[Weekly Compilation of Presidential Documents Volume 30, Number 10 (Monday, March 14, 1994)]
[Pages 478-481]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks on the Earned-Income Tax Credit and an Exchange With Reporters

March 9, 1994

    The President. Thank you very much, Mr. Vice President, other 
members of the administration.
    The earned-income tax credit is an important symbol of the core 
commitment of this administration to promote the values of work and 
family and community and to help people who work hard and play by the 
rules. It's been the driving force of everything we have tried to do 
since we took office, from bringing the deficit down to working to help 
create over 2 million jobs, health care reform to welfare reform, all 
the other things we are doing.
    This earned-income tax credit can help to improve the lives of 
working people all across the country by lifting them above the poverty 
line. You all know that millions and millions of working people now have 
had stagnant wages for virtually two decades, that more and more people 
work hard and their wages don't keep up with inflation. The principle 
behind what we are doing with the earned-income tax credit is simple: If 
you work for a living, you shouldn't be in poverty.
    This year across our Nation, 14 million Americans will claim the 
credit when they file their 1993 tax returns. So we know that will help 
a lot of people in need. But we think there are some more things we can 
do. The vast majority of the millions of Americans who qualify receive 
their money in a lump-sum payment, like a refund, after they file their 
taxes. But many of them, if they have at least one child at home, could 
be receiving the benefit for the current year right now in their regular 
paychecks. By simply filling out a form with only four yes-or-no 
questions, the W-5 form, qualifying workers could be collecting as much 
as 60 percent of this benefit due them in this way spread throughout the 
year. That means extra money when they need it to pay for groceries or 
clothing or just to make ends meet between paydays.
    We want qualifying Americans to know about this option. In the 
coming weeks we'll be getting the word out to employers everywhere, but 
today we're starting here in our own backyard. In the Federal 
Government, believe it or not, hundreds of thousands of workers are 
eligible for the earned-income tax credit. We want eligible Government 
workers to be an example of how this program can be used.
    So today I am sending a memorandum to all Cabinet Secretaries and 
agency heads, instructing them to get that word out, to get their 
personnel and payroll offices on board so that Government employees know 
about the advance payment option for this earned-income tax credit.
    It's our responsibility to help the people who need it and who have 
earned it. This is not a handout. It's a helping hand. That's an 
important distinction. It gives some breathing room to people who, day-
in and day-out, have done everything they could to take care of their 
families, to make their own way, to be self-supporting taxpayers.
    I've met with many families already who've benefited from this 
credit, and for some, it's helped with the most basic needs, food, 
clothing, shelter. For others, it's helped to bridge the way from being 
a semiskilled job holder to a better life with a better training

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program and a better income. For still others, it's just an incentive to 
keep going. This program works.
    Let me say that this year, because of our economic program which 
passed, as you know, last year, beginning in 1994 we will increase the 
number of people eligible for the earned-income tax credit from 14 
million people to almost 20 million people. And in addition to that, the 
size of the benefit will begin going up rather dramatically, phased in 
from this year to all future years.
    But what this means as a practical--for the next 4 or 5 years, when 
it goes up, what this means as a practical matter is that a person with 
a marginal income, working hard, eligible for 60 percent of this benefit 
every month might literally get another $100 a month to help feed 
children or clothe them or meet basic family expenses. It is a very 
important distinction. And I want to emphasize that on the terms of 
getting the benefit every month, those people will qualify for the 
increased benefits, and there will be more people qualifying this year 
because that applies to 1994. So it's very, very important.
    I'm going to sign this Executive order and then ask Secretary 
Bentsen and our IRS Commissioner, Peggy Richardson, to talk about what 
they're going to do.

[At this point, the President signed the memorandum. Secretary Bentsen 
and IRS Commissioner Richardson then made statements.]

    The President. Let me just say one other thing to kind of reiterate 
this. To give you some idea about the numbers of people we're talking 
about in America, starting this year, about 83 percent of the American 
people will pay the same income tax rates they've been paying, adjusted 
for inflation; about 1.2 percent will pay a higher rate; and about 16.6 
percent of total taxpayers in the country are eligible for a tax 
reduction. Those with children are eligible to get the monthly benefits 
as well as the lump-sum payment at the end of the year. This is 
basically an income tax cut in the form of a credit. So it's a very 
significant thing, one in six American taxpayers eligible for this 
benefit.

President's Income Tax

    Q. Mr. President, can you tell us what----
    The President. What? What did you say?
    Q. Have you paid your taxes yet?
    The President. No, I haven't filled out my returns yet, I don't 
think. I hadn't signed my return yet. I always get----
    Q. It's not April 15th.
    The President. Not time yet. They'll be filed in a timely fashion. 
And you'll see them, as you always do.

Richard Nixon's Visit to Russia

    Q. Mr. President, can you tell us what you think of Boris Yeltsin 
refusing to see Richard Nixon? Did you tell Richard Nixon it was okay 
with you if he met with former Vice President Rutskoy and the other 
opposition leaders?
    The President. I did, yes. He told me he wanted to do that because, 
as a non-Government official, he felt that it was an appropriate thing 
for him to do, basically going to Russia on a fact-finding mission to 
listen to people who had views very different from not only the Russian 
Government, from his own and from my own. And he said he thought he was 
in a different position from me, for example, and I agreed that he was 
in a different position. So he said that's what he intended to do. And I 
told him that was--I would be interested in hearing his report when he 
got back.
    Q. What do you make of Boris Yeltsin refusing to see Richard Nixon 
as a result?
    The President. Well, of course, you have to--it's up to President 
Yeltsin whom he sees and doesn't see. I wish he would see him because I 
think they'd enjoy talking to one another. And I think Richard Nixon is 
basically quite sympathetic with the dilemmas faced by Boris Yeltsin and 
generally quite supportive of his administration. So I would hope that 
he will see him, but I don't think it's, you know, it's not the end of 
the world.

Somalia

    Q. Mr. President, how do you feel about the pullout, now, of all the 
troops from Somalia?
    The President. Well, first, I want to compliment our military 
people; they are doing an excellent job. They've handled it very well. 
And I think, as I have said all along, you know, this was originally--if 
you go back to

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1992, this whole mission was billed as a humanitarian mission. And the 
first time President Bush spoke with me about it, he said he thought 
maybe they would be out before I was inaugurated or by the end of 
January. And what we learned from that, of course, is that at least in 
the case of Somalia and many other cases, you can't have a humanitarian 
mission divorced from the political problems of the time. The people in 
Somalia were starving not because there was no food that could be given 
to them, they were starving because of the political and military 
conflicts consuming the country.
    The United States, and then the United Nations, went in there to 
give the people of Somalia a chance not only to save lives, restore 
normalcy, end starvation but to give them a chance to work out their own 
problems in a different way. And I think we have given them that chance. 
The American people have been very generous with their money and with 
their support. We have lost some of our most precious resources, our 
young people, in Somalia because of the nature of the conflict. And I 
think we have done our job there and then some. And I feel very----
    Q. But the civil war will resume there.
    The President. Well, we don't know that. I mean, they still--that's 
up to them. But there's civil wars in a lot of countries in this world 
that we have not made anything like the effort for we've made in 
Somalia. There's a civil war in Sudan; there's a civil war in Angola; 
there were lots of people killed in Burundi. I mean, that's just in 
Africa, never mind all these other places.
    So we have made an extraordinary effort, the United States has, to 
help the people of Somalia. And the leaders there now have a choice to 
make. There are still United Nations forces there. They're still in a 
position to guarantee the availability of food and medicine and a more 
humane life. And they will have to decide whether they care more about 
that and care more about their people and seeing their children healthy, 
or whether they want to let the country be consumed in war again. But 
they have to take some responsibility now. The responsibility is 
shifting back to the leaders there on the ground. And they ought to work 
it out. They ought to prefer the life their people have had the last 14 
months or so, 15 months, to what they had before. But it's up to them.

Richard Nixon's Visit to Russia

    Q. Mr. President, back on Russia, can you tell us about your 
conversation with Mr. Yeltsin? He seemed to suggest that you agreed with 
him on the Nixon visit. Did you talk with him about this?
    The President. Mr. Yeltsin?
    Q. Did you talk with him or with anyone?
    The President. I don't believe--I don't think Boris Yeltsin and I 
discussed President Nixon's visit. I don't believe we did. You know, I 
talk to him on a fairly regular basis, but I think the last time we 
talked we were talking about Bosnia, and I don't think we had a 
conversation about it.
    But I did talk with Richard Nixon, President Nixon, before he went 
there. And he raised this prospect of meeting with some of the 
opposition leaders. He said he thought it would be interesting. He 
wanted to get a feel for where they were and what kind of people they 
were. And again, he said he was not in the Government of the United 
States; he was in a different position. And I said I had no--he should 
meet with whomever he wanted and I'd be interested to hear his reports 
when he got back.
    Q. But you don't think it's a diplomatic insult for Richard Nixon to 
have seen these other leaders, opposition leaders?
    The President. No, because he's not in the Government. You know, 
he's not even--he was over there on a fact-finding mission, and as I 
said, Richard Nixon has been extremely supportive of this 
administration's Russia policy, which has been extremely supportive of 
President Yeltsin and his objectives. So I think he's been, in that 
sense, as an American citizen and a longtime expert on that area of the 
world, he's been very supportive of the objectives of President Yeltsin, 
and I think it should be seen in that light.
    Again, I can't speak to whatever the dynamics are in Russian 
domestic politics at this time and whether that is having any impact on 
President Yeltsin's decision. I can't speak to that. But all I'm saying 
is that I think that President Yeltsin should not assume that Richard 
Nixon is not friendly toward his ad- 

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ministration and toward democracy and toward reform, because quite the 
contrary, he's been a very strong supporter of our policy for the last 
year. And I wouldn't overreact to the fact that he met with some people 
who are in opposition to President Yeltsin.
    Thank you.

Whitewater Investigation

    Q. Mr. President, what advice do you have for top aides who are 
appearing in Federal court about Whitewater and----
    The President. Just the same advice I give everybody, you know, just 
tell them what happened, answer the questions, and go on. Be very open.

Note: The President spoke at 10:50 a.m. in the Oval Office at the White 
House.