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Originally Processed With FOIA(s): FOIA Number: S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Speechwriting, White House Office of Series: Speech File Draft Files Subseries: Chron File, 1989-1993 OA/ID Number: 13500 Folder ID Number: 13500-009 Folder Title: Chamber of Commerce - 1989 Outstanding Citizenship Award 8/30/89 Stack: Row: Section: Shelf: Position: G 25 6 4 6 THE WHITE HOUSE (Kennebunkport, Maine) For Immediate Release August 30, 1989 REMARKS BY THE PRESIDENT TO CHAMBER OF COMMERCE UPON RECEIVING 1989 OUTSTANDING CITIZEN AWARD The Shawmut Inn Kennebunkport, Maine 12:24 P.M. EDT THE PRESIDENT: Well, what a magnificent picture. I'm looking around at this crowd and I see a few faces old enough to remember that boardwalk that went along -- (laughter) -- all the way along Ocean Avenue there. And this is a very special occasion for Barbara and me, and we're delighted to be here and I'm very pleased to be honored by the Chamber. I was afraid you might be feeling I had dishonored the community with some of the excesses that have taken place out here, but I want the record to show that when the bottom fell off of the starboard engine on our boat the other day -- (laughter) -- it was not an encounter with a lobster trap. (Laughter and applause.) The Coast Guard guy went out and took a look at the reef off the point there and started to tell me that he thought maybe accidently I had hit a rock, and I told him, look, rocks do not grow in these waters. I've been here for 65 years running around in a boat. Find some other answer. Even if there is metal on the rock out there, I did not hit that rock. (Laughter and applause.) And as Commander-in-Chief of the Coast Guard, he changed his mind as I was talking to him and -- (laughter) -- we now think it was a submerged board. (Laughter.) Barbara -- this Barbara -- thank you very much, Barbara Aiello, for this honor and for welcoming us to our -- the community that we do love so much. I'm delighted to be back at the Shawmut where many of our press are staying and other friends that are traveling with us, and this hospitality -- a few of them greeting us over here -- the people working at the Shawmut. But it's a wonderfully warm feeling that we get from all of you, our neighbors in Kennebunkport and Kennebunk Beach and, of course, Kennebunk. And it's a special time for me being here. We are doing some work, but I have confessed at the very outset that this is a pure, total vacation. And I'm not going to look busy in order to convince people in America that it's something other than a vacation. (Laughter.) I mean, it's the way it is, and -- (applause) -- there are some hazards out there. Some of you have been on the golf course when I play, and that's -- (laughter) -- and other challenges. One of them now is, we have a fleet of plastic toys that Barbara bought at some -- I hope it was at a sale. There are many cars and little scooters and all out there, and it's a hazard to get out the front door, get into the car or into the boat just to escape all these kids' playthings. But one of the great joys for us has been having our grandchildren here and I expect that those in Kennebunkport will recognize a familiar scene as we prepare this year's Christmas card. I'm not going to comment on the fishing -- a vicious assault on my -- (laughter) -- vicious assault on my ability. I'm going to call the editor of the Portland paper, however, and present this to him: How would he call it? This morning, we got up and MORE - 2 - through what was a rather heavy fog, went down to Whistler off Cape Porpoise, and then down off of Woods Island, and here's my position: I was driving the boat, placing the boat so that Sandy Boardman, who was with me, could catch a bluefish. And she did. And I think they should knock off that advertisement on the front of the Portland paper that shows a bluefish with a big X through it -- (laughter) -- telling me that yet a 13th day I haven't caught one. I'm going to appeal to them on that one. It's been a joy -- a joy to be here. And I -- Barbara put it pretty well -- that this is a place where we really enjoy ourselves, but more than that kind of refurbish our souls and get our batteries all charged up and enjoy life really to the fullest. It's a point of view. You can feel it in the land and in the water here. And I know that people that are members of this Chamber and other visitors that we have here with us understand exactly what I'm talking about. Barbara has told you that I've been coming here every summer since 19 -- well, I was born in '24. And the only one I missed was the summer of 1944 when, like many of you, I was in the service. That's the only time that we missed being here. And there is a certain magic about the place. Our kids live in five different states -- one in Cape Elizabeth, and the others four different states -- and for them, this is an anchor to windward, because not far from where this picture was painted, my mother was born in a house still standing right there not too far from St. Ann's Church. So enough of the reminiscence, but it means renewal to us -- a moment to reflect. And as Barbara said, some of my colleagues in the government have had an opportunity to come here for substantive meetings. Today, I can't wait to show off this heaven to the Prime Minister of Canada, his wife and his four kids who will be visiting us around the corner. And the other day it was the Prime Minister of Denmark and his charming wife. And as some of you all remember last -- in May, I believe it was, we had the President of the French Republic here. And it is more than just inviting them to a lovely place. Because I've found, as I will with Mulroney, that with both the Danish Prime Minister, Mr. Schlueter, and Mr. Mitterrand, you could converse and you could relax and you could really get to know each other in a wonderful setting. And though I don't believe foreign policy is determined on whether a foreign leader likes you or not, I do think it makes a difference if you can develop a good personal relationship. And you, our neighbors, have helped us in that regard as we've had some distinguished foreign visitors here. I appreciate the Outstanding Citizen Award. I don't know what the vote was on this one. (Laughter.) But I want to tell you a true story. This came as a little bit of it -- well, it was good for my ego that tends to mount when you get into this job from time to time. But they decided to name a public school after me -- I think it was a junior high school, or maybe an elementary school -- in Midland, Texas, where we lived for 12 years. And this is God's honest truth -- the vote was either 4-3 or 3-2 in favor of naming the school for me. (Laughter.) So, Barbara, I hope it was a little more one-sided than that in this -- giving me this significant honor. But I really am pleased to accept it. I know that the Chamber of the Kennebunks is made up of a lot of entrepreneurs, and I would be remiss at a meeting like this if I didn't ask you to give me strong support as I go back to Washington to fight for a capital gains tax differential. (Applause.) I believe that small business, providing jobs to those who don't have jobs, small business entrepreneurs really are the backbone of this country in many ways. And I am absolutely convinced that John Kennedy was right years ago -- 25 years ago or more -- when he talked about the need to have a differential in the capital gains and, indeed, to call for a reduction in the capital gains tax because it MORE - 3 - stimulates the economy. It encourages risk-taking. It rewards those who go out and employ others and start new businesses. And I am just convinced that it is good; I am convinced that it will help with our deficit -- not inhibit the efforts I am making to get this budget deficit down in accord with the Gramm-Rudman targets. And so I would ask your strong support to your very able congressional delegation as we now go back to battle for what I think is a good incentive for business people, men and women -- small business entrepreneurs, those who have the courage to go off on their own and start new businesses wherever they may be. And I ask for your help. (Applause.) Incidentally, I do believe we're going to get a good agreement on the budget deficit reduction package. I think it will be accomplished without raising the taxes on the American working man in this country. The question still is -- the problem still is this -- it isn't that the working man is paying too much -- too little in taxes, it is that the government continues to, for a lot of reasons, to spend too much. And I am going to continue to try to hold the line on taxes. And, again, I need your support there. (Applause.) Right here in Kennebunk you've had some --- Kennebunkport -- you've had some examples of people that have been successful. The owner at the White Barn Inn may be with us today. Is Laurie here? Laurie Bongiorno -- over here -- quoting him, perhaps to his embarrassment, but he said, "We have an opportunity to create value in our businesses by taking a longer view. This would be easier without the burdensome weight of the capital gains tax." And I think he's absolutely right. George Bergeron. He runs a landscaping operation with a very unusual name. It is called George's Bush and Tree Service. (Laughter.) I loved it when I saw that. (Laughter.) But let me tell you about this guy. I don't know whether he's here or not. But --- back here? Fantastic. Planning for his retirement, he says, "I left my work to go into business for myself. I took the risks and went the American way for the sake of my retirement. Wouldn't it be ironic," he continues, "if just as I was ready to cash in, the government took such a big piece of the profit from me?" He's absolutely right. The backbone of our recovery -- in October it'll be the longest in the history of the United States -- comes from the small businessman or woman, who then makes it work and goes out and gives jobs to other people. The best answer to poverty in this country is a job, and I want to keep this economic expansion going. (Applause.) I was told to say just a few words, but let me end with just a little reference to the times we're living in regarding our foreign policy and the challenges we face as a country. And you see the kids here and it reminds me that just before I went to Poland -- on a fascinating trip to Eastern Europe, including Hungary and Poland, and then to Paris -- the Polish journalists came into that beautiful, majestic Oval Office, and they asked me, what would you tell a young kid in Poland today? And I had in my mind as he asked me the question the numbers of people in Chicago and in Detroit, and indeed some in Maine, who have come to this country from Poland -- the arms of the Statue of Liberty outstretched -- then in the past as it is, thank God, still today. And I thought about it, and then I thought about the change, the political change that's taking place in Eastern Europe -- change far more dramatic than I could have conceived when I was in the Congress, say, 20 years ago. And I said if I were a kid in Poland, I'd always want to see the United States -- I'm thinking on this -- to see the United States as a beacon. But I told him, if I were a kid in Poland, I'd want to stay there. I'd want to participate in the change because we are living in a fascinating time. And you look at what's happening in the Soviet Union, the MORE - 4 - changes of perestroika -- reform, glasnost -- openness. It's dramatic, it's new, the aspirations for freedom are there. And you see the changes again in Poland where you have a communist government change through free elections to a government that contains people mainly out of the Solidarnosc movement, the labor union movement. So the point I want to make to you is, we're living in exciting times. And I can say with confidence to these kids, if we do our job right, if we handle the relationship with the Soviet Union properly, and if we then are smart enough and intelligent enough to delicately have the role of the United States be one of helpfulness in Eastern Europe, I think we can see a world where the peace is much more enhanced, or the threat of war, nuclear war, conventional war greatly reduced. And it is an exciting time to be growing up in the United States, and it certainly is an exciting time to be the President of the United States of America. I like my job, I'm going to work hard for you, and thank you very, very much for this honor. Thank you so much. (Applause.) END 12:40 P.M. EDT Document No. 066525 WHITE HOUSE STAFFING MEMORANDUM DATE: 08/28/89 ACTION/CONCURRENCE/COMMENT DUE BY: SUBJECT: PRESIDENTIAL REMARKS: KENNEBUNKPORT CHAMBER OF COMMERCE (08/23 draft 8) ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER BREEDEN ROGERS CARD PINKERTON CICCONI \ WINSTON DEMAREST FITZWATER GRAY HAGIN REMARKS: The attached has been forwarded to the President. RESPONSE: James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 THE WHITE HOUSE WASHINGTON 39'AUG.26 39 AUG 28 D5. 25 AUGUST 28, 1989 INFORMATION MEMORANDUM FOR THE PRESIDENT THROUGH: CHRISS WINSTON cw FROM: MARK LANGE mL SUBJECT: REMARKS, KENNEBUNKPORT CHAMBER OF COMMERCE Attached are draft remarks for the Kennebunkport Chamber of Commerce speech on Wednesday, August 30th. The event begins at 2:30 P.M.. Before speaking, you will receive the Chamber's Outstanding Citizen Award. Your remarks should run eight to tèn minutes. (Lange/Wallace) August 23, 1989 draft B [KENNEB.DOC] PRESIDENTIAL REMARKS: CHAMBER OF COMMERCE KENNEBUNKPORT, MAINE WEDNESDAY, AUGUST 30, 1989 2:30 P.M. Thank you, Barbara [Aiello]. It's great to be back in Kennebunkport -- my second home. You might not have known we were here -- except for the fact that the entire lawn on Walker's Point is covered with toys. A lot of those things have wheels. Say whatever you want about my fishing, tennis, or golf: the real challenge I face these days is getting from the door to the driveway. You know, Kennebunkport has always been a great place for me to gain perspective. Just about everything is measured on a different scale here. Even the fish I haven't caught. [[ Which reminds me of an old story about a Maine farmer, and a Texas rancher. They get into a heated conversation -- each one trying to top the other about the size of their farms. Finally, the Texan says, "My ranch is so big, I can get in my truck at sunrise, and by the time I've driven across my ranch, it's just about sunset." The Maine farmer thinks for a minute, nods, and says, "Yeah. I had a truck like that once." ]] Perspective. That's something you true Down Easters are famous for. It's a point of view. You can almost feel it in the land and weather here. 2 I've been coming to Kennebunkport ever since I was a boy. Only missed one summer, in fact -- 1944. And each time I've come, I've felt there's a special magic about this place. To me, coming to Kennebunkport means renewal -- a moment to reflect. Spend time with family. Remember what matters. It also reminds me of the nearly heroic qualities of Down East hospitality. For decade after decade, this town has been invaded by a growing hoard of Bush kids and grandkids. You've been patient. But now I'm bringing all my friends with me Secret Service, staff, press corps beepers going off in restaurants, upsetting everyone's lunch the lobster fishermen having their lines run over those slippers with little rubber figures of Barbara and me on them All this -- and you still decided to give me your Outstanding Citizen Award. I can imagine that was one very close vote. Well, I don't know whether having a President in your backyard is bad for business -- but it looks like Kennebunkport is taking it in stride. In fact, members of this Chamber are doing a lot to balance economic growth while preserving what's special about this place. Through groups like the Kennebunkport Conservation Trust and the Maine Coast Heritage Trust, you're translating short-term traffic and development pressure into new funding to set aside protected properties -- preserved for the public, and posterity. So by working together, over the long run -- long after the 3 tee-shirts and slippers are gone -- I believe Kennebunkport will emerge even stronger than before: a community whose essential qualities remain constant, whose unique character is as true as ever. Businesses like yours are the backbone, the beating heart of communities all across America. And I'm concerned that small business owners should be free to do what they do best. The values we share -- of opportunity, and economic mobility -- they worked for me down in Texas, just as they've worked for millions of Americans. Like you, I've built a business, faced the pressures, met a payroll. I know what it's like to start an operation and keep it strong. It's tough enough as it is. So what you don't need is government that prevents people from investing in your businesses -- or that takes away a third of the business you've spent your life building. But that's what the current taxation of capital gains does. And that's why we're working to cut the capital gains tax rate on long-held assets. For the manager of any business -- large or small -- a lower capital gains tax makes it easier to attract stakeholders. For someone launching a small business, that means more start-up capital. For growing businesses, it means more investment for the long term. And for all Americans, it means more opportunities -- the kind of job creation that only new and expanding businesses can provide. 4 And finally, for anyone whose retirement depends on selling a farm or business -- especially those who don't have a pension to look forward to -- a lower capital gains tax means a more secure future. Just ask Laurie Bongiorno, down at the White Barn Inn. I think he's with us today. He's said "we have an opportunity to create value in our businesses by taking a longer view. This would be easier without the burdensome weight of the capital gains tax. " or George Bergeron. He runs a landscaping operation known informally as "George's Bush and Tree Service." Planning for his retirement, he says, "I left work to go into business for myself. I took the risks and went the American way for the sake of my retirement. Wouldn't it be ironic if, just as I was ready to cash in, the government took such a big piece of the profit from me." And he's right. Already, almost 44 percent of all capital gains go to people with other incomes of less than $50,000. And since a lower capital gains tax encourages people to sell as well as invest, it means more tax dollars. Our proposal will bring nearly $5 billion in new revenues to the Treasury in 1990. We're talking about a tax cut that raises revenue. So a cut in the capital gains tax rate would benefit all Americans. It's a move that should not be compromised by partisanship. And I have enough confidence in this Congress to hope that it won't be. 5 What we've learned, from countries around the world, is that the cruelest societies are those that are static and stagnant. But one sure sign of a nation's kindness is the amount of mobility it allows its people: whether social, or economic. And that's why cutting the capital gains tax rate is so important -- to all of us. If a young person or minority entrepreneur wants to start a business; if an established business wants to expand; if an older business owner, farmer, or widow wants to secure a stable future -- good government should give them the flexibility to do so. And nothing threatens that flexibility more than excessive taxation. You know, that's something John Kennedy understood, when he called for a reduction in capital gains taxation. "Our tax system," he said in 1963, "still siphons out of the private economy too large a share of personal and business purchasing power, and reduces the incentive for risk, investment, and effort." It was true then. And we still have a way to go. But businesses like yours drive the American economy. And they deserve the freedom to reach their fullest potential. So keep growing and keep Kennebunkport the special place it has always been -- to me, and those around me. God bless you. And God bless the great state of Maine. # # # THE WHITE HOUSE WASHINGTON August 26, 1989 To: Mark From: Rett Re: K-Port Here is a quotation from George Bergeron. He was more than happy to do it and I don't think that we will be reading any stories about arm twisting. "I left the work world to go into business for myself. I took the risks and went the American way for the sake of my reti ment. Wouldn't it be ironic if, just as I was ready to cash in, the government took such a big peice of the profit from me." -George Bergeron It is now saturday, approaching noon, and I have still not been able to get Laurie on the telephone. I hope this quote works. Also of seemingly great importance is the statement that treasury receipts will increase $5 B in the first two years and remain that high, after a cut in the capital gains tax. People at both OMB and Treasury have expressed concern over this and seem to beleive that within two years of the cut, receipts will fall to $2 B. I left it as is in the computer, but thought you should be aware of the concerns. (Lange/Wallace) August 23, 1989 4:45 p.m. [KENNEB.DOC] PRESIDENTIAL REMARKS: CHAMBER OF COMMERCE KENNEBUNKPORT, MAINE WEDNESDAY, AUGUST 30, 1989 2:30 P.M. Thank you Barbara [Aielle] (I-Ello) It's great to be back in Kennebunkport -- my, second home. You might not have known we were here -- except for the fact that the entire lawn on Walker's Point is covered with toys. A lot of those things have wheels. Say whatever you want about my fishing, tennis, or golf: the real challenge I face these days is getting from the door to the driveway. You know, Kennebunkport has always been a great place for me to gain perspective. Just about everything is measured on a different scale here. Even the fish I haven't caught. [[ Which reminds me of an old story about a Maine farmer, and a Texas rancher. They get into a heated conversation each one trying to top the other about the size of their farms. Finally, the Texan says, "My ranch is so big, I can get in my truck at sunrise, and by the time I've driven across my ranch, it's just about sunset." The Maine farmer thinks for a minute, nods, and says, "Yeah. I had a truck like that once." ]] Perspective. That's something you true Down Easters are famous for. It's a point of view. You can almost feel it in the land and weather here. 2 I've been coming to Kennebunkport ever since I was a boy. Only missed one summer, in fact -- 1944. And each time I've come, I've felt there's a special magic about this place. To me, coming to Kennebunkport means renewal -- a moment to reflect. Spend time with family. Remember what matters. It also reminds me of the nearly heroic qualities of Down East hospitality. For decade after decade, this town has been invaded by a growing hoard of Bush kids and grandkids. You've been patient. But now I'm bringing all my friends with me Secret Service, staff, press corps beepers going off in restaurants, upsetting everyone's lunch the lobster fishermen having their lines run over those slippers with little rubber figures of Barbara and me on them All this -- and you still decided to give me your Outstanding Citizen Award. I can imagine that was one very close vote. Well, I don't know whether having a President in your backyard is bad for business -- but it looks like Kennebunkport is taking it in stride. In fact, members of this Chamber are doing a lot to balance economic growth while preserving what's special about this place. Through groups like the Kennebunkport Conservation Trust and the Maine Coast Heritage Trust, you're translating short-term traffic and development pressure into new funding to set aside protected properties -- preserved for the public, and posterity. So by working together, over the long run -- long after the 3 tee-shirts and slippers are gone -- I believe Kennebunkport will emerge even stronger than before: a community whose essential qualities remain constant, whose unique character is as true as ever. Businesses like yours are the backbone, the beating heart of communities all across America. And I'm concerned that small business owners should be free to do what they do best. The values we share -- of opportunity, and economic mobility -- they worked for me down in Texas, just as they've worked for millions of Americans. Like you, I've built a business, faced the pressures, met a payroll. I know what it's like to start an operation and keep it strong. It's tough enough as it is. So what you don't need is government that prevents people from investing in your businesses -- or that takes away a third of the business you've spent your life building. But that's what the current taxation of capital gains does. And that's why we're working to cut the capital gains tax rate on long-held assets. For the manager of any business -- large or small -- a lower capital gains tax makes it easier to attract stakeholders. For someone launching a small business, that means more start-up capital. For growing businesses, it means more investment for the long term. And for all Americans, it means more opportunities -- the kind of job creation that only new and expanding businesses can provide. 4 And finally, for anyone whose retirement depends on selling a farm or business -- especially those who don't have a pension to look forward to -- a lower capital gains tax means a more secure future. LAURIE BONGIORNO Just ask Laure Bongeorno, down at the White Barn Inn. I think he's with us today. He's said "we have an opportunity to create value in our businesses by taking a longer view. This would be easier without the burdensome weight of the capital gains tax." Or George Bergeron. He runs a landscaping operation known SERVICE informally as "George's Bush and Tree Company." Planning for his retirement, he says, "For us to sell, and give a large piece to the government, would not be productive in the least." And he's right. other 44% all capital gains go to people incomes Already, almost 70 percent of the people who have capital Tom 566-5394 Newbig of gains earn less than $50,000. And since a lower capital gains tax encourages people to sell as well as invest, it means more tax dollars. Our proposal will bring nearly $5 billion in new revenues to the Treasury in 1990, and at least that much annually in the long run. We're talking about a tax cut that raises revenue. So a cut in the capital gains tax rate would benefit all Americans. It's a move that should not be compromised by partisanship. And I have enough confidence in this Congress to hope that it won't be. 5 What we've learned, from countries around the world, is that the cruelest societies are those that are static and stagnant. But one sure sign of a nation's kindness is the amount of mobility it allows its people: whether social, or economic. And that's why cutting the capital gains tax rate is so important -- to all of us. If a young person or minority entrepreneur wants to start a business; if an established business wants to expand; if an older business owner, farmer, or widow wants to secure a stable future -- good government should give them the flexibility to do SO. And nothing threatens that flexibility more than excessive taxation. You know, that's something John Kennedy understood, when he called for a reduction in capital gains taxation. "Our tax system," he said in 1963, "still siphons out of the private economy too large a share of personal and business purchasing power, and reduces the incentive for risk, investment, and effort." It was true then. And we still have a way to go. But businesses like yours drive the American economy. And they deserve the freedom to reach their fullest potential. So keep growing and keep Kennebunkport the special place it has always been -- to me, and those around me. God bless you. And God bless the great state of Maine. # # # (Lange/Wallace) August 23, 1989 4:45 p.m. [KENNEB.DOC] PRESIDENTIAL REMARKS: CHAMBER OF COMMERCE KENNEBUNKPORT, MAINE WEDNESDAY, AUGUST 30, 1989 2:30 P.M. Thank you, Barbara [Aiello]. It's great to be back in Kennebunkport -- my second home. You might not have known we were here -- except for the fact that the entire lawn on Walker's Point is covered with toys. A lot of those things have wheels. Say whatever you want about my fishing, tennis, or golf: the real challenge I face these days is getting from the door to the driveway. You know, Kennebunkport has always been a great place for me to gain perspective. Just about everything is measured on a different scale here. Even the fish I haven't caught. [[ Which reminds me of an old story about a Maine farmer, and a Texas rancher. They get into a heated conversation -- each one trying to top the other about the size of their farms. Finally, the Texan says, "My ranch is so biq, I can get in my truck at sunrise, and by the time I've driven across my ranch, it's just about sunset." The Maine farmer thinks for a minute, nods, and says, "Yeah. I had a truck like that once." ]] Perspective. That's something you true Down Easters are famous for. It's a point of view. You can almost feel it in the land and weather here. 2 I've been coming to Kennebunkport ever since I was a boy. Only missed one summer, in fact -- 1944. And each time I've come, I've felt there's a special magic about this place. To me, coming to Kennebunkport means renewal -- a moment to reflect. Spend time with family. Remember what matters. It also reminds me of the nearly heroic qualities of Down East hospitality. For decade after decade, this town has been invaded by a growing hoard of Bush kids and grandkids. You've been patient. But now I'm bringing all my friends with me Secret Service, staff, press corps beepers going off in restaurants, upsetting everyone's lunch the lobster fishermen having their lines run over those slippers with little rubber figures of Barbara and me on them All this -- and you still decided to give me your Outstanding Citizen Award. I can imagine that was one very close vote. Well, I don't know whether having a President in your backyard is bad for business -- but it looks like Kennebunkport is taking it in stride. In fact, members of this Chamber are doing a lot to balance economic growth while preserving what's special about this place. Through groups like the Kennebunkport Conservation Trust and the Maine Coast Heritage Trust, you're translating short-term traffic and development pressure into new funding to set aside protected properties -- preserved for the public, and posterity. So by working together, over the long run -- long after the 3 tee-shirts and slippers are gone -- I believe Kennebunkport will emerge even stronger than before: a community whose essential qualities remain constant, whose unique character is as true as ever. Businesses like yours are the backbone, the beating heart of communities all across America. And I'm concerned that small business owners should be free to do what they do best. The values we share -- of opportunity, and economic mobility -- they worked for me down in Texas, just as they've worked for millions of Americans. Like you, I've built a business, faced the pressures, met a payroll. I know what it's like to start an operation and keep it strong. It's tough enough as it is. So what you don't need is government that prevents people from investing in your businesses -- or that takes away a third of the business you've spent your life building. But that's what the current taxation of capital gains does. And that's why we're working to cut the capital gains tax rate on long-held assets. For the manager of any business -- large or small -- a lower capital gains tax makes it easier to attract stakeholders. For someone launching a small business, that means more start-up capital. For growing businesses, it means more investment for the long term. And for all Americans, it means more opportunities -- the kind of job creation that only new and expanding businesses can provide. 4 And finally, for anyone whose retirement depends on selling a farm or business -- especially those who don't have a pension to look forward to -- a lower capital gains tax means a more secure future. Just ask Laurie Bongiorno, down at the White Barn Inn. I think he's with us today. He's said "we have an opportunity to create value in our businesses by taking a longer view. This would be easier without the burdensome weight of the capital gains tax." Or George Bergeron. He runs a landscaping operation known informally as "George's Bush and Tree Service." Planning for his insert retirement, he says, "For us to sell, and give a large piece to the government, would not be productive in the least.' And he's right. Already, almost 44 percent of all capital gains go to people with other incomes of less than $50,000. And since a lower capital gains tax encourages people to sell as well as invest, it means more tax dollars. Our proposal will bring nearly $5 billion in new revenues to the Treasury in 1990, and at least that much annually in the long run. We're talking about a tax cut that raises revenue. So a cut in the capital gains tax rate would benefit all Americans. It's a move that should not be compromised by partisanship. And I have enough confidence in this Congress to hope that it won't be. 5 What we've learned, from countries around the world, is that the cruelest societies are those that are static and stagnant. But one sure sign of a nation's kindness is the amount of mobility it allows its people: whether social, or economic. And that's why cutting the capital gains tax rate is so important -- to all of us. If a young person or minority entrepreneur wants to start a business; if an established business wants to expand; if an older business owner, farmer, or widow wants to secure a stable future -- good government should give them the flexibility to do so. And nothing threatens that flexibility more than excessive taxation. You know, that's something John Kennedy understood, when he called for a reduction in capital gains taxation. "Our tax system," he said in 1963, "still siphons out of the private economy too large a share of personal and business purchasing power, and reduces the incentive for risk, investment, and effort." It was true then. And we still have a way to go. But businesses like yours drive the American economy. And they deserve the freedom to reach their fullest potential. So keep growing and keep Kennebunkport the special place it has always been -- to me, and those around me. God bless you. And God bless the great state of Maine. # # # Document No. 066525 WHITE HOUSE STAFFING MEMORANDUM DATE: 08/23/89 ACTION/CONCURRENCE/COMMENT DUE BY: 4:00 p.m. Thursday 08/24 SUBJECT: PRESIDENTIAL REMARKS: CHAMBER OF COMMERCE, KENNEBUNKPORT, MAINE (08/23 4:45 p.m. draft) ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER de DARMAN STUDDERT BATES > UNTERMEYER ROGERS breeden PINKERTON CARD d CICCONI WINSTON DEMAREST FITZWATER GRAY HAGIN REMARKS: Please provide any comments/recommendations directly to Chriss Winston by 4:00 p.m. on Thursday, 08/24, with a copy to my office. Thanks. none- good speech! RESPONSE: AUG 25 AUG 25 A9: 35 nich Cali OLA James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 Rett, Ran outa disks. File's on my machine -- KENNEB.DOC. Go crazy. The beginnings of a cover memo are also there -- KENNEB.MEM Happy quote farming. I expect I'll be able to hear the arm twisting even up in Philly. Check Darman's comments on p. 4 -- they're using the "almost 70 percent" stat, referring not to the gains but the people who get them. I went with it -- but could you clear it with Desere' at Treasury? And can you get the twain to meet before this goes to POTUS? Thanks, Ace. I'm gonna miss you. Mah P.S. Divid to lace in Pinkertona suggestion about setting up the idea of economic mility up front, but it was really out of place in the froth -- to instead its teed up on P.3, where Mr. Smooth gets serious about Cgs. just in Cape anyone asks. TO: Mark FROM: Rett RE: Kennebunkport As you requested, I talked with the people at Treasury and OMB. It turns out that Treasury is the authority and their numbers are correct. This is reflected in the new draft. I have made a couple of other minor changes, such as the introduction acknowledgement and the spelling of Laurie's name. As far as adapted quotations from Kennebunkport, as of 5:46 p.m., I have been unable to reach either of the sources. I will keep trying until the zero hour arrives, and may come in on Saturday to complete it. The one remaining detail of the speech is the line stating that the President has only missed one summer in Maine. The basis for this line is newspaper accounting and I would like to confirm it, but thus far, I have not succeeded in doing so. Don Rhodes, if you can reach him in Kennebunkport, should be able to answer this for you. Thanks for everything. I have really enjoyed working for you and hope I can do it again sometime. Live Long and Prosper. Document No. 066525 WHITE HOUSE STAFFING MEMORANDUM DATE: 08/23/89 ACTION/CONCURRENCE/COMMENT DUE BY: 4:00 p.m. Thursday 08/24 SUBJECT: PRESIDENTIAL REMARKS: CHAMBER OF COMMERCE, KENNEBUNKPORT, MAINE (08/23 4:45 p.m. draft) ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE N/C SUNUNU NEWMAN SCOWCROFT PORTER N/G Steve 2315 DARMAN waiting for taint on P9 4 STUDDERT BATES UNTERMEYER BREEDEN ROGERS CARD PINKERTON d CICCONI WINSTON DEMAREST FITZWATER GRAY N/C Bunt 2607 HAGIN REMARKS: Please provide any comments/recommendations directly to Chriss Winston by 4:00 p.m. on Thursday, 08/24, with a copy to my office. Thanks. 24 All : 24 RESPONSE: James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 (Lange/Wallace) August 23, 1989 4:45 p.m. 1989 AUG 23 PM 6: [KENNEB.DOC] PRESIDENTIAL REMARKS: CHAMBER OF COMMERCE KENNEBUNKPORT, MAINE WEDNESDAY, AUGUST 30, 1989 2:30 P.M. It's great to be back in Kennebunkport -- my second home. You might not have known we were here -- except for the fact that the entire lawn on Walker's Point is covered with toys. A lot of those things have wheels. Say whatever you want about my fishing, tennis, or golf: the real challenge I face these days is getting from the door to the driveway. You know, Kennebunkport has always been a great place for me to gain perspective. Just about everything is measured on a different scale here. Even the fish I haven't caught. [[ Which reminds me of an old story about a Maine farmer, and a Texas rancher. They get into a heated conversation -- each one trying to top the other about the size of their farms. Finally, the Texan says, "My ranch is so big, I can get in my truck at sunrise, and by the time I've driven across my ranch, it's just about sunset." The Maine farmer thinks for a minute, nods, and says, "Yeah. I had a truck like that once." 1] Perspective. That's something you true Down Easters are famous for. It's a point of view. You can almost feel it in the land and weather here. 2 I've been coming to Kennebunkport ever since I was a boy. Only missed one summer, in fact -- 1944. And each time I've come, I've felt there's a special magic about this place. To me, coming to Kennebunkport means renewal -- a moment to reflect. Spend time with family. Remember what matters. It also reminds me of the nearly heroic qualities of Down East hospitality. For decade after decade, this town has been invaded by a growing hoard of Bush kids and grandkids. You've been patient. But now I'm bringing all my friends with me Secret Service, staff, press corps beepers going off in restaurants, upsetting everyone's lunch the lobster fishermen having their lines run over those slippers with little rubber figures of Barbara and me on them predictions that the town would be overrun, which meant summer business actually went down All this -- and you still decided to give me your Outstanding Citizen Award. I can imagine that was one very close vote. Well, I don't know whether having a President in your backyard is bad for business -- but it looks like Kennebunkport is taking it in stride. In fact, members of this Chamber are doing a lot to balance economic growth while preserving what's special about this place. Through groups like the Kennebunkport Conservation Trust and the Maine Coast Heritage Trust, you're translating short-term traffic and development pressure into new funding to set aside 3 protected properties -- preserved for the public, and posterity. So by working together, over the long run -- long after the tee-shirts and slippers are gone -- I believe Kennebunkport will emerge even stronger than before: a community whose essential qualities remain constant, whose unique character is as true as ever. Businesses like yours are the backbone, the beating heart of communities all across America. And I'm concerned that small business owners are free to do what they do best Like you, I've built a business, faced the pressures, met a payroll. I know what it's like to start an operation and keep it strong. It's tough enough as it is. So what you don't need is government that prevents people from investing in your businesses -- or that takes away a. third of the business you've spent your life building. But that's what the current taxation of capital gains does. And that's why we're working to cut the capital gains tax rate on long-held assets. For the manager of any business -- large or small -- a lower capital gains tax makes it easier to attract stakeholders. For someone launching a small business, that means more start-up capital. For growing businesses, it means more investment for the long term. And for all Americans, it means more opportunities -- the kind of job creation that only new and expanding businesses can provide. 4 And finally, for anyone whose retirement depends on selling a farm or business -- especially those who don't have a pension to look forward to -- a lower capital gains tax means a more secure future. Just ask Laure Bongeorno, down at the White Barn Inn. I think he's with us today. He's said "we have an opportunity to create value in our businesses by taking a longer view. This would be easier without the burdensome weight of the capital gains tax." Or George Bergeron. He runs a landscaping operation known informally as "George's Bush and Tree Company." Planning for his retirement, he says, "For us to sell, and give a large piece to the government, would not be productive in the least." And he's right. Already, almost half of all capital gains go to people with incomes less than $50,000. And since a lower capital gains tax encourages people to sell as well as invest, it means more tax dollars collected from the wealthy than from the poor. Our proposal will bring $xx billion in new revenues to the Treasury -- a tax cut that raises revenue -- far more fairly than a gas or liquor tax. So a cut in the capital gains tax rate would benefit all Americans. It's a move that should not be compromised by partisanship. And I have enough confidence in this Congress to hope that it won't be. 5 What we've learned, from countries around the world, is that the cruelest societies are those that are static and stagnant. But one sure sign of a nation's kindness is the amount of mobility it allows its people: whether social, or economic. And that's why cutting the capital gains tax rate is so important -- to all of us. If a young person wants to start a business; if an established business wants to expand; if an older business owner, farmer, or widow wants to secure a stable future -- = good government should give them the flexibility to do so. And nothing threatens that flexibility more than excessive taxation. You know, that's something John Kennedy understood, when he called for a reduction in capital gains taxation. "Our tax system," he said in 1963, "still siphons out of the private economy too large a share of personal and business purchasing power, and reduces the incentive for risk, investment, and effort." It was true then. And we still have a way to go. But businesses like yours drive the American economy. And they deserve the freedom to reach their fullest potential. So keep growing.. and keep Kennebunkport the special place it has always been -- to me, and those around me. God bless you. And God bless the great state of Maine. # # # Document No. 066525 WHITE HOUSE STAFFING MEMORANDUM DATE: 08/23/89 ACTION/CONCURRENCE/COMMENT DUE BY: 4:00 p.m. Thursday 08/24 SUBJECT: PRESIDENTIAL REMARKS: CHAMBER OF COMMERCE, KENNEBUNKPORT, MAINE (08/23 4:45 p.m. draft) ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER BREEDEN ROGERS CARD PINKERTON CICCONI WINSTON DEMAREST FITZWATER GRAY HAGIN REMARKS: Please provide any comments/recommendations directly to Chriss Winston by 4:00 p.m. on Thursday, 08/24, with a copy to office. Thanks. RESPONSE: AUG 24 my P3:26 26 See comments p.4 James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 (Lange/Wallace) August 23, 1989 4:45 p.m. 1989 AUG 23 711 S [KENNEB.DOC] PRESIDENTIAL REMARKS: CHAMBER OF COMMERCE KENNEBUNKPORT, MAINE WEDNESDAY, AUGUST 30, 1989 2:30 P.M. It's great to be back in Kennebunkport -- my second home. You might not have known we were here -- except for the fact that the entire lawn on Walker's Point is covered with toys. A lot of those things have wheels. Say whatever you want about my fishing, tennis, or golf: the real challenge I face these days is getting from the door to the driveway. You know, Kennebunkport has always been a great place for me to gain perspective. Just about everything is measured on a different scale here. Even the fish I haven't caught. [[ Which reminds me of an old story about a Maine farmer, and a Texas rancher. They get into a heated conversation -- each one trying to top the other about the size of their farms. Finally, the Texan says, "My ranch is so big, I can get in my truck at sunrise, and by the time I've driven across my ranch, it's just about sunset." The Maine farmer thinks for a minute, nods, and says, "Yeah. I had a truck like that once." 1] Perspective. That's something you true Down Easters are famous for. It's a point of view. You can almost feel it in the land and weather here. Desere' - Treasury - 566-8773 2 I've been coming to Kennebunkport ever since I was a boy. Only missed one summer, in fact -- 1944. And each time I've come, I've felt there's a special magic about this place. To me, coming to Kennebunkport means renewal -- a moment to reflect. Spend time with family. Remember what matters. It also reminds me of the nearly heroic qualities of Down East hospitality. For decade after decade, this town has been invaded by a growing hoard of Bush kids and grandkids. You've been patient. But now I'm bringing all my friends with me Secret Service, staff, press corps beepers going off in restaurants, upsetting everyone's lunch the lobster fishermen having their lines run over those slippers with little rubber figures of Barbara and me on them predictions that the town would be overrun, which meant summer business actually went down All this -- and you still decided to give me your Outstanding Citizen Award. I can imagine that was one very close vote. Well, I don't know whether having a President in your backyard is bad for business -- but it looks like Kennebunkport is taking it in stride. In fact, members of this Chamber are doing a lot to balance economic growth while preserving what's special about this place. Through groups like the Kennebunkport Conservation Trust and the Maine Coast Heritage Trust, you're translating short-term traffic and development pressure into new funding to set aside 3 protected properties -- preserved for the public, and posterity. So by working together, over the long run -- long after the tee-shirts and slippers are gone -- I believe Kennebunkport will emerge even stronger than before: a community whose essential qualities remain constant, whose unique character is as true as ever. Businesses like yours are the backbone, the beating heart of communities all across America. And I'm concerned that small business owners are free to do what they do best Like you, I've built a business, faced the pressures, met a payroll. I know what it's like to start an operation and keep it strong. It's tough enough as it is. So what you don't need is government that prevents people from investing in your businesses -- or that takes away a third of the business you've spent your life building. But that's what the current taxation of capital gains does. And that's why we're working to cut the capital gains tax rate on long-held assets. For the manager of any business -- large or small -- a lower capital gains tax makes it easier to attract stakeholders. For someone launching a small business, that means more start-up capital. For growing businesses, it means more investment for the long term. And for all Americans, it means more opportunities -- the kind of job creation that only new and expanding businesses can provide. 4 And finally, for anyone whose retirement depends on selling a farm or business -- especially those who don't have a pension to look forward to -- a lower capital gains tax means a more secure future. Just ask Laure Bongeorno, down at the White Barn Inn. I think he's with us today. He's said "we have an opportunity to create value in our businesses by taking a longer view. This would be easier without the burdensome weight of the capital gains tax." Or George Bergeron. He runs a landscaping operation known informally as "George's Bush and Tree Company." Planning for his retirement, he says, "For us to sell, and give a large piece to the government, would not be productive in the least." And he's right. 137 44% Already, almost half of all capital gains go to people with incomes less than $50,000. And since a lower capital gains tax encourages people to sell as well as invest, it means more tax dollars. collected from the wealthy than from the poor Our 5 proposal will bring Sxx billion in new revenues to the Treasury in 1990 and at -- a tax cut that raises revenue® far more fairly than a gas or least that muc liquor tax annuallyn the long So a cut in the capital gains tax rate would benefit all run-- Americans. It's a move that should not be compromised by partisanship. And I have enough confidence in this Congress to hope that it won't be. 5 What we've learned, from countries around the world, is that the cruelest societies are those that are static and stagnant. But one sure sign of a nation's kindness is the amount of mobility it allows its people: whether social, or economic. And that's why cutting the capital gains tax rate is so important -- to all of us. If a young person wants to start a business; if an established business wants to expand; if an older business owner, farmer, or widow wants to secure a stable future -- good government should give them the flexibility to do SO. And nothing threatens that flexibility more than excessive taxation. You know, that's something John Kennedy understood, when he called for a reduction in capital gains taxation. "Our tax system," he said in 1963, "still siphons out of the private economy too large a share of personal and business purchasing power, and reduces the incentive for risk, investment, and effort." It was true then. And we still have a way to go. But businesses like yours drive the American economy. And they deserve the freedom to reach their fullest potential. So keep growing. and keep Kennebunkport the special place it has always been -- to me, and those around me. God bless you. And God bless the great state of Maine. # # # THE WHITE HOUSE WASHINGTON August 24, 1989 MEMORANDUM FOR CHRISS WINSTON FROM: BRENT O. HATCH Bod Associate Counsel to the President SUBJECT: Presidential Remarks: Chamber of Commerce, Kennebunkport, Maine At the request of James W. Cicconi, Counsel's office has reviewed the above-referenced draft. We have no legal objections to these remarks. CC: James W. Cicconi 89 AUG 24 P3: 35 School special Educ Marya you my have seen, just last week, logt Aris speech) but d have a special a to tall Moday want directly you connection telwor doing drugs 4 they ansloye people you can't befree, if youre rethug free each one of us in pret of He solution Am. has made a decision. the eachir protin was your country more folerant drugs destroy. crack babies, 3yr old steps on a negdle full form these kik all ruined for life. Butifypure in prouble, your gota chance. Vo save your Own life - save a friends life. Eddie Byrnes badge - as opener prop. THE WHITE HOUSE WASHINGTON August 24, 1989 MEMORANDUM FOR CHRISS WINSTON 86/- FROM: STEPHEN P. FARRAR SUBJECT: Presidential Remarks: Chamber of Commerce, Kennebunkport, Maine As requested, I have reviewed and concur with the attached Presidential Remarks to the Chamber of Commerce, Kennebunkport, Maine, August 30, 1989. Attachment c: James W. Cicconi Roger B. Porter 89 AUG 24 P3:35 35 Document No. 066525 WHITE HOUSE STAFFING MEMORANDUM DATE: 08/23/89 ACTION/CONCURRENCE/COMMENT DUE BY: 4:00 p.m. Thursday 08/24 SUBJECT: PRESIDENTIAL REMARKS: CHAMBER OF COMMERCE, KENNEBUNKPORT, MAINE (08/23 4:45 p.m. draft) ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER BREEDEN ROGERS CARD PINKERTON d CICCONI WINSTON DEMAREST FITZWATER GRAY HAGIN REMARKS: Please provide any comments/recommendations directly to Chriss Winston by 4:00 p.m. on Thursday, 08/24, with a copy to my office. Thanks. RESPONSE: James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 (Lange/Wallace) August 23, 1989 4:45 p.m. 1989 AUG 23 6: [KENNEB.DOC] PRESIDENTIAL REMARKS: CHAMBER OF COMMERCE KENNEBUNKPORT, MAINE WEDNESDAY, AUGUST 30, 1989 2:30 P.M. It's great to be back in Kennebunkport -- my second home. You might not have known we were here -- except for the fact that the entire lawn on Walker's Point is covered with toys. A lot of those things have wheels. Say whatever you want about my fishing, tennis, or golf: the real challenge I face these days is getting from the door to the driveway. You know, Kennebunkport has always been a great place for me to gain perspective. Just about everything is measured on a different scale here. Even the fish I haven't caught. [[ Which reminds me of an old story about a Maine farmer, and a Texas rancher. They get into a heated conversation -- each one trying to top the other about the size of their farms. Finally, the Texan says, "My ranch is so big, I can get in my truck at sunrise, and by the time I've driven across my ranch, it's just about sunset." The Maine farmer thinks for a minute, nods, and says, "Yeah. I had a truck like that once." 1] Perspective. That's something you true Down Easters are famous for. It's a point of view. You can almost feel it in the land and weather here. 2 I've been coming to Kennebunkport ever since I was a boy. Only missed one summer, in fact -- 1944. And each time I've come, I've felt there's a special magic about this place. To me, coming to Kennebunkport means renewal -- a moment to reflect. Spend time with family. Remember what matters. It also reminds me of the nearly heroic qualities of Down East hospitality. For decade after decade, this town has been invaded by a growing hoard of Bush kids and grandkids. You've been patient. But now I'm bringing all my friends with me Secret Service, staff, press corps beepers going off in restaurants, upsetting everyone's lunch the lobster fishermen having their lines run over those slippers with little rubber figures of Barbara and me on them predictions that the town would be overrun, which meant summer business actually went down All this -- and you still decided to give me your Outstanding Citizen Award. I can imagine that was one very close vote. Well, I don't know whether having a President in your backyard is bad for business -- but it looks like Kennebunkport is taking it in stride. In fact, members of this Chamber are doing a lot to balance economic growth while preserving what's special about this place. Through groups like the Kennebunkport Conservation Trust and the Maine Coast Heritage Trust, you're translating short-term traffic and development pressure into new funding to set aside 3 protected properties -- preserved for the public, and posterity. So by working together, over the long run -- long after the tee-shirts and slippers are gone -- I believe Kennebunkport will emerge even stronger than before: a community whose essential qualities remain constant, whose unique character is as true as ever. Businesses like yours are the backbone, the beating heart of communities all across America. And I'm concerned that small business owners are free to do what they do best. : Like you, I've built a business, faced the pressures, met a payroll. I know what it's like to start an operation and keep it strong. It's tough enough as it is. So what you don't need is government that prevents people from investing in your businesses -- or that takes away a third of the business you've spent your life building. But that's what the current taxation of capital gains does. And that's why we're working to cut the capital gains tax rate on long-held assets. For the manager of any business -- large or small -- a lower capital gains tax makes it easier to attract stakeholders. For someone launching a small business, that means more start-up capital. For growing businesses, it means more investment for the long term. And for all Americans, it means more opportunities -- the kind of job creation that only new and expanding businesses can provide. 4 And finally, for anyone whose retirement depends on selling a farm or business -- especially those who don't have a pension to look forward to -- a lower capital gains tax means a more secure future. Just ask Laure Bongeorno, down at the White Barn Inn. I think he's with us today. He's said "we have an opportunity to create value in our businesses by taking a longer view. This would be easier without the burdensome weight of the capital gains tax." Or George Bergeron. He runs a landscaping operation known informally as "George's Bush and Tree Company." Planning for his retirement, he says, "For us to sell, and give a large piece to the government, would not be productive in the least." And he's right. Already, almost half of all capital gains go to people with incomes less than $50,000. And since a lower capital gains tax encourages people to sell as well as invest, it means more tax dollars collected from the wealthy than from the poor. Our proposal will bring $xx billion in new revenues to the Treasury -- a tax cut that raises revenue -- far more fairly than a gas or liquor tax. So a cut in the capital gains tax rate would benefit all Americans. It's a move that should not be compromised by partisanship. And I have enough confidence in this Congress to hope that it won't be. 5 What we've learned, from countries around the world, is that the cruelest societies are those that are static and stagnant. But one sure sign of a nation's kindness is the amount of mobility it allows its people: whether social, or economic. And that's why cutting the capital gains tax rate is so important -- to all of us. If a young person wants to start a business; if an established business wants to expand; if an older business owner, farmer, or widow wants to secure a stable future = -- good government should give them the flexibility to do SO. And nothing threatens that flexibility more than excessive taxation. You know, that's something John Kennedy understood, when he called for a reduction in capital gains taxation. "Our tax system," he said in 1963, "still siphons out of the private economy too large a share of personal and business purchasing power, and reduces the incentive for risk, investment, and effort." It was true then. And we still have a way to go. But businesses like yours drive the American economy. And they deserve the freedom to reach their fullest potential. So keep growing and keep Kennebunkport the special place it has always been -- to me, and those around me. God bless you. And God bless the great state of Maine. # # # Document No. 066525 WHITE HOUSE STAFFING MEMORANDUM DATE: 08/23/89 ACTION/CONCURRENCE/COMMENT DUE BY: 4:00 p.m. Thursday 08/24 SUBJECT: PRESIDENTIAL REMARKS: CHAMBER OF COMMERCE, KENNEBUNKPORT, MAINE (08/23 4:45 p.m. draft) ACTION FYI ACTION FYI VICE PRESIDENT MCCLURE SUNUNU NEWMAN SCOWCROFT PORTER DARMAN STUDDERT BATES UNTERMEYER BREEDEN ROGERS CARD PINKERTON CICCONI WINSTON DEMAREST FITZWATER GRAY HAGIN REMARKS: Please provide any comments/recommendations directly to Chriss Winston by 4:00 p.m. on Thursday, 08/24, with a copy to my office. Thanks. 89 AUG P5: 37 RESPONSE: see comments James W. Cicconi Assistant to the President and Deputy to the Chief of Staff Ext. 2702 (Lange/Wallace) August 23, 1989 4:45 p.m. 1999 AUG 23 PM 6: [KENNEB.DOC] PRESIDENTIAL REMARKS: CHAMBER OF COMMERCE KENNEBUNKPORT, MAINE WEDNESDAY, AUGUST 30, 1989 2:30 P.M. It's great to be back in Kennebunkport -- my second home. You might not have known we were here -- except for the fact that the entire lawn on Walker's Point is covered with toys. A lot of those things have wheels. Say whatever you want about my fishing, tennis, or golf: the real challenge I face these days is getting from the door to the driveway. You know, Kennebunkport has always been a great place for me to gain perspective. Just about everything is measured on a different scale here. Even the fish I haven't caught. [[ Which reminds me of an old story about a Maine farmer, and a Texas rancher. They get into a heated conversation -- each one trying to top the other about the size of their farms. Finally, the Texan says, "My ranch is so biq, I can get in my truck at sunrise, and by the time I've driven across my ranch, it's just about sunset." The Maine farmer thinks for a minute, nods, and says, "Yeah. I had a truck like that once." ]] Perspective. That's something you true Down Easters are famous for. It's a point of view. You can almost feel it in the land and weather here. 2 I've been coming to Kennebunkport ever since I was a boy. Only missed one summer, in fact -- 1944. And each time I've come, I've felt there's a special magic about this place. To me, coming to Kennebunkport means renewal -- a moment to reflect. Spend time with family. Remember what matters. It also reminds me of the nearly heroic qualities of Down East hospitality. For decade after decade, this town has been invaded by a growing hoard of Bush kids and grandkids. You've been patient. But now I'm bringing all my friends with me Secret Service, staff, press corps beepers going off in restaurants, upsetting everyone's lunch the lobster fishermen having their lines run over those slippers with little rubber figures of Barbara and me on them predictions that the town would be overrun, which meant summer business actually went down All this -- and you still decided to give me your Outstanding Citizen Award. I can imagine that was one very close vote. Well, I don't know whether having a President in your backyard is bad for business -- but it looks like Kennebunkport is taking it in stride. In fact, members of this Chamber are doing a lot to balance economic growth while preserving what's special about this place. Through groups like the Kennebunkport Conservation Trust and the Maine Coast Heritage Trust, you're translating short-term traffic and development pressure into new funding to set aside 3 protected properties -- preserved for the public, and posterity. So by working together, over the long run -- long after the tee-shirts and slippers are gone -- I believe Kennebunkport will emerge even stronger than before: a community whose essential qualities remain constant, whose unique character is as true as ever. Hole Businesses like yours are the backbone, the beating heart of 3120 communities all across America. And I'm concerned that small should Remain business owners are free to do what they do best. - Like you, I've built a business, faced the pressures, met a payroll. I know what it's like to start an operation and keep it strong. It's tough enough as it is. So what you don't need is government that prevents people from investing in your businesses -- or that takes away a third of the business you've spent your life building. But that's what the current taxation of capital gains does. And that's why we're working to cut the capital gains tax rate on long-held assets. For the manager of any business -- large or small -- a lower capital gains tax makes it easier to attract stakeholders. For someone launching a small business, that means more start-up capital. For growing businesses, it means more investment for the long term. And for all Americans, it means more opportunities -- the kind of job creation that only new and expanding businesses can provide. 4 And finally, for anyone whose retirement depends on selling a farm or business -- especially those who don't have a pension to look forward to -- a lower capital gains tax means a more secure future. Just ask Laure Bongeorno, down at the White Barn Inn. I think he's with us today. He's said "we have an opportunity to create value in our businesses by taking a longer view. This would be easier without the burdensome weight of the capital gains tax." - Or George Bergeron. He runs a landscaping operation known informally as "George's Bush and Tree Company." Planning for his retirement, he says, "For us to sell, and give a large piece to the government, would not be productive in the least." And he's right. 15/24/89) Already, almost half of N thepeople all capital gains carn to people with 10% incomes less than $50,000. And since a lower capital gains tax FY90and 91 5873 encourages people to sell as well as invest, it means more tax Date Allan dollars collected from the wealthy than from the poor. Our 409 Betcabed nearly #5 proposal will bring Seier billion in new revenues to the Treasury be fairer antincrease ofth -- a tax cut that raises revenue far RNIO fairly than gas or 3060 liquor tax. sandy So a cut in the capital gains tax rate would benefit all r Chris Americans. It's a move that should not be compromised by partisanship. And I have enough confidence in this Congress to hope that it won't be. 5 What we've learned, from countries around the world, is that the cruelest societies are those that are static and stagnant. But one sure sign of a nation's kindness is the amount of mobility it allows its people: whether social, or economic. And that's why cutting the capital gains tax rate is so important -- to all of us. or a marity entrepreneur Holen & /3120 If a young person wants to start a business; if an established business wants to expand; if an older business owner, farmer, or widow wants to secure a stable future -- good government should give them the flexibility to do SO. And nothing threatens that flexibility more than excessive taxation. You know, that's something John Kennedy understood, when he called for a reduction in capital gains taxation. "Our tax system," he said in 1963, "still siphons out of the private economy too large a share of personal and business purchasing power, and reduces the incentive for risk, investment, and effort." It was true then. And we still have a way to go. But businesses like yours drive the American economy. And they deserve the freedom to reach their fullest potential. So keep growing and keep Kennebunkport the special place it has always been -- to me, and those around me. God bless you. And God bless the great state of Maine. # # # THE WHITE HOUSE WASHINGTON 89 AUG 24 P4: 10 August 24, 1989 Memorandum to Chriss Winston From: Jim Pinker Q ton Subject: Kennebunkport Chamber of Commerce Draft Speech pg. 2, para. 4, line 6 " summer business actually went down " There has been considerable attention to the effects of the President's visits on the local economy. We should not call further attention to any economic damage to the area resulting from his visits when that means inviting press criticism on top of this self-criticism. 4,2-3 The quotations from locals on the capital gains need to be reviewed from two angles: first, to see if they can be somehow be strengthened in the tone of their support. The George Bergeron quote in particular is a little weak. Second, we must be sure that these two citizens are fairly solid in their support of low taxes, lest the press follow up with questioning that reveals their opposition to the President's general position on taxes, capital gains included. Such a circumstance would make the original quotes look like they were artificial and had been forced out of these people for political purposes. 5,2,2 The draft ably finishes with a strong note. The notion of encouraging social and economic mobility is a powerful, popular, and pro-opportunity theme -- a theme which, more and more, is being advocated by thinkers across the political spectrum. From Milton Friedman to James Fallows, the idea of removing artificial barriers to mobility -- credentialism, for example -- that judge people on their background rather than their skills or human potential --- this relatively old and characteristically American idea is emerging as the new intellectual consensus. The economic mobility theme is very effectively laid out on this page starting with the references to "static and stagnant" societies in the first graf, and extending to the more micro- economic idea of "flexibility" in the third graf. We would only suggest that perhaps some introduction of the theme could be done in the beginning of the speech, e.g., a reference to the President's own example of economic mobility in his moving to Texas as a young man, in order to make the theme more consistent. #