[Weekly Compilation of Presidential Documents Volume 29, Number 31 (Monday, August 9, 1993)]
[Pages 1561-1564]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks and an Exchange With Reporters on the Economic Program

 August 4, 1993

    The President. Thank you very much. Let me just briefly say I had 
the opportunity to meet with the House caucus today. We have been 
informed that several Members who voted no when the bill came up the 
first time for different reasons had decided to vote yes on the bill 
this time. Some of them are here with us today, and others are not. It 
was a very good meeting.
    I told them that for the last couple of months, and even last night 
in speaking to

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the American people, I felt much as I did when I was a young man in 
school and I belonged to all these little clubs who would try to earn 
money for club events by washing cars. I felt like a lot of what I was 
doing was trying to clean dirt off of windshields so that the American 
people could see out of the windshield again. There has been so much 
misinformation put out about this plan, about who bears the burden of it 
and whether it reduces the deficit, exactly how it's going to be done, 
that a lot of what we have been doing in the last 6 weeks or so was just 
trying to get the facts out. All the evidence is that the more facts we 
get out, the better we do. And so I am encouraged on what has happened 
in the last few days. I'm very hopeful.
    The fact remains that every other plan which has been raised has 
gotten more opposition and less support than the administration's plan. 
Every other one had less fairness and/or less deficit reduction. And now 
the choice is whether we're going to do this, or do nothing and flail 
around for another 60 to 90 days.
    I think it is clear that the Congress will vote to act and to move 
forward and to make this enormous downpayment on solving the deficit 
problem and giving some incentives to the economy to grow. I'm very 
hopeful about it, very optimistic today. And I want to thank the Speaker 
and the leadership and the members of the House caucus for hearing me 
today.
    Mr. Speaker, you may want to say another word or two before we take 
questions. But this was a very, very good meeting this morning.

[At this point, House Speaker Thomas S. Foley made brief remarks.]

Economic Program

    Q. Mr. President, what would you say to those economists who say 
that this deal had been so diluted with compromises and deals that it 
would be ineffective?
    The President. I don't believe any economists are saying that. My 
response is, look what happened to interest rates after the speech last 
night and then after the progress we were making yesterday. I mean, the 
interest rates once again were lowered in anticipation of the plan's 
successful passage.
    The economic incentives that were in the House bill are in the final 
conference for job growth. They have been slightly scaled back because 
we reduced the tax burden by over $40 billion and reducing the energy 
tax. And that's another that some of the economists said that we ought 
to do.
    So I think that you've got the same deficit reduction. You've got 
the economic growth incentives. You have real fairness in the Tax Code, 
and you made 90 percent of the small businesses in this country eligible 
for a whole wide range of tax reductions if they invest in their 
businesses. So I think it's a good plan, and I think that they're wrong.
    Q. You're not concerned about the number of deals that have been cut 
to get this through?
    The President. No, absolutely not. Since when has a big piece of 
legislation like this ever moved through the Congress unamended? I mean, 
give me one example of that. Most things of this magnitude, when you 
turn the country around, take years to get done. We put it together in 
just a few months.
    I think that the things that I cared about are there. The plan has 
$500 billion in deficit reductions. There are now more spending cuts 
than taxes. The tax system is very fair, indeed, more progressive than 
it was when I presented it. Now 80 percent of the burden falls on 
couples with incomes above $200,000. There are enormous incentives in 
here for business growth which were not in any of the Republicans' 
plans--a new business capital gains tax; there are research and 
development incentives; we nearly double the expensing for small 
businesses in this country. Then finally, the thing which I think will 
really have a huge difference in terms of our society: The earned-income 
tax credit lifts working families out of poverty. It's a huge incentive 
to leave welfare and go to work. So the big guts of the things that I 
proposed way back in February have survived this whole legislative 
process. And I feel good about it.
    Q. Mr. President, you've apparently padded the margin here on the 
House side. But obviously the really, really close vote is going to come 
on the other end of this building. What are your feelings at this point? 
Does

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it still come down to that one vote over there? Is there any other 
outlook for you at this point?
    The President. I think it depends upon, obviously, what happens in 
the next couple of days. I think if we carry the House, I think we'll 
carry in the Senate. I don't think the Senate will let this plan go 
down. I don't think they will do that to the country.
    There are two groups of Senators that basically are either declared 
against or leaning against, some who have said forthrightly to me, 
``This is the right thing for the country, but there's been so much 
misinformation about it, people will never know the real truth, and I 
will never recover politically if I vote for it, even though it's 
good,'' and others who say that ``This is a very good first step, but it 
doesn't do everything that needs to be done. Therefore, I won't vote for 
it.''
    And my argument to the second group is going to be that this bill 
cannot possibly be expected to carry the burden of solving all the 
problems of the last 12 years; that we do have to control entitlement 
spending; we do have to control health care spending. I will be for such 
controls in the context of reforming the health care system, and I still 
think we've got a shot to get a lot of those.
    Also, the spending reductions, for those who say there ought to be 
more spending cuts, I remind them that the House of Representatives has 
already adopted over $10 billion in spending cuts in excess of those in 
a reconciliation bill which the Senate will have a chance to adopt. The 
Vice President's report on reinventing Government is coming up, and the 
health care debate is coming up. There will be further spending 
reductions by this Congress and this administration.
    So I'm going to keep making that argument to them, and I think we'll 
prevail.
    Q. What's it going to take for you to get in the Senate the security 
that you apparently now feel in the House?
    The President. I don't know if that will ever happen. [Laughter] We 
need the votes to win over there, and as I said, I believe that the 
Senate will pass the plan if the House does. I think that there clearly 
is a majority in the Senate who know that this is far better than the 
alternative--there is no other available alternative--and that the worst 
thing this country could do would just be to flail around for 60 to 90 
days, instead of moving on with all the things that are there before us: 
the health care issue, further efforts to deal with the budgetary 
problem.
    Helen Thomas. Mr. President, did you hear Senator Dole's rebuttal, 
and what did you think of it?
    The President. My response to Senator Dole's rebuttal is to wish you 
a happy birthday. [Laughter]
    Ms. Thomas. Oh, no. [Applause] Thank you.
    The President. I would like to respond to a couple of those things. 
First of all, Senator Dole says too many of our budget cuts are in the 
latter half of our plan. My response to that is he has a higher 
percentage of his budget cuts in the last 2 years than we do. That is a 
smokescreen to continue the intransigent Republican position that we 
should not ask the wealthiest Americans to pay their fair share of the 
burden, even though they got the tax cuts in the eighties and received 
well over half the economic gains of the eighties.
    Secondly, my response to Senator Dole's claim that this bill imposes 
burdens on people who are no longer living--you heard all that--that 
implies that somehow the Democrats are voting to raise the estate taxes 
on people who have--estate taxes are not imposed on people who have no 
estate, that is, who have not yet died. But that is totally misleading. 
All the Congress did was to extend the estate tax rates imposed back in 
the late eighties. And I haven't checked this this morning, but I 
believe Senator Dole voted for that. I believe that this bill extends 
the estate tax rates that Senator Dole voted for. I believe that. In any 
case, the Congress voted for it. He knows that this bill does not 
somehow increase taxes on citizens after they die. That is totally 
misleading.
    Let me see what else he said. Oh, he said we didn't cut the deficit 
enough. My answer to that is we don't cut it all the way to zero, but we 
will. And we cut the deficit much more than the Dole plan did, and we do 
it specifically. We have a lot more deficit reduction than he did, and 
in his plan he had $66 billion in, quote, unspecified cuts. He

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wouldn't even say where the tough cuts were coming from.
    Q. Retroactivity is what he----
    The President. Well, the retroactivity, my answer to that is 
twofold. Number one, on the merits, it applies to the same couples with 
incomes above $200,000, individuals with incomes above $150,000 to 
$160,000; that they will be given 3 years without penalty, a subsequent 
3 years to pay the taxes; that all the tax cuts are retroactive and some 
of the tax incentives go back to the middle of 1992, not just to the 
first of '93.
    So those would be my answers to the attacks he made on the program.

Note: The President spoke at 10:07 a.m. in Statuary Hall at the Capitol. 
A tape was not available for verification of the content of these 
remarks.