[Weekly Compilation of Presidential Documents Volume 43, Number 46 (Monday, November 19, 2007)]
[Pages 1493-1498]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks on the Federal Budget in New Albany

November 13, 2007

    Thanks for coming. Please be seated. Thanks for the warm welcome. I 
needed that uplifting applause because I just finished eating lunch at 
Sam's. [Laughter] Had just a little too much chicken. [Laughter] But I'm 
honored to be with you. It's great to be back in New Albany. This is a 
fantastic hall. It is really special. I know you all are proud of it. I 
appreciate the great history of this part of the world. I appreciate the 
fact you got great people and great basketball. [Laughter]
    It's also a good place to do business. And I thank One Southern 
Indiana for your efforts to strengthen the spirit of enterprise. I 
appreciate what you do. Your members create jobs, attract investment, 
and add to the vitality of this region and our country. People here know 
that customers should be treated respectfully, money should be spent 
carefully, and new taxes should be opposed strenuously.
    And that's what I want to talk about today. Kerry, thanks for giving 
me a chance to come by. I appreciate it. I'm sorry my wife is not with 
me--so are most people when I travel. [Laughter] She's doing great, and 
she sends all her best.
    I'm proud to be traveling today with Congressman Baron Hill. 
Congressman, thanks for coming. Good to see you, sir. He was reminding 
me of the days he was a point guard. He said, ``Just don't remind them 
here in New Albany that I used to tear them up.'' So I won't. [Laughter]
    I want to thank the Lieutenant Governor of the great State of 
Indiana, Becky Skillman, for joining us today. Governor, appreciate you 
coming. The mayor, James Garner, has joined us from New Albany. Mr. 
Mayor, I appreciate you coming. Thanks for being here. Mayor Rob Waiz of 
Jeffersonville is with us today. Proud you'd be here, Mayor. I thank 
Mayor-elect Greg Ballard of the city of Indianapolis that has joined us 
here. Mr. Mayor, thanks for coming. We've got other State and local 
officials. Former Congressman Mike Sodrel and Keta are with us today. 
Glad you're here.
    And I thank you for letting me come by to share some thoughts about 
what's happening in Washington. It's an important time for our economy. 
In October, America created 166,000 new jobs. We now have had 50 
straight months of job growth, the longest period of uninterrupted job 
growth on record. Since August of 2003, American businesses--American 
small businesses and large businesses, American entrepreneurs and 
dreamers and doers have created more than 8.3 million new jobs. The 
national unemployment rate is a low 4.7 percent. Here in Indiana, the 
unemployment rate is even lower--4.5 percent. Thanks to America's 
workers and entrepreneurs, our economy grew at a vigorous rate of 3.9 
percent in the third quarter. This economic vitality, this economic 
growth is lifting our Federal tax revenues, and that's driving down the 
deficit. The deficit today is at 1.2 percent of GDP, and that's low.
    At the same time, this economy has got some strains, and you know it 
as well as I do: high oil prices; the housing market is challenged; the 
financial markets have got uncertainty. Families are working hard to 
meet rising mortgage payments and college and health care expenses and 
the cost at the gas pump.
    These are serious challenges. But as we have seen in recent years, 
this economy of ours is resilient. And that's important for the American 
people to understand. Sure, there's some challenges facing us. But the 
underpinnings of our economy are strong, and we're a resilient economy.

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    Just a few weeks after the terrorist attacks of September the 11th, 
2001, our economy was growing. Think about that. After the worst attack 
on American soil, where nearly 3,000 of our citizens died, this economy 
recovered. That's a resilient economy. After Katrina--two quarters after 
the devastation of Katrina, our economy grew at a powerful rate of 4.8 
percent. Despite the ongoing costs and uncertainty of war, the budget 
deficit is low. And the reason is clear: This economy is flexible; it is 
dynamic; and it is competitive enough to overcome any challenge we face. 
And the responsibility of Washington--in Washington, of people in 
Washington is to keep it that way. And that's what I want to talk about 
with you today.
    One of the keys to meeting economic challenges is wise policy from 
your Federal Government. Wise policy helps keep us resilient; lousy 
policy will hurt the ability for this economy to grow. The decisions we 
make in Washington have a direct impact on the people in our country, 
obviously.
    And as we debate the decisions, you got to understand there are two 
very different philosophies being played out. My philosophy is that the 
American people know how to spend their money better than the Government 
can. That's the core of my philosophy, that I'd rather you have more of 
your own money to spend, save, and invest as you see fit. Every time the 
Government collects a dollar in taxes, it means you have a dollar less 
to invest in your business or to spend on your family or to put aside 
for the future. Government has certain responsibilities, such as 
protecting our citizens--and we're going to meet those responsibilities. 
But we must always remember that your paycheck belongs to you and that 
the economy thrives the more money you have in your pocket.
    The philosophy has been the center piece of my economic policy since 
I've been honored to be your President. Since I took office, we've cut 
taxes for every American who pays income taxes. We've worked to restrain 
spending, while ensuring that we have the resources necessary to protect 
the homeland and to make sure our military has what it needs to do the 
job. We set a goal to balance the budget by 2012, and we're on pace to 
meet that goal.
    Now, there's a different philosophy in Washington. And I'm not 
saying these aren't good people; they are, but they just have a 
different point of view. Instead of trusting in the judgment of the 
people, they trust in the judgment of the Federal Government. They 
believe in a Federal solution to every problem, and somehow, that 
solution always seems to include raising your taxes.
    Congress now sitting in Washington holds this philosophy. The 
majority was elected on a pledge of fiscal responsibility, but so far, 
it's acting like a teenager with a new credit card. [Laughter] This year 
alone, the leadership in Congress has proposed to spend $22 billion more 
than my budget provides. Now, some of them claim that's not really much 
of a difference; the scary part is, they seem to mean it. [Laughter] 
Over 5 years, their proposed spending spree adds up to an extra $205 
billion. Put another way, that's about $1,300 in higher spending every 
second of every minute of every hour of every day of every year for the 
next 5 years.
    Think about what it means for you. If you're driving a half hour to 
visit your grandparents, Congress would have spent an extra $2.3 
million. If you attend church for an hour, Congress will tally another 
$4.7 million. If you watch a football game, Congress would rack up $14 
million--unless, of course, it goes into overtime. [Laughter]
    It's easy for politicians to claim that this spending won't have 
much of an impact on you. But you got to understand that when the bill 
for all that spending comes due, Congress is going to turn to the 
working people and to the small-business owners and the entrepreneurs.
    The conclusion does not require an active imagination. All you have 
to do is look at the record. For example, leaders in the majority 
recently proposed raising taxes on millions of working Americans by 
increasing the tobacco tax. It can be tempting to view this as a one-
time action aimed at an unpopular product, but that's not the way things 
work in Washington. Raising taxes is habit-forming; once you start in 
one area, it's hard to stop in others. In fact, in addition to the 
tobacco tax proposal, Congress has proposed

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to raise taxes on oil and natural gas, on dividends and capital gains, 
and stock and bond transactions.
    If that's not enough, Congress's budget also allows the tax relief 
we delivered to be taken away. Here's what that would mean for the 
average taxpayer. If you have children, your taxes would rise $500 per 
child. If you have a family of four making $60,000 a year, your taxes 
would be more than $1,800 higher. If you're a small-business owner, your 
taxes would increase almost $4,000.
    And they're not picky about how to raise taxes. To them, every bill 
on the floor is an opportunity for a tax hike. Congress has proposed tax 
increases in the farm bill, the energy bill, the small-business bill, 
and the children's health bill. If you find a bill that doesn't have a 
tax increase, just wait a while; they'll put one in there.
    The price of these tax increases would not be paid in the Halls of 
Congress; it would be paid in the living rooms and shop floors and 
office buildings across America. Higher taxes would mean that you'd have 
to put in longer hours to bring home the same amount of money, which 
would lead to more time at work and less time with our families. Higher 
taxes would mean paying more to meet the priorities of the Washington 
politicians and less to meet the priorities of your family. And higher 
taxes would mean fewer opportunities for entrepreneurs, a tougher time 
for workers trying to get ahead, and a greater likelihood of a slowdown 
across our economy.
    People--the American people understand the cost of tax-and-spend 
policies. We had some interesting results at the ballot box last week. 
In the State of Oregon, voters rejected the plan to raise tobacco taxes 
to further enlarge a government health program. In other words, when the 
voters were given a chance, they voted such a plan down in the State of 
Oregon. Right here in Indiana, voters in your capital voted for Greg 
Ballard and ousted an incumbent mayor, in large part because the 
incumbent mayor supported raising taxes. A newspaper report explained 
that the winning candidate, quote, ``rode a wave of voter discontent 
over tax increases'' to a stunning upset.
    We need to make sure the message is heard in the Nation's Capital, 
and I've come to New Albany, Indiana, to let you know I'm going to do my 
part. Under the Constitution, the President has the power to veto bills 
he thinks are unwise. And with all the other pressures on our economy, 
raising taxes is one of the most unwise things Congress could possibly 
do. I hope the leaders in Congress will cooperate and send me reasonable 
spending bills that I can sign. But if they insist on trying to raise 
taxes on the American people, I will not hesitate to use my veto pen to 
stop them.
    For all their plans to increase Federal spending, you would think 
that the leaders in Congress would be in a hurry to get the Government's 
annual spending bills to my desk. But that's not the case. It took until 
last week for Congress to send me the first of these spending bills. 
This was the latest date in 20 years that Congress has sent its first 
annual appropriations bill to the President's desk. I know they wanted 
to be remembered by history, but I don't think that's what they had in 
mind.
    As of this morning, Congress has sent me only two annual 
appropriations bills. One is the spending bill for the Defense 
Department. This isn't a perfect bill; it includes some unnecessary 
spending. But this morning in the Oval Office, I signed that bill to 
make sure our military has the full support of the Federal Government.
    The other spending bill is for the Departments of Labor, Health and 
Human Services, and Education. This bill is 44 days late and nearly $10 
billion over budget and filled with more than 2,000 earmarks. Some of 
its wasteful projects include a prison museum, a sailing school taught 
aboard a catamaran, and a ``Portuguese as a second language'' program. 
Congress owes the taxpayers much better than this effort. And so today 
in the Oval Office, I vetoed this bill. Congress needs to cut out that 
pork, reduce the spending, and send me a responsible measure that I can 
sign into law.
    While Congress was passing the bloated labor and health spending 
bill, it delayed action on a good bill for the Department of Veterans 
Affairs. The bill includes vital funds for veterans' benefits and care 
for our wounded warriors. It had almost unanimous support. The House 
passed the bill 409 to

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2 in June, and the Senate passed it 92 to 1 in September. I urged 
Congress to show its commitment to our veterans by sending me this bill 
by Veterans Day. Well, they didn't listen. Our veterans have already 
waited longer than they should have to. At the very least, Congress 
should send me a clean veterans bill before leaving for its 2-week 
Thanksgiving vacation.
    Another priority that Congress has failed to meet is energy. Leaders 
of both parties understand that America's dependence on oil creates 
problems for our economy, our environment, and our national security. 
When they were elected last November, majority leaders in Congress 
promised to pass an energy bill to reduce our dependence on oil. I 
consulted with members of both parties, and in my State of the Union 
Address, I proposed a plan to reduce America's gasoline consumption by 
20 percent over 10 years. I call this plan 20-in-10 and asked Congress 
to pass it by beginning of the summer driving season.
    Now the summer driving season is over; the price of oil has jumped 
to nearly $100 a barrel; and Congress has not acted. America clearly 
needs legislation that expands the use of ethanol and biodiesel, 
promotes energy conservation, invests in advanced technologies like 
clean coal and nuclear power. Listen, breaking our reliance on oil and 
gas is not going to happen overnight.
    Congress should also authorize environmentally responsible oil 
exploration offshore and in the Arctic National Wildlife Refuge. 
American consumers and businesses are looking to Washington for action 
on this issue. And Congress needs to pass a bill that encourages the 
development of more energy that makes us less dependent on foreign 
sources of oil, and they need to do it now.
    Congress is grappling with another difficult issue. It's called the 
Alternative Minimum Tax. Decades ago, this section of the Tax Code was 
designed to ensure that the wealthy pay their fair share of taxes, but 
its provisions are not adjusted for inflation. As a result, it's become 
increasingly likely that middle class taxpayers will be subject to the 
AMT. This would come as an unpleasant surprise to many American 
families, who would be forced to calculate their income taxes twice and 
then pay the Government the higher amount.
    In recent years, Congress has passed a temporary ``patch'' that 
prevents most middle class taxpayers from having to pay the AMT. But 
this year, Congress has not done so. With no relief in place, 25 million 
taxpayers would be subject to the Alternative Minimum Tax. On average, 
they would have to send an extra $2,000 to the IRS, which is a huge tax 
increase they do not expect and do not deserve.
    Some in Congress have looked at this impending tax burden and used 
it as an opportunity to raise taxes. Last week, the House passed a bill 
that provides relief for AMT, but raises taxes on others. Preventing a 
tax increase in one area should not be an excuse for raising taxes in 
other areas. Congress should eliminate the tax increases in the bill and 
send the AMT relief to my desk as soon as possible. That's what the 
American taxpayer expects.
    The timing of congressional action on AMT relief is critical. I want 
to spend a little time explaining why. The longer Congress waits, the 
more difficult it will be to print and distribute tax forms on time. 
Last month, Treasury Secretary Paulson wrote a letter that said this: 
``To avoid confusion and delays for taxpayers, it is critical that an 
AMT patch be enacted by early November.'' Well, early November has come 
and gone, and Congress has not acted. If Congress does not act before 
Thanksgiving, $75 billion worth of tax refund checks could be delayed.
    Yet when the Senate Majority Leader was asked if he could pass an 
AMT patch before Thanksgiving, he said, ``No.'' Well, that's not a good 
enough answer for the American taxpayer. Congress needs to protect the 
middle class from an unfair tax hike. They need to finish their business 
quickly; they need to make sure those who get their refunds get them on 
time.
    When it comes to taxes and spending, they don't have a very good 
record, but here's a good way to start, is to make sure that Congress 
passes the war supplemental funds we need to give our troops the very 
best equipment possible in the theaters of Afghanistan and Iraq.
    I think it's important for Members of Congress to hear the words of 
Deputy Secretary

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of Defense Gordon England when he wrote them why the funds, the 
supplemental funds to support the war effort--see, these are funds 
separate from the defense bill; these are funds specifically to support 
our troops in harm's way and other measures. And here's what he wrote: 
``If you''--he said, delaying could have this kind of, quote--in other 
words, what Congress is trying to do--some in Congress are trying to 
delay spending this money. Some of them in Congress want to say, we're 
going to spend some of the money, and by the way, tell you how to 
conduct the war. That's not going to work. We don't need Members of 
Congress telling our military commanders what to do. We need our 
military commanders telling us what to do so we can win the war against 
these extremists and radicals.
    See, I think it's important to get the advice from the military. I 
don't want our kids in uniform to think that the President is playing 
politics with their lives. I want those in the battle to understand that 
I'll be making decisions based upon the considered judgment of our 
military commanders. If you've got somebody in harm's way, you want the 
President being--making advice, not--be given advice by the military and 
not making decisions based upon the latest Gallup Poll or focus group.
    And so they're delaying the money that needs--our troops need to 
have. And here's what the Deputy Secretary said. He said, it would have 
``a profoundly negative impact on the defense civilian workforce, depot 
maintenance, base operations, and training activities.'' In other words, 
there's a consequence for not funding this money.
    Congress's responsibility is clear: It should not go home for the 
Christmas holidays without giving our troops on the frontline the funds 
they need to succeed. Now, look, I understand some of them in Congress 
didn't agree with my decision, and that's fine. I can understand that. 
That's what that democracy is all about. Nobody likes war; I understand 
that. And I understand some were critical of the decision I made, and 
that's okay. But whatever their position on the war is, we should be 
able to agree that our troops deserve the full support of those of us in 
Washington, DC.
    By the way, look at these folks in uniform--I just got to tell you, 
I'm incredibly proud to be the Commander in Chief of such amazing 
citizens who volunteer to serve our country in the face of danger. What 
a remarkable country we have to have citizens such as these. Thank you, 
guys.
    It's important for Congress to get their spending bills done. See, 
the strategy may be to put them all in one big bill, kind of delay and 
delay and delay, and then send it all in one big package, and no telling 
what's going to be in there. The best way to get the business done--the 
people's business done is to pass these appropriations bills one at a 
time and get them to my desk in a expeditious way. Unfortunately, the 
number-two leader in the Senate, Democrat leader said this: ``I don't 
think it's physically possible for us to do all the bills 
individually.'' That's, frankly, not good enough for the American 
people.
    So obviously, I had something on my mind. And I thank you for giving 
me a chance to come and share it with you. It's a critical time. I have 
great respect for the process, and I've got respect for people in 
Washington, DC. But they're coming at you with new taxes, and I'm going 
to do everything in my power to stop them. We don't need to raise the 
taxes on the working people; we don't need to raise the taxes on our 
farmers and ranchers; we don't need to raise taxes on the small-business 
owners. What we need to do is set clear priorities with the people's 
money, which is defend this homeland, support our troops, and make sure 
we reduce the deficit and keep this economy growing strong.
    As I mentioned earlier in the speech, there's some uncertainty in 
the economy. But we have dealt with that before, and we can continue to 
deal with it, particularly if we keep the taxes low.
    I'm honored to be back in southern Indiana. It's a thrill to be with 
you. Thank you for your hospitality. Thank you for being--loving your 
country. God bless you all. God bless America.

Note: The President spoke at 12:43 p.m. at The Grand. In his remarks, he 
referred to Kerry M. Stemler, chairman, One Southern Indiana; and Gov. 
Mitchell E. Daniels, Jr., of Indiana.

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