This is a country that's full of vibrancy--vibrant
    people. The entrepreneurial spirit is strong, and I intend to keep it
    that way. Tax relief helped. Here on tax day, we can say that by cutting
    taxes, we helped the entrepreneurial spirit of both urban and rural
    America.
        And the facts bear me out. Economic growth in the second half of
    2003 was the best in nearly 20 years. Things are improving. More
    manufacturers are seeing rising activity than any point in about two
    decades. Inflation is low. That's good for rural America. Interest rates
    are low. That's good if you want to buy a house. Homeownership is at the
    highest rate ever. That's a proud statistic for America to hold up. You
    know why? Because we want more people owning their own home. An
    ownership society is a positive society. When people own something, they
    have a vital stake in the future of our country, whether it be in rural
    America or urban America.
        There was good confirmation last month about the strengthening
    economy: We created 308,000 new jobs in March, 750,000 since August.
    That's positive. People are getting hired. People are going back to
    work. The unemployment rate in Iowa is 4.1 percent. That's below the
    national average. I'm sure there's pockets of unemployment that are
    higher than that, but overall, this State's unemployment rate is better
    than the Nation, which is a credit to the entrepreneurs of the State of
    Iowa and the entrepreneurs, by the way, of other States here as well.
    You're doing well, and I appreciate that.
        My job is to make sure that the environment is such that you can
    continue to do well. You see, I'm interested in the lasting prosperity.
    I want prosperity to be achieved in the out-years, and there is some
    uncertainty. I mean, look, people are worried about finding work. There
    are families wondering whether or not their loved one can find a job
    close to home, because this is

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    a changing economy. It's just different. Some things don't change: We
    need farmers out there planting the field, although agriculture is
    different from 30 years ago. We need our ranchers feeling good about
    things. We need to make sure, though, that this is the best place in the
    world to do business.
        If you're really interested in making sure that people can find work
    at home, America has got to be the best place to do business. The
    environment has got to be a good place for people to make a living, is
    what I'm telling you.
        And the first way to do so is to make sure our legal system is
    balanced and fair. You know, too many lawsuits run up the cost of doing
    business in America. Frivolous lawsuits are really hard on small
    businesses, and we need good legal reform. And Congress has got a
    responsibility, like on class-action legal reforms. We need to get it
    out of Congress. We need to send a message that we'll have a fair and
    equitable legal system, not one that is full of frivolous and junk
    lawsuits that make it hard for people to find work.
        We need less regulations. We're working on regulatory relief at the
    administrative branch. Congress needs to work on regulatory relief, too,
    in the laws they pass. I wish I could say that every single form that
    people are required to fill out was read in Washington or in Des Moines
    or anywhere else where there's a statehouse. I don't think so. We need
    to streamline these regulations. We don't need our small-business people
    spending enormous amounts of time filling out forms that don't get read.
        We also need to make sure that we can help--make sure health care is
    accessible and affordable. The rising cost of health care makes it
    difficult for people to employ people. It's hard on small businesses.
    I'm telling you, it's hard on rural America, and you know what I'm
    talking about.
        So we passed some good laws that allow for health savings accounts,
    which are an imaginative way to help control the cost of health care for
    individuals and small businesses and farming families. Congress needs to
    pass association health care plans that allow small businesses in rural
    America to pool their risk with other businesses, perhaps in urban
    America, so that they get the same purchasing power that big businesses
    do in the marketplace. It's a smart way to make sure that the rural
    economies stay healthy, so that your small businesses out there are able
    to find affordable health care.
        I appreciate Senator Grassley
    working with me on Medicare reform in order to make sure health care is
    available. The Medicare reform package we worked, with emphasis on rural
    hospitals, made a difference and will make a difference in the health
    care in rural America. A vibrant rural America must have the ability for
    people to find health care, and the Medicare reforms are going to help a
    lot.
        As well, I appreciate Congress working on community health centers.
    These are places where people--low-income people can find primary care
    so they're not using the emergency rooms of urban or rural hospitals.
    There's just practical things we can do to make sure that the economy
    stays strong, people can find work, the rural economies are vibrant, by
    dealing with health care. I'm not going to allow the health care system
    to be federalized. I think that would be a terrible mistake to have a
    Federal delivery of the health care.
        We need to make sure we maintain spending discipline in Washington.
    One way to make sure the economy, the overall economy, grows is there to
    be wise expenditure of people's money. It's always a battle, of course.
    Every idea is a good idea. Every idea requires more money. I've
    submitted my budget, which reduces the deficit in half by 5 years
    without raising taxes on the American people. It's going to require some
    discipline, spending discipline. Fortunately, Iowa is represented by
    Congressman Jim Nussle of the Budget Committee.

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        And so we will have an interesting battle in this election year
    about keeping spending down. But I think if the will is right, we can.
    We can meet our priorities, make sure our soldiers get what they want,
    make sure the homeland is defended without busting the budget.
        To make sure the economy continues to grow and rural America is
    healthy, we need an energy plan. We need to get sound energy legislation
    to my desk.
        If you're a businessperson thinking about hiring somebody or wanting
    to start a business and you're worried about getting electricity, you're
    not going to start your business. If you're somebody who's a
    manufacturer in the State of Iowa or Missouri, Minnesota, the Dakotas,
    and your energy supplies are disrupted, your price of natural gas goes
    too high, or you're worried about the reliability of electricity, you're
    not going to be in a mood to expand your business.
        We're hooked on foreign sources of energy right now. The country
    needs to change its attitude. Of course, we've got to encourage
    conservation--that's important--and use new technologies. In my
    judgment, we ought to open up lands for exploration for natural gas. We
    can do so in an environmentally friendly way, to make us less dependent
    on foreign sources of energy.
        We need to continue to promote clean coal technology so we become
    less dependent on foreign sources of energy. We need to use that which
    we grow right here in places like Iowa to make us less dependent on
    foreign sources of energy. That's why I've worked with the
    Senator on ethanol, which I think is an
    important ingredient, an important part of making sure that we have a
    modern energy plan as we go into the 21st century. Let's grow it,
    instead of depending upon foreign sources to provide it. I hope I can
    get an energy bill to my desk. It will be good for rural America if I do
    so--when I do so. Let me be optimistic.
        Another thing that's important for rural America is to be confident
    in our trade policy. There's a lot of talk about economic isolationism
    in Washington right now. That means throwing up barriers to trade. That
    will be bad for rural America. It's not going to happen on my watch. I
    will resist that mightily, because I believe that when you're good at
    something, you ought to promote it. We're really good at growing things,
    and we ought to be selling things that we grow everywhere around the
    world. We're 5 percent of the world's population. Why don't we sell to
    the other 95 percent, as opposed to walling ourselves off. Good economic
    development policy in rural America depends upon our ability to open up
    markets for products made in rural America, products grown in rural
    America.
        I'll tell you something really interesting--first off, let me take a
    step back. Many Presidents of both parties have made the decision that
    America's markets should be open. That's good for the consumers. When
    you have more choices to make, it's generally good for consumers. It
    helps with price, and the more competition there is for your demand, the
    better selections you will have at a better price. That's just how the
    markets work.
        In return, countries haven't reciprocated. They haven't opened up
    their markets as generously as we've opened up ours. And so the choice
    we have to make is, do we retaliate by closing ours, and therefore, they
    keep theirs closed, or do we work to open up other markets? I've chosen
    the latter route. See, ``Just treat us the way we treat you,'' is my
    message when it comes to foreign trade. ``Our markets are open for you.
    You open up our markets to your consumers--your markets to our
    products.''
        And it's beginning to work. And if you ask any farmer, they know
    what I'm talking about, because farm income is at a record level in
    2003, much of it thanks to the ability for our farmers to export into
    other markets. And it's important to keep those markets open. It's
    important to make sure

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    that we're confident about our trade policy, not pessimistic, not
    willing to fall prey to the false hopes of economic isolationism.
    Economic isolationism will hurt rural America, and it's not going to
    happen.
        We'll be tough when we have to, to make sure we're treated fairly. I
    filed the first WTO case against China over unfair tax burdens it gives
    to its semiconductor makers. In other words, when we see inequity, we'll
    file a complaint; we'll take people to the court. We just want to open
    the fields. We just want to be treated the exact same way we treat them.
        The interesting thing that happened last month is that America hit
    an alltime record for exports. And that's positive news, positive news
    throughout the country. The reason why--you know why? It's because we
    produce the best products. When it says, ``Made in the USA,'' they're
    the best.
        One of the great challenges we have is to make sure our workforce is
    trained for the jobs of the 21st century, make sure people growing up in
    rural America have got the skills necessary to become employed in the
    jobs that will be available as we move into the 21st century. The
    Workforce Investment Act needs to be reformed in a positive way, so that
    people are trained for jobs which actually exist.
        And one of the great strengths of our country is the community
    college system, and it needs to be utilized in an effective, smart way,
    to combine those who are looking for workers and those who want to work
    with a place in order to learn the skills so they can get hired. That
    sounds pretty simple, but sometimes the system doesn't work that way. So
    I've laid out a Jobs for the 21st Century program that really utilizes
    the community college system in a way that I think is strategically
    important to make sure people get the skills.
        Listen, you hear a lot of talk about productivity. That means one
    worker can produce more goods or services than before. We want people to
    be more productive. And oftentimes the way that that has to happen is
    through education. There's plenty of ways for people to find money to
    help with the education. We just want to make sure our workforce
    training programs are applicable to the 21st century.
        As well we've got to make sure you get it right early in the public
    school system. I mean, you can talk all you want about productivity in
    workers, but if people can't read, it's a steep hill to climb. And I
    know in Iowa you do a great job at your public schools of holding people
    to account, of measuring so that you can determine whether or not your
    curriculum is working or not. And that's important. It's important in
    rural America as well. It's important to make sure that you set high
    standards, you challenge what I call the soft bigotry of low
    expectations, you expect nothing but excellence for every single child
    being educated in any public school across the State in which you live.
        That's the spirit behind the No Child Left Behind Act, and it's
    going to make a difference. People are learning to read and write and
    add and subtract. We've got kind of a flaw in the pipeline in some
    places, where the accountability hasn't kicked in soon enough. So I've
    got--we've got some intermediate measures that I'd like for Congress to
    support me on, so that there is intensive reading and math for junior
    high and high school students, because we've got to solve these problems
    early, before they're too late, and make sure that the workforce
    training programs are relevant.
        You know, I think one of the interesting things for rural America is
    going to be the spread of broadband technology. It's going to really
    change much of the way that education can be delivered or health care
    can be delivered. It's an exciting opportunity and an exciting moment
    for people who live in rural America. The objective of this
    administration is to make sure that every American has access by the
    year 2007 and, shortly thereafter, have more than just one deliverer of
    broadband. In other words,

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    you've got choice. Rural America needs just as much choice as urban
    America does in order for the consumers to benefit.
        I see people nodding their heads as leaders in your communities.
    This is going to be a fantastic opportunity for you, and the
    Government's job is to make sure the regulatory environment is such, and
    the taxing environment is such, that broadband spreads as quickly as
    possible all throughout the country.
        Let me talk about one other way to make sure the economic
    environment in both urban and rural America remains conducive to job
    growth and vitality, and that is, the Tax Code has got to be fair. And
    in my budget, I proposed a 10.7-percent increase to make sure that tax
    cheaters are found, make sure the IRS gets after those who don't pay
    taxes, make sure that the system is fair for those of us who do pay
    taxes. We want everybody paying their fair share. If I'm going to pay
    it, I want somebody else to pay it too, if they're obligated to pay. And
    that's why we expect the IRS to be tough, and they need the resources
    necessary to do so, and we'll provide them.
        The other thing we need to do on the Tax Code is there needs to be
    certainty in the Tax Code. If you're a job creator and you're worried
    about what the Tax Code will look like next year, it creates
    uncertainty. See, it's the worry about whether the environment in which
    you'll be taxed is--creates enough uncertainty so that there's a lack of
    confidence about expanding the job base. You know, a small-business
    owner needs to know with certainty what the code will look like, and
    that's not the way the Tax Code has been structured. The tax relief that
    we passed about--talked about is scheduled to go away. I can't explain
    it very well, but that's just the way it happens, tax relief today and
    not tax relief tomorrow. And we need to do something about it, because
    there needs to be certainty in the code.
        For example, the child credit will go down next year unless Congress
    makes the tax relief permanent. That means if you've got a child, you're
    going to pay a tax increase. That's what that means. The marriage
    penalty will go up. Once again, the Tax Code will make--say, ``It's
    great that you're married, but we're going to penalize you for it.'' The
    10-percent bracket, which has helped millions of low-income families,
    will fade away, and I think Congress needs to make it permanent. I think
    Congress needs to make all aspects of tax relief permanent.
        See, I think the uncertainty in the Tax Code is going to make it
    difficult for us to confidently move out into the 21st century. Now is
    not the time to be raising taxes on hard-working people. With this
    economy growing strong and getting stronger, we don't need to raise the
    tax burden.
        I had the honor of meeting some of your fellow citizens prior to
    coming in here. There's three examples, and I hope these examples will
    help people understand why I am insistent upon making the tax relief
    permanent. It will help--you see, I fully understand that when those of
    us in office talk--we talk about numbers, and we talk about this, and we
    talk about that, and that theory and this theory--the best thing to do
    is talk about how it affects people's--the tax relief affects people's
    lives.
        Ted Stuart is with us. He's an entrepreneur.
    He owns a company called Architectural Arts. They do custom mill and
    cabinetry work in Des Moines, Iowa. He is what we call a Subchapter S
    corporation. That means they pay tax at the individual income-tax level.
    So when you hear ``tax on the rich,'' that's his company. He's part of
    that ``tax on the rich'' part.
        He is--most new jobs in America are created
    by small businesses. Seventy percent of new jobs in this country are
    created by entrepreneurs like Ted. Ted has added 20 workers over the
    past 2 years. That's a really healthy sign, see. When you've got a guy
    like Ted who's an entrepreneur, who's willing to add workers, it's a
    sign that there's a vibrancy. He said that without

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    the tax relief, he wouldn't have hired as many.
        See, the tax relief went into Ted's small-
    business coffers. The individual tax cuts--when you hear that we cut the
    individual rates, it really helped his business. And with that money, he
    had confidence to expand. He said taking tax relief away from businesses
    like Ted's means that small businesses won't be allowed to grow. He
    said, ``It allows us to grow the business more quickly.'' That's what
    Ted said when he talked about the tax relief. ``It allows us to grow the
    business more quickly,'' which means somebody is more likely to find
    work. Congress should not penalize the entrepreneurial spirit by raising
    the taxes on Ted.
        The Chenoweths are with us, Rob and
    Marci, and two of their four children,
    wherever they are. There they are. I can see them smiling. I promised
    the youngest son there that I wouldn't speak too long. I've already
    broken the promise, I guess. [Laughter] The lad is about to doze off.
    [Laughter]
        The Chenoweths
    saved $2,700 on their taxes this year because of the child credit
    increase. That's a lot of money for a family of four. A young family of
    four can use $2,700. It helps them a lot. He said it helped pay for auto
    bills. With a family of four, you'd better have an automobile that can
    run. He said it helped them take a trip, which is good. And by the way,
    when you take the trip, you might go to a motel during the trip, in
    which case, the person at the motel is--receives some business, which
    means that the person working at the hotel might more likely keep his or
    her job. He also put more money aside in his retirement plan at work.
    He's beginning to do his duty as a citizen to save for his family's
    future.
        The tax relief matters. If Congress does not make the parts of the
    Tax Code that are set to expire permanent this year, his taxes will go
    up by $1,300. That's the reality. So when you hear us talking about
    making the tax cuts permanent, think about the Chenoweths. By not making it
    permanent, we're taking money out of their pocket; we're making it
    harder for them to raise their children; we're making it harder for this
    good family to realize its dreams.
        And finally, I met Jim and Ann Sage from Waterloo, Iowa. I remember the time--
    Chuck and I were laughing about this--
    during the 2000 caucuses, I was going to give a speech at an elementary
    school in Waterloo, and it was--they had the heat cranked up pretty high
    in the elementary school cafeteria. By the time I got there, some people
    were pretty wobbly. [Laughter] And I got up there and started to speak,
    and a lady dropped out over there. [Laughter] About a third of the way
    through the speech, another one hit the deck. [Laughter] I tried to
    blame it on Senator Grassley, but I was the only one talking at the
    time. [Laughter]
        But anyway, these good folks are from Waterloo. They are a ninth-generation farm
    family--ninth generation, that goes way back in Iowa history. He wants
    his children to be the 10th generation to farm. It's a great Iowa
    tradition, and it's a great Dakota tradition. It's a great Missouri
    tradition among the farmers, a great Minnesota tradition, for families
    to take over the farm. That's what the Sages want. After all, it's their
    asset, isn't it? It's their farm. It's nobody else's farm. They ought to
    be able to leave their farm to who they want to leave their farm to
    without the interference of the Federal Government.
        The death tax is bad for economic development in rural America
    because it's bad for small-business owners and farmers. We put the death
    tax on its way to extinction, but it--unfortunately, in the year 2011,
    it comes back to life. It's time to plan. If you're involved with
    economic development in rural America, you better be planning about
    things that will affect economic development in rural America. And one
    of the things that will affect it is for the death tax to come back to
    life. It makes no sense

    [[Page 590]]

    for the Federal Government to tax a person's assets twice, once when
    they're living and making money, and after they depart. The death tax is
    bad for rural America, and Congress needs to make it extinct forever.
        I want to thank our--I want to thank the three folks for joining us here and letting me
    use their stories as examples of what will happen, what will happen if
    Congress doesn't do the right thing.
        Let me conclude by also talking about a contribution that rural
    America makes that's important for the future of our country as well.
    It's the spirit of rural America. I oftentimes talk about the need to
    change this culture of ours in America from one that has said, ``If it
    feels good, why don't you just go ahead and do it,'' and, ``If you've
    got a problem, blame somebody else,'' to a culture in which each of us
    understands we're responsible for the decisions we make in life. And
    it's changing. The culture is changing in America. A lot of it has to do
    with the culture of rural America, a culture based upon faith and
    family.
        When I say ``responsibility era,'' here's what I mean. I mean if
    you're a mother or a father, you're a responsible for loving your child
    with all your heart. That's your responsibility. I think people in rural
    America understand that well. I think it's a part of the culture of
    rural America. If you're in rural America or anywhere in America and
    you're worried about the quality of the education in which you live,
    you're responsible for doing something about it, see? Don't hope the
    faraway Government in Washington solves your problem. Do something about
    it. Work with your teachers and thank your teachers and get involved so
    that the quality of the education is what you want it to be.
        Of course, you know I'm going to say this, but if you're a CEO in
    corporate America, you're responsible for telling the truth. That's part
    of what I mean by ushering in a responsibility era. You're responsible
    for telling the truth to your shareholder. You're responsible for
    telling the truth to your employees.
        You know, you oftentimes hear talk about neighborliness in rural
    America, neighbors caring for neighbors. Part of a responsibility era is
    a neighbor loving your neighbor just like you'd like to be loved
    yourself. That's part of the responsibility era as well.
        Rural America provides such strength to the American culture. It's a
    part of helping a culture shift to the better, so that America can
    realize its full potential--every citizen can be hopeful about their
    future. It's happening. It's happening in this country. And I want to
    thank those of you who are a part of making sure that the economy is
    strong in rural America and making sure the spirit of that important
    part of our country remains vibrant and hopeful and healthy.
        We've overcome a lot in America. The reason we have is because the
    good people of this country are fabulous people--strong hearts, good
    souls, and hopeful characters.
        God bless you all.

    Note: The President spoke at 12:20 p.m. at the Des Moines Marriott
    Downtown. In his remarks, he referred to Randy Newman, chairman, board
    of directors, Federal Home Loan Bank of Des Moines; former President
    Saddam Hussein of Iraq; Muqtada Al Sadr, Iraqi Shiite cleric whose
    militia engaged in an uprising in Iraq in early April; and Lakhdar
    Brahimi, Special Adviser to the U.N. Secretary-General.

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