[Weekly Compilation of Presidential Documents Volume 39, Number 2 (Monday, January 13, 2003)]
[Pages 30-33]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks Following a Cabinet Meeting and an Exchange With Reporters

January 6, 2003

    The President. I have an opening statement here, and I'll answer a 
couple of questions.
    I want to thank my Cabinet for coming. This is the 15th Cabinet 
meeting we've had since we were sworn in, and I appreciate each of you 
working so hard on behalf of the American people.
    Today we talked about the issues facing our country. The war on 
terror continues. We will hunt down the terrorists wherever they hide. 
We'll do everything we can to secure the homeland.
    We heard a briefing today from Tom Ridge about how the 
reorganization of the Homeland Security Department is going. It's very 
important for Congress and the Senate to confirm Tom as quickly as 
possible and to confirm his team, so they can get doing the work of the 
American people.
    Here at home, I hope the Congress will extend the unemployment 
benefits for--for the American workers who don't have a job--soon, as 
quickly as possible. As well, it's important for Congress to pass the 
'03 appropriations bills. We're living under continuing resolutions. The 
agency heads here are--want to have their budgets finalized so that they 
can have certainty in the appropriations with which they have to work. 
Congress has got work to do.

[[Page 31]]

    Tomorrow I'm going to talk about how to continue the economic growth 
that we have, to ensure our economy is as robust as possible. I look 
forward to the speech in Chicago, because it is a plan that speaks 
directly to the American citizen that we'll do everything we can to 
revitalize the small-business sector, to make sure it remains strong so 
people can find work.
    We've put together a fine economic team. I hope the Congress, the 
Senate acts quickly to confirm John Snow and Bill Donaldson. They need 
to move quickly.
    I look forward to working with the leadership in the House and the 
Senate. Doesn't matter who's in charge, we'll work with them. Obviously, 
we're pleased that Senator Frist will be leading the Senate. We'll work 
with him. We'll continue to work with Senator Daschle, and we'll work 
with Speaker Hastert, Leader DeLay, and Congressman Pelosi as well.
    We have got a job to do for the American people, and we'll do that 
job, to make sure the country is secure, to win the war on terror, and 
make sure people can find work.
    Let me answer some questions. Sandra [Sandra Sobieraj, Associated 
Press], this is your last day, I understand, and therefore, you get to 
ask the only question--I mean, you get to ask--[laughter].

President's Economic Plan

    Q. The first question to the last? You said that your economic plan 
will speak directly to the American citizen. The Democrats say that it 
speaks most directly to the richest American taxpayers. How do you 
answer that criticism and the charge that you're just going to lead to 
deeper deficits?
    The President. Well, the critics hadn't seen the plan. This is a 
plan that provides tax relief to the working citizens. It's a plan that 
is a very fair plan. It's a plan that recognizes, when somebody has more 
of their own money, they're likely to spend it, which creates more jobs.
    Our administration is concerned about deficits, and the way they 
deal with deficits is you, one, control spending. And I hope Congress 
lives up to their words. When they talk about deficits, they can join us 
in making sure we don't overspend. They can join us and make sure that 
the appropriations process is focused on those issues that--those items 
that are absolutely necessary for the American people.
    I'm pleased that Members of the Congress are talking about deficits. 
It means they understand their obligations not to overspend the people's 
money. And the second way to deal with deficits is to encourage revenue 
growth. And the way to encourage revenue growth is to encourage the 
private sector to grow. And tomorrow I'll be talking about ways to 
encourage the growth of the private sector.
    Steve [Steve Holland, Reuters].

Iraq

    Q. Sir, with 3 weeks to go until the U.N. inspectors report back, 
are you seeing any signs of compliance by Iraq? Saddam says it's 
carrying out intelligence work.
    The President. Well, I thought that was an interesting statement on 
his part. When you combine that with the fact that his declaration was 
clearly deficient, it is discouraging news for those of us who want to 
resolve this issue peacefully.
    He has the obligation to disarm. For the sake of peace, he must 
disarm. The United Nations has clearly said that. It is in our Nation's 
interest that he disarm. He is a threat to the American people. He's a 
threat to our friends and neighbors in the Middle East. He is a person 
who has used weapons of mass destruction. And so, therefore, the world 
has said to Saddam, ``You won't have any weapons of mass destruction. 
Get rid of them.'' And thus far, it looks like he hasn't complied.
    But he's got time, and we continue to call upon Saddam Hussein to 
listen to what the world is saying. Not just the United States but the 
entire world expects Saddam Hussein to disarm.
    Dick--Stretch [Richard Keil, Bloomberg News].

President's Economic Plan

    Q. Mr. President, changing the taxation on stock dividends--a lot of 
analysts say that, in and of itself, would not have a particularly 
stimulative effect for the economy. Do you disagree with that? And if in 
the end you get a benefit yourself, is it money that you

[[Page 32]]

would then direct to be reinvested, or is it money that you might spend?
    The President. If it--I didn't hear the second part of your 
question. If it--the hypothetical part of the question, which I'm 
probably not going to answer. [Laughter]
    Q. If Congress does your bidding and you get benefits from dividends 
that aren't being taxed, would you use that money to reinvest or would 
you spend it on consumer goods or consumer items?
    The President. Me, personally?
    Q. You, personally.
    The President. My money is in a blind trust, Stretch, so I don't 
know if I've got any dividends.
    Q. If you did.
    The President. Oh, if I did. [Laughter]
    Q. Not many of us have dividends these days, but----
    The President. Well, it's interesting you asked that question. A lot 
of people get dividends, see. And that's one of the reasons why we're 
analyzing this issue of taxing things twice, particularly dividends. 
Most seniors--over 50 percent of the seniors receive dividends.
    First of all, it's unfair to tax money twice. There's a principle 
involved. The Government ought to be content with taxing revenue streams 
or profits one time, not twice. And in dividends, we tax the corporate 
profit, and then we tax the money being sent to the shareholder. And 
that doesn't make any sense. That's unfair. That's bad public policy. 
Many of the shareholders that pay the taxes are senior citizens. These 
are senior citizens who have retired and senior citizens who can use 
that money.
    Thirdly, the reduction in taxes on dividends will encourage capital 
flows into the marketplace. It will encourage investment, and that's 
what we want. We want to encourage investment activity. Investment means 
jobs.
    And so I'm not going to specifically tell you what's in the speech 
tomorrow, though it looks like some others might have already done that. 
I do encourage you to listen to it. But I encourage you to look at the 
entire package. It's a package that's shaped for economic vitality and 
growth.
    Listen, we're doing fine. Tomorrow you'll hear me say this economy 
is one of the strongest in the world. But what we believe is that we can 
be stronger. And we also know that when somebody is looking for work who 
wants to work means we've got to continue to try to stimulate job 
growth.
    Now, we don't believe it's the role of Government to manage the 
economy. We've got great faith in the private sector. And so we're going 
to create the environment for the private sector to be stronger. That's 
the policy of this administration.
    Sandra, good luck to you. Thanks.
    Q. Thank you, sir.

North Korea

    Q. Mr. President, on North Korea, sir?
    The President. I'll answer one on North Korea, yes, real quick.
    Q. Yes, sir. What would it take for the U.S. or any other nation to 
have direct talks with North Korea? And they claim to believe that the 
U.S. is a threat to them.
    The President. Yes.
    Q. What can you say?
    The President. Well, first of all, I went to Korea and clearly said 
that the United States has no intention of invading North Korea. I said 
that right there in South Korea. And in Kim Chong-il's neighborhood, I 
spoke as clearly, as I said, and said, ``We won't invade you.'' And I'll 
repeat that: We have no intention of invading North Korea.
    We expect North Korea to adhere to her obligations. She's in an 
agreement with the United States and said that she would not develop 
nuclear weapons, and we expect people to keep their word. We will have 
dialog; we've had dialog with North Korea. The Secretary of State 
visited with the Deputy Foreign Minister----
    Secretary of State Colin L. Powell. The Foreign Minister.
    The President. ----the Foreign Minister, excuse me. And talking is 
one thing, but we expect people to honor obligations. And for Kim Chong-
il to be a credible member of the world community, he's got to 
understand that he's got to do what he says he's going to do.

[[Page 33]]

    I believe this will be resolved peacefully, and I believe it can be 
resolved diplomatically.
    Thank you.
    Q. Thank you, sir.
    Q. What were you laughing at before we came in, sir? [Laughter]
    The President. I'm not telling. [Laughter] I won't tell, but 
somebody will leak it. [Laughter]

Note: The President spoke at 4:11 p.m. in the Cabinet Room at the White 
House. In his remarks, he referred to Treasury Secretary-designate John 
Snow; William Donaldson, Chairman-designate, Securities and Exchange 
Commission; President Saddam Hussein of Iraq; and Chairman Kim Chong-il 
and Foreign Minister Paek Nam-sun of North Korea. The Office of the 
Press Secretary also released a Spanish language transcript of these 
remarks. A portion of these remarks could not be verified because the 
tape was incomplete.