[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

[[Page 581]]

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

[[Page 582]]

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

[[Page 583]]

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

[[Page 584]]

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

[[Page 585]]

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.

[[Page 586]]

    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

[[Page 587]]

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,

[[Page 588]]

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

[[Page 589]]

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.

[[Page 591]]