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South Carolina Legislature 2/15/89
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Document No. 006438
WHITE HOUSE STAFFING MEMORANDUM
2/13/89
DATE:
ACTION/CONCURRENCE/COMMENT DUE BY:
COB ROAY
SUBJECT:
PRESIDENTIAL REAMRKS: SOUTH CAROLINA GENERAL ASSEMBLY
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCCLURE
SUNUNU
R
NEWMAN
SCOWCROFT
PORTER
DARMAN
STUDDERT
BATES
1
UNTERMEYER
BREEDEN
Griffith
CARD
A
Rogers
CICCONI
Winston
DEMAREST
1
Baskin
FITZWATER
GRAY
HAGIN
REMARKS:
Please provide your comments/recommendations directly to
Chriss Winston's office with an info copy to my office by
close of business Tuesday, February 14. Thank you.
TODAY
13
RESPONSE:
James W. Cicconi
Assistant to the President
and Deputy to the Chief of Staff
Ext. 2702
(Klugmann)
February 13, 1989
1:30 p.m.
PRESIDENTIAL REMARKS: SOUTH CAROLINA GENERAL ASSEMBLY
COLUMBIA, SOUTH CAROLINA
FRIDAY, FEBRUARY 17, 1989
Thank you very much, Governor Campbell. Lt. Governor
Theodore, Speaker Sheehan. Members of Congress, ladies and
gentlemen, thank you all. It is a great honor to be addressing
this joint session of the General Assembly. This is a chamber
rich in history and tradition, and I am grateful for the
privilege of joining you in this hall today.
One very concrete way I plan to express my appreciation is
by not talking too long. If I exceed my limit and we start to
press up against lunchtime, I expect that the spirit of the late
Speaker Blott will rise up, and this chamber will echo with the
words: "it's cornbread and buttermilk time."
Now, I speak to you today with great respect and in
accordance with the plan our Founding Fathers designed two
centuries ago: as a President of the United States addressing
the freely-elected Government of a Sovereign State. And I speak
to you in the spirit of bi-partisanship: I realize that some of
you favor the Tigers and others favor the Gamecocks, but as
AND A Few the Citadel Buildogs
President of all the people I must remain neutral. And this
morning, in that same spirit of neutrality, Lee Atwater, as far
as I'm concerned, will be thought of simply as one native son of
South Carolina who happens to be a famous rhythm and blues
guitarist.
But a few minutes ago, I did not have to be neutral -- and I
don't have to be neutral now in recognizing and congratulating
- 2 -
the N.A.I.A. national football champions: the Furman Paladines.
We are all proud of that team.
A President cannot stand here without noting that the Great
State of South Carolina has one of the oldest histories in our
Republic, spanning nearly five centuries. In fact, the first
Colonial Governor -- under the Spanish -- was the son of
Christopher Columbus. Personally, I join with the people of this
is to
great State in saying that I much prefer Carroll Campbell.
And with all of South Carolina's great sense of tradition,
this has also in recent years been the site of dynamic economic
rewark
growth that has so greatly improved the lives of the people of
this State. I believe that South Carolina is proof that
traditional American values are not a hindrance to success in a
modern economy, but, in fact, they are essential to it. And I
want to keep the economy expanding so that it reaches every
person in South Carolina and in the Nation.
There are a number of very sound provisions South Carolina
uses in its budget process which I think our Nation as a whole
would benefit from. I think it is long overdue for the Federal
Government to catch up with South Carolina by giving the chief
executive a line-item veto and by adding a balanced budget
amendment to the Constitution of the United States.
These are essential instruments for controlling Government
spending: you have them, you use them, they work, and they help
Hale
protect the pocketbooks of the working people of South Carolina.
(x3/20)
rostofthe
I believe that the/American people deserve the same, and they
- 3 -
KISO
of which
(X4659)
deserve a budget process1that they can be proud, and I will work
for the reforms we need.
I also want to recognize and applaud your Governor's plan
for promoting even greater economic growth by modernizing the tax
code and by cutting the State capital gains tax.
Our experience at the National level is clear: reducing the
Weicher
will Result
capital gains rate has resulted in more tax revenue, not less.
(X5873)
It helps produce the investment that means more jobs for working
people. And it helps our international competitiveness -- some
of our biggest trading partners, such as Japan and West Germany,
have a capital gains rate of zero-point-zero. My proposal is to
cut the rate down to 15 percent for investments held for three
years or more.
ANd border ing broading the tax base
Cutting the top marginal personal income tax rate as we
have
have, has not only restored incentives and brought in more
they have
revenue, it has also shifted the tax burden onto the wealthier
segment of society, with those who are better off paying a much
larger share of total taxes than they did under the high rates of
the past.
As you know, last week I proposed a budget plan for the
Federal Government. You've probably heard widely conflicting
accounts of it. But when it comes to the Washington budget
process, so much of the rhetoric is in the words of a former
member of this chamber, Goat Leamond, "fantastic, fantastic."
Once in the heat of budget politics, Goat Leamond stepped back
from the fray to utter the immortal words: "When in doubt, run
in circles, scream and shout."
- 4 -
But in Washington, with all the shouting that sometimes
occurs, the words don't mean the same things that most people
think they mean. When they talk about budget cuts in Washington,
that usually doesn't mean that spending is going down, which
would seem to be the obvious meaning. No, it usually means that
spending is going up, but by less than had been previously
projected. Some programs have gone up in spending each year, and
will go up again next year, but all that you ever hear is that
they are being cut.
On the revenue side, I have taken a pledge to the American
people, and I am going to keep it: No new taxes. That's what
the people of this State and the American people as a whole voted
for. And the bottom-line in the Federal budget is that it's not
my money, it's not the Congress's money, it's the American
people's money. And the people made their position clear in the
election last November.
One group in Washington, Citizen's for a Sound Economy,
commissioned the Roper Organization to conduct a poll on taxes,
spending, and the budget deficit. Three out of four Americans
surveyed said that the way they want us to reduce the deficit is
by holding down spending. Only 5 percent wanted to do it by
raising taxes.
For those of us who hold elected office, I think it is our
job, when the American people speak so clearly, to read their
lips. That's why my budget is based on a flexible freeze with no
new taxes. This budget recognizes that there are three ways
Government must serve the people: First, by not taking any more
- 5 -
of their hard-earned money than is absolutely necessary.
Secondly, by creating the environment that permits economic
growth, new jobs, and greater opportunity. And finally, by doing
the very best to help people with the money that is spent by
Government, caring for those in need, protecting what we hold in
common, and serving the people with efficiency and compassion.
My budget does more for education, more for the environment,
and more for the Space program. It makes a larger investment in
scientific research, to help keep America competitive into the
next century. It spends more on the Head Start program to help
make America strong into the next generation. And there is
another $1 billion in outlays to fight drugs, because we cannot
let this menace rob our children of their future.
We introduce a new child care initiative, targeted at
OK
low-income families, and designed to give real choice to working
families. We also restore and double the tax deduction for
adopting special needs children. And we commit a billion dollars
Holen
to deal with the problems of the homeless.
(65)
place
oftenins from budget cu
(set words GRADY freen
We
Social Security or support for farmers
And
we keep our defenses strong. After seeing two years of real cuts
in our National defense, this budget enables defense to keep up
with inflation. I believe that defending America is one task
which is an absolute responsibility for the Federal Government.
And when our young men and women make the commitment to join our
armed services, I think they have the right to know that we will
give them the tools to defend themselves and to defend America.
Holen
- 6 -
And my budget helps assure a sound economy by not raising
taxes and by cutting the Federal deficit by $76 billion. That
should
he
will not only meet the Gramm-Rudman-Hollings deficit limit, but
strayer
it does even better than that. This budget will bring the
whicher
deficit as a percentage of G.N.P. to its lowest level in 11
(x5873)
years.
Now already some people have asked me how is it possible to
do all this without raising taxes. The answer is
straightforward, and it needs to be emphasized again and again.
Because of economic growth, tax revenues are going up with
no new taxes. Our projections show that without raising taxes,
the Federal Government will get an additional $80 billion to
spend. The Congressional Budget Office, using their own set of
economic assumptions, predicts -- not my estimate, but theirs --
that Federal tax revenues will increase next year by even more,
by $86 billion. I think our number is closer, but whether you
use the Congress's number or the O.M.B. number, that's enough
money to reduce the deficit down to the levels required by
Gramm-Rudman-Hollings and to spend more money on priority
programs.
But to do this does require that choices be made, which is
what my budget does. And I am prepared to work with the Congress
to keep on making those hard choices. We weren't sent to
Washington to abdicate our responsibility -- either to pass the
cost of indecision onto working Americans by raising their taxes,
or to fail to reduce the deficit, which will cause the cuts to be
done automatically under the law.
- 7 -
That's why we must make choices that keep the economy
growing, preserve our national defense, and allow Government to
adequately and compassionately perform the services which it
should.
One of the great figures in American history, John Calhoun,
once said, "The very essence of a free Government consists in
considering offices as public trusts, bestowed for the good of
the country, and not for the benefit of an individual or a
party." That is also my personal view. And it is in that spirit
that I will seek to work with the United States Congress -- not
as members of competing political parties, but as cooperating
public servants.
You know, I've visited South Carolina enough times to learn
that your State flower is the yellow jessamine [JAZZ-min]. I've
weich
Holen
been told that it was selected not just for it's its fragrance, but (x5813)
because of its resilience. The budget debate is important, but
(U5/18)
equally even important is the knowledge that America is strong and
she is great. That we are thriving as a Nation in the world and
we are providing for our people.
As Americans, we do not seek a world without challenges,
but, rather, a chance to overcome the challenges that are before
us and to leave this Nation that we love a little better for our
having passed this way.
Thank you very much, and God bless you all.
Document No. 006438
WHITE HOUSE STAFFING MEMORANDUM
2/13/89
TODAY
DATE:
ACTION/CONCURRENCE/COMMENT DUE BY:
COB 2/14/89
SUBJECT:
PRESIDENTIAL REAMRKS: SOUTH CAROLINA GENERAL ASSEMBLY
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCCLURE
SUNUNU
NEWMAN
SCOWCROFT
PORTER
DARMAN
STUDDERT
BATES
UNTERMEYER
BREEDEN
Griffith
CARD
Rogers
CICCONI
Winston
DEMAREST
Boskin
FITZWATER
\
GRAY
HAGIN
REMARKS:
Please provide your comments/recommendations directly to
Chriss Winston's office with an info copy to my office by
close of business Tuesday, February 14. Thank you.
TODAY
13
RESPONSE:
James W. Cicconi
Assistant to the President
and Deputy to the Chief of Staff
Ext. 2702
(Klugmann)
February 13, 1989
1:30 p.m.
PRESIDENTIAL REMARKS: SOUTH CAROLINA GENERAL ASSEMBLY
COLUMBIA, SOUTH CAROLINA
FRIDAY, FEBRUARY 17, 1989
Thank you very much, Governor Campbell. Lt. Governor
Theodore, Speaker Sheehan. Members of Congress, ladies and
gentlemen, thank you all. It is a great honor to be addressing
this joint session of the General Assembly. This is a chamber
rich in history and tradition, and I am grateful for the
privilege of joining you in this hall today.
One very concrete way I plan to express my appreciation is
by not talking too long. If I exceed my limit and we start to
press up against lunchtime, I expect that the spirit of the late
Speaker Blott will rise up, and this chamber will echo with the
words: "it's cornbread and buttermilk time."
Now, I speak to you today with great respect and in
accordance with the plan our Founding Fathers designed two
centuries ago: as a President of the United States addressing
the freely-elected Government of a Sovereign State. And I speak
to you in the spirit of bi-partisanship: I realize that some of
you favor the Tigers and others favor the Gamecocks, but as
President of all the people I must remain neutral. And this
morning, in that same spirit of neutrality, Lee Atwater, as far
as I'm concerned, will be thought of simply as one native son of
South Carolina who happens to be a famous rhythm and blues
guitarist.
But
But a few minutes ago, I did not have to be neutral -- and I
don't have to be neutral now in recognizing and congratulating
- 2 -
the N.A.I.A. national football champions: the Furman Paladines.
We are all proud of that team.
A President cannot stand here without noting that the Great
State of South Carolina has one of the oldest histories in our
Republic, spanning nearly five centuries. In fact, the first
Colonial Governor -- under the Spanish -- was the son of
Christopher Columbus. Personally, I join with the people of this
great State in saying that I much prefer Carroll Campbell.
And with all of South Carolina's great sense of tradition,
this has also in recent years been the site of dynamic economic
growth that has so greatly improved the lives of the people of
this State. I believe that South Carolina is proof that
traditional American values are not a hindrance to success in a
modern economy, but, in fact, they are essential to it. And I
want to keep the economy expanding so that it reaches every
person in South Carolina and in the Nation.
There are a number of very sound provisions South Carolina
uses in its budget process which I think our Nation as a whole
would benefit from. I think it is long overdue for the Federal
Government to catch up with South Carolina by giving the chief
executive a line-item veto and by adding a balanced budget
amendment to the Constitution of the United States.
These are essential instruments for controlling Government
spending: you have them, you use them, they work, and they help
protect the pocketbooks of the working people of South Carolina.
I believe that the American people deserve the same, and they
- 3 -
deserve a budget process that they can be proud, and I will work
for the reforms we need.
I also want to recognize and applaud your Governor's plan
for promoting even greater economic growth by modernizing the tax
code and by cutting the State capital gains tax.
Our experience at the National level is clear: reducing the
capital gains rate has resulted in more tax revenue, not less.
Spurs
Imentment
JOSS mean
It helps produce the investment that means, more jobs. for working
opportunity. And opportunity is the foundation of American progress
people. And #t helps our international competitiveness -- some
4 lower rate Malso
Check
of our biggest trading partners, such as Japan and West Germany
have a capital gains rate of zero-point-zero. My proposal is to
cut the rate down to 15 percent for investments held for three
years or more.
Cutting the top marginal personal income tax rate, as we
have, has not only restored incentives and brought in more
revenue, it has also shifted the tax burden onto the wealthier
segment of society, with those who are better off paying a much
larger share of total taxes than they did under the high rates of
the past.
As you know, last week I proposed a budget plan for the
may have heard about it.
Federal Government. You 've probably heard widely conflicting
It's getting some attention. And I'm pleased to say no one has said
accounts of it. TP But when it comes to the Washington budget it's D.O.A.
If anyo
process, so much of the rhetoric is in the words of a former does I'll
interpet
member of this chamber, Goat Leamond, "fantastic, fantastic." that as
Derected
Once in the heat of budget politics, Goat Leamond stepped back
at
opportunt
from the fray to utter the immortal words: "When in doubt, run for
in circles, scream and shout."
american
- 4 -
But in Washington, with all the shouting that sometimes
occurs, the words don't mean the same things that most people
think they mean. When they talk about budget cuts in Washington,
that usually doesn't mean that spending is going down, which
would seem to be the obvious meaning. No, it usually means that
at a S lower pace.
spending is going up, but by less than had been previously
projected. Some programs have gone up in spending each year, and
will go up again next year, but all that you ever hear is that
they are being cut.
On the revenue side, I have taken a pledge to the American
people, and I am going to keep it: No new taxes. That's what
the people of this State and the American people as a whole voted
for. And the bottom-line in the Federal budget is that it's not
my money, it's not the Congress's money, it's the American
people's money. And the people made their position clear in the
election last November.
One group in Washington, Citizen's for a Sound Economy,
commissioned the Roper Organization to conduct a poll on taxes,
spending, and the budget deficit. Three out of four Americans
surveyed said that the way they want us to reduce the deficit is
by holding down spending. Only 5 percent wanted to do it by
raising taxes.
For those of us who hold elected office, I think it is our
job, when the American people speak so clearly, to read their
lips. That's why my budget is based on a flexible freeze with no
new taxes. This budget recognizes that there are three ways
Government must serve the people: First, by not taking any more
- 5 -
of their hard-earned money than is absolutely necessary.
Secondly, by creating the environment that permits economic
growth, new jobs, and greater opportunity. And finally, by doing
the very best to help people with the money that is spent by
Government, caring for those in need, protecting what we hold in
common, and serving the people with efficiency and compassion.
My budget does more for education, more for the environment,
and more for the Space program. It makes a larger investment in
scientific research, to help keep America competitive into the
next century. It spends more on the Head Start program to help
make America strong into the next generation. And there is
another $1 billion in outlays to fight drugs, because we cannot
let this menace rob our children of their future.
We introduce a new child care initiative, targeted at
have proposed
low-income families, and designed to give real choice to working
with
families, We also restore and double the tax deduction for
adopting special needs children. And we commit a billion dollars
to deal with the problems of the homeless.
We do not cut Social Security or support for farmers. And
we keep our defenses strong. After seeing two years of real cuts
in our National defense, this budget enables defense to keep up
with inflation. I believe that defending America is one task
which is an absolute responsibility for the Federal Government.
And when our young men and women make the commitment to join our
armed services, I think they have the right to know that we will
give them the tools to defend themselves and to defend America.
- 6 -
This
And my budget helps assure a sound economy by not raising
?
taxes and by cutting the Federal deficit by $76 billion. That
will not only meet the Gramm-Rudman-Hollings deficit limit, but
it does even better than that. This budget will bring the
deficit as a percentage of G.N.P. to its lowest level in
-
years.
Now already some people have asked me how is it possible to
do all this without raising taxes. The answer is
straightforward, and it needs to be emphasized again and again.
Because of economic growth, tax revenues are going up with
no new taxes. Our projections show that without raising taxes,
the Federal Government will get an additional $80 billion to
spend. The Congressional Budget Office, using their own set of
economic assumptions, predicts -- not my estimate, but theirs --
that Federal tax revenues will increase next year by even more,
by $86 billion. I think our number is closer, but whether you
use the Congress's number or the O.M.B. number, that's enough
money to reduce the deficit down to the levels required by
Gramm-Rudman-Hollings and to spend more money on priority
programs.
But to do this does require that choices be made, which is
this
what my budget does. And I am prepared to work with the Congress
to keep to on making those hard choices. We weren't sent to
sit on our hands
Washington to abdicate our responsibility -- either to pass the
cost of indecision onto working Americans by raising their taxes,
or to fail to reduce the deficit, which will cause the cuts to be
done automatically under the law.
- 7 -
That's why we must make choices that keep the economy
growing, preserve our national defense, and allow Government to
adequately and compassionately perform the services which it
should. If we do - we can get theyout usual. done- - but not with
business as
One of the great figures in American history, John Calhoun,
once said, "The very essence of a free Government consists in
considering offices as public trusts, bestowed for the good of
the country, and not for the benefit of an individual or a
party." That is also my personal view. And it is in that spirit
that I will seek to work with the United States Congress -- not
as members of competing political parties, but as cooperating
public servants.
You know, I've visited South Carolina enough times to learn
that your State flower is the yellow jessamine [JAZZ-min]. I've
been told that it was selected not just for it's fragrance, but
because of its resilience. The budget debate is important, but
even more important is the knowledge that America is strong and
she is great. That we are thriving as a Nation in the world and
we are providing for our people.
As Americans, we do not seek a world without challenges,
but, rather, a chance to overcome the challenges that are before
us and to leave this Nation that we love a little better for our
having passed this way.
Thank you very much, and God bless you all.
Document No.
006438
WHITE HOUSE STAFFING MEMORANDUM
2/13/89
DATE:
ACTION/CONCURRENCE/COMMENT DUE BY:
COB TODAY 2/14/89
SUBJECT:
PRESIDENTIAL REAMRKS: SOUTH CAROLINA GENERAL ASSEMBLY
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCCLURE
SUNUNU
NEWMAN
SCOWCROFT
PORTER
DARMAN
STUDDERT
BATES
UNTERMEYER
BREEDEN
Griffith
CARD
Rogers
CICCONI
Winston
DEMAREST
Boskin
FITZWATER
wray
GRAY
HAGIN
REMARKS:
Please provide your comments/recommendations directly to
Chriss Winston's office with an info copy to my office by
close of business Tuesday, February 14. Thank you.
TODAY
13
RESPONSE:
2/13
Remarks OK an drafted.
DRW
James W. Cicconi
Assistant to the President
and Deputy to the Chief of Staff
Ext. 2702
(Klugmann)
February 13, 1989
1:30 p.m.
PRESIDENTIAL REMARKS: SOUTH CAROLINA GENERAL ASSEMBLY
COLUMBIA SOUTH CAROLINA
FRIDAY, FEBRUARY 17, 1989
Thank you very much, Governor Campbell. Lt. Governor
Theodore, Speaker Sheehan. Members of Congress, ladies and
gentlemen, thank you all. It is a great honor to be addressing
this joint session of the General Assembly. This is a chamber
rich in history and tradition, and I am grateful for the
privilege of joining you in this hall today.
One very concrete way I plan to express my appreciation is
by not talking too long. If I exceed my limit and we start to
press up against lunchtime, I expect that the spirit of the late
Speaker Blott will rise up, and this chamber will echo with the
words: "it's cornbread and buttermilk time." "
Now, I speak to you today with great respect and in
accordance with the plan our Founding Fathers designed two
centuries ago: as a President of the United States addressing
the freely-elected Government of a Sovereign State. And I speak
to you in the spirit of bi-partisanship: I realize that some of
you favor the Tigers and others favor the Gamecocks, but as
President of all the people I must remain neutral. And this
morning, in that same spirit of neutrality, Lee Atwater, as far
as I'm concerned, will be thought of simply as one native son of
South Carolina who happens to be a famous rhythm and blues
guitarist.
But a few minutes ago, I did not have to be neutral -- and I
don't have to be neutral now in recognizing and congratulating
- 2 -
the N.A.I.A. national football champions: the Furman Paladines.
We are all proud of that team.
A President cannot stand here without noting that the Great
State of South Carolina has one of the oldest histories in our
Republic, spanning nearly five centuries. In fact, the first
Colonial Governor -- under the Spanish -- was the son of
Christopher Columbus. Personally, I join with the people of this
great State in saying that I much prefer Carroll Campbell.
And with all of South Carolina's great sense of tradition,
this has also in recent years been the site of dynamic economic
growth that has so greatly improved the lives of the people of
this State. I believe that South Carolina is proof that
traditional American values are not a hindrance to success in a
modern economy, but, in fact, they are essential to it. And I
want to keep the economy expanding so that it reaches every
person in South Carolina and in the Nation.
There are a number of very sound provisions South Carolina
uses in its budget process which I think our Nation as a whole
would benefit from. I think it is long overdue for the Federal
Government to catch up with South Carolina by giving the chief
executive a line-item veto and by adding a balanced budget
amendment to the Constitution of the United States.
These are essential instruments for controlling Government
spending: you have them, you use them, they work, and they help
protect the pocketbooks of the working people of South Carolina.
I believe that the American people deserve the same, and they
- 3 -
deserve a budget process that they can be proud, and I will work
for the reforms we need.
I also want to recognize and applaud your Governor's plan
for promoting even greater economic growth by modernizing the tax
code and by cutting the State capital gains tax.
Our experience at the National level is clear: reducing the
capital gains rate has resulted in more tax revenue, not less.
It helps produce the investment that means more jobs for working
people. And it helps our international competitiveness -- some
of our biggest trading partners, such as Japan and West Germany,
have a capital gains rate of zero-point-zero. My proposal is to
cut the rate down to 15 percent for investments held for three
years or more.
Cutting the top marginal personal income tax rate, as we
have, has not only restored incentives and brought in more
revenue, it has also shifted the tax burden onto the wealthier
segment of society, with those who are better off paying a much
larger share of total taxes than they did under the high rates of
the past.
As you know, last week I proposed a budget plan for the
Federal Government. You've probably heard widely conflicting
accounts of it. But when it comes to the Washington budget
process, so much of the rhetoric is in the words of a former
member of this chamber, Goat Leamond, "fantastic, fantastic."
Once in the heat of budget politics, Goat Leamond stepped back
from the fray to utter the immortal words: "When in doubt, run
in circles, scream and shout."
- 4 -
But in Washington, with all the shouting that sometimes
occurs, the words don't mean the same things that most people
think they mean. When they talk about budget cuts in Washington,
that usually doesn't mean that spending is going down, which
would seem to be the obvious meaning. No, it usually means that
spending is going up, but by less than had been previously
projected. Some programs have gone up in spending each year, and
will go up again next year, but all that you ever hear is that
they are being cut.
On the revenue side, I have taken a pledge to the American
people, and I am going to keep it: No new taxes. That's what
the people of this State and the American people as a whole voted
for. And the bottom-line in the Federal budget is that it's not
my money, it's not the Congress's money, it's the American
people's money. And the people made their position clear in the
election last November.
One group in Washington, Citizen's for a Sound Economy,
commissioned the Roper Organization to conduct a poll on taxes,
spending, and the budget deficit. Three out of four Americans
surveyed said that the way they want us to reduce the deficit is
by holding down spending. Only 5 percent wanted to do it by
raising taxes.
For those of us who hold elected office, I think it is our
job, when the American people speak so clearly, to read their
lips. That's why my budget is based on a flexible freeze with no
new taxes. This budget recognizes that there are three ways
Government must serve the people: First, by not taking any more
- 5 -
of their hard-earned money than is absolutely necessary.
Secondly, by creating the environment that permits economic
growth, new jobs, and greater opportunity. And finally, by doing
the very best to help people with the money that is spent by
Government, caring for those in need, protecting what we hold in
common, and serving the people with efficiency and compassion.
My budget does more for education, more for the environment,
and more for the Space program. It makes a larger investment in
scientific research, to help keep America competitive into the
next century. It spends more on the Head Start program to help
make America strong into the next generation. And there is
another $1 billion in outlays to fight drugs, because we cannot
let this menace rob our children of their future.
We introduce a new child care initiative, targeted at
low-income families, and designed to give real choice to working
families. We also restore and double the tax deduction for
adopting special needs children. And we commit a billion dollars
to deal with the problems of the homeless.
We do not cut Social Security or support for farmers. And
we keep our defenses strong. After seeing two years of real cuts
in our National defense, this budget enables defense to keep up
with inflation. I believe that defending America is one task
which is an absolute responsibility for the Federal Government.
And when our young men and women make the commitment to join our
armed services, I think they have the right to know that we will
give them the tools to defend themselves and to defend America.
- 6 -
And my budget helps assure a sound economy by not raising
taxes and by cutting the Federal deficit by $76 billion. That
will not only meet the Gramm-Rudman-Hollings deficit limit, but
it does even better than that. This budget will bring the
deficit as a percentage of G.N.P. to its lowest level in -
years.
Now already some people have asked me how is it possible to
do all this without raising taxes. The answer is
straightforward, and it needs to be emphasized again and again.
Because of economic growth, tax revenues are going up with
no new taxes. Our projections show that without raising taxes,
the Federal Government will get an additional $80 billion to
spend. The Congressional Budget Office, using their own set of
economic assumptions, predicts -- not my estimate, but theirs --
that Federal tax revenues will increase next year by even more,
by $86 billion. I think our number is closer, but whether you
use the Congress's number or the O.M.B. number, that's enough
money to reduce the deficit down to the levels required by
Gramm-Rudman-Hollings and to spend more money on priority
programs.
But to do this does require that choices be made, which is
what my budget does. And I am prepared to work with the Congress
to keep on making those hard choices. We weren't sent to
Washington to abdicate our responsibility -- either to pass the
cost of indecision onto working Americans by raising their taxes,
or to fail to reduce the deficit, which will cause the cuts to be
done automatically under the law.
- 7 -
That's why we must make choices that keep the economy
growing, preserve our national defense, and allow Government to
adequately and compassionately perform the services which it
should.
One of the great figures in American history, John Calhoun,
once said, "The very essence of a free Government consists in
considering offices as public trusts, bestowed for the good of
the country, and not for the benefit of an individual or a
party." That is also my personal view. And it is in that spirit
that I will seek to work with the United States Congress -- not
as members of competing political parties, but as cooperating
public servants.
You know, I've visited South Carolina enough times to learn
that your State flower is the yellow jessamine [JAZZ-min]. I've
been told that it was selected not just for it's fragrance, but
because of its resilience. The budget debate is important, but
even more important is the knowledge that America is strong and
she is great. That we are thriving as a Nation in the world and
we are providing for our people.
As Americans, we do not seek a world without challenges,
but, rather, a chance to overcome the challenges that are before
us and to leave this Nation that we love a little better for our
having passed this way.
Thank you very much, and God bless you all.
THE WHITE HOUSE
WASHINGTON
February 13, 1989
MEMORANDUM FOR CHRISS WINSTON
DEPUTY ASSISTANT TO THE PRESIDENT
FOR COMMUNICATIONS
FROM:
NELSON LUND np
ASSOCIATE COUNSEL TO THE PRESIDENT
SUBJECT:
Presidential Remarks: South Carolina
General Assembly
Pursuant to a request from James W. Cicconi, Counsel's Office has
reviewed the above-referenced draft remarks. Counsel's Office
has no legal objections.
I note one apparent (though not real) inconsistency. In the first
paragraph on page 2, the draft appears to ridicule the notion
that budget cuts could occur in a program unless spending is
going down. In the last paragraph on page 5, however, the draft
mentions "real cuts" in defense, which seems to imply that there
were nominal spending increases in defense. I flag these
passages only because I can imagine their being used, unfairly,
to accuse the President of self-contradiction.
CC: C. Boyden Gray
Counsel to the President
James W. Cicconi
Assistant to the President and
Deputy to the Chief of Staff
Chriss-
as we discussed
1989 FEB i3 Fil 5: 58
dr.
February 13, 1989
MEMORANDUM FOR JIM CICCONI
FROM;
DENISE SCHWARZ
DA
OFFICE OF CABINET AFFAIRS
SUBJECT;
PRESIDENTIAL REMARKS; SOUTH CAROLINA GENERAL
ASSEMBLY LOG #006438
We have the following comments on the South Carolina speech.
Page 3
The first line should read:
deserve a budget process that they can point to with
pride, and I will work for the reforms we need.
Last paragraph, 4th line:
process, so much of the rhetoric is, in the words of a
former
Page 7
First paragraph, second line, last word.
take out the word to at the end of the line
First paragraph, third line:
insert to before the word perform
Third paragraph seems to be awkward.
February 13, 1989
MEMORANDUM FOR JIM CICCONI
FROM;
DENISE SCHWARZ
DA
OFFICE OF CABINET AFFAIRS
SUBJECT;
PRESIDENTIAL REMARKS; SOUTH CAROLINA GENERAL
ASSEMBLY LOG #006438
We have the following comments on the South Carolina speech.
Page 3
The first line should read:
deserve a budget process that they can point to with
pride, and I will work for the reforms we need.
Last paragraph, 4th line:
process, so much of the rhetoric is, in the words of a
former
Page 7
First paragraph, second line, last word.
take out the word to at the end of the line
First paragraph, third line:
insert to before the word perform
Third paragraph seems to be awkward.
Document No. 006438
WHITE HOUSE STAFFING MEMORANDUM
2/13/89
CR TODAY
DATE:
ACTION/CONCURRENCE/COMMENT DUE BY:
COB 2/14/89
SUBJECT:
PRESIDENTIAL REAMRKS: SOUTH CAROLINA GENERAL ASSEMBLY
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCCLURE
SUNUNU
NEWMAN
SCOWCROFT
PORTER
DARMAN
STUDDERT
BATES
UNTERMEYER
BREEDEN
Griffith
CARD
Rogers
CICCONI
Winston
DEMAREST
Boskin
FITZWATER
GRAY
HAGIN
REMARKS:
Please provide your comments/recommendations directly to
Chriss Winston's office with an info copy to my office by
close of business Tuesday, February 14. Thank you.
RAAY
3
RESPONSE:
James W. Cicconi
Assistant to the President
and Deputy to the Chief of Staff
Ext. 2702
(Klugmann)
February 13, 1989
1:30 p.m.
PRESIDENTIAL REMARKS: SOUTH CAROLINA GENERAL ASSEMBLY
COLUMBIA SOUTH CAROLINA
FRIDAY, FEBRUARY 17, 1989
Thank you very much, Governor Campbell. Lt. Governor
Theodore, Speaker Sheehan. Members of Congress, ladies and
gentlemen, thank you all. It is a great honor to be addressing
this joint session of the General Assembly. This is a chamber
rich in history and tradition, and I am grateful for the
privilege of joining you in this hall today.
One very concrete way I plan to express my appreciation is
by not talking too long. If I exceed my limit and we start to
press up against lunchtime, I expect that the spirit of the late
Speaker Blott will rise up, and this chamber will echo with the
words: "it's cornbread and buttermilk time."
Now, I speak to you today with great respect and in
accordance with the plan our Founding Fathers designed two
centuries ago: as a President of the United States addressing
the freely-elected Government of a Sovereign State. And I speak
to you in the spirit of bi-partisanship: I realize that some of
you favor the Tigers and others favor the Gamecocks, but as
President of all the people I must remain neutral. And this
morning, in that same spirit of neutrality, Lee Atwater, as far
as I'm concerned, will be thought of simply as one native son of
South Carolina who happens to be a famous rhythm and blues
guitarist.
But a few minutes ago, I did not have to be neutral -- and I
don't have to be neutral now in recognizing and congratulating
- 2 -
the N.A.I.A. national football champions: the Furman Paladines.
We are all proud of that team.
A President cannot stand here without noting that the Great
State of South Carolina has one of the oldest histories in our
Republic, spanning nearly five centuries. In fact, the first
Colonial Governor -- under the Spanish -- was the son of
Christopher Columbus. Personally, I join with the people of this
great State in saying that I much prefer Carroll Campbell.
And with all of South Carolina's great sense of tradition,
this has also in recent years been the site of dynamic economic
growth that has so greatly improved the lives of the people of
this State. I believe that South Carolina is proof that
traditional American values are not a hindrance to success in a
modern economy, but, in fact, they are essential to it. And I
want to keep the economy expanding so that it reaches every
person in South Carolina and in the Nation.
There are a number of very sound provisions South Carolina
uses in its budget process which I think our Nation as a whole
would benefit from. I think it is long overdue for the Federal
Government to catch up with South Carolina by giving the chief
executive a line-item veto and by adding a balanced budget
amendment to the Constitution of the United States.
These are essential instruments for controlling Government
spending: you have them, you use them, they work, and they help
protect the pocketbooks of the working people of South Carolina.
I believe that the American people deserve the same, and they
- 3 -
can point towith pride
deserve a budget process that they can be proud, and I will work
for the reforms we need.
I also want to recognize and applaud your Governor's plan
for promoting even greater economic growth by modernizing the tax
code and by cutting the State capital gains tax.
Our experience at the National level is clear: reducing the
capital gains rate has resulted in more tax revenue, not less.
It helps produce the investment that means more jobs for working
people. And it helps our international competitiveness -- some
of our biggest trading partners, such as Japan and West Germany,
have a capital gains rate of zero-point-zero. My proposal is to
cut the rate down to 15 percent for investments held for three
years or more.
Cutting the top marginal personal income tax rate, as we
have, has not only restored incentives and brought in more
revenue, it has also shifted the tax burden onto the wealthier
segment of society, with those who are better off paying a much
larger share of total taxes than they did under the high rates of
the past.
As you know, last week I proposed a budget plan for the
Federal Government. You've probably heard widely conflicting
accounts of it. But when it comes to the Washington budget
process, so much of the rhetoric is, in the words of a former
1
member of this chamber, Goat Leamond, "fantastic, fantastic."
Once in the heat of budget politics, Goat Leamond stepped back
from the fray to utter the immortal words: "When in doubt, run
in circles, scream and shout."
- 4 -
But in Washington, with all the shouting that sometimes
occurs, the words don't mean the same things that most people
think they mean. When they talk about budget cuts in Washington,
that usually doesn't mean that spending is going down, which
would seem to be the obvious meaning. No, it usually means that
spending is going up, but by less than had been previously
projected. Some programs have gone up in spending each year, and
will go up again next year, but all that you ever hear is that
they are being cut.
On the revenue side, I have taken a pledge to the American
people, and I am going to keep it: No new taxes. That's what
the people of this State and the American people as a whole voted
for. And the bottom-line in the Federal budget is that it's not
my money, it's not the Congress's money, it's the American
people's money. And the people made their position clear in the
election last November.
One group in Washington, Citizen's for a Sound Economy,
commissioned the Roper Organization to conduct a poll on taxes,
spending, and the budget deficit. Three out of four Americans
surveyed said that the way they want us to reduce the deficit is
by holding down spending. Only 5 percent wanted to do it by
raising taxes.
For those of us who hold elected office, I think it is our
job, when the American people speak so clearly, to read their
lips. That's why my budget is based on a flexible freeze with no
new taxes. This budget recognizes that there are three ways
Government must serve the people: First, by not taking any more
- 5 -
of their hard-earned money than is absolutely necessary.
Secondly, by creating the environment that permits economic
growth, new jobs, and greater opportunity. And finally, by doing
the very best to help people with the money that is spent by
Government, caring for those in need, protecting what we hold in
common, and serving the people with efficiency and compassion.
My budget does more for education, more for the environment,
and more for the Space program. It makes a larger investment in
scientific research, to help keep America competitive into the
next century. It spends more on the Head Start program to help
make America strong into the next generation. And there is
another $1 billion in outlays to fight drugs, because we cannot
let this menace rob our children of their future.
We introduce a new child care initiative, targeted at
low-income families, and designed to give real choice to working
families. We also restore and double the tax deduction for
adopting special needs children. And we commit a billion dollars
to deal with the problems of the homeless.
We do not cut Social Security or support for farmers. And
we keep our defenses strong. After seeing two years of real cuts
in our National defense, this budget enables defense to keep up
with inflation. I believe that defending America is one task
which is an absolute responsibility for the Federal Government.
And when our young men and women make the commitment to join our
armed services, I think they have the right to know that we will
give them the tools to defend themselves and to defend America.
- 6 -
And my budget helps assure a sound economy by not raising
taxes and by cutting the Federal deficit by $76 billion. That
will not only meet the Gramm-Rudman-Hollings deficit limit, but
it does even better than that. This budget will bring the
deficit as a percentage of G.N.P. to its lowest level in
-
years.
Now already some people have asked me how is it possible to
do all this without raising taxes. The answer is
straightforward, and it needs to be emphasized again and again.
Because of economic growth, tax revenues are going up with
no new taxes. Our projections show that without raising taxes,
the Federal Government will get an additional $80 billion to
spend. The Congressional Budget Office, using their own set of
economic assumptions, predicts -- not my estimate, but theirs --
that Federal tax revenues will increase next year by even more,
by $86 billion. I think our number is closer, but whether you
use the Congress's number or the O.M.B. number, that's enough
money to reduce the deficit down to the levels required by
Gramm-Rudman-Hollings and to spend more money on priority
programs.
But to do this does require that choices be made, which is
what my budget does. And I am prepared to work with the Congress
to keep on making those hard choices. We weren't sent to
Washington to abdicate our responsibility -- either to pass the
cost of indecision onto working Americans by raising their taxes,
or to fail to reduce the deficit, which will cause the cuts to be
done automatically under the law.
- 7 -
That's why we must make choices that keep the economy
growing, preserve our national defense, and allow Government to
to
adequately and compassionately perform the services which it
should.
One of the great figures in American history, John Calhoun,
once said, "The very essence of a free Government consists in
considering offices as public trusts, bestowed for the good of
the country, and not for the benefit of an individual or a
party." That is also my personal view. And it is in that spirit
that I will seek to work with the United States Congress -- not
as members of competing political parties, but as cooperating
public servants.
You know, I've visited South Carolina enough times to learn
Awkward
that your State flower is the yellow jessamine [JAZZ-min]. I've
been told that it was selected not just for it's fragrance, but
because of its resilience. The budget debate is important, but
even more important is the knowledge that America is strong and
she is great. That we are thriving as a Nation in the world and
we are providing for our people.
As Americans, we do not seek a world without challenges,
but, rather, a chance to overcome the challenges that are before
us and to leave this Nation that we love a little better for our
having passed this way.
Thank you very much, and God bless you all.
THE WHITE HOUSE
WASHINGTON
REVISED
February 9, 1989
MEMORANDUM FOR THE CHIEF OF STAFF
JOE HAGIN
BRENT SCOWCROFT
ED ROGERS
DAVID BATES
ROBERT GUTTMAN
RICHARD BREEDEN
SUSAN PORTER ROSE
ANDREW CARD
PATTY PRESOCK
JAMES CICCONI
TIM McBRIDE
DAVID DEMAREST
LAURIE FIRESTONE
MARLIN FITZWATER
TONY LOPEZ
BOYDEN GRAY
DAVID VALDEZ
FRED McCLURE
JEAN LAMB
BONNIE NEWMAN
SPEECHWRITING OFFICE
ROGER PORTER
USSS/PPD
STEVE STUDDERT
WHCA AUDIO/VISUAL
CHASE UNTERMEYER
WHCA OPERATIONS
FROM:
JOHN G. KELLER, JR.
JEK
DEPUTY ASSISTANT TO THE PRESIDENT AND
DIRECTOR OF PRESIDENTIAL ADVANCE
SUBJECT:
TRIP OF THE PRESIDENT TO COLUMBIA, SOUTH CAROLINA,
WEDNESDAY, FEBRUARY 13, 1989
For your use and planning purposes, the attached are the
scenarios and outline schedule for the Trip of the President to
Columbia, South Carolina on Wednesday, February 13, 1989.
State Capitol Scenario
The President arrives State Capitol and proceeds to brief
holding, to await the Joint Escort Committee of the House
and Senate. The President proceeds up one set of stairs
with the Joint Escort Committee to the House Chamber. Upon
arrival at the House Chamber, the President will be led into
the Chamber by the Sergeant at Arms and proceeds to Podium.
The President arrives at the podium and is introduced by TBD
and makes remarks. Upon conclusion of speech, the President
is thanked by TBD and departs the House Chamber en route the
Governor's Office for brief meeting with State Legislative
Leadership. Upon conclusion of meeting, the President will
depart the State Capitol en route Motorcade.
NOTE The Governor's Office has requested two photo
opportunities:
1. A staff photo for 15 staff who volunteered during
the campaign. This could be done on arrival.
2. Furman University has won the National
Championship, Division 2, in football. The
Governor's Office wants a Group Photo and to
allow the team to present the President with
a team jacket and football.
SCHEDULE
WEDNESDAY, FEBRUARY 13, 1989
9:05 am MARINE ONE departs White House en route Andrews Air
Force Base.
9:15 am MARINE ONE arrives Andrews Air Force Base.
9:20 am AIR FORCE ONE departs Andrews Air Force Base en route
Columbia, South Carolina.
Flying Time: 1 Hour 10 Minutes
Time Change: None
Interchange: None
Food Service: TBD
10:30 am AIR FORCE ONE arrives Columbia Metropolitan Airport,
Columbia, South Carolina.
10:35 am MOTORCADE departs Columbia Metropolitan Airport en
route South Carolina State Capitol.
10:50 am MOTORCADE arrives State Capitol.
*Address to South Carolina State Legislature
- OPEN PRESS
*Meeting with Governor, Lt. Governor,
Speaker of the House, President of the Senate,
and Republican Leaders
- PHOTO OPPORTUNITY
12:15 pm MOTORCADE departs State Capitol en route Columbia
Metropolitan Airport.
12:30 pm MOTORCADE arrives Columbia Metropolitan Airport and
proceeds to board AIR FORCE ONE.
12:40 pm AIR FORCE ONE departs Columbia, South Carolina en
route Andrews Air Force Base.
1:45 pm AIR FORCE ONE arrives Andrews Air Force Base and
proceeds to board MARINE ONE.
1:50 pm MARINE ONE departs Andrews Air Force Base en route
White House.
2:00 pm MARINE ONE arrives White House.
THE WHITE HOUSE
WASHINGTON
February 9, 1989
MEMORANDUM FOR THE CHIEF OF STAFF
JOE HAGIN
BRENT SCOWCROFT
ED ROGERS
DAVID BATES
ROBERT GUTTMAN
RICHARD BREEDEN
SUSAN PORTER ROSE
ANDREW CARD
PATTY PRESOCK
JAMES CICCONI
TIM McBRIDE
DAVID DEMAREST
LAURIE FIRESTONE
MARLIN FITZWATER
TONY LOPEZ
BOYDEN GRAY
DAVID VALDEZ
FRED McCLURE
JEAN LAMB
BONNIE NEWMAN
SPEECHWRITING OFFICE
ROGER PORTER
USSS/PPD
STEVE STUDDERT
WHCA AUDIO/VISUAL
CHASE UNTERMEYER
WHCA OPERATIONS
FROM:
JOHN G. KELLER, JR.
JGK
DEPUTY ASSISTANT TO THE PRESIDENT AND
DIRECTOR OF PRESIDENTIAL ADVANCE
SUBJECT:
TRIP OF THE PRESIDENT TO COLUMBIA, SOUTH CAROLINA,
WEDNESDAY, FEBRUARY 13, 1989
For your use and planning purposes, the attached are the
scenarios and outline schedule for the Trip of the President to
Columbia, South Carolina on Wednesday, February 13, 1989.
State Capitol Scenario
NOTE: The Governor's Office has requested two photo
opportunities:
1. A staff photo for 15 staff who volunteered during
the campaign. This could be done on arrival.
2. Furman University has won the National
Championship, Division 2, in football. The
Governor's Office wants a Group Photo and to
allow the team to present the President with
a team jacket and football.
The President arrives State Capitol and proceeds to brief
holding, to await the Joint Escort Committee of the House
and Senate. The President proceeds up one set of stairs
with the Joint Escort Committee to the House Chamber. Upon
arrival at the House Chamber, the President will be led into
the Chamber by the Sergeant at Arms and proceeds to Podium.
The President arrives at the podium and is introduced by TBD
and makes remarks. Upon conclusion of speech, the President
is thanked by TBD and departs the House Chamber en route the
Motorcade.
Midlands Technical College Scenario
The Computer Lab is the most high-tech of all the school's
programs. They are currently training students on a new
program which is a state-of-the-art software program,
called CDC, computer design instruction, which is simply
computer drafting. The President would arrive at the
classroom and be given an overview of this new technology by
Mr. Ron Stockman and then the President would actually sit
at one of the computers and work on a draft of a space
shuttle. Following the Computer Lab Tour, the President
would attend a small (20 people) brown bag luncheon, that
would be set up in the round in a classroom nearby the
Computer Lab. Students who have had success with this
upgrade of skills program would attend as would industry
leaders, who have benefitted from the program, also, a
mother with child who is now employed, and perhaps parents
of students who have succeeded.
SCHEDULE
WEDNESDAY, FEBRUARY 13, 1989
9:05 am MARINE ONE departs White House en route Andrews Air
Force Base.
9:15 am MARINE ONE arrives Andrews Air Force Base.
9:20 am AIR FORCE ONE departs Andrews Air Force Base en route
Columbia, South Carolina.
Flying Time: 1 Hour 10 Minutes
Time Change: None
Interchange: None
Food Service: TBD
10:30 am AIR FORCE ONE arrives Columbia Metropolitan Airport,
Columbia, South Carolina.
10:35 am MOTORCADE departs Columbia Metropolitan Airport en
route South Carolina State Capitol.
10:50 am MOTORCADE arrives State Capitol.
*Address to South Carolina State Legislature
- OPEN PRESS
11:33 am MOTORCADE departs State Capitol en route Midlands
Technical College, Beltline Campus.
11:48 am MOTORCADE arrives Midlands Technical College.
*Computer Demonstration - OPEN PRESS
*Luncheon with Program Participants - OPEN PRESS
12:45 pm MOTORCADE departs Midlands Technical College en route
Columbia Metropolitan Airport.
1:00 pm MOTORCADE arrives Columbia Metropolitan Airport and
proceeds to board AIR FORCE ONE.
1:10 pm AIR FORCE ONE departs Columbia, South Carolina en
route Andrews Air Force Base.
2:05 pm AIR FORCE ONE arrives Andrews Air Force Base and
proceeds to board MARINE ONE.
2:15 pm MARINE ONE departs Andrews Air Force Base en route
White House.
2:25 pm MARINE ONE arrives White House.
good acad. record
math & scunce pcou
good munority sepresent.
high # of students in "volunteer
efferts
speech
lunch w/ student
national service- use as term
any successful life
budget - Maliste
- no new taxes
\
Document No. 006438
0768
WHITE HOUSE STAFFING MEMORANDUM
2/13/89
DATE:
ACTION/CONCURRENCE/COMMENT DUE BY:
COB 2/14/89
TODAY
SUBJECT:
PRESIDENTIAL REAMRKS: SOUTH CAROLINA GENERAL ASSEMBLY
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCCLURE
SUNUNU
NEWMAN
SCOWCROFT
PORTER
DARMAN
STUDDERT
BATES
UNTERMEYER
BREEDEN
Griffith
CARD
Rogers
CICCONI
Winston
DEMAREST
A
Boskin
A
FITZWATER
GRAY
HAGIN
REMARKS:
Please provide your comments/recommendations directly to
Chriss Winston's office with an info copy to my office by
close of business Tuesday, February 14. Thank you.
TODAY
13
RESPONSE: TO: CHRISS WINSTON
February 13, 1989
The NSC staff has no objection to the attached Presidential remarks.
Robert M Perito
88LEB13 63: 48
for G. Philip Hughes
Executive Secretary
James W. Cicconi
Assistant to the President
CC: James Cicconi
and Deputy to the Chief of Staff
Ext. 2702
(Klugmann)
February 13, 1989
1:30 p.m.
PRESIDENTIAL REMARKS: SOUTH CAROLINA GENERAL ASSEMBLY
COLUMBIA SOUTH CAROLINA
FRIDAY, FEBRUARY 17, 1989
Thank you very much, Governor Campbell. Lt. Governor
Theodore, Speaker Sheehan. Members of Congress, ladies and
gentlemen, thank you all. It is a great honor to be addressing
this joint session of the General Assembly. This is a chamber
rich in history and tradition, and I am grateful for the
privilege of joining you in this hall today.
One very concrete way I plan to express my appreciation is
by not talking too long. If I exceed my limit and we start to
press up against lunchtime, I expect that the spirit of the late
Speaker Blott will rise up, and this chamber will echo with the
words: "it's cornbread and buttermilk time."
Now, I speak to you today with great respect and in
accordance with the plan our Founding Fathers designed two
centuries ago: as a President of the United States addressing
the freely-elected Government of a Sovereign State. And I speak
to you in the spirit of bi-partisanship: I realize that some of
you favor the Tigers and others favor the Gamecocks, but as
President of all the people I must remain neutral. And this
morning, in that same spirit of neutrality, Lee Atwater, as far
as I'm concerned, will be thought of simply as one native son of
South Carolina who happens to be a famous rhythm and blues
guitarist.
But a few minutes ago, I did not have to be neutral -- and I
don't have to be neutral now in recognizing and congratulating
- 2 -
the N.A.I.A. national football champions: the Furman Paladines.
We are all proud of that team.
A President cannot stand here without noting that the Great
State of South Carolina has one of the oldest histories in our
Republic, spanning nearly five centuries. In fact, the first
Colonial Governor -- under the Spanish -- was the son of
Christopher Columbus. Personally, I join with the people of this
great State in saying that I much prefer Carroll Campbell.
And with all of South Carolina's great sense of tradition,
this has also in recent years been the site of dynamic economic
growth that has so greatly improved the lives of the people of
this State. I believe that South Carolina is proof that
traditional American values are not a hindrance to success in a
modern economy, but, in fact, they are essential to it. And I
want to keep the economy expanding so that it reaches every
person in South Carolina and in the Nation.
There are a number of very sound provisions South Carolina
uses in its budget process which I think our Nation as a whole
would benefit from. I think it is long overdue for the Federal
Government to catch up with South Carolina by giving the chief
executive a line-item veto and by adding a balanced budget
amendment to the Constitution of the United States.
These are essential instruments for controlling Government
spending: you have them, you use them, they work, and they help
protect the pocketbooks of the working people of South Carolina.
I believe that the American people deserve the same, and they
- 3 -
deserve a budget process that they can be proud, and I will work
for the reforms we need.
I also want to recognize and applaud your Governor's plan
for promoting even greater economic growth by modernizing the tax
code and by cutting the State capital gains tax.
Our experience at the National level is clear: reducing the
capital gains rate has resulted in more tax revenue, not less.
It helps produce the investment that means more jobs for working
people. And it helps our international competitiveness -- some
of our biggest trading partners, such as Japan and West Germany,
have a capital gains rate of zero-point-zero. My proposal is to
cut the rate down to 15 percent for investments held for three
years or more.
Cutting the top marginal personal income tax rate, as we
have, has not only restored incentives and brought in more
revenue, it has also shifted the tax burden onto the wealthier
segment of society, with those who are better off paying a much
larger share of total taxes than they did under the high rates of
the past.
As you know, last week I proposed a budget plan for the
Federal Government. You've probably heard widely conflicting
accounts of it. But when it comes to the Washington budget
process, so much of the rhetoric is in the words of a former
member of this chamber, Goat Leamond, "fantastic, fantastic."
Once in the heat of budget politics, Goat Leamond stepped back
from the fray to utter the immortal words: "When in doubt, run
in circles, scream and shout."
- 4 -
But in Washington, with all the shouting that sometimes
occurs, the words don't mean the same things that most people
think they mean. When they talk about budget cuts in Washington,
that usually doesn't mean that spending is going down, which
would seem to be the obvious meaning. No, it usually means that
spending is going up, but by less than had been previously
projected. Some programs have gone up in spending each year, and
will go up again next year, but all that you ever hear is that
they are being cut.
On the revenue side, I have taken a pledge to the American
people, and I am going to keep it: No new taxes. That's what
the people of this State and the American people as a whole voted
for. And the bottom-line in the Federal budget is that it's not
my money, it's not the Congress's money, it's the American
people's money. And the people made their position clear in the
election last November.
One group in Washington, Citizen's for a Sound Economy,
commissioned the Roper Organization to conduct a poll on taxes,
spending, and the budget deficit. Three out of four Americans
surveyed said that the way they want us to reduce the deficit is
by holding down spending. Only 5 percent wanted to do it by
raising taxes.
For those of us who hold elected office, I think it is our
job, when the American people speak so clearly, to read their
lips. That's why my budget is based on a flexible freeze with no
new taxes. This budget recognizes that there are three ways
Government must serve the people: First, by not taking any more
- 5 -
of their hard-earned money than is absolutely necessary.
Secondly, by creating the environment that permits economic
growth, new jobs, and greater opportunity. And finally, by doing
the very best to help people with the money that is spent by
Government, caring for those in need, protecting what we hold in
common, and serving the people with efficiency and compassion.
My budget does more for education, more for the environment,
and more for the Space program. It makes a larger investment in
scientific research, to help keep America competitive into the
next century. It spends more on the Head Start program to help
make America strong into the next generation. And there is
another $1 billion in outlays to fight drugs, because we cannot
let this menace rob our children of their future.
We introduce a new child care initiative, targeted at
low-income families, and designed to give real choice to working
families. We also restore and double the tax deduction for
adopting special needs children. And we commit a billion dollars
to deal with the problems of the homeless.
We do not cut Social Security or support for farmers. And
we keep our defenses strong. After seeing two years of real cuts
in our National defense, this budget enables defense to keep up
with inflation. I believe that defending America is one task
which is an absolute responsibility for the Federal Government.
And when our young men and women make the commitment to join our
armed services, I think they have the right to know that we will
give them the tools to defend themselves and to defend America.
- 6 -
And my budget helps assure a sound economy by not raising
taxes and by cutting the Federal deficit by $76 billion. That
will not only meet the Gramm-Rudman-Hollings deficit limit, but
it does even better than that. This budget will bring the
deficit as a percentage of G.N.P. to its lowest level in -
years.
Now already some people have asked me how is it possible to
do all this without raising taxes. The answer is
straightforward, and it needs to be emphasized again and again.
Because of economic growth, tax revenues are going up with
no new taxes. Our projections show that without raising taxes,
the Federal Government will get an additional $80 billion to
spend. The Congressional Budget Office, using their own set of
economic assumptions, predicts -- not my estimate, but theirs --
that Federal tax revenues will increase next year by even more,
by $86 billion. I think our number is closer, but whether you
use the Congress's number or the O.M.B. number, that's enough
money to reduce the deficit down to the levels required by
Gramm-Rudman-Hollings and to spend more money on priority
programs.
But to do this does require that choices be made, which is
what my budget does. And I am prepared to work with the Congress
to keep on making those hard choices. We weren't sent to
Washington to abdicate our responsibility -- either to pass the
cost of indecision onto working Americans by raising their taxes,
or to fail to reduce the deficit, which will cause the cuts to be
done automatically under the law.
- 7 -
That's why we must make choices that keep the economy
growing, preserve our national defense, and allow Government to
adequately and compassionately perform the services which it
should.
One of the great figures in American history, John Calhoun,
once said, "The very essence of a free Government consists in
considering offices as public trusts, bestowed for the good of
the country, and not for the benefit of an individual or a
party." That is also my personal view. And it is in that spirit
that I will seek to work with the United States Congress -- not
as members of competing political parties, but as cooperating
public servants.
You know, I've visited South Carolina enough times to learn
that your State flower is the yellow jessamine [JAZZ-min]. I've
been told that it was selected not just for it's fragrance, but
because of its resilience. The budget debate is important, but
even more important is the knowledge that America is strong and
she is great. That we are thriving as a Nation in the world and
we are providing for our people.
As Americans, we do not seek a world without challenges,
but, rather, a chance to overcome the challenges that are before
us and to leave this Nation that we love a little better for our
having passed this way.
Thank you very much, and God bless you all.
Presidential Remarks.
WHITE HOUSE STAFFING REQUEST
SUBJECT: South Carolina General Assombly
RECEIVED/STAFFED (date/time): 2/13/89 3:35 pm
RESPONSE DUE TO DOSG (date/time): 2/13/89 5 p.M. PLEASE
(Even if "no comment", response should be called in to DOSG x3060)
DISTRIBUTION WITHIN OMB
Action FYI
Action FYI
Action FYI
DARMAN
GRADY
UTT
COGAN
HAUN
WEICHER
\
ANDERSON
HOLEN
SCULLY
ARNY
MURR
FILE
DALE
PLAGER
CLAY
\
BURMAN
RAUL
HALE
RISO
COMMENTS:
see comments on p-3 to p.5
p.5 is crucial x) error of fact.
Document No. 006438
WHITE HOUSE STAFFING MEMORANDUM
2/13/89
DATE:
ACTION/CONCURRENCE/COMMENT DUE BY:
COB ROAK
SUBJECT:
PRESIDENTIAL REAMRKS: SOUTH CAROLINA GENERAL ASSEMBLY
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCCLURE
SUNUNU
NEWMAN
SCOWCROFT
PORTER
DARMAI
STUDDERT
BATES
R
UNTERMEYER
BREEDEN
Griffith
CARD
4
Rogers
CICCONI
=
Winston
DEMAREST
Baskin
FITZWATER
X
GRAY
HAGIN
REMARKS:
Please provide your comments/recommendations directly to
Chriss Winston's office with an info copy to my office by
close of business RDAX Tuesday, February 14. Thank you.
B
RESPONSE:
£8:88 gE
James W. Cicconi
Assistant to the President
and Deputy to the Chief of Staff
Ext. 2702
(Klugmann)
February 13, 1989
1:30 p.m.
PRESIDENTIAL REMARKS: SOUTH CAROLINA GENERAL ASSEMBLY
COLUMBIA, SOUTH CAROLINA
FRIDAY, FEBRUARY 17, 1989
Thank you very much, Governor Campbell. Lt. Governor
Theodore, Speaker Sheehan. Members of Congress, ladies and
gentlemen, thank you all. It is a great honor to be addressing
this joint session of the General Assembly. This is a chamber
rich in history and tradition, and I am grateful for the
privilege of joining you in this hall today.
One very concrete way I plan to express my appreciation is
by not talking too long. If I exceed my limit and we start to
press up against lunchtime, I expect that the spirit of the late
Speaker Blott will rise up, and this chamber will echo with the
words: "it's cornbread and buttermilk time.'
Now, I speak to you today with great respect and in
accordance with the plan our Founding Fathers designed two
centuries ago: as a President of the United States addressing
the freely-elected Government of a Sovereign State. And I speak
to you in the spirit of bi-partisanship: I realize that some of
you favor the Tigers and others favor the Gamecocks, but as
President of all the people I must remain neutral. And this
morning, in that same spirit of neutrality, Lee Atwater, as far
as I'm concerned, will be thought of simply as one native son of
South Carolina who happens to be a famous rhythm and blues
guitarist.
But a few minutes ago, I did not have to be neutral -- and I
don't have to be neutral now in recognizing and congratulating
- 2 -
the N.A.I.A. national football champions: the Furman Paladines.
We are all proud of that team.
A President cannot stand here without noting that the Great
State of South Carolina has one of the oldest histories in our
Republic, spanning nearly five centuries. In fact, the first
Colonial Governor -- under the Spanish -- was the son of
Christopher Columbus. Personally, I join with the people of this
great State in saying that I much prefer Carroll Campbell.
And with all of South Carolina's great sense of tradition,
this has also in recent years been the site of dynamic economic
growth that has so greatly improved the lives of the people of
this State. I believe that South Carolina is proof that
traditional American values are not a hindrance to success in a
modern economy, but, in fact, they are essential to it. And I
want to keep the economy expanding so that it reaches every
person in South Carolina and in the Nation.
There are a number of very sound provisions South Carolina
uses in its budget process which I think our Nation as a whole
would benefit from. I think it is long overdue for the Federal
Government to catch up with South Carolina by giving the chief
executive a line-item veto and by adding a balanced budget
amendment to the Constitution of the United States.
These are essential instruments for controlling Government
spending: you have them, you use them, they work, and they help
protect the pocketbooks of the working people of South Carolina.
I believe that the American people deserve the same, and they
- 3 -
deserve a budget process that they can be proud, and I will work
for the reforms we need.
I also want to recognize and applaud your Governor's plan
for promoting even greater economic growth by modernizing the tax
code and by cutting the State capital gains tax.
Our experience at the National level is clear: reducing the
capital gains rate has resulted in more tax revenue, not less.
It helps produce the investment that means more jobs for working
people. And it helps our international competitiveness -- some
check ney it
of our biggest trading partners, such as Japan and West Germany,
have a capital gains rate of zero-point-zero. My proposal is to
long qains they
gains In it tax
cut the rate down to 15 percent for investments held for three
years or more.
Cutting the top marginal personal income tax rate, as we
have, has not only restored incentives and brought in more
revenue, it has also shifted the tax burden onto the wealthier
segment of society, with those who are better off paying a much
larger share of total taxes than they did under the high rates of
the past.
As you know, last week I proposed a budget plan for the
Federal Government. You've probably heard widely conflicting
accounts of it. But when it comes to the Washington budget
process, so much of the rhetoric is in the words of a former
member of this chamber, Goat Leamond, "fantastic, fantastic."
Once in the heat of budget politics, Goat Leamond stepped back
from the fray to utter the immortal words: "When in doubt, run
in circles, scream and shout."
- 4 -
But in Washington, with all the shouting that sometimes
occurs, the words don't mean the same things that most people
think they mean. When they talk about budget cuts in Washington,
that usually doesn't mean that spending is going down, which
would seem to be the obvious meaning. No, it usually means that
spending is going up, but by less than had been previously
projected. Some programs have gone up in spending each year, and
will go up again next year, but all that you ever hear is that
they are being cut.
On the revenue side, I have taken a pledge to the American
people, and I am going to keep it: No new taxes. That's what
the people of this State and the American people as a whole voted
for. And the bottom-line in the Federal budget is that it's not
my money, it's not the Congress's money, it's the American
people's money. And the people made their position clear in the
election last November."
One group in Washington, Citizen's for a Sound Economy,
commissioned the Roper Organization to conduct a poll on taxes,
spending, and the budget deficit. Three out of four Americans
surveyed said that the way they want us to reduce the deficit is
by holding down spending. Only 5 percent wanted to do it by
raising taxes.
For those of us who hold elected office, I think it is our
job, when the American people speak so clearly, to read their
lips. That's why my budget is based on a flexible freeze with no
new taxes. This budget recognizes that there are three ways
Government must serve the people: First, by not taking any more
- 5 -
of their hard-earned money than is absolutely necessary.
Secondly, by creating the environment that permits economic
growth, new jobs, and greater opportunity. And finally, by doing
the very best to help people with the money that is spent by
Government, caring for those in need, protecting what we hold in
common, and serving the people with efficiency and compassion.
My budget does more for education, more for the environment,
and more for the Space program. It makes a larger investment in
scientific research, to help keep America competitive into the
next century. It spends more on the Head Start program to help
make America strong into the next generation. And there is
another $1 billion in outlays to fight drugs, because we cannot
let this menace rob our children of their future.
We introduce a new child care initiative, targeted at
low-income families, and designed to give real choice to working
families. We also restore and double the tax deduction for
adopting special needs children. And we commit a billion dollars
to deal with the problems of the homeless.
We do not cut Social Security, or support for farmers. I And
we keep our defenses strong. After seeing two years of real cuts
in our National defense, this budget enables defense to keep up
with inflation. I believe that defending America is one task
which is an absolute responsibility for the Federal Government.
And when our young men and women make the commitment to join our
armed services, I think they have the right to know that we will
give them the tools to defend themselves and to defend America.
- 6 -
And my budget helps assure a sound economy by not raising
taxes and by cutting the Federal deficit by $76 billion. That
will not only meet the Gramm-Rudman-Hollings deficit limit, but
it does even better than that. This budget will bring the
deficit as a percentage of G.N.P. to its lowest level in
I
years.
Now already some people have asked me how is it possible to
do all this without raising taxes. The answer is
straightforward, and it needs to be emphasized again and again.
Because of economic growth, tax revenues are going up with
no new taxes. Our projections show that without raising taxes,
the Federal Government will get an additional $80 billion to
spend. The Congressional Budget Office, using their own set of
economic assumptions, predicts -- not my estimate, but theirs --
that Federal tax revenues will increase next year by even more,
by $86 billion. I think our number is closer, but whether you
use the Congress's number or the O.M.B. number, that's enough
money to reduce the deficit down to the levels required by
Gramm-Rudman-Hollings and to spend more money on priority
programs.
But to do this does require that choices be made, which is
what my budget does. And I am prepared to work with the Congress
to keep on making those hard choices. We weren't sent to
Washington to abdicate our responsibility -- either to pass the
cost of indecision onto working Americans by raising their taxes,
or to fail to reduce the deficit, which will cause the cuts to be
done automatically under the law.
- 7 -
That's why we must make choices that keep the economy
growing, preserve our national defense, and allow Government to
adequately and compassionately perform the services which it
should.
One of the great figures in American history, John Calhoun,
once said, "The very essence of a free Government consists in
considering offices as public trusts, bestowed for the good of
the country, and not for the benefit of an individual or a
party." That is also my personal view. And it is in that spirit
that I will seek to work with the United States Congress -- not
as members of competing political parties, but as cooperating
public servants.
You know, I've visited South Carolina enough times to learn
that your State flower is the yellow jessamine [JAZZ-min]. I've
been told that it was selected not just for it's fragrance, but
because of its resilience. The budget debate is important, but
even more important is the knowledge that America is strong and
she is great. That we are thriving as a Nation in the world and
we are providing for our people.
As Americans, we do not seek a world without challenges,
but, rather, a chance to overcome the challenges that are before
us and to leave this Nation that we love a little better for our
having passed this way.
Thank you very much, and God bless you all.
THE WHITE HOUSE
Office of the Press Secretary
(Columbia, South Carolina)
For Immediate Release
February 15 , 1989
REMARKS BY THE PRESIDENT
TO THE SOUTH CAROLINA STATE LEGISLATURE
The Capitol
Columbia, South Carolina
11:25 A.M. EST
THE PRESIDENT: Thank you, members of the Legislature for
that really friendly South Carolina welcome. And thank you,
particularly, Governor Campbell, my friend; Lieutenant Governor; Mr.
Speaker; members of the Congress that are with us here today; Senator
Thurmond, Floyd Spence -- and maybe I'm missing some. If so, I
apologize. And ladies and gentlemen, thank all of you.
It's a great honor to be addressing this joint session of
the General Assembly, and I really mean that. This is a chamber rich
in history and tradition and I'm grateful for the privilege of
joining you in the hall today.
There's something wonderful about how the United States
comes together. And driving in on that great, big, long car and
having the school kids and others out there really demonstrating
their respect for the institution of the presidency is something that
was special to me. And I think of it as something that South
Carolinians understand very, very well, indeed. I was just saying
this to the Lieutenant Governor.
One very concrete way that I plan to express my
appreciation is by not going on too long. (Laughter.) If I exceed
my limit and we start to press up against lunchtime, I expect that
the spirit of the late Speaker Blatt will rise up, and in this
chamber will echo with the words: "It's cornbread and buttermilk
time." (Applause.)
Now, I speak to you today with great respect and in
accordance with the plan of our Founding Fathers designed two
centuries ago -- as a President of the United States addressing the
freely-elected government of a sovereign state. And I speak to you
in the spirit of bipartisanship. I've got to; you've got us
outnumbered. (Laughter.) And I realize that some of you people
favor the Tigers and others favor the Gamecocks -- (applause) -- and,
of course, some favor one or another set of Bulldogs -- but as
President, I must remain neutral -- I stand with the people.
(Laughter.) And this morning, in that same spirit of neutrality, Lee
Atwater, as far as I'm concerned, will be thought of simply as one
native son of South Carolina who happens to be a rhythm and blues
guitarist. God save the Republic. (Applause.)
- 2 -
values is not a hindrance to success in a modern economy, but, in
fact, it is essential to it. And I want to keep the economy
expanding so that it reaches every person in South Carolina and in
the nation.
And there are a number of very sound provisions South
Carolina uses in this whole budget process which I think our nation
as a whole would benefit from now. I think it is long overdue for
the federal government to catch up with South Carolina by giving the
chief executive a line-item veto and by adding a balanced budget
amendment to the Constitution of the United States. (Applause.)
These are essential elements disciplining the Executive
Branch as well as the Legislative Branch for controlling government
spending. You have them, you use them, they work, and they help
protect the pocketbooks of the working people, men and women, of
South Carolina. I believe that the rest of the American people
deserve the same at the federal level, and they deserve a budget
process that they can point to with pride. And I will work for the
budget reforms that we need.
Your Governor, Carroll Campbell, has been an innovative
leader who has set an example that is being acknowledgd around the
country. He and you, working together, have made South Carolina a
model of what can be accomplished with sound policies and wise
leadership. I particularly want to recognize and applaud your
Governor's plan for promoting even greater economic growth by
modernizing your tax code and by cutting the state capital gains tax.
Our experience at the national level is clear: reducing
the capital gains rate has resulted in more revenue to the federal
government, not less. And it spurs investment. And investment
means more jobs. And jobs mean more opportunity. And opportunity is
the foundation of American progress. And a lower capital gains rate
helps our international competitiveness -- all of our biggest trading
partners, including Japan and West Germany, tax capital gains
modestly if at all. Even as you're taking up this issue in South
Carolina, my proposal at the federal level is to cut the capital
gains rate down to 15 percent for investments held for three years or
more.
Now, as you know, last week I proposed a budget plan for
the federal government. You may have heard about it. It's getting
some attention. And I'm pleased to say no one has said that it's
D.O.A. If anyone does, I'll interpret that as: "Defining
Opportunity for Americans." (Laughter.) (Applause.)
But when it comes to the Washington budget process, so
much of the rhetoric is, as you know, a bit extravagant. Once in the
heat of budget politics, a former member of this chamber, Goat
Leamond, stepped back from the fray to utter the now immortal words:
"When in doubt, run in circles, scream and shout." Washington, all
over again. (Laughter.)
But in Washington, with all the shouting that sometimes
occurs, the words don't mean the same things that most people think
that they mean. When they talk about budget cuts in Washington, that
usually doesn't mean that spending is going down -- and this is the
- 3 -
the American people's money.
And one group in Washington, Citizens for a Sound
Economy, commissioned the Roper Organization to conduct a poll on
taxes, spending, and the budget deficit. And three out of four
Americans surveyed said that the way they want us to reduce the
deficit is by holding down spending, controlling the growth of
spending. Only five percent in this national survey wanted to do it
by raising taxes.
My budget is based on a flexible freeze with no tax
increases. This budget recognizes that there are three ways
government must serve the people: First, by not taking any more of
their hard-earned money than is absolutely necessary. Secondly, by
creating the environment that permits economic growth, new jobs, and
greater opportunity. And finally, by doing the very best to help
people with the money that is spent by government, caring for those
in need, protecting what we hold in common, and serving the people
with efficiency and, yes, compassion.
Even in times when reducing the deficit means tough
choices, we must still set priorities. And my budget is a realistic
plan that does more for education, more for the environment, and more
for the space program. And it makes a larger investment in
scientific research, to help keep America competitive into the next
century. It spends more on the Head Start program to help make
America strong into the next generation. And there is another $1
billion in outlays to fight drugs because we cannot let this menace
rob our children of their future. (Applause.)
And we propose a new child care initiative, targeted at
low-income families and designed to give real choice to families.
The family unit is vital to the economic fabric of our society. And
government must not discourage parental choice and family
involvement. (Applause.) And in this budget, we also restore and
double the tax deduction for adopting special needs children. And we
commit a billion dollars to deal with the problems of the homeless.
And we don't touch Social Security -- that's off-limits.
And we keep our defenses strong. Defending America is one task which
is an absolute responsibility for the federal government. And this
budget enables our national defense to keep up with inflation. It's
gone down, net terms, for four out of the last four years. When our
young men and women make a commitment to join our armed services,
they have the right to know that we will give them the tools to
defend themselves and to defend America.
This budget helps assure a sound economy not by raising
taxes and by cutting -- but by cutting the federal deficit by more
than $75 billion. That will not only meet the Gramm-Rudman-Hollings
targets, but it does even better than that. This budget will bring
the deficit as a percentage of gross national product to its lowest
level since the 1970's.
Now already some people have asked me how is it possible
to do all this without raising taxes. The answer is straightforward,
and it needs to be emphasized again and again.
- 4 -
But to do this does require that choices be made, which
is what this budget does. And I'm prepared to work with the Congress
to make those hard choices. We weren't sent to Washington -- any of
us up there -- to sit on our hands -- either to pass the cost of
indecision on to working Americans by raising their taxes, or to fail
to reduce the deficit, which will cause the cuts to be done
automatically under the law.
And that's why we must make choices that keep the economy
growing, preserve our national defense, and allow government
adequately and compassionately to perform the services which it
should do. And if we do, we can get the job done -- but not with
business as usual.
One of the great United States Senators, John C. Calhoun,
once said, "The very essence of a free government consists in
considering offices as public trusts, bestowed for the good of the
country, and not for the benefit of an individual or a party. And
it's in that spirit that I will seek to work with the United States
Congress -- not as members of competing political parties, but as
cooperating public servants.
And the members of this legislature -- all of you -- have
a vital role to play. You're closer to the people -- you really are
-- than those of us in Washington. You not only serve your
constituents -- you're their neighbors. And you speak with the
authority of people who know that government first-hand. And as we
form the federal budget and reduce this deficit, I want your voices
to be heard. We need your leadership. And working together we can
make a great difference for all America.
You know, I've visited South Carolina enough times to
learn that the state flower is the yellow jasmine. And I've been
told that it was selected not just for its fragrance, but for its
resiliance. And the budget debate is important, but even more
important is the knowledge that America is strong and she is great,
and yes, she is resiliant. And we're thriving as a nation, thriving
in the world -- we're the envy of the world. And we're providing for
our people -- got to do better.
As Americans, we don't seek a world without challenges,
but, rather, a chance to overcome the challenges that are before us
and to leave this nation that we love a little better for our having
passed this way. I'm glad that you and I are passing this way
together.
Thank you members of this assembly, and God bless each
and every one of you. And God bless the United States of America.
Thank you. (Applause.)
END
11:45 A.M. EST
Document No. 006438
WHITE HOUSE STAFFING MEMORANDUM
2/13/89
TODAY
DATE:
ACTION/CONCURRENCE/COMMENT DUE BY:
COB 2/14/89
SUBJECT:
PRESIDENTIAL REAMRKS: SOUTH CAROLINA GENERAL ASSEMBLY
ACTION FYI
ACTION FYI
VICE PRESIDENT
MCCLURE
SUNUNU
NEWMAN
SCOWCROFT
PORTER
DARMAN
STUDDERT
BATES
UNTERMEYER
BREEDEN
Griffith
CARD
Rogers
CICCONI
Winston
DEMAREST
Boskin
FITZWATER
GRAY
HAGIN
REMARKS:
Please provide your comments/recommendations directly to
Chriss Winston's office with an info copy to my office by
close of business Tuesday, February 14. Thank you.
DAY
@
RESPONSE:
See commet -
general observation it needs a "call toaction"
paragraph where he motivates state legislators support
James W. Cicconi
of his proposals, and is the
Assistant to the President
and Deputy to the Chief of Staff
Catalyst to get them Couress vocal wife
Ext. 2702
mall
(Klugmann)
February 13, 1989
1:30 p.m.
PRESIDENTIAL REMARKS: SOUTH CAROLINA GENERAL ASSEMBLY
COLUMBIA SOUTH CAROLINA
FRIDAY, FEBRUARY 17, 1989
Thank you very much, Governor Campbell. Lt. Governor
Theodore, Speaker Sheehan. Members of Congress, ladies and
gentlemen, thank you all. It is a great honor to be addressing
this joint session of the General Assembly. This is a chamber
rich in history and tradition, and I am grateful for the
privilege of joining you in this hall today.
One very concrete way I plan to express my appreciation is
by not talking too long. If I exceed my limit and we start to
press up against lunchtime, I expect that the spirit of the late
Speaker Blott will rise up, and this chamber will echo with the
words: "it's cornbread and buttermilk time."
Now, I speak to you today with great respect and in
accordance with the plan our Founding Fathers designed two
centuries ago: as a President of the United States addressing
the freely-elected Government of a Sovereign State. And I speak
to you in the spirit of bi-partisanship: I realize that some of
you favor the Tigers and others favor the Gamecocks, but as
President of all the people I must remain neutral. And this
morning, in that same spirit of neutrality, Lee Atwater, as far
as I'm concerned, will be thought of simply as one native son of
South Carolina who happens to be a famous rhythm and blues
guitarist.
But a few minutes ago, I did not have to be neutral -- and I
don't have to be neutral now in recognizing and congratulating
- 2 -
the N.A.I.A. national football champions: the Furman Paladines.
We are all proud of that team.
A President cannot stand here without noting that the Great
State of South Carolina has one of the oldest histories in our
Republic, spanning nearly five centuries. In fact, the first
Colonial Governor -- under the Spanish -- was the son of
Christopher Columbus. Personally, I join with the people of this
great State in saying that I much prefer Carroll Campbell.
And with all of South Carolina's great sense of tradition,
this has also in recent years been the site of dynamic economic
growth that has so greatly improved the lives of the people of
this State. I believe that South Carolina is proof that
traditional American values are not a hindrance to success in a
modern economy, but, in fact, they are essential to it. And I
want to keep the economy expanding so that it reaches every
person in South Carolina and in the Nation.
There are a number of very sound provisions South Carolina
uses in its budget process which I think our Nation as a whole
would benefit from. I think it is long overdue for the Federal
Government to catch up with South Carolina by giving the chief
executive a line-item veto and by adding a balanced budget
amendment to the Constitution of the United States.
These are essential instruments for controlling Government
spending: you have them, you use them, they work, and they help
protect the pocketbooks of the working people of South Carolina.
I believe that the American people deserve the same, and they
- 3 -
deserve a budget process that they can be proud, and I will work
for the reforms we need.
I also want to recognize and applaud your Governor's plan
for promoting even greater economic growth by modernizing the tax
code and by cutting the State capital gains tax.
Our experience at the National level is clear: reducing the
capital gains rate has resulted in more tax revenue, not less.
It helps produce the investment that means more jobs for working
people. And it helps our international competitiveness -- some
of our biggest trading partners, such as Japan and West Germany,
have a capital gains rate of zero-point-zero. My proposal is to
cut the rate down to 15 percent for investments held for three
years or more.
Cutting the top marginal personal income tax rate, as we
have, has not only restored incentives and brought in more
revenue, it has also shifted the tax burden onto the wealthier
segment of society, with those who are better off paying a much
larger share of total taxes than they did under the high rates of
the past.
As you know, last week I proposed a budget plan for the
Federal Government. You've probably heard widely conflicting
accounts of it. But when it comes to the Washington budget
process, so much of the rhetoric is in the words of a former
member of this chamber, Goat Leamond, "fantastic, fantastic."
Once in the heat of budget politics, Goat Leamond stepped back
from the fray to utter the immortal words: "When in doubt, run
in circles, scream and shout."
- 4 -
But in Washington, with all the shouting that sometimes
occurs, the words don't mean the same things that most people
think they mean. When they talk about budget cuts in Washington,
that usually doesn't mean that spending is going down, which
would seem to be the obvious meaning. No, it usually means that
spending is going up, but by less than had been previously
projected. Some programs have gone up in spending each year, and
will go up again next year, but all that you ever hear is that
they are being cut.
On the revenue side, I have taken a pledge to the American
people, and I am going to keep it: No new taxes. That's what
the people of this State and the American people as a whole voted
for. And the bottom-line in the Federal budget is that it's not
my money, it's not the Congress's money, it's the American
people's money. And the people made their position clear in the
election last November.
One group in Washington, Citizen's for a Sound Economy,
commissioned the Roper Organization to conduct a poll on taxes,
spending, and the budget deficit. Three out of four Americans
surveyed said that the way they want us to reduce the deficit is
by holding down spending. Only 5 percent wanted to do it by
raising taxes.
For those of us who hold elected office, I think it is our
job, when the American people speak so clearly, to read their
lips. That's why my budget is based on a flexible freeze with no
new taxes. This budget recognizes that there are three ways
Government must serve the people: First, by not taking any more
- 5 -
of their hard-earned money than is absolutely necessary.
Secondly, by creating the environment that permits economic
growth, new jobs, and greater opportunity. And finally, by doing
the very best to help people with the money that is spent by
Government, caring for those in need, protecting what we hold in
common, and serving the people with efficiency and compassion.
My budget does more for education, more for the environment,
and more for the Space program. It makes a larger investment in
scientific research, to help keep America competitive into the
next century. It spends more on the Head Start program to help
make America strong into the next generation. And there is
another $1 billion in outlays to fight drugs, because we cannot
let this menace rob our children of their future.
We introduce a new child care initiative, targeted at
low-income families, and designed to give real choice to working
families. We also restore and double the tax deduction for
adopting special needs children. And we commit a billion dollars
to deal with the problems of the homeless.
We do not cut Social Security or support for farmers. And
we keep our defenses strong. After seeing two years of real cuts
in our National defense, this budget enables defense to keep up
with inflation. I believe that defending America is one task
which is an absolute responsibility for the Federal Government.
And when our young men and women make the commitment to join our
armed services, I think they have the right to know that we will
give them the tools to defend themselves and to defend America.
- 6 -
And my budget helps assure a sound economy by not raising
taxes and by cutting the Federal deficit by $76 billion. That
will not only meet the Gramm-Rudman-Hollings deficit limit, but
it does even better than that. This budget will bring the
deficit as a percentage of G.N.P. to its lowest level in
I
years.
Now already some people have asked me how is it possible to
do all this without raising taxes. The answer is
straightforward, and it needs to be emphasized again and again.
Because of economic growth, tax revenues are going up with
no new taxes. Our projections show that without raising taxes,
the Federal Government will get an additional $80 billion to
spend. The Congressional Budget Office, using their own set of
economic assumptions, predicts -- not my estimate, but theirs --
that Federal tax revenues will increase next year by even more,
by $86 billion. I think our number is closer, but whether you
use the Congress's number or the O.M.B. number, that's enough
money to reduce the deficit down to the levels required by
Gramm-Rudman-Hollings and to spend more money on priority
programs.
But to do this does require that choices be made, which is
what my budget does. And I am prepared to work with the Congress
to keep on making those hard choices. We weren't sent to
Washington to abdicate our responsibility -- either to pass the
cost of indecision onto working Americans by raising their taxes,
or to fail to reduce the deficit, which will cause the cuts to be
done automatically under the law.
- 7 -
That's why we must make choices that keep the economy
growing, preserve our national defense, and allow Government to
adequately and compassionately perform the services which it
should.
One of the great figures in American history, John Calhoun,
once said, "The very essence of a free Government consists in
considering offices as public trusts, bestowed for the good of
the country, and not for the benefit of an individual or a
party." That is also my personal view. And it is in that spirit
that I will seek to work with the United States Congress -- not
as members of competing political parties, but as cooperating
public servants.
You know, I've visited South Carolina enough times to learn
that your State flower is the yellow jessamine [JAZZ-min]. I've
been told that it was selected not just for it's fragrance, but
because of its resilience. The budget debate is important, but
even more important is the knowledge that America is strong and
she is great. That we are thriving as a Nation in the world and
we are providing for our people.
As Americans, we do not seek a world without challenges,
but, rather, a chance to overcome the challenges that are before
us and to leave this Nation that we love a little better for our
having passed this way.
Thank you very much, and God bless you all. And God
bless America
THE WHITE HOUSE
Office of the Press Secretary
(Columbia, South Carolina)
For Immediate Release
February 15 , 1989
REMARKS BY THE PRESIDENT
TO THE SOUTH CAROLINA STATE LEGISLATURE
The Capitol
Columbia, South Carolina
11:25 A.M. EST
THE PRESIDENT: Thank you, members of the Legislature for
that really friendly South Carolina welcome. And thank you,
particularly, Governor Campbell, my friend; Lieutenant Governor; Mr.
Speaker; members of the Congress that are with us here today; Senator
Thurmond, Floyd Spence -- and maybe I'm missing some. If so, I
apologize. And ladies and gentlemen, thank all of you.
It's a great honor to be addressing this joint session of
the General Assembly, and I really mean that. This is a chamber rich
in history and tradition and I'm grateful for the privilege of
joining you in the hall today.
There's something wonderful about how the United States
comes together. And driving in on that great, big, long car and
having the school kids and others out there really demonstrating
their respect for the institution of the presidency is something that
was special to me. And I think of it as something that South
Carolinians understand very, very well, indeed. I was just saying
this to the Lieutenant Governor.
One very concrete way that I plan to express my
appreciation is by not going on too long. (Laughter.) If I exceed
my limit and we start to press up against lunchtime, I expect that
the spirit of the late Speaker Blatt will rise up, and in this
chamber will echo with the words: "It's cornbread and buttermilk
time." (Applause.)
Now, I speak to you today with great respect and in
accordance with the plan of our Founding Fathers designed two
centuries ago -- as a President of the United States addressing the
freely-elected government of a sovereign state. And I speak to you
in the spirit of bipartisanship. I've got to; you've got us
outnumbered. (Laughter.) And I realize that some of you people
favor the Tigers and others favor the Gamecocks -- (applause) -- and,
of course, some favor one or another set of Bulldogs -- but as
President, I must remain neutral -- I stand with the people.
(Laughter.) And this morning, in that same spirit of neutrality, Lee
Atwater, as far as I'm concerned, will be thought of simply as one
native son of South Carolina who happens to be a rhythm and blues
guitarist. God save the Republic. (Applause.)
- 2 -
values is not a hindrance to success in a modern economy, but, in
fact, it is essential to it. And I want to keep the economy
expanding so that it reaches every person in South Carolina and in
the nation.
And there are a number of very sound provisions South
Carolina uses in this whole budget process which I think our nation
as a whole would benefit from now. I think it is long overdue for
the federal government to catch up with South Carolina by giving the
chief executive a line-item veto and by adding a balanced budget
amendment to the Constitution of the United States. (Applause.)
These are essential elements disciplining the Executive
Branch as well as the Legislative Branch for controlling government
spending. You have them, you use them, they work, and they help
protect the pocketbooks of the working people, men and women, of
South Carolina. I believe that the rest of the American people
deserve the same at the federal level, and they deserve a budget
process that they can point to with pride. And I will work for the
budget reforms that we need.
Your Governor, Carroll Campbell, has been an innovative
leader who has set an example that is being acknowledgd around the
country. He and you, working together, have made South Carolina a
model of what can be accomplished with sound policies and wise
leadership. I particularly want to recognize and applaud your
Governor's plan for promoting even greater economic growth by
modernizing your tax code and by cutting the state capital gains tax.
Our experience at the national level is clear: reducing
the capital gains rate has resulted in more revenue to the federal
government, not less.
And it spurs investment. And investment
means more jobs. And jobs mean more opportunity. And opportunity is
the foundation of American progress. And a lower capital gains rate
helps our international competitiveness -- all of our biggest trading
partners, including Japan and West Germany, tax capital gains
modestly if at all. Even as you're taking up this issue in South
Carolina, my proposal at the federal level is to cut the capital
gains rate down to 15 percent for investments held for three years or
more.
Now, as you know, last week I proposed a budget plan for
the
federal
government.
You may have heard about it. It's getting
some attention. And I'm pleased to say no one has said that it's
D.O.A. If anyone does, I'll interpret that as: "Defining
Opportunity for Americans." (Laughter.) (Applause.)
But when it comes to the Washington budget process, so
much of the rhetoric is, as you know, a bit extravagant. Once in the
heat of budget politics, a former member of this chamber, Goat
Leamond, stepped back from the fray to utter the now immortal words:
"When in doubt, run in circles, scream and shout." Washington, all
over again. (Laughter.)
But in Washington, with all the shouting that sometimes
occurs, the words don't mean the same things that most people think
that they mean. When they talk about budget cuts in Washington, that
usually doesn't mean that spending is going down -- and this is the
- 3 -
the American people's money.
And one group in Washington, Citizens for a Sound
Economy, commissioned the Roper Organization to conduct a poll on
taxes, spending, and the budget deficit. And three out of four
Americans surveyed said that the way they want us to reduce the
deficit is by holding down spending, controlling the growth of
spending. Only five percent in this national survey wanted to do it
by raising taxes.
My budget is based on a flexible freeze with no tax
increases. This budget recognizes that there are three ways
government must serve the people: First, by not taking any more of
their hard-earned money than is absolutely necessary. Secondly, by
creating the environment that permits economic growth, new jobs, and
greater opportunity. And finally, by doing the very best to help
people with the money that is spent by government, caring for those
in need, protecting what we hold in common, and serving the people
with efficiency and, yes, compassion.
Even in times when reducing the deficit means tough
choices, we must still set priorities. And my budget is a realistic
plan that does more for education, more for the environment, and more
for the space program. And it makes a larger investment in
scientific research, to help keep America competitive into the next
century. It spends more on the Head Start program to help make
America strong into the next generation. And there is another $1
billion in outlays to fight drugs because we cannot let this menace
rob our children of their future. (Applause.)
And we propose a new child care initiative, targeted at
low-income families and designed to give real choice to families.
The family unit is vital to the economic fabric of our society. And
government must not discourage parental choice and family
involvement. (Applause.) And in this budget, we also restore and
double the tax deduction for adopting special needs children. And we
commit a billion dollars to deal with the problems of the homeless.
And we don't touch Social Security -- that's off-limits.
And we keep our defenses strong. Defending America is one task which
is an absolute responsibility for the federal government. And this
budget enables our national defense to keep up with inflation. It's
gone down, net terms, for four out of the last four years. When our
young men and women make a commitment to join our armed services,
they have the right to know that we will give them the tools to
defend themselves and to defend America.
This budget helps assure a sound economy not by raising
taxes and by cutting -- but by cutting the federal deficit by more
than $75 billion. That will not only meet the Gramm-Rudman-Hollings
targets, but it does even better than that. This budget will bring
the deficit as a percentage of gross national product to its lowest
level since the 1970's.
Now already some people have asked me how is it possible
to do all this without raising taxes. The answer is straightforward,
and it needs to be emphasized again and again.
- 4 -
But to do this does require that choices be made, which
is what this budget does. And I'm prepared to work with the Congress
to make those hard choices. We weren't sent to Washington -- any of
us up there -- to sit on our hands -- either to pass the cost of
indecision on to working Americans by raising their taxes, or to fail
to reduce the deficit, which will cause the cuts to be done
automatically under the law.
And that's why we must make choices that keep the economy
growing, preserve our national defense, and allow government
adequately and compassionately to perform the services which it
should do. And if we do, we can get the job done -- but not with
business as usual.
One of the great United States Senators, John C. Calhoun,
once said, "The very essence of a free government consists in
considering offices as public trusts, bestowed for the good of the
country, and not for the benefit of an individual or a party." And
it's in that spirit that I will seek to work with the United States
Congress -- not as members of competing political parties, but as
cooperating public servants.
And the members of this legislature -- all of you -- have
a vital role to play. You're closer to the people -- you really are
-- than those of us in Washington. You not only serve your
constituents -- you're their neighbors. And you speak with the
authority of people who know that government first-hand. And as we
form the federal budget and reduce this deficit, I want your voices
to be heard. We need your leadership. And working together we can
make a great difference for all America.
You know, I've visited South Carolina enough times to
learn that the state flower is the yellow jasmine. And I've been
told that it was selected not just for its fragrance, but for its
resiliance. And the budget debate is important, but even more
important is the knowledge that America is strong and she is great,
and yes, she is resiliant. And we're thriving as a nation, thriving
in the world -- we're the envy of the world. And we're providing for
our people -- got to do better.
As Americans, we don't seek a world without challenges,
but, rather, a chance to overcome the challenges that are before us
and to leave this nation that we love a little better for our having
passed this way. I'm glad that you and I are passing this way
together.
Thank you members of this assembly, and God bless each
and every one of you. And God bless the United States of America.
Thank you. (Applause.)
END
11:45 A.M. EST
Class
THE WHITE HOUSE
Office of the Press Secretary
EMBARGOED FOR RELEASE UNTIL
11:20 A.M. EST
WEDNESDAY, FEBRUARY 15, 1989
TEXT OF REMARKS BY THE PRESIDENT
TO THE SOUTH CAROLINA STATE LEGISLATURE
House Chamber
State Capitol
Columbia, South Carolina
February 15, 1989
It is a great honor to be addressing this joint session of the
General Assembly. This is a chamber rich in history and
tradition, and I am grateful for the privilege of joining you in
this hall today.
I speak to you today with great respect and in accordance with
the plan our Founding Fathers designed two centuries ago: as a
President of the United States addressing the freely-elected
Government of a Sovereign State.
A President cannot stand here without noting that the Great State
of South Carolina has one of the oldest histories in our
Republic, spanning nearly five centuries.
But with all of South Carolina's great sense of tradition, this
has also in recent years been the site of dynamic economic growth
that has so greatly improved the lives of the people of this
State. I believe that South Carolina is proof that an abiding
respect for traditional American values is not a hindrance to
success in a modern economy, but, in fact, it is essential to it.
And I want to keep the economy expanding so that it reaches every
person in South Carolina and in the Nation.
There are a number of very sound provisions South Carolina uses
in its budget process which I think our Nation as a whole would
benefit from. I think it is long overdue for the Federal
Government to catch up with South Carolina by giving the chief
executive a line-item veto and by adding a balanced budget
amendment to the Constitution of the United States.
These are essential instruments for controlling Government
spending: you have them, you use them, they work, and they help
protect the pocketbooks of the working people of South Carolina.
I believe that the rest of the American people deserve the same
at the Federal level, and they deserve a budget process that they
can point to with pride. And I will work for the budget reforms
- 2 -
progress. And a lower capital gains rate helps our international
competitiveness -- all of our biggest trading partners, including
Japan and West Germany, tax long-term capital gains modestly if
at all. Even as you are taking up this issue in South Carolina,
my proposal at the Federal level is to cut the capital gains rate
down to 15 percent for investments held for three years or more.
Now, as you know, last week I proposed a budget plan for the
Federal Government. You may have heard about it. It's getting
some attention. And I'm pleased to say no one has said it's
D.O.A. If anyone does, I'll interpret that as: "Defining
Opportunity for Americans."
But when it comes to the Washington budget process, so much of
the rhetoric is, as you know, a bit extravagant. Once in the
heat of budget politics, a former member of this chamber,
Goat Leamond, stepped back from the fray to utter the immortal
words: "When in doubt, run in circles, scream and shout."
But in Washington, with all the shouting that sometimes occurs,
the words don't mean the same things that most people think they
mean. When they talk about budget cuts in Washington, that
usually doesn't mean that spending is going down, which would
seem to be the obvious meaning. No, it usually means that
spending is going up, but at a slower pace.
Senator Rudman said this: Washington is the only town where a
man making $20,000 can ask his boss for a $10,000 raise; and,
then, when the boss gives him instead a $5,000 raise, the story
comes out: "Man's salary cut by $5,000."
On the revenue side, I have taken a pledge to the American
people, and I am going to keep it: No new taxes. That's what
the people of this State and the American people as a whole voted
for. And the bottom-line in the Federal budget is that it's not
my money, it's not the Congress's money, it's the American
people's money.
One group in Washington, Citizens for a Sound Economy,
commissioned the Roper Organization to conduct a poll on taxes,
spending, and the budget deficit. Three out of four Americans
surveyed said that the way they want us to reduce the deficit is
by holding down spending. Only five percent wanted to do it by
raising taxes.
My budget is based on a flexible freeze with no new taxes. This
budget recognizes that there are three ways Government must serve
the people: First, by not taking any more of their hard-earned
money than is absolutely necessary. Secondly, by creating the
environment that permits economic growth, new jobs, and greater
opportunity. And finally, by doing the very best to help people
with the money that is spent by Government, caring for those in
need, protecting what we hold in common, and serving the people
with efficiency and compassion.
Even in times when reducing the deficit means tough choices, we
is
a
realistic
plan
- 3 -
family unit is vital to the very fabric of our society.
Government must not discourage parental choice and family
involvement.
In this budget, we also restore and double the tax deduction for
adopting special needs children. And we commit a billion dollars
to deal with the problems of the homeless.
We do not touch Social Security -- that's off-limits. And we
keep our defenses strong. Defending America is one task which is
an absolute responsibility for the Federal Government. This
budget enables our national defense to keep up with inflation.
When our young men and women make the commitment to join our
armed services, they have the right to know that we will give
them the toóls to defend themselves and to defend America.
This budget helps assure a sound economy by not raising taxes and
by cutting the Federal deficit by more than $75 billion. That
will not only meet the Gramm-Rudman-Hollings deficit limit, but
it does even better than that. This budget will bring the
deficit as a percentage of GNP to its lowest level since the
1970's.
Now already some people have asked me how is it possible to do
all this without raising taxes. The answer is straightforward,
and it needs to be emphasized again and again.
Because of economic growth, tax revenues are going up with no new
taxes. Our projections show that without raising taxes, the
Federal Government will get an additional $80 billion to spend.
The Congressional Budget Office, using their own set of economic
assumptions, predicts -- not my estimate, but theirs -- that
Federal tax revenues will increase next year by even more, by $86
billion. I think our number is closer, but whether you use the
Congress's number or the OMB number, that's enough money to
reduce the deficit down to the levels required by
Gramm-Rudman-Hollings and to spend more money on priority
programs.
But to do this does require that choices be made, which is what
this budget does. And I am prepared to work with the Congress to
make those hard choices. We weren't sent to Washington to sit on
our hands -- either to pass the cost of indecision onto working
Americans by raising their taxes, or to fail to reduce the
deficit, which will cause the cuts to be done automatically under
the law.
That's why we must make choices that keep the economy growing,
preserve our national defense, and allow Government adequately
and compassionately to perform the services which it should. If
we do, we can get the job done -- but not with business as usual.
One of the great United States Senators, John C. Calhoun, once
said, "The very essence of a free Government consists in
considering offices as public trusts, bestowed for the good of
the country, and not for the benefit of an individual or a
- 4 -
You know, I've visited South Carolina enough times to learn that
your State flower is the yellow jessamine. I've been told that
it was selected not just for its fragrance, but because of its
resilience. The budget debate is important, but even more
important is the knowledge that America is strong and she is
great and resilient. We are thriving as a Nation in the world
and we are providing for our people.
As Americans, we do not seek a world without challenges,
but, rather, a chance to overcome the challenges that are before
us and to leave this Nation that we love a little better for our
having passed this way. I am glad that you and I are passing
this way together.
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