[Weekly Compilation of Presidential Documents Volume 37, Number 12 (Monday, March 26, 2001)]
[Pages 466-469]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks to the United States Hispanic Chamber
of Commerce

March 19, 2001

    Well, thank you very much, Abel. I don't know what you said, but--
[laughter]--it worked.
    I want to thank you very much for being here. I appreciate Mitch and 
Margaret and Ruben and Mark to be here to talk to you all and brief you 
about what we're trying to do here in the administration. And thank you 
all for your interest.
    Before I begin, I do want to say hello to Hector, who is the 
designated nominee to the Small Business Administration. And George 
Herrera, thank you very much, Jorge. for your--[applause] And thank you 
all for what you do to make America a unique and wonderful place.
    I don't think enough people in our country pay attention to the role 
of the small-business person, the incredible impact the Hispanic small-
business person has on the country. I remember campaigning in California 
and Hector said, ``You know, you've got an amazing statistic. There are 
thousands of Hispanic-owned small businesses in our State.'' And I said, 
``Oh, really, by thousands, what do you mean?'' He said, ``Would you 
believe 600,000?'' And I said, ``I do,'' because this is what America is 
all about, the idea of somebody having a dream. It doesn't matter what 
your background is, where you're from, if you work hard and dream big, 
you can realize your dream.
    And that's what good public policy is all about, too. It firmly 
recognizes that the role of Government is not to create wealth but an 
environment in which the entrepreneurial spirit can flourish. And I want 
to talk to you about that today in terms of the U.S. budget.
    But first, I want to confirm our commitment to free trade in this 
administration. I believe free trade is an incredibly important part of 
making sure the environment is hospitable to the formation of small 
businesses. And trade with Mexico is an integral part of making sure 
that our hemisphere is safe, secure, and prosperous.
    I had a chance to reiterate that face to face with Vicente Fox, who 
is--he's going to provide good, strong leadership for Mexico. And I told 
him that a strong Mexico is in our Nations' best interests. It's in our 
Nations' best interests that Mexico be prosperous and vibrant. And the 
best way to do so is for there to be free and fair trade between our 
countries. This is a message I hope the Congress hears.
    Our hemisphere, by the way, is not going to be an afterthought for 
this administration. It's one of the most important parts of our foreign 
policy, will be to promote prosperity and peace and freedom throughout 
this hemisphere.
    And so part of making sure the environment is hospitable to a 
capital formation and the entrepreneurial spirit is trade. But another 
part is to make sure the Federal Government does not squash opportunity 
by being--overspending taxpayer money.
    It's important that we budget wisely. And I want to talk a little 
bit about our budget, and I want to thank you all for paying attention 
to the debate in the budget, because it directly affects your lives.
    First, the fundamental question a lot of people ask is, ``Are we 
spending enough money to meet the needs of the Government?'' And the 
answer is: Yes, we are. The budget I submitted to Congress increases 
discretionary spending by 4 percent. Now, keep in mind, that's greater 
than the rate of inflation; it's greater than, generally, the pay raises 
that the people who are paying the bills have received. In other words, 
we're spending quite a bit of money. And that 4 percent, when you look 
at the budget in terms of trillions, is a lot of money. It's a lot of 
money.
    It allows us to set priorities. I mean, I have set priorities, which 
allows us to be fiscally responsible with your money. Education is a 
priority. Funding the defense budget, making sure our folks are paid 
better, who wear the uniform, is a priority. Medicare and Social 
Security are priorities. We doubled the Medicare budget, and we say to 
the Congress that the payroll taxes for Social Security will be only 
spent on Social Security. We've set priorities.
    We've made it clear that education is important. We made it clear 
that health care is important. We made it clear that retirement systems 
are important, and we grew

[[Page 467]]

the discretionary spending by 4 percent. Now, the reason there is some 
hollering up here is because last year they grew the discretionary 
budget by 8 percent. It's unbelievable how much money they spent on the 
way out of town. And we're saying, let's be realistic with the people's 
money.
    On the Medicare and Social Security issue, these are more than just 
spending issues. These two are issues that are important for the future 
of the country and require the Congress and the President working 
together. Today the trustees issued their reports on the financial 
status of Social Security and Medicare. These nonpartisan reports 
underline and add an exclamation point to the need to reform and 
strengthen both.
    Social Security and Medicare are vital programs, and they need major 
reforms. We must act and do so courageously. And that's part of my 
message to the Congress. These are issues that we need to work together 
on. Today's reports show health care costs are rising at a faster rate 
than was previously estimated. By 2016, expenses in both Medicare Part A 
and Social Security will be greater than the payroll taxes coming in to 
support them, and 2016 isn't very far down the road.
    The financing deficit for the entire Medicare program, including 
Parts A and B, is larger than ever. We must respond and act with courage 
to keep Medicare and Social Security benefits secure. In the words of 
the Board of Trustees, both Social Security and Medicare need to be 
reformed and strengthened at the earliest opportunity, and that's what 
I'm going to ask both Republicans and Democrats to do on the Hill.
    It's one thing to double the Medicare budget over 10 years. We need 
to work together to make sure the Medicare system responds to the needs 
of the elderly, to give elderly more choices, including prescription 
drug benefits, so we can say--firmly say, we're going to keep our 
promises to the elderly in America.
    This requires a sense that--of urgency. We have only so many years 
to get the systems back on track. It's time to quit the posturing and 
time to reform the systems. And I'm prepared to spend the political 
capital, along with both Republicans and Democrats, to do so.
    We have long-term commitments, and we'll keep them. And Medicare and 
Social Security have long-term problems that we're going to solve. Part 
of the Social Security reform must include allowing younger workers the 
option to take some of their own money and put it in the private 
markets, under safe conditions. In order to make sure that there is a 
Social Security system around tomorrow, we've got to get a better rate 
of return on the money in the Social Security Trust. And that means 
trusting people with their own money to make wise decisions as to how to 
get a better rate of return than the 2 percent in the Social Security 
Trust. I fully recognize that reforming Medicare and Social Security are 
going to require a new way of thinking in Washington, but it's time for 
there to be a new way of thinking in Washington.
    There is also a lot of talk about paying down debt, as I'm sure the 
OMB Director will tell you. We pay down a lot of debt. We pay down $2 
trillion of debt over the next 10 years. And that's important. It 
improves the balance sheet of our Government. But I want to remind the 
folks that there is more than just Government debt in our society. There 
is credit card debt that affects the ability of many of our citizens to 
be able to save, for example.
    And when you couple high energy prices with credit card debt, there 
are some of our families in this country beginning to strain. And it 
seems wise and commonsense policy to meet our needs at the Federal 
level, pay down debt, and always remember, if we have any money left 
over, whose it is to begin with.
    And so one of the things I'm asking Congress to do is to be fiscally 
sane with the people's money, pay down debt, set aside some money for 
contingencies, but with that money left over, not try to spend it on 
bigger Government but let it be spent on bigger family--on family needs. 
It's to pass it back to the people who paid the bills.
    That's the fundamental debate taking place here in Washington. It's 
a debate as to whether or not, after we meet needs, we grow the 
Government or we trust people with their own money. And this is an issue 
of trust, and I want your help on the issue.
    As I've said, it directly affects you, and let me explain how, 
besides the fact that if you

[[Page 468]]

pay taxes you're going to get tax relief. And that's one of the 
principles of this debate. There are some in Washington who would like 
to have what they call targeted tax relief. It means the Federal 
Government gets to pick and choose the winners and losers. That's not 
the role of Government. The role of Government, in my judgment, is to be 
fair and even-handed, and it says if you pay taxes, you get relief. 
That's what the role of Government ought to be.
    A lot of times in the rhetoric, people forget the facts. And the 
facts are that thousands of small businesses, Hispanically-owned or 
otherwise, pay taxes at the highest marginal rate, because most small 
businesses are not incorporated. They're sole proprietorships, or 
they're Subchapter S's, and they're subject to the 39.6 percent income 
tax rate.
    And so when you hear us talking about dropping the top rate from 
39.6 to 33 percent, I hope Americans understand the positive effect this 
will have on the small-business communities.
    It is the message that I hope Congress joins me on in saying we 
understand how small businesses grow, and they grow by being able to 
have more cash flow to reinvest in their own business. The small-
business person is an integral part of new employment in America. But 
more importantly, the small-business owner represents the great dreams 
of Americans. And the role of Government is to create an environment 
that encourages Hispanic-owned businesses, women-owned businesses, 
anybody-kind-of-owned businesses.
    And the reduction of the top rate sends a clear message that we 
appreciate what you're doing, and we want you to continue to do it, and 
we want you to have some of your own money so that you can expand your 
businesses and more likely realize your dreams. That's what tax relief 
is all about.
    We have met the needs of Government. We have paid down debt. We've 
set aside money for health care. We have set aside the money--the 
people's money for Social Security. And what we're saying is, after 
we've grown the budget by 4 percent, let's remember who paid the bills 
and remember what drives America, and it's the small-business community 
and the entrepreneur.
    And so I'd like your help. I'd like your help by--if you contact 
your Senators, you might just put a word in for your own self. 
[Laughter]
    And there's one other aspect of tax reform that I think is 
important. There's a lot of it, obviously: We drop all rates; we 
simplify the code; we increase the child credit from $500 to $1,000 per 
child, which is a very positive addition to the code because it makes 
the code more fair for people struggling to get ahead; we do something 
on the marriage penalty; and as importantly to you, we eliminate the 
death tax.
    The death tax is a tax that causes the small-business owner to pay 
taxes twice, once as you build your business and then when you pass it 
on to your heirs. And it seems like to me that part of the American 
experience ought to make it easy for a mom or a dad, once he or she 
builds up his or her business, to pass it on to a son or a daughter. 
That's what America is all about, it's the ability to transfer.
    And so I appreciate so very much you all being here to lend your 
voice--listen to what we have to say and to lend your voice for reason 
and common sense in Washington, DC. All the rhetoric sometimes tries to 
obscure reality, and there's a lot of name-calling at times and trying 
to frighten people one way or the other. But I think when people take an 
objective look at what we're trying to do, they'll realize this is a 
commonsense approach to your money, and it recognizes the great strength 
of America lies not here in Washington but in the hearts and souls of 
our folks, people who are willing to work hard, take risk, dream big, 
and realize the great American experience--but not only realize it but 
enrich it, to make it so much stronger and so much better.
    I used to tell the folks in my great State of Texas, I said, I 
welcome the Hispanic influence in our State. It makes Texas a richer 
place, a stronger place, a place that I'm proud to call home. And that's 
the way I feel about America, too.
    Thank you all very much.

Note: The President spoke at 1:15 p.m. in Presidential Hall in the 
Dwight D. Eisenhower Executive Office Building. In his remarks, he 
referred to Associate Director of Public Liaison Abel

[[Page 469]]

Guerra; Office of Management and Budget Director Mitchell Daniels, Jr.; 
Domestic Policy Adviser Margaret LaMontagne; Intergovernmental Affairs 
Director Ruben Barrales; Deputy Assistant to the President Marc 
Sumerlin, National Economic Council; Small Business Administrator-
designate Hector V. Barretto; George Herrera, president and chief 
executive officer, U.S. Hispanic Chamber of Commerce; and President 
Vicente Fox of Mexico.