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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
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Speechwriting, White House Office of
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Speech File Backup Files
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Chron File, 1989-1993
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13804
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13804-008
Folder Title:
Budget Deadline Research 3/20/92 [OA 7570] [2]
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[Birthdate and Social Security Number Redacted.] (1 pp.)
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©
Copyright 1992, National Broadcasting Company, Inc. All Rights Reserved.
PLEASE CREDIT ANY QUOTES OR EXCERPTS FROM THIS NBC
TELEVISION PROGRAM TO "NBC NEWS' MEET THE PRESS.
"
NBC News
MEET THE PRESS
Sunday, February 2, 1992
GUEST:
SENATOR GEORGE MITCHELL (D-Maine)
Majority Leader, U.S. Senate
MODERATOR:
Tim Russert - NBC News
PANEL:
David Broder - The Washington Post
Andrea Mitchell - NBC News
-
This is a rush transcript provided
for the information and convenience
of the press. Accuracy is not
guaranteed. In case of doubt,
please check with
MEET THE PRESS - NBC NEWS
(202) 885-4598
(Sundays: (202) 885-4200)
MEET THE PRESS - February 2, 1992
2
MR. RUSSERT: Senator Harkin says it's nothing; former Senator Tsongas says it's pandering.
We asked the American people what their priorities are. They say first spend money on health and
education; two, reduce the deficit; and only 14 percent said give us a tax cut. Are you playing election-
year politics?
SENATOR MITCHELL: No, I think we do provide for substantial investments in health and
education. That's one of the major differences between our plan and the president's plan. The
president's plan is almost entirely a short-term fix. We propose both efforts to lift the economy out of
recession now, but, more importantly, investment for the long term in education, health care, and
infrastructure.
MS. MITCHELL: Senator Mitchell, the president's budget, giving him his gimmicks, produces
a $1.5-trillion deficit over the next five years, all of that in new debt. What can you do to reduce the
deficit if you're talking about middle-class tax cuts, you're talking about defense cuts--but how would
you do this without increasing the deficit as the president does?
SENATOR MITCHELL: The plan which I presented is deficit-neutral over a five-year period
principally by achieving substantially greater reductions in defense spending than have been proposed
by the president.
MS. MITCHELL: How is it possible to achieve those defense savings? Secretary Cheney the
other day graded Congress a C-minus on adding things, such as the reserves, that he didn't think were
necessary; a C-plus on putting back weapons systems that he didn't think necessary. And I guess you
get a flunking grade on pork--I don't mean you, I mean Congress--on adding the museums and the other
things.
How is Congress realistically going to cut defense, number one? Number two, that's adding to
unemployment. There is no feature in anyone's budget for retraining and reabsorbing those people into
our economy.
SENATOR MITCHELL: I have proposed as part of any economic program an essential
economic conversion plan. It seems to me that's absolutely crucial to begin to plan to make the
conversion from a military-based economy to a civilian economy. I agree that we have to have that
kind of proposal. The president's budget and plan contains nothing of that type. It's a conspicuous,
indeed an essential absence in the president's budget.
Secondly, almost every study demonstrates that money invested in civilian enterprise--in health,
in education, in infrastructure--produces more jobs than money invested in defense. When you invest
in civilian goods and services, there's a much greater spin-off. A person who buys a house furnishes
it; you buy a home computer for a child to learn--there's software. Military hardware, on the other
hand, is purchased not to be used, in the hope that it won't be used.
MS. MITCHELL: But, Senator, fully half the budget is entitlements, those benefit programs.
Are you prepared to put a ceiling on Medicare and Medicaid as the president suggests?
SENATOR MITCHELL: Well, of course, that's what's called global budgeting, which, when
we included that in our health care plan, the president and his administration denounced as a terrible
NEWS TRANSCRIPTS, INC. (202) 682-9050
MEET THE PRESS - February 2, 1992
3
thing. It's kind of ironic.
MS. MITCHELL: But he's now proposing it. Are you willing to go for these cuts in Medicare
and Medicaid?
SENATOR MITCHELL: Not the cuts proposed by the president. We have made cuts, and we
will make them where appropriate, but not those proposed by the president, because we think those
are excessive in some areas.
MR. BRODER: Senator, as you know from your own state, people are hurting, this economy
is seriously in trouble. Will the Congress act by the March 20th deadline that the president has set?
SENATOR MITCHELL: The Congress will act promptly because it's the right thing to do, not
because of any deadline. The fact of the matter is, of course, that there has been a 1-month delay in
action caused entirely by the president. For 18 months he said there's no recession, there's no problem;
therefore he offered no solution. When it was finally obvious to every American, and the president
admitted it, he then asked for three months to figure out what to say.
So we've had a long delay, 21 months, induced entirely by the president.
We're going to act, and we're going to act promptly, not because of the deadline.
MR. BRODER: Excuse me, Senator, you say induced entirely by the president.
SENATOR MITCHELL: Yes.
MR. BRODER: The president last January, a year ago, asked for a highway bill which would
have put money into states and local governments to create jobs. Congress didn't pass that highway
bill until the very last day of the session. That was not caused by the president, was it?
SENATOR MITCHELL: Not the highway bill's final passage. The fact of the matter is we
pushed that we passed it in the Senate prior to the deadline that he proposed.
MR. BRODER: But will the March 20th deadline be met?
SENATOR MITCHELL: It is my hope we can do it before that. We may do it before that, we
may do it on that day, it may be a little bit after the deadline--is a political ploy, it has no relationship
to what actually occurs in government and in the process of acting.
MR. BRODER: But you're prepared to sit here this morning and tell the American people that
on your own, irregardless of anything the president may have said, you will have an economic package
ready for the president to sign or veto by March 20th?
SENATOR MITCHELL: We're going to act as soon as possible. The deadline has--
MR. BRODER: What does that mean, Senator?
NEWS TRANSCRIPTS, INC. - (202) 682-9050
MEET THE PRESS - February 2, 1992
4
SENATOR MITCHELL: That means it may be before March 20th. Why should we say March
20th?
MR. BRODER: It also means it could be May 20th or June 20th.
SENATOR MITCHELL: I don't think it's likely to be that; I think it's going to be very soon.
We're going to act promptly. We obviously have to proceed through the legislative process. These
proposals must be considered and evaluated, some accepted, some rejected, constructive alternatives
proposed.
MR. RUSSERT: Senator, you met with Boris Yeltsin yesterday afternoon. Did he make a plea
for aid to the Soviet Union?
SENATOR MITCHELL: Yes, he did. He made a very strong and direct appeal, particularly
for food and medicine in the next three months, which he described as a critical period for him and --
not the Soviet Union, for Russia.
MR. RUSSERT: And what will you do about that?
SENATOR MITCHELL: Well, there appeared to be a consensus among the congressional
leaders there that we should respond positively. We didn't discuss it afterward, we merely left. But
in the course of the discussion it appeared to be a consensus. I hope that we're going to get together
very shortly, tomorrow or Tuesday, and talk about what our response should be. I hope it's a favorable
response. I think we should help with food and medicine during this critical period.
MR. RUSSERT: How much?
SENATOR MITCHELL: Well, that's to be determined. He didn't ask for a specific figure.
MR. RUSSERT: He also suggested that perhaps the United States and the Soviet Union should
embark upon a global shield to help prevent a nuclear war. Would you favor such a proposal?
SENATOR MITCHELL: We didn't discuss that, that didn't come up in our meeting. And we
obviously will evaluate and review sympathetically any specific proposal made in that regard.
MR. RUSSERT: So you would then consider refunding Star Wars.
SENATOR MITCHELL: No, I didn't say that. We're going to consider a proposal.
MR. RUSSERT: This would be an integral part of it. You would need to fund Star Wars in
order to bring about a global shield.
SENATOR MITCHELL: I have proposed funding Star Wars at the $3.1-billion level of the
previous year, substantially less than that proposed by the president. We don't know what plan the
president and Mr. Yeltsin discussed, if indeed they discussed any beyond the general concept, and we'll
NEWS TRANSCRIPTS, INC. (202) 682-9050
MEET THE PRESS - February 2, 1992
6
their record, their views.
MR. RUSSERT: He is quoted saying there's a different moral standard for someone who's
single rather than married, in terms of their own personal life.
You're a single man. Do you agree with that?
SENATOR MITCHELL: Well, I've been both married and single, and I couldn't judge that.
Really, I don't know. I've gotten a lot of questions about my life at all times since I've been in public
office. So I'm not certain about that.
It may be that someone who has been married and is divorced isn't subject to the same type of
inquiry as someone who is married, had a difficult time and stayed together. But I think each person
has to make his own judgment on that.
MR. RUSSERT: There's been lots of discussion, particularly on the Hill amongst Democrats,
that other people should think about entering the race now that Governor Clinton has been harmed
by these revelations.
Has anyone approached you about you entering the race in '92?
SENATOR MITCHELL: Yes, I've had a number of people talk to me recently. And really over
the past year and a half, a number of senators, a substantial number of senators, have urged me to run,
many others.
But I've made a decision that I'm not going to run, and I don't intend to be a candidate.
MR. RUSSERT: And nothing will change your mind?
SENATOR MITCHELL: Well, I don't think anything will change my mind. When you say
"nothing will change my mind," we went through this the last time I was here. I think it was the
same three people.
MR. RUSSERT: Something will change your mind.
SENATOR MITCHELL: And I said then, and my view is still the same, that I'm not a
candidate in 1992; I've made no decision beyond that.
MR. RUSSERT: What happened then is you declared for '96. We're talking about '92.
SENATOR MITCHELL: No, you declared me for '96.
MS. MITCHELL: I think the record will show that the senator declared for '96.
Senator, you said that you're not a candidate but that people have been approaching you. What
could you make your mind?
If Governor Clinton were fatally wounded along the way and none of the others now in the field
rose to the level of credibility and acceptability to the party, could you be persuaded?
SENATOR MITCHELL: No, because I don't think any of that is going to happen. I think
NEWS TRANSCRIPTS, INC. - (202) 682-9050
MEET THE PRESS - February 2, 1992
7
Governor Clinton will weather this difficult period; indeed, it appears that he has. He's a very strong
and effective candidate.
I think several other candidates have already achieved the level of credibility to which you refer
and are making strong, credible candidates. So I don't think any of that is going to happen.
MS. MITCHELL: Well, all these candidates have very serious disagreements with you on
policy, and you with them. I'm sure that you don't feel entirely comfortable on trade issues with
Senators Harkin and Kerrey. You and Senator Kerrey disagree on health care. Tsongas calls your
kind of middle-class cut "pandering," as Tim suggested earlier.
Why should you, as senate leader, feel comfortable with this field of candidates?
SENATOR MITCHELL: Well, my differences with them are minimal compared to my
differences with the president and with the Republican administration. I'm a Democrat; I believe
strongly in the principles of the Democratic Party. I recognize that there is no individual who agrees
with me on every issue. My daughter regularly gives me heck for the way I vote on certain issues and
tells me how I should be right or wrong here and there. So I think if I am looking for a candidate who
agrees with me on every single issue, that candidate doesn't exist.
These are very strong, effective, credible candidates. They have experience. They've got good
proposals, good ideas. I accept the fact they don't agree with me. I also think that there's always the
possibility they may be right and I may be wrong. We ought to think about that. Many people in
politics don't. And so I'm prepared to go forward to support whoever is nominated because I think
whoever is nominated by the Democrats will be the next president of the United States.
MS. MITCHELL: Do you think Congressman Gephardt or Senator Bentsen would be stronger
candidates, as many of your colleagues on the Hill are suggesting?
SENATOR MITCHELL: I think Congressman Gephardt would be a very strong candidate, as
would Senator Bentsen. They're capable, experienced officials. They've chosen not to run this time,
and we've got a field of effective candidates.
MR. BRODER: Senator, Governor Clinton, former Governor Brown, are both attacking Senator
Kerrey for having voted for what they call your midnight pay increase.
Fair tactic or demagoguery?
SENATOR MITCHELL: Well, it's up to each individual voter to make a judgment.
MR. BRODER: No. Is it fair?
SENATOR MITCHELL: To discuss pay raises?
MR. BRODER: To attack them for the pay raise?
SENATOR MITCHELL: I think any vote I cast as a senator is an appropriate subject of
criticism in a campaign, and that was one of the votes. I respectfully disagree--you used the phrase
"midnight." It's now become part of reality because the press repeated it so often, even though it's
NEWS TRANSCRIPTS, INC. - (202) 682-9050
MEET THE PRESS - February 2, 1992
8
false. The reality is, it was done in the regular course of business at a time when we routinely conduct
business, and it was done at midnight.
That's a small quibble, but the reality is that substance of any vote cast by any senator or
congressman, I believe, is an appropriate subject for criticism and discussion in a campaign.
MR. BRODER: Let me ask you about a policy question. On defense, you're saying the defense
budget can be cut a hundred billion dollars in the next five years, which is exactly twice as much as
the president and his team thinks is prudent.
I want to ask this respectfully, but pointedly: Why should the American people take the
judgment of somebody who is opposed to the use of force in the Persian Gulf war against that of
General Powell and Secretary Cheney?
SENATOR MITCHELL: Right. Well, the statement contained in the question is incorrect. The
resolution which I supported specifically authorized the use of force in certain circumstances and stated
specifically that we would endorse the use of force to remove Iraq from Kuwait, should that prove
necessary; but suggested an alternate policy to see if that could work.
That was rejected, and we went into war, and the war proved to be successful.
Secondly, even if your question were correctly stated-- which, respectfully but pointedly, it was
not--that one decision doesn't inhibit one from making constructive suggestions on defense. The reality
is, of course, that what we should do and what I have tried to do is to reassess the changing nature of
the threats to our nation's security, and to construct a defense force based upon those changed threats.
MR. BRODER: Senator, your judgment on this is the American people should take it more
seriously than General Powell?
SENATOR MITCHELL: I hope they will, yes. What are you suggesting--that because we had
a successful war, therefore we should abandon the notion of democracy?
MR. BRODER: Suggesting he may know a little bit more about this subject than you do.
SENATOR MITCHELL: Indeed, he may well. And the American people will no doubt take
that into account in making their judgments.
Ihappen to disagree with the administration's policy on the B-2 bomber. I happen to agree with
the administration's policy on the level of funding for Star Wars. Those are appropriate subjects for
debate. It may well be that a majority will conclude that the president is correct and support him.
The fact is, of course, that he's reversed his position on the B-2 bomber.
So the reality is these are all legitimate subjects for debate. We consider them. In a democracy,
no one person's word is taken as gospel; no one person's word is unchallenged. It is subject to open
debate, and that's what will happen in this case.
MR. RUSSERT: Senator, five days after the New Hampshire primary comes the Maine caucus.
Who will you support in that caucus?
SENATOR MITCHELL: I will not be supporting any individual candidate in the caucus. I'm
remaining neutral at this time. I will be at the caucuses; I'll participate. But my own view is that the
NEWS TRANSCRIPTS, INC. - (202) 682-9050
MEET THE PRESS - February 2, 1992
9
Democrats of Maine will make a good choice without my making an endorsement prior to then.
MR. RUSSERT: Who's the leading candidate in Maine right now?
SENATOR MITCHELL: Well, there hasn't been much attention focused on Maine, and I think
that's a mistake by the candidates because I think that it's an important caucus state coming shortly
after New Hampshire, as it does.
MR. RUSSERT: Do you think the nominee will be one of the five people currently running?
SENATOR MITCHELL: Yes, I do.
MR. RUSSERT: Senator Mitchell, thanks for coming by. We have to leave it there.
SENATOR MITCHELL: Thank you.
MR. RUSSERT: In a minute, Andrea Mitchell, David Broder and I will be back to talk about
the fate of the Bill Clinton campaign and presidential politics.
(Announcements)
MR. RUSSERT: We're back, Andrea, David. There's been some discussion, I guess, to put it
mildly, of Governor Clinton's fate. We heard Senator Mitchell say that his campaign has been hurt,
but perhaps he can get it refocused. And the nominee, he says, will come from the current field.
What's the situation of Governor Clinton's campaign right now, David?
MR. BRODER: I think he's through about 90 percent of the turbulence on this issue. I think
the problem for him is that this story lasted long enough and seeded enough doubts that if there should
be a second round involving anyone, he is in very serious trouble. But I think he's through most of
the difficulty on this one.
MR. RUSSERT: And in pretty good shape in New Hampshire?
MR. BRODER: If you want to take the reading two weeks out. But New Hampshire will make
up its mind in the next two weeks. And literally thousands of people will change their minds without
the slightest feeling of compunction at all about it. They still are sizing up what we have to remember
is a group of strangers.
MR. RUSSERT: Andrea, you've been covering the Hill doggedly and have suggested that the
Democrats have some discomfort with a potential Clinton candidacy.
MS. MITCHELL: I think the discomfort level is quite high. They really feel that something
else may come out. They just don't know. They don't feel comfortable any longer with this man as
the frontrunner, and they don't feel comfortable with the others in the race--particularly Kerrey and
Harkin just have not clicked in New Hampshire. One of their problems has been, because of all of the
NEWS TRANSCRIPTS, INC. - (202) 682-9050
MEET THE PRESS - February 2, 1992
10
attention paid to Bill Clinton's troubles, their message has been crowded out; they've been frozen out
and there hasn't been enough attention paid to them. So that's been a double-edged sword for the
other candidates.
The one who is doing very well there is Paul Tsongas. He did I think the best in the debate
on Friday night, and he is very persuasive to people. But of course he is--the downside of that is that
he is viewed very much in Washington as a regional candidate and one who can't persuade people
nationally--although he's doing well in the national polls as well now, it's interesting.
MR. RUSSERT: There's one man, a Republican, Vice President Quayle, who weighed in
yesterday, David. He suggested that Mario Cuomo will be the Democratic nominee. What's he up to?
Is he being mischievous?
MR. BRODER: I think there is a little mischief-making, although he has said many times that
he thinks that Cuomo is the 800-pound gorilla there. And the comments on that tape alleged, and
apparently accepted by Governor Clinton as legitimately his own, about Governor Cuomo and the
Mafia not only offended Governor Cuomo; I think they offended a lot of people and may be the most
serious residue of this thing for Clinton.
MR. RUSSERT: Well, I tell you, as one who said publicly that I do not think the governor
would run, watching him over the last week respond to that charge by Governor Clinton, if in fact he
gets a budget I for the first time think he may seriously consider looking at the presidency.
MR. BRODER: That is on a par with your pick of Buffalo Bills a week ago.
MS. MITCHELL: So, Tim--I may be right after all, Tim?
MR. RUSSERT: We'll see. That's all for today. Congratulations to the Washington Redskins.
They proved they are the champions.
We'll be back next week. If it's Sunday, it's "Meet the Press." See you then
NEWS TRANSCRIPTS, INC. - (202) 682-9050
THE WASHINGTON POST
THURSDAY, JANUARY 30, 1992 A7
Congressional Republicans Rally Behind Bush's Plan; Democrats Cautious
"And I'm not sure that meshes with
have to be a fight, then you know
ates some sense of concern" about
ident, but, to some extent, there's a
imperatives of an election-year ne-
and thwart compromise.
Americans.
plan.
ery.
the plan.
Even Senate Minority Leader
cess if necessary to hasten work on
the Feb. 8-17 Presidents' Day re-
tified to be ready to work through
Means committees have been no-
the House Budget and Ways and
about Bush's deadline, members of
ic package, even while complaining
gress will rush to act on an econom-
In a further indication that Con-
Mitchell (D-Maine).
Senate Majority Leader George J.
country's economic distress, said
"the right thing to do" in light of the
intended to act swiftly because it is
anything" because Congress already
deadline for action "doesn't mean
Bush's attempt to establish a
his call for cooperation."
how I welcome fights," Foley said.
March, well, if there is going to
suggestion that after the 20th of
There was an "almost swagger-
fast meeting.
(D-Wash.) told reporters at a break-
House Speaker Thomas S. Foley
the president's political motives,
ness and challenge that I think cre-
sense in the speech of combative-
"We will cooperate with the pres-
rocky road toward any agreement.
the signs yesterday pointed down a
cessitate an eventual compromise,
both parties have said the political
Although many lawmakers of
could contribute to political friction
gesting that an arbitrary deadline
deadline for action on his plan, sug-
Bush's attempt to set a March 20
Many Democrats also bristled at
more tax relief for middle-income
higher taxes on the rich to finance
pursue their priorities, including
that Democrats would continue to
But there were strong signals
sure for prompt approval of his
houses in an attempt to build pres-
rank-and-file Republicans of both
and Republican leaders and with
pearing Bush met with Democratic
the Union address, a buoyant-ap-
lining the program in his State of
than 12 hours after he finished out-
Returning to Capitol Hill less
new program for economic recov-
Congress yesterday on behalf of his
Democrats as he personally lobbied
wary pledges of cooperation from
of once-restive Republicans and
President Bush won the support
Washington Post Staff Writers
and Kenneth J. Cooper
By Helen Dewar
Robert J. Dole (R-Kan.) said Con-
problem. Suggestions by Demo-
Mitchell said Bush's proposals for
finished outlining his tax plan in the
Republicans, Bush stepped up his
gress "may not quite make the
crats that a deal could be struck by
middle-income tax relief are "inad-
State of the Union address, Bush
pressure for passage of the pro-
deadline," although he hastened to
linking a capital gains cut for long-
equate to meet the problem" and
appeared to win over Republican
gram by March 20, saying, "I've
add that it should try to do so.
term investors to higher taxes on
must be expanded by Congress.
dissidents, including some who
offered to lay aside politics for a
When Senate Appropriations
the wealthy ran into opposition
The fiscal 1993 budget that Bush
threatened only a week ago to go
period of time
but we cannot let
Committee Chairman Robert C.
among House Republicans. House
sent yesterday to Capitol Hill added
their own way if they found Bush's
it drift." Without a deadline early in
Byrd (D-W.Va.) urged that defense
Republican Conference Chairman
to the aggravations for some Dem-
incentives for economic growth to
the year, he said, there is danger
spending be cut by more than the
Jerry Lewis (R-Calif.) said he op-
ocrats, including Senate Finance
be insufficient.
$50 billion that Bush proposed for
than the legislation will not be
posed the idea, and House Minority
Committee Chairman Lloyd Bent-
Among them was Rep. Mickey
the next five years, Bush said, "No,
Leader Robert H. Michel (R-III.)
passed.
sen (D-Tex.), whose panel will have
Edwards (R-Okla.), who said yes-
don't do that," Dole told reporters.
said Republicans were "very, very
jurisdiction over most of Bush's
terday that White House Chief of
Dole and Sen. Thad Cochran (R-
Moreover, Dole added, Senate Re-
wary and shy" of a deal that would
economic program.
Staff Samuel K. Skinner had lis-
Miss.), head of the Senate GOP
publicans can sustain a presidential
increase marginal tax rates.
While the president's tax cut pro-
tened to Republicans in Congress
Conference, gave the president a
veto of cuts deeper than $50 billion.
Mitchell said in an interview that
posals "appear to be a good starting
"and a lot of that was reflected in
huge "speech report card" marked
Many Democrats are pushing for
there is a "common ground and
point for debate," the debate "can't
last night's speech."
with an A-plus, which drew an ap-
cuts of $100 billion or more, largely
overlap" in many of the tax propos-
proceed until we know how he
"We've got a lot of free spirits in
preciative smile from the president,
to finance a large-scale expansion of
als that Bush made, such as those
would pay for them and the budget
our group but they were all saying
who had a lot riding on the address
domestic programs that Bush op-
that would put more money in the
doesn't give us any real answers to
this was a very good speech, the
as he seeks to rescue his poll rat-
poses.
hands of average Americans, en-
that crucial question," Bentsen said.
best they'd heard
and we're
ings as well as the economy.
Bush's proposal for a capital
courage first-time home purchases
In a fast-paced round of visits
going to stick together," Dole said.
"We all feel a lot better today,"
gains tax cut presented another
and spur business investment. But
that started the morning after he
During his meeting with Senate
Dole told reporters later.
A plan in a political season
WT
1/30/92
iven the advance billing of the State of the
line then; what Mr. Bush needed, however, was a new
G
Union as a grand summa of whence we have
good line). And he offered some useful proposals.
come and whither we are going - given
The most important of the unilateral executive
expectations out of all proportion, in other
branch moves Mr. Bush has ordered is the 90-day
words - President Bush acquitted himself reasonably
moratorium on new federal regulations and a review
well Tuesday night.
of the economic effect of existing regulations. Some-
He was, first of all, presidential. Though the ca-
where in the White House, somebody finally turned on
dences of oratory do not exactly fall trippingly from
the light in a room that has been dark for the first three
his tongue - one manifestation of this Tuesday was his
years of the Bush administration. Regulators have
awkward delivery of his applause lines - he did seem
been regulating merrily away, seemingly without any
firm and controlled. People who underestimate the
systematic, high-level thought about the aggregate
political importance of this do SO at their peril. The
consequences of their activities. Regulatory profusion
president is, as is well known, rather inarticulate off
is the death of a thousand cuts for an economy. Perhaps
the cuff, and when there is a general perception of a
a beefed-up Competitveness Council at the White
White House adrift, as has been true recently, that
House could keep an eye on the process.
inexactitude of locution contributes to the impression.
The other unilateral actions are mostly in the form
(When things are going well, the fumbling language
of demand pump-priming. To the extent that this pe-
seems merely informal.) Add the public embarrass-
riod of economic doldrums has been driven by prob-
ment of the Tokyo trip, and the picture is one of a
lems with demand, these may or may not help. The real
president in various ways out of control. Mr. Bush went
problem, however, lies elsewhere.
a long way toward dispelling that impression on Tues-
This takes us to the points on which the president
day.
wants congressional action. He proposes some tinker-
As to the substance of the speech, there were some
ing with Individual Retirement Account penalty rules
good policy ideas and some questionable policy ideas
and a tax break here and there. Most critical, however,
- about as one might expect. More important, how-
is a proposed cut in the capital gains tax rate to 15.4
ever, was the general theme the president sounded. Mr.
percent. This time, Mr. Bush said, "I cannot take 'no'
Bush re-established himself as a great believer in
for an answer." He lambasted the demagoguery of the
America's future prospects, both at home and abroad.
opposition. Lowering this rate has to be at the heart of
This optimistic note sounded somewhat dissonant in
any serious effort to broaden people's incentives to take
these generally gloomy times. But it is the right note,
risks and invest. The economic payoff for a lower rate
one that has a proven track record with the American
would be swift.
people. Politicians who do not understand this cannot
One might like a more ambitious Republican
win national elections. The president said Tuesday,
agenda (and one different from Mr. Bush's long-term
"Moods come and go, but greatness endures. Ours
proposals, which are a subject for another day). But
does." That is something most Americans believe.
Mr. Bush, even in election mode, is unlikely to produce
This is not to say, of course, that there is no good
one. He needs, however, to be as confrontational with
reason to be in a bad mood just now. The on-again,
Congress as necessary in pursuit of what he has pro-
off-again recession is a source of genuine pain. "This
posed. He may get it or he may not. Either way, he will
will not stand," Mr. Bush vowed, echoing his vow about
have a case to take to the people. His March 20 deadline
Saddam Hussein's occupation of Kuwait. (It was a good
was a good idea. There are 51 days and counting.
A middle-class tax cut. To prove they
are the true friends of the middle class,
The Budgeteers
Democrats in Congress will top President
Bush's proposed $500-per-child increase in
Beware a Bidding War
the personal exemption. But a tax credit,
which provides a relatively smaller benefit
to those in the top tax brackets, is more
As Bushand Democrats
likely than an increased exemption.
Investment incentives. Many Demo-
crats share the president's interest in a
Compete on Tax Cuts
temporary tax break for business invest-
ment. And with business lobbyists working
hard, they'll be under pressure to be more
Look for Breaks by Summer
generous than the White House.
A credit for first-time home buyers.
Despite Parties' Divisions,
The president won't find much opposition
here: Democrats already have proposed
Economists' Misgivings
similar measures.
New Individual Retirement Accounts.
Top House tax writer Rep. Dan Rosten-
Recalling the Frenzy of 1981
kowski doesn't like costly proposals to ex-
pand IRA benefits. But the top Senate tax
1/30/92
writer, Lloyd Bentsen, is infatuated with
By JACKIE CALMES
them. Even Mr. Rostenkowski concedes
Staff Reporter of THE WALL STREET JOURNAL
that an expanded IRA is likely to be part
WASHINGTON-President Bush's new
of the final package.
budget is the first bid in a high-stakes
Real-estate tax breaks. Democrats
gamble to spur the economy. Now, the
have already lined up behind proposals to
Democrats in Congress will try to trump it.
restore tax write-offs for "passive losses"
The likely outcome, legislators in both par-
by some people actively involved in real
ties agree, is that a significant tax cut will
estate. Despite fears of a return to tax
be enacted by summer.
shelters, lobbyists will demand an even
And a real danger is that a partisan bid-
bigger break than the president has pro-
ding war could cause that tax cut to grow
posed.
into a budget-busting fiasco.
Can He Take 'No'?
The president has "already put the ball
in motion for a repeat of 1981," worries
While the areas of broad agreement are
House Budget Committee Chairman Leon
considerable, both Congress and the presi-
Panetta, referring to the 1981 tax-cutting
dent are bracing for battles over Mr.
that's widely blamed for putting the U.S.
Bush's perennial proposal to cut the capi-
$3 trillion in debt.
tal-gains tax rate and, more important,
Using language that recalled the dead-
over how to pay for the whole tax pack-
line he set a year earlier for Saddam Hus-
age-whether by tax increases, defense
cuts or simply deficit spending.
What Deficit?
On capital gains, the president's rheto-
ric Tuesday night in his State of the Union
The president's budget largely ignores
address was unyielding: "This time, at
the deficit, at least for this year. The
package, which will help big business
this hour, I cannot take 'no' for an an-
but impose a huge new tax on Wall
swer."
Street, also drew skepticism from econ-
He's taken "no" for an answer for three
omists. Stories on pages A6 and A7.
years running, but this year some key
Executives welcomed some propos-
Democrats say Congress will pass some
als, but reviews were mixed, page B1.
capital-gains cut. "It's going to be in the
For home-buyers, it could pay to wait
bill," Rep. Rostenkowski says. A Demo-
a
couple of days, page B1.
cratic alternative, however, is likely to be
What you should know about capital
far more narrow than Mr. Bush wants.
gains, IRAs and withholding, page C1.
And Democratic leaders VOW to extract a
sein to withdraw from Kuwait, President
stiff price: an offsetting tax increase on
Bush demanded that Congress enact his
high-income Americans.
package by March 20. After that, he said,
Ultimately, Mr. Bush could face a
"the battle is joined."
choice between. signing a bill that raises
Such quick action is unlikely in the
taxes on the richest 1% of taxpayers-and
highly charged atmosphere of an election
for a second time breaking his no-new-
year, given the significant differences both
taxes pledge-or vetoing a bill that cuts
within and between the two parties. But
taxes for the other 99%. A recent Wall
with politics pushing both sides to act, odds
Street Journal/NBC News poll suggests
are high that a bill will be passed before
the voters may line up with the Democrats
the legislators leave for their summer va-
in this fight. That poll shows 79% of voters
cation-and for their national political con-
favor raising taxes on people with incomes
ventions.
over $200,000 a year, while only 42% favor
Friends of the Middle Class
cutting the tax rate on capital gains.
Already, the outlines of that bill are be-
The task of keeping the tax cut within
coming clear. There is a surprising
bounds will fall largely to the chairmen of
amount of common ground between the
the tax writing committees, Texas Demo-
president's proposals and those of key
Please Turn to Page A5, Column 1
Democratic legislators. Among the likely
components:
The Budgeteers: A Bidding War
Could Break Out Over Tax Cuts
Continued From First Page
Edwards, said at a White House meeting
crat Bentsen of the Senate Finance Com-
last week.
mittee and Illinois Democrat Rostenkowski
For now, most of the GOP firebrands
of the House Ways and Means panel. Like
are expressing support for Mr. Bush's plan
Mr. Bush himself, both of them, knowing
as it was finally unveiled. But they will be
the dangers of tax-writing in an election
acutely sensitive to any signs that he is
year, come reluctantly to the tax-cutting
backsliding in his support for their cher-
battlefield this time. But also like Mr.
ished goals. If that happens, "a very sig-
Bush, they have come under heavy pres-
nificant number-one-third to one-half the
sure as the nation's economic woes have
Republicans in Congress-would in fact
dragged on.
push a separate bill," says Rep. Newt Gin-
For Sen. Bentsen, controlling a tax bill
grich of Georgia, the deputy House GOP
poses a special challenge: The Senate's
leader and conservative champion. Some
wide-open rules make it difficult to contain
conservatives are also demanding the
a tax-cut bill once it comes to the floor.
president dump Budget Director Richard
"We see the consequences of the 1981 bill
Darman, a principal architect of the 1990
in the deficits we have today,' he says.
budget deal.
Rep. Rostenkowski, the rumpled, over-
At bottom, the ultimate question for
sized machine politician from Chicago's
both sides is whether they merely want a
blue-collar wards, is even more dubious.
political fight, or are willing to compro-
Now in the twilight of his congressional ca-
mise to get something passed. Many in
reer, he is mindful of his legacy and wants
each party favor a fight, arguing that
no part in unraveling the historic 1986 tax-
blame for any impasse could successfully
reform law that threw out a host of tax
be pinned on the other side. Also rooting
breaks in exchange for lower rates-a law
for an impasse-though for different rea-
in which he takes immense personal pride.
sons-are many economists, who say this
Nor does he want to participate in a repeat
is the wrong time for a tax cut and that a
of the 1981 tax-cut feeding frenzy- battle
stalemate would do far more good for the
that he recalls almost shamefully.
economy. "I cherish the hope,' says Henry
"I would try to weather this recession,
Aaron of the Brookings Institution.
because I'm that concerned about our defi-
Weighing heavily against those factors
cit,' he says. "But this is politics. I recog-
is the political calendar. If the economy
nize that this train is coming."
stays weak, both the president and the
Left to their own devices, Messrs. Bush,
Democrats will want to show they can pro-
Bentsen and Rostenkowski might be able
duce legislation to address the problems.
to resolve their differences in short order.
So both sides are likely to want something
But they won't be left to their own de-
enacted before they head off to their con-
vices.
ventions.
In the Senate. Majority Leader George
That is especially good news for at least
Mitchell is positioned for a high-stakes con-
one group: tax lobbyists. Already, they are
frontation with the president, forcing Mr.
mobilizing for a return to "Gucci Gulch"-
Bush either to adopt a tax increase for
the corridors near Congress's tax-writing
high-income Americans or to abandon his
rooms, so named for the designer shoes
plans for a capital-gains tax cut. In the
worn by many lobbyists as they crowd
House, Majority Leader Richard Gephardt
there when a tax bill is under way. "Ev-
will play a similar role.
erybody I know views this as a gravy
At the same time, the battles ahead
train," says one lobbyist.
The middle-class tax cut, whatever it
within each party may well prove as tu-
multuous as the battles between them.
Even before the president's State of the
Union address, a meeting of House and
Senate Democratic leaders on tax strategy
turns out to be, is bound to have a huge im-
bracket, but $75 per dependent for a lower-
exposed sharp disagreement. At one point,
pact on the budget. While individual fami-
income taxpayer in the 15% bracket.
Sen. Mitchell suggested abandoning the
lies can expect no more than a few more
To pay for whatever Congress ends up
1990 bipartisan budget agreement, with its
dollars a week, the number of recipients is
doing, Rep. Rostenkowski has proposed
constraints on deficit spending, and pass-
SO huge that even a small break would cost
higher income taxes on upper-income peo-
ing a tax cut without paying for it. Sen.
billions of dollars.
ple. In the Senate, though. there's less sup-
Bentsen, with the backing of Rep. Rosten-
Sen. Bentsen's proposal for a $300 tax
port for raising anyone's taxes. Knowing
kowski and House Speaker Thomas Foley
credit for each child, on top of the personal
that, Sen. Bentsen has proposed to cut de-
of Washington, firmly disagreed.
exemption that taxpayers already claim
fense spending instead-but again faces
Meanwhile, a small but increasingly vo-
and regardless of incôme, would cost $60
the opposition of colleagues like Sen. Byrd,
cal group of Democrats is arguing against
billion over five years. Rep. Rosten-
who wants to use any such peace dividend
any tax cut for fear the costs will soak up
kowski's plan for a two-year tax credit of
for domestic programs.
funds for more traditional Democratic eco-
up to $400 for each middle-income family,
Republicans insist they'd oppose any
nomic proposals. "There is certainly no
based on a working taxpayer's Social Secu-
tax increase, but at least one suggests a
need to hurry and pass this plan," says
rity payroll tax liability, would cost $46 bil-
possible alternative. Sen. Bob Packwood of
Senate Appropriations Committee Chair-
lion.
Oregon, the senior Republican on the Fi-
man Robert Byrd of West Virginia. "It is
While Sen. Bentsen's option is more
nance Committee, says Congress could cap
the wrong course for America."
generous to parents, Rep. Rostenkowski's
the deductions that upper-income tax-
But even these dissenters acknowledge
alternative would reach more taxpayers
payers can take. The effect is the same as
that a tax cut will be hard to stop. "When
generally-80% by his estimate. Unlike
an income-tax increase, but not SO obvious.
you put a bill out there for a tax cut,' says
Sen. Bentsen, Rep. Rostenkowski also
"You don't necessarily have to raise the
Ohio Sen. Howard Metzenbaum, "it's
would make the tax credit refundable SO
rates," he says.
pretty darn hard to defeat."
that poor workers who have little or no tax
Rep. Rostenkowski, meanwhile, has
Republicans, meanwhile, face civil
liability still could benefit.
proposed a new top income-tax rate of
wars of their own. In the days before Mr.
President Bush's proposal to raise the
35%-on top of the current scale of 15%,
Bush unveiled his budget plan, insurgent
personal exemption, which would cost $23.8
28% and 31%-and an added surcharge on
conservatives threatened revolt if Mr.
billion over five years, is proportionally
people with incomes of $1 million or more
Bush wasn't bold enough about slashing
more generous to upper-income workers, a
that would make their effective top tax
taxes: they'd be "off the reservation,' a
disparity that troubles even some fellow
rate about 38%. The chairman thinks Mr.
House GOP leader, Oklahoma Rep. Mickey
Republicans in Congress. A simple $300 or
Bush ultimately would accept such a tax
$400 credit is the same for taxpayers of all
increase, as he did in 1990.
incomes; by contrast, the president's pro-
"He's not going to be for it," says Mr.
posed $500 increase in the personal exemp-
Rostenkowski, "but I'll bet you $50 he go
tion would mean an additional $140 per de-
to the Oval Office and say, 'I didn't want to
pendent for a taxpayer in the 28% tax
do this, but it's the only way.
Critics: It's
uninspired,
insufficient
By Jessica Lee
and Richard Wolf
USA TODAY
1/30/92
President Bush sent Con-
gress a $1.52 trillion election-
year budget Wednesday -
larded with tax breaks, invest-
ment incentives and spending
caps intended to turn around
the economy.
"We'll be able to provide
these and still stay within the
budget caps," Bush said.
The budget carries $351.9
billion in red ink. And Bush-or-
dered cuts will send the deficit
for the current year to $399.4
billion, $50 billion above the
latest estimates.
Basically, Bush proposes
about $40 billion in tax cuts
paid for with a combination of
entitlement reductions and
spending freezes, say analysts
at the Office of Management
and Budget.
Democrats criticized Bush's
plan as insufficient and unin-
spired. They vowed to advance
an anti-recession package, one
that emphasizes middle-in-
come tax cuts.
"This administration is
thinking about the 10 months
until election day," said Rep.
Leon Panetta, D-Calif., House
Budget Committee chairman.
GOP conservatives were un-
impressed. "The budget is real-
ly a fraud," said Burton Pines
of the Heritage Foundation.
Bush called on Congress "to
lay aside partisanship and to
join me in enacting this growth
agenda promptly" in a brief
budget message.
Speaking as presidential
candidate girded for battle,
Bush challenged a joint session
of Congress to pass his plan by
March 20.
Senate GOP leader Robert
Dole, R-Kan., urged all Repub-
licans to "roll up our sleeves
and help him meet his March
20 deadline."
Democrats were hesitant.
"We want to act, we intend to
act, we will act," said Senate
Majority Leader George Mitch-
ell, D-Maine, "not because of
any so-called deadline, but be-
cause it's the right thing to do."
Still, Treasury Secretary
Nicholas Brady vowed con-
gressional inaction won't hold
the economy back: "The presi-
dent's feeling is that the recov-
ery is on its way."
Bush Pushes Plan
WP
As Criticism Rises
1/31/92
Most in Poll Fault Economic Package
By Eric Pianin and Richard Morin
Washington Post Staff Writers
President Bush sought to pump
In Budget,
up support for his tax and economic
recovery plan with a campaign-style
appearance in Philadelphia yester-
The Deficit
day, but a new survey found that a
majority of Americans do not be-
lieve they would significantly ben-
Is a Victor
efit from his proposals.
A Washington Post-ABC News
Poll also showed that seven out of
By Steven Mufson
10 said Bush's economic plan does
Washington Post Staff Writer
not go far enough to help the econ-
Two years ago, Bush admin-
omy and that half of those ques-
istration budget director Rich-
tioned believe that Bush simply.
ard G. Darman unveiled a tax
does not "understand the economic
and spending plan that he said
problems people in this country are
having."
would produce a federal gov-
The poll found that 46 percent of
ernment budget surplus by the
1993 fiscal year.
those questioned said they ap-
proved of the job Bush was doing as
Now that the time has come
president, virtually identical to his
to make budget plans for
45 percent approval rating two
1993, Darman estimates that
weeks ago. It marked the third con-
the administration will miss its
secutive time since mid-December
old target-by $357.6 billion.
that Bush's approval rating has
With the presentation of the
been below 50 percent in Post-ABC
fiscal 1993 budget, the Bush
News polls.
administration is abandoning
On Capitol Hill, the president's
all pretenses at wiping out the
proposals rekindled Democratic
government's budget deficit.
charges that the president is more
In its new budget document,
concerned about helping the rich
the administration projects
than the middle class. House and
large, continuing federal budg-
Senate Democratic leaders yester-
et deficits, "as far as the eye
day stepped up their criticism of
can see," as President Rea-
Bush's tax package and budget,
gan's first budget director, Da-
contending that Bush had resorted
vid Stockman, put it nearly a
to budget "gimmickry" to finance
decade ago.
his proposed cut in the capital gains
Bush's proposed changes in
tax and other measures.
taxes will drive up the deficit
House Majority Leader Richard
in the current fiscal year to re-
A. Gephardt (D-Mo.) charged that
cord levels by every stan-
Bush had failed to break with Re-
dard-$399.1 billion, or 6.8
publican policy mistakes of the
percent of gross domestic
1980s. "Instead, he asks that we
product, the latter figure
relive the failed experiment of Rea-
breaking the previous post-
ganomics, prolong the pain felt by
World War II record set in
See PRESIDENT, A12, Col. 1
1983. That means that every
American-man, woman and
Buyers stall home closings; costs
See DEFICIT, A12, Col. 5
of failed banks rise. Pages C1, C3
WASHINGTON POST-ABC NEWS POLL
Do you approve of the way George Bush
is handling his job as president?
100%
90
80
APPROVE
70
Gulf
49%
60
war
50
40
DISAPPROVE
30
46%
20
10
0
S
0
N
D
J
F
M
A
M
J
J
A
S
0
N
D
J
1990
1991
1992
BY RAY LUSTIG-THE WASHINGTON POST
Rep. Gephardt said Bush had failed to break with GOP mistakes of the 1980s.
Do you approve or disapprove of the way Bush is handling the nation's
economy?
1992
1991
1990
Jan. 29
Dec. 15
Oct. 21
June 2
Jan. 27
Jan. 16
Majority in Poll Faults
Approve
28%
24%
37%
46%
45%
61%
Disapprove
69
70
60
50
49
34
Don't know
3
6
3
4
6
5
Bush's Economic Plan
I'm going to mention some of the proposals Bush made in his speech.
After each would you please tell me whether you think it would help the
economy a great deal, a good amount, just a little or not at all?
PRESIDENT, From A1
night suggested that the president
Jan. 29, 1992
has done little to ease public con-
Great deal/ A little/
middle-class Americans, and rely on
cerns about his handling of the
good amount not at all
more of the kind of budget gim-
economy. The survey found that 28
Provide tax credits up to $3,700 a year to help low-
60%
39%
mickry which is driving the deficits
percent of those questioned said
and middle-income families buy health insurance
Give first-time home buyers a tax credit of up to
55
43
smothering our economy," Gep-
they approved of the way Bush was
$5,000 to buy homes built this year
hardt said.
handling the economy while 69 per-
Allow first-time home buyers to withdraw up to
52
47
Office of Management and Bud-
cent disapproved, virtually un-
$10,000 from IRA accounts without penalty
get Director Richard G. Darman
changed from December.
Raise the tax exemption for children by $500
47
52
defended Bush's plan during testi-
Those surveyed expressed en-
a year
thusiasm for parts of the overall
Cut the capital gains tax from a maximum rate
45
50
mony before the House Budget
Committee and predicted that it
plan. For example, the poll found
of 28 percent to a maximum rate of about
15 percent
would speed up the long-awaited
that three out of four persons ques-
Allow tax deductions for interest paid on
45
53
economic recovery if enacted by
tioned said they favored Bush's plan
student loans
Congress before the March 20
to cut defense spending by an ad-
Freeze federal spending on most domestic programs 40
56
ditional $50 billion over five years.
except those that pay benefits
ideadline set by the president. As for
Reduce federal income tax paycheck withholding
37
60
Those questioned were divided
allegations of budget chicanery,
on the benefits of Bush's proposal
by an average of $345 a year
Darman replied: "We've been very,
to reduce the capital gains tax from
very straight."
28 percent to about 15 percent.
Do you think Bush's proposals to improve the economy go far enough
Bush's Philadelphia speech, the
or not?
Forty-five percent of those ques-
first in a series of events planned to
tioned said the reduction would help
Yes
26%
rally support for his plans unveiled
the economy, while 50 percent said
No
69
in his State of the Union address
Too far
2
it would have little impact.
Don't know
3
Tuesday. drew scores of demon-
But when considered together,
strators outside the hotel, some
69 percent of those polled said
Do you think Bush's economic proposals will help your own personal
holding signs that read, "Where's
Bush's proposals to improve the
financial situation a great deal, a good amount, just a little or not at all?
the Jobs?" and "Sayonara George."
economy did not go far enough. And
"You can affect the way Congress
62 percent said Bush's plans would
Great deal/ good amount
20%
A little/ not at all
79
approaches this program," Bush
help the economy "just a little" or
Don't know
1
told about 600 people at a luncheon
"not at all."
of the Greater Philadelphia Cham-
Yet the survey also found that, by
Did Bush's speech make
2 to 1, most Americans supported
14%
ber of Commerce. "With your help
you more likely or less
Not
More likely
we'll get action and we will reaffirm
Bush's call for Congress to act on
likely to vote for his reelection,
much
our country's rightful place as the
his economic proposal by March 20.
or won't it have much of an
effect
20%
Less likely
world's leader, for this decade and
But eight in 10 expected Congress
effect on your vote?
61%
Don't know
the next century.
will fail to meet the president's
5%
"The pessimists are wrong,"
deadline.
Bush declared. "We are going to
A total of 769 randomly selected
NOTE: Numbers do not add to 100% when "don't know" is not shown. Figures are based on a
adults were interviewed Wednesday
pull out of these hard times."
Washington Post-ABC News overnight, national poll of 769 randomly selected adults conducted Jan. 29.
Bush sought to reemphasize the
night for the Washington Post-ABC
Other poll results come from Washington Post-ABC News polls with samples averaging about 1,000.
Margin of sampling error is plus or minus 4 percentage points for this poll and plus or minus 3
News Poll. Margin of sampling er-
percentage points for the other polls. Sampling error is, however, only one of many potential sources of
fact that he has an economic plan in
ror for a sample of this size is plus
error in these or any public opinion polls. Interviewing was conducted by Chilton Research of Radnor, Pa.
a political commercial airing in New
BY TOBEY-THE WASHINGTON POST
or minus 4 percentage points.
Hampshire, where the president is
On Capitol Hill, Democrats con-
being challenged by conservative
tended that the administration's
ods to mask the true size of the def-
dent's tax package, Mitchell said in
Patrick J. Buchanan in the GOP pri-
projections have exaggerated the
icit, which the Office of Manage-
pre-session comments to reporters.
mary.
revenues that the tax package will
ment and Budget says will reach
In a speech, Byrd accused Bush of
Striding across the Oval Office
generate. In particular, they dis-
nearly $400 billion this year. Dar-
ignoring a "window of opportunity
with his hands in his pockets, Bush
puted the administration's claim
man has denied the allegation.
here to divert unnecessary defense
says in the ad that his proposal "will
that the government would actually
In the Senate, Majority Leader
spending to critical domestic
cut taxes for families, encourage
boost revenue by cutting the capital
George J. Mitchell (D-Maine) and
needs."
investment SO businesses can cre-
gains tax by nearly half.
Appropriations Committee Chair-
ate new jobs, and restore the value
House Budget Committee Chair-
man Robert C. Byrd (D-W.Va.) crit-
Staff writers John E. Yang in
of homes and real estate."
man Leon E. Panetta (D-Calif.) also
icized the administration's budget.
Philadelphia and Helen Dewar and
However, the Washington Post-
voiced suspicion that the adminis-
"It falls short, and it's filled with
Howard Kurtz in Washington
ABC poll conducted Wednesday
tration switched accounting meth-
gimmicks" to finance the presi-
contributed to this report.
'It will
WT
work,'
1/31/92
Bush
declares
By Paul Bedard
and Frank J. Murray
THE WASHINGTON TIMES
The Bush administration
launched a full-court press for its
new budget plan yesterday, while
congressional Democrats criticized
the plan but promised to try to meet
President Bush's March 20 deadline
for action.
In Philadelphia, President Bush
told about 600 members of the
Chamber of Commerce that his eco-
2. nomic growth plan could be summed
up in three words: "It will work."
On Capitol Hill, Budget Director
Richard Darman told the House
Budget Committee that "clearly, the
president has a plan, a comprehen-
sive plan,
a plan which, if en-
acted, we believe will work."
An unusually aggressive Trea->
sury Secretary Nicholas Brady also
went on the offensive yesterday, ar-
guing that Mr. Bush's program will
"accelerate a recovery that's on its
way."
Using football metaphors and po-
litical fighting words, he told editors
and reporters of The Washington
Times he will join Mr. Bush on the
campaign trail to promote the plan
and defeat the so-called "fairness is-
sue" in which capital gains rate cuts
are portrayed as a gift to the rich.
"It's time to do more campaign-
ing, making the kind of policy points
I'm making here," said Mr. Brady,
who at one point predicted the bud-
get struggle will be a "a pig rassle."
He said a strong economic turn-
around will occur in the second
quarter of this year but was unwill-
ing to predict if it would be closer to
April 1 or to July 1.
Mr. Brady said he has been col-
lecting anecdotes and letters "from
Middle Americans" who would
benefit from the proposed capital
gains tax reduction. He plans to use
the anecdotes to prove the effect is
beyond what he called the "Kluge
and Rockefeller" factor - a refer-
ence to two of America's richest
families.
He said more than 50 percent of
Americans would be affected by a
see BUDGET, page A8
Reuters
President Bush tells Philadelphia's Chamber of Commerece yesterday that his economic growth plan will work if Congress gives it a fair chance.
BUDGET
"We'll be a little better at it.
I
tration - "rosy scenarios, massag-
been thick with feel-good gimmicks
don't think we did a very good job
ing of numbers, cost and timing
that have nothing to do with true
From page Al
last year," Mr. Brady said.
shifts [and] accounting gimmicks."
prosperity and everything to do with
He also said the Congressional
The Bush plan lacks credibility or
politics."
capital gains cut, "so at least 50 per-
Budget Office scoring system that
fairness, Mr. Panetta said.
He added: "The American people
cent of them already understand it."
rates capital gains tax cut as a drag
Senior administration officials
want action.
Every day, individ-
Real estate tax incentives at the
on the deficit, instead of recognizing
said Mr. Bush's visit to Philadelphia
ual Americans are hard working to
core of the plan also will make a
the immediate quick gains, is a
yesterday was the beginning of a na-
get this economy back on its feet,
difference to industry workers "with
"crooked way" of looking at things.
tionwide effort to convince voters
and it's time for Congress to do the
mud on their boots and sheetrock on
"Time and tide are with us now,"
that the economy is recovering and
same thing."
their shoulders," he said.
he said. He recalled being told dur-
that the media and Democrats are
According to Mr. Panetta, the
"These things have a cycle of their
ing a visit to Capitol Hill that the
making it sound bad simply to hurt
president's suggestion to cut the
feeling of economic impotence in the
his re-election chances.
own. It's time for this to happen," he
capital gains tax would reap an aver-
said.
country will provide the chance to
"This is no time for doom and
age savings of $19,000 for those tax-
The Treasury Department made
fulfill Mr. Bush's campaign pledge
gloom," he told the Philadelphia
payers earning $200,000 or more an-
it clear yesterday that the dramatic
on capital gains.
Chamber of Commerce, the group
nually - the richest 3 percent of
$5,000 tax credit proposed for "first-
Budget Committee Chairman
the White House picked to hear Mr.
American families.
time home buyers" would be more
Leon Panetta said yesterday that his
Bush's first speech since the State of
House Majority Leader Richard
panel and the House Ways and
the Union address in which he out-
broadly available than initially rec-
Gephardt of Missouri compared
ognized.
Means Committee are "planning to
lined his growth plan.
that with Mr. Bush's call to add $500
"First-time" is defined as any per-
move quickly" on the president's
The president was accompanied
per child to the $2,300 personal ex-
son or couple who has not owned a
budget proposal and will try to meet
by first lady Barbara Bush, Chief of
emption on federal income tax. The
house for three years or more, a
his deadline.
Staff Sam Skinner, communications
reduction will not take effect until
Treasury Department spokeswoman
"The speaker has asked [us] to
director David Demarest and image-
October and will net most families
said yesterday.
meet through the Presidents Day
maker Sig Rogich.
with two children only $37.50 in sav-
Mr. Brady said the capital gains
break and to try to report a budget
Mr. Bush appeared to forget his
ings this year, he said.
rate cut "got trapped in the fairness
resolution to the floor by late Febru-
pledge Tuesday night to lay off Con-
Mr. Gephardt clamored for deep-
issue" but is ripe for passage this
ary or early March, and we intend to
gress until after March 20, his dead-
er cuts in defense spending, saying:
do that," the California Democrat
line for action.
year. He said he and Mr. Darman
"Not only is the Cold War over, as the
argued their case to Democratic
said.
In an attack aimed at Democrats
president said, but World War II is
leaders, but they ignored those argu-
But Mr. Panetta accused Mr. Bush
proposing alternative economic
over."
ments and talked publicly only about
of employing the "smoke and mir-
growth and health plans, he said,
Carleton R. Bryant contributed
fairness.
rors" tactics of the Reagan adminis-
"The air back in Washington has
to this report.
REVIEW & OUTLOOK
WST
Budget Redux
1/31/92
Try pronouncing $1,516,700,000,000.
is simply to get the same $177 million
That's one trillion, five hundred six-
budget next year. The $800 billion enti-
teen billion, seven hundred million
tlement programs remain off-limits.
dollars, rounded to the nearest $100
All this, of course, is before the
million. This figure represents what
Democrats get their turn. To them,
President Bush proposes to spend in
this budget is dead on arrival. "We
Fiscal Year 1993.
don't operate that way," Senate Ma-
Now usually we don't make too
jority Leader George Mitchell said of
much of these big figures, preferring
Mr. Bush's deadline for congressional
to use the much simpler concept of
action. The March 20 date "has no
percent of GNP. Last year's budget
meaning in terms of what and how we
disclosed that FY 1992 marked the
act." The congressional leaders are
first time that the federal government
building up to a new trip to Andrews
would spend more than 25% of the na-
Air Force Base with what passes for
tion's total output as measured by
negotiators from the executive
GNP. Maybe the figure for FY 1993 is
branch.
buried somewhere in the 2,000-page
There are some hopeful signs. One
budget document, but SO far we've
indication that even the Beltway un-
been unable to find it. The OMB says
derstands how absurd the budget
it will be the middle of next month be-
looks is that the Washington Post used
fore it will release the previously rou-
its federal page this week for an ex-
tine historical tables that show the
cerpt from P.J. O'Rourke's "Parlia-
trend of such data as gross national
ment of Whores"; the headline was
product, spending and receipts.
"Baselines and Budget Booty." Mr.
Now it's true that the government
Bush would cancel 246 domestic pro-
has just announced a revision of its
grams, including such howlers as
statistical procedures. Total output
grants to study mesquite, milkwood,
will no longer be measured by GNP
asparagus yield declines, blueberry
but by gross domestic product. Most
shoestring virus, grasshopper "bio-
other nations keep books this way,
control" and problems with the
and the standardization is a good
prickly pear cactus.
thing. While the OMB could scarcely
The secret of federal budgets is
have been surprised by the changes,
that even record spending is manage-
maybe this is an excuse. On the other
able during periods of record eco-
hand, someone once coined the adjec-
nomic growth. But instead of trying to
tive "Darmanesque," and the absence
recapture the growth of the 1980s, Mr.
of a figure on outlays as a percent of
Bush's program aims to help the
national output is certainly conve-
wrong targets, helping big business in-
nient, since this year's budget must
vest more so it needs fewer workers
set a new record.
but doing little for the smaller, entre-
We do know that Mr. Darman's
preneurial firms that created the jobs
OMB estimates a deficit of $399 billion
in the '80s. The surprise in the budget
this year up from last year's record of
is a provision that Wall Street houses
$269 billion. These are the results of
would have to pay taxes on their hold-
the "budget agreement" in which Re-
ings on an annual marked-to-market
mocrats and Depublicans agreed to
basis. This is a direct slap at firms
raise taxes in order to curb the defi-
still trying to raise funds through the
cit. This year, it seems, the Bush ad-
equity markets during the credit
ministration first negotiated with it-
crunch.
self, compromising on its capital-
At least, we stressed yesterday,
gains proposal and offering up a $10
Mr. Bush gave himself a March 20
billion cut in military spending. Ex-
deadline to do something, and in a
cept for defense, this is a spending
way the politics is more important
chow down. Medicare alone would go
than the specific proposals. Still, this
up $11 billion. Washington would con-
budget is not a fighting document. In
tinue to fund mass-transit systems,
a recession families are keeping a
even for a city that canceled the low-
close eye on their household budgets.
est-cost contract because it happened
Federal mandates are forcing states
to be won by a Japanese manufac-
and localities to choose between cut-
turer. Among other big winners are
ting costs or risking the wrath of tax
Head Start and AIDS research. Regu-
increases. The only place in America
lators at the EPA and SEC also have
where anyone still assumes he can ig-
reason to cheer. The punishment for
nore constraints on spending is Wash-
the National Endowment for the Arts
ington.
Taking the pledge of the Bushoisie
BILL PASCOE
WT 1/31/92.
he social philosopher John
T
Cougar Mellenkamp -
known to those well-heeled
in American rock 'n' roll as
the Bard of Bloomington - said it
best: "If you don't stand for some-
give him another chance, please.
single apology for any of his broken
thing, you'll fall for anything."
And, besides, doesn't that Persian
promises, and all the pain and suffer-
Apparently, President Bush be-
Gulf Thing (OK, so Saddam still has
ing they've caused - asks them to
lieves the American people don't
his job, and you don't have yours any-
rally behind him
more, but so what?) and that End of
for one more cam-
stand for something - because his
State of the Union address is clear
Communism Thing (never mind 1.25
paign.
billion Chinese) count for some-
And he did it
indication he believes we'll fall for
anything.
thing, huh?
with a straight
After three years of regulatory
It's a remarkable case of chutz-
face.
increases, tax increases and spend-
pah. Truly remarkable.
Just remark-
ing increases, he implicitly asks us
After all, this is the man who
able.
to believe he didn't mean it, really,
broke not just the No New Taxes
The speech, de-
promise, but a whole host of other
livered three nights ago after 10
and he's sorry, honest, and won't we
promises he made to conservatives
weeks of hype, was billed by chief
in the 1988 campaign, trying to rally
speechwriter Tony Snow as "the
Bill Pascoe is a political consul-
their support.
most important speech since God
tant and a columnist for The Wash-
And now he comes before the
said 'Let there be light.'
ington Times.
American people and - without a
against Congress on March 21 if his
programs have not been passed by
then.
This is disingenuous, to say the
least, on at no less than two counts:
Comparing the speech to Genesis
was prepared to lead us out of reces-
First, the 50-day time limit is
1:3 may be overstating the case
sion.
egregiously hypocritical. Mr. Bush's
somewhat, but not by much - at
Sure, he made several important
first "wait for the State of the Union"
least not as far as the president's
proposals. Capital gains tax reduc-
response to a question about what he
chances for re-election are con-
tion, tax credits for first-time home
planned to do about the recession
cerned. Ever since the staff shift at
buyers, a selective regulatory mor-
came as far back as Nov. 15 - 10
the White House at the end of No-
atorium and changing the withhold-
weeks ago. If the recession is so se-
vember and the concomitant will-
ing schedule, to name a few. Each
rious a problem that he believes a
ingness to admit that, yes, Virginia,
has its own constituency; but each
remedy must be written into law by
there was a recession, after all - we
also must be passed by the Congress
March 20, why did he make us wait
have been waiting for the other shoe
(except for the change in withhold-
10 weeks to hear his plan? The logic
to drop. He who would say A must
ing schedules, accomplished by Ex-
escapes me.
say B, and a president who admits
ecutive Order, and which - coinci-
dentally? - will put less than $10 a
Second, to believe that George
there is a recession is therefore ob-
week into the average family's
Bush will actually declare war on
ligated to propose a way out.
hands).
Congress is to believe in the tooth
And, sadly, Mr. Bush did nothing
Now, if we are to believe Mr. Bush
three nights ago to convince us he
this time, he will go on the warpath
see PASCOE, page F4
PASCOE
And if they don't have issues to
litical life, and SO goes merrily about
use, he wins by default.
his business, removing from public
From page F1
So goes the theory.
debate the very issues he needs to
Hence, all the compromises
use to win re-election.
fairy and little green men on the
made by Mr. Bush during his first
The great irony is that in seeking
moon.
three years in office. Taxes. Amer-
to ensure his own re-election by com-
This is a man who has made com-
icans with Disabilities Act. The
promising the principles of his
promise and conciliation the center-
quota bill. Gun restrictions. No im-
party, he will actually make his re-
piece of his re-election strategy,
plementation of the Beck labor law
election more difficult.
which, contrary to some published
decision. "Big tent" on abortion. To
The Bush re-election campaign,
reports, has actually been in place
name a few.
to be sure, will use the Congress as
since Day One of the Bush admin-
The reality, sadly (for both the
a foil, and will once again paint the
istration.
country now, and Mr. Bush later), is
eventual Democratic nominee in lib-
The strategy is based on this sim-
quite different.
eral hues. Mr. Bush will accede to
ple premise: If we (e.g., the Bush-
For it is precisely those issues
this because, as he informed David
oisie) can just remove all the conten-
that separate the two parties, for a
Frost, he "will do what it takes" to be
tious issues from public debate -
reason - because that's the way
re-elected.
issues such as taxes, the budget defi-
good Republican strategists have set
But do not mistake this for deep-
cit, civil rights, gun control, abor-
them up, because that's how Repub-
rooted beliefs on Mr. Bush's part. If
tion, policy toward the (now former)
licans win elections on the national
he had them, he never would have
Soviet Union, implementation of the
level.
agreed to the budget accord that got
Supreme Court's Beck ruling that
By polarizing the country along
us into this mess in the first place.
union members can be forced to pay
liberal vs. conservative lines every
Perhaps it's he who really fits the
dues only to support job-related mat-
four years, GOP presidential candi-
Mellenkamp line best, not us. Be-
ters, etc. - then the Democrats
dates since 1968 have won all but one
cause he doesn't stand for some-
won't have any issues to use against
election.
thing, he's fallen for anything.
Mr. Bush in the re-election cam-
Yet Mr. Bush seems not to have
But we know better.
paign.
learned this fundamental fact of po-
Don't we?
News Summary
OFFICE OF THE PRESS SECRETARY
THE WHITE HOUSE
WASHINGTON
WEDNESDAY, JANUARY 29, 1992
6:00 A.M. EST EDITION
NATIONAL NEWS
BUSH TELLS NATION RECESSION 'WILL NOT STAND' -- President Bush,
seeking new momentum for his presidency and a tone for his
reelection campaign, tried to summon the victorious spirit of the
Persian Gulf War Tuesday night and urged Americans to battle
economic hard times just as U.S. forces battled Iraqi forces.
(Washington Post, AP, Copley, New York Times, Chicago Tribune,
Boston Globe, Newsday, Los Angeles Times, Washington Times,
Cleveland Plain Dealer, Miami Herald, Reuter)
PANEL APPROVES ADDED JOBLESS BENEFITS -- With firm backing from
President Bush, the House Ways and Means Committee Tuesday approved
a $2.7 billion measure to provide an additional 13 weeks of
benefits to an estimated 2 million unemployed workers.
(Washington Post)
INTERNATIONAL NEWS
JAPAN HOPES BUSH PROPOSALS WILL EASE FRICTION -- Japanese business
and government officials Wednesday warmly welcomed President Bush's
plans to stimulate the ailing American economy, saying they would
help ease friction over trade.
(Reuter)
NETWORK NEWS (Tuesday evening)
STATE OF THE UNION -- The Bush
Administration says tonight's
speech is the big one,
intended to launch the
President's campaign.
NATIONAL NEWS
A-1
ECONOMY -- The Conference
INTERNATIONAL NEWS
A-13
Board says only 19 percent of
consumers believe conditions
NETWORK NEWS
B-1
will get better in the next
six months.
CHILDREN -- In the face of
criticism, President Bush has
been spending more time on
children's issues.
This Summary is prepared Monday through Friday by the White House News Summary Staff.
For complete stories or information, please call 456-2950.
NATIONAL NEWS
BUSH TELLS NATION RECESSION 'WILL NOT STAND'
In State of Union, President Evokes Spirit of Gulf War
President Bush, seeking new momentum for his presidency and
a tone for his reelection campaign, tried to summon the victorious
spirit of the Persian Gulf War Tuesday night and urged Americans
to battle economic hard times just as U.S. forces battled Iraqi
forces.
Borrowing rhetorical flourishes from conservative icon Barry
Goldwater and President Kennedy, Bush used his third State of the
Union address to challenge Americans to think big in order to find
big solutions to big problems
Earlier in the evening, a senior Administration official told
reporters that the idea of a tax cut was dismissed as
"nonresponsive
This is a very structured program for a very
structured need," the official said
Peggy Noonan helped write the speech. Her contributions are
most notable in Bush's closing remarks, in which he called on
Americans to summon the best in them to overcome the hard times.
"There is a mood among us," he said. "People are worried, there
has been talk of decline
Moods come and go, but greatness
endures. Ours does
We have always risen to the occasion."
(John Yang, Washington Post, A1)
State of The Union: Bush Proposes Tax Breaks, Military Cuts
President Bush on Tuesday night proposed election-year tax
breaks and business incentives to revive America's economy and
vowed, "We're going to lift his nation out of hard times." Bush
also announced dramatic cuts in the U.S. nuclear arsenal.
In his State of the Union speech, the President challenged the
Democrat-controlled Congress to back his economic programs by march
20 or face a political fight. Invoking Gulf War rhetoric, he vowed
the recession "will not stand. "
"The American people were expecting meat and potatoes on the
menu tonight, and instead they got potluck and leftovers," said
Sen. Byrd. "He offered no hope to the millions of American men and
women standing in the unemployment lines."
(Terence Hunt, AP)
Bush Proposes Middle Class Tax Cuts, Military Spending Reductions
President Bush, paying tribute to the demise of the Cold War
and last year's triumph in the Persian Gulf, proposed a sweeping
agenda of middle-class tax cuts and military spending reductions
Tuesday night as he sought to enlist the nation in a battle to
reinvigorate its economy. Invoking the martial rhetoric of
Operation Desert Storm, the President told the nation in an
election-year State of the Union address, "We're going to set the
economy free, for if this age of miracles and wonders has taught
us anything, it's that if we can change the world, we can change
America."
(Finlay Lewis, Copley)
-970m-
White House News Summary
Wednesday, January 29, 1992 -- A-2
Bush Vows Economic Relief And Proposes Modest Steps
Staking his political fortunes on advice that the economy will
right itself by summer, President Bush delivered a State of the
Union message Tuesday night that offered modest proposals to ease
the immediate pain of middle-class taxpayers and erase the
impression that he is insensitive to America's economic burdens
Declaring in his prepared text that it was time to reward the
American taxpayer for decades of paying for Cold War arms programs,
Bush proposed $50 billion worth of Pentagon cuts over the next five
years and outlined new arms-control measures.
(Andrew Rosenthal, New York Times, A1)
Bush Speech Breaks Little New Ground
President Bush wagered his political future Tuesday night on
the belief that the economy would recover with only minimum
government interference, and he offered Congress and the country
repolished proposals but no major initiatives.
Urging Americans to trust in his leadership just as they did
during the Persian Gulf conflict, Bush confidently used the same
slogan of that battle to talk about problems with the economy. "I
know we're in hard times, but I know something else: This will not
stand, said Bush
Bush spoke with the aura of presidential
authority that he has summoned for his most important speeches.
(Timothy McNulty, Chicago Tribune)
Bush Says He Wants To Slash Defense Spending, Cut Taxes Modestly
President Bush, with his popularity at a record low and the
nation mired in a recession, Tuesday night unveiled a modest
economic recovery plan that could cut next year's taxes by a few
hundred dollars for many families but would slash defense spending
and eliminate 246 federal programs.
While vague on many details, Bush sought forcefully to portray
himself as a president who is as determined to end the recession
as he was in leading the Gulf War. Just as he once set a deadline
for Iraq to withdraw from Kuwait, he insisted that Congress must
pass his economic package by March 20.
(Michael Kranish, Boston Globe)
Bush: U.S. Could 'Look Homeward'
In a State of the Union speech aimed at reversing his
political slide and launching his reelection campaign, President
Bush Tuesday night declared that the U.S. could "look homeward" in
the aftermath of the Cold War as he outlined a modest economic
recovery package.
He borrowed the script from his last triumph, in the Persian
Gulf, saying of the recession: "This will not stand." He also
tried to borrow some of the soaring public mood of that time,
calling on Congress to bring "the same courage and common purpose
to the economy that we brought to Desert Storm."
(Susan Page, Newsday)
"Hore-
White House News Summary
Wednesday, January 29, 1992 -- A-3
Hard Economic Times 'Will Not stand,' Bush Tells Americans
President Bush, trying to rally a fearful and recession-weary
nation, declared in his State of the Union address Tuesday night
that hard times "will not stand" and offered economic proposals
intended to put more money in the hands of American taxpayers.
The most immediate elements of Bush's plan could be felt
within days: He ordered Secretary Brady to adjust federal tax
withholding tables that would allow wage earners to reduce the
amount of money withheld from their paychecks, in return for
smaller refunds each year. (James Gerstenzang, Los Angeles Times)
Bush Targets Missiles, Recession
President Bush announced a plan Tuesday night to rid the world
of land-based multiple-warhead nuclear missiles and appealed to
proposals they have rejected time and again
Congress as "patriots" to pass by March 20 economic Administration recovery
officials said his proposals and the 1993 budget will not break the
budget agreement but will stretch it for a time and increase this
year's deficit to $399 billion.
(Frank Murray, Washington Times, A1)
Bush's Rx: Tax, Arms Cuts
President Bush, mixing the warlike rhetoric that rallied the
nation during the Persian Gulf War with a "common sense" economic
plan, promised Americans Tuesday night the recession "will not
stand." In his third State of the Union message, Bush sought to
regain momentum for his foundering presidency by assuring that he
is now taking forceful action to revive the economy.
(Tom Diemer, Cleveland Plain Dealer)
President Appeals To Nation's Pride
President Bush, in a bid to restore public confidence in his
leadership, challenged Congress Tuesday night to pass his new
economic recovery plan by March 20
In
a
politically
charged
State of the Union address, Bush unveiled a consumption-spurring
economic stimulus program -- financed partially by savings from
sweeping reductions in the nation's nuclear arsenal.
(Charles Green & Ellen Warren, Miami Herald)
Bush Offers To Cut Taxes, Defense, Nukes
President Bush, vowing that hard economic times "will not
stand," Tuesday night proposed to cut military spending $50
billion, give tax cuts to millions and make unparalleled
reductions in Cold War nuclear weapons. In a long-awaited and
politically important State of the Union speech, Bush urged
opposition Democrats to cast aside election-year politics and work
together to enact his tax-cut package by March 20.
(Steve Holland, Reuter)
-970m-
White House News Summary
Wednesday, January 29, 1992 -- A-4
BUSH OFFERS A PLAN TO END THE RECESSION IN THIS ELECTION YEAR
For the first time in a decade, the President's State of the
Union address has focused on fiscal stimulus rather than spending
restraint. Politically, that may prove astute. But economically,
it poses an array of risks, notably increasing the federal deficit
to a projected $339 billion in the current fiscal year, a
record
"There's a perception out there now that he isn't on top of
the domestic policy agenda, in particular the economic dimensions,"
says RNC Chairman Clayton Yeutter. "President Bush must counter
that perception. Just to be sure the President succeeded, the
White House briefed business lobbyists in advance and asked them
to praise the proposal to the press.
(David Wessel & Michael McQueen, Wall Street Journal, A1)
BUSH OFFERS FEW DRAMATIC NEW PROPOSALS
After months of inviting voters to "stay tuned" for his State
of the Union address, President Bush Tuesday night offered a
political rerun that featured few dramatic new proposals but many
tried and true Republican themes.
Trying to jump-start his reelection campaign, the President
put forth a characteristically cautious and conservative message
for economic recovery that included many modest and marginal
programs but stopped short of offering a middle-class tax cut,
national health insurance or other sweeping proposals that had been
debated within the Administration.
(Jerry Roberts & Susan Yoachum, San Francisco Chronicle)
TAX PLAN CALLS FOR REBATE THIS YEAR, ARRAY OF CUTS
The Bush Administration is planning to give Americans their
1993 tax rebates in 1992 by changing the IRS withholding tables and
taking less out of the average weekly paycheck
The Administration asserted that the change -- the single
biggest item in the economic package -- would not break the budget
agreement and did not need to be offset by other tax increases or
spending cuts, adding that it falls within the scope of executive
action permissible under the budget agreement
Congressional Democrats and Republicans characterized the
President's tax package as a good starting point for deliberations,
although the Democrats warned that there would be strong
disagreements over how to finance the tax cuts.
"There's certainly grounds for compromise," said Rep. Downey.
"But I think one of the things the President must understand is
some of us want to raise taxes on the people who have been enjoying
themselves at the Bush-Reagan party for the past 10 years "
Sen. Bentsen said Tuesday that he was encouraged Bush had
picked up on the Democrats' theme of tax relief for the middle
class. "I think the President will find some sympathy in Congress
for those proposals he said. "The Democratic leadership in both
Houses has already made similar suggestions and we welcome the
President's interest in tax fairness."
(Steven Mufson & Eric Pianin, Washington Post, A1)
-
White House News Summary
Wednesday, January 29, 1992 -- A-5
FOLEY SAYS DEMOCRATS WILL SEEK FUNDAMENTAL CHANGES
Rep. Foley pledged Tuesday night that Democrats will seek
fundamental economic changes including national health insurance
and won't wait for "a national Administration without ideas.'
Foley, in the official Democratic response to President Bush's
State of the Union address, rejected some of Bush's central
proposals as inadequate to the nation's needs. And other Democrats
brushed aside the President's March 20 deadline for Congress to
enact an economic stimulus package.
Democrats "will seek common ground with the President and the
Republicans," Foley said. "But we will also stand our ground when
basic principles are at stake. "
Congressional Republicans, predictably, praised Bush's
address. "The President displayed leadership, for the present and
for the future, and now it's time for Congress to do the same,"
said Sen. Dole.
(Steven Komarow, AP)
Democrats Say More Fundamental Changes Needed
Sen. Mack said Bush was "inspiring" and added, "The
President has done the right thing by proposing a cut in the
capital gains tax to 15 percent. No other initiatives will do more
to create jobs. "
Rep. Rostenkowski said "we'll support the President,' but
negotiations still would be necessary to reach agreement on
particular programs. He indicated Congress was not bound by Bush's
suggested March 20 deadline, and "we might have a package by March
20 or not. "
Sen. Lugar said Bush "is determined to be as successful in his
war against the recession as he was in the war against Iraq."
Sen. Cochran said the President "struck the right tone in
talking about economic recovery as our major domestic concern right
now. He has described some good medicine for what ails the
economy."
Sen. Bradley disagreed, saying Bush's address is "clear proof
of how little attention he has paid to middle-class Americans and
their concerns during his presidency. One night's speech is no
substitute for three years of no policy, no vision and no
progress." Sen. Roth said, "George Bush's high stakes really paid
off. The President left little doubt that he is in charge and that
he has a bold plan of action."
(Robert Shepard, UPI)
Democratic Response To Bush Foreshadows Year of Partisan Conflict
"A speech that took 10 weeks to craft offers little more
than 10 months of solutions -- just enough to get the President
through the November election,' said Rep. Fazio. "There is no 21st
century foresight in this speech. There is only 1992 election cut
and paste. "
"The President has asked us to wait for three months to hear
his plan, and now he says he wants us to act in 45 days," Sen.
Inouye said. "It's rather unreasonable."
Sen. Rockefeller said there was "a very sour feeling in the
chamber" during the President's address. "I can't think of a worse
way to begin the legislative year."
(Mark Barabak & Marcus Stern, Copley)
-970m-
White House News Summary
Wednesday, January 29, 1992 -- A-6
Foley Pledges To Fight Bush On Broad Front
Rep. Moakley said, "The President talks about unemployment.
I'm sure he's concerned about it -- it's his own unemployment he
is worried about. This is a fellow that up to six months ago
didn't even admit there is a recession. Now he wants to do all the
things the Democrats have been telling him to do for his whole
term. If it takes low ratings from his pollster for this President
to support Democratic ideas, I hope he goes down to zero. "
Rep. Schroeder called Bush's boost for family programs
"welcome and long overdue, but regrettably more caring for the
campaign than caring for kids." "Four years ago, the President
campaigned as Rambo; now he's campaigning like Captain Kangaroo.
Four years ago, he waved American flags, now he's waving American
kids. "
(John Aloysius Farrell, Boston Globe)
Democrats Seek 'Common Ground' But Also Draw Line
Rep. Foley pledged Tuesday night that Congress will seek
"common ground" with President Bush while insisting on "fundamental
change from the unsuccessful economic policies of the past 12
years, including tax relief for average Americans financed by
higher taxes on the rich. In a tough response to the President's
State of the Union address, Foley made it clear that Democrats
intend to "stand our ground" on high-profile issues.
(Helen Dewar, Washington Post, A16)
Democrats Say Bush An Extension of GOP Past
Congressional Democrats echoed many of President Bush's themes
Tuesday night but rejected his approaches to tax cuts and health
care and blamed the country's economic ills on 12 years of
Republican leadership. "This should be America's high noon,' Rep.
Foley
said.
"But
instead
we face ominous, persistent recession
which reminds us anew of President Kennedy's warning that 'This
nation cannot be strong abroad if it is weak at home.
(Jennings Moss, Washington Times, A9)
BUSH, DEMOCRATS SQUARE OFF ON HEALTH INSURANCE
President Bush's flat rejection of national health insurance
in favor of tax credits has framed an election-year debate and left
Democrats to charge he is avoiding a health-care crisis.
"The American people can't get health-care reform without the
President's leadership," Sen. Rockefeller said Tuesday night.
"What stuns me is why he doesn't recognize that
Rockefeller
said Bush appeared to be "buffeted" by advisers on various sides
of the issue. Bush, he said, "does not have core beliefs" on the
issue.
Rep. Gephardt dismissed Bush's tax-oriented proposals as
"tinkering at the margins: Not bold, not comprehensive, won't
contain costs.
Rep. Russo said: "It was not even a Band-Aid.
It was like pouring salt on a wound."
Rep. Gingrich said Bush was still meeting with Republicans on
the health issue. "He is moving in the right direction, which is
away from socialism and toward free markets," Gingrich said.
(William Welch, AP)
-
White House News Summary
Wednesday, January 29, 1992 -- A-7
OPPONENTS GIVE BUSH LOW MARKS, ALTHOUGH HE BORROWS A FEW IDEAS
MANCHESTER -- The men who would replace President Bush were
split on whether his State of the Union address offered too much
or too little. But they were unanimous in calling its promises too
late -- and from a man who can't be trusted to keep them
"America needs a president who is ready to lead, not a
president who comes to the American public with an election-year
litany that gives an inaccurate perspective of the real state of
the union," said Sen. Kerrey.
"We're going to read the record, and the record is four years
of neglect, four years of broken promises," said Sen. Harkin
Gov. Clinton, listening to the President's speech in Houston,
heard Bush borrow his stump calls for welfare reform and
improvements in race relations, but said they rang hollow
"Can
we possibly say the answer to education is to spend life savings?"
Clinton said. "We were disappointed tonight. It was too little,
too late.
"It's voodoo economics continued," Paul Tsongas said. "George
Bush just offered promises, promises, promises. There's hardly an
interest group that wasn't offered a goodie.
Patrick Buchanan praised Bush's script and delivery but said
the speech rang familiar. "He's trying to coopt my ideas,"
Buchanan said. "We're going to have to measure the rhetoric of
tonight with the record of the past three years." (John King, AP)
BUSH GROWTH PACKAGE SHOULD PROVIDE HELPING HAND TO ECONOMY
President Bush's new "growth package" should give the
staggering U.S. economy a helping hand, but holds little in the way
of fast relief for the nation's unemployed, analysts said Tuesday.
Bush's economic recovery plan should give a moderate stimulus
to the economy this year and will probably be well received by the
markets, several economists said.
"There's no barn-burner fiscal stimulus here, but more in the
category of support for economic recovery, said Allen Sinai, chief
economist for Boston Co.
"Are the proposals good enough and large enough to have some
positive impact on the course of the economy? I think the answer
is yes," said Paul McCracken, a former head of the Council of
Economic Advisers under President Nixon. (Susan Cornwell, Reuter)
BUSINESS LEADERS GENERALLY PRAISE BUSH'S ECONOMIC PLAN
NEW YORK -- Business executives generally praised President
Bush's plan to revive the economy as outlined in his State of the
Union address, but some were skeptical of whether it went far
enough. Economists, meanwhile, were surprised by Bush's proposal
to lower income tax withholding rates and said it could provide an
economic stimulus.
"The President's economic growth package is right on course.
In fact, it's a road map for recovery," said William Schreyer,
chairman and chief executive officer of Merrill Lynch.
AT&T Chairman Robert Allen called the speech "encouraging."
"In particular, I was pleased the President has put a hold on new
regulations and asked for a high-level review of current ones,"
Allen said in a statement.
(Bart Ziegler, AP)
-970M-
White House News Summary
Wednesday, January 29, 1992 -- A-8
ECONOMISTS CALL BUSH'S IDEAS TOO LITTLE, TOO LATE, TOO COSTLY
For all the buildup about what it would contain, for all the
hoopla surrounding its release, the economic recovery plan offered
by President Bush Tuesday night comes down to just one thing:
Wait.
The President apparently believes he can wait out the nation's
troubles, confident that the economy will recover almost entirely
on a diet of lower interest rates, and in time to assure his
reelection in November
To some extent, economists expressed relief the Administration
had not gone further. "There's less here than meets the eye," said
Harvard University economist Dale Jorgenson. "Everybody agrees
that we can't afford to jump-start the economy with fiscal policy
and they seem to have seen that." (Peter Gosselin, Boston Globe)
BUSH TAILORS ANTI-RECESSION PLAN TO CAMPAIGN
President Bush Tuesday night bet his reelection on an economic
growth plan that analysts said was likely to fall short of stopping
the slump but might let him blame Congress if hard times
persist
"I can't imagine why they went to all the effort to hype this
speech, said Stephen Hess at the Brookings Institution, who added
that Bush's plan was "mostly warmed-over proposals.
David Mason, an analyst at the Heritage Foundation, called the
economic proposals "incredibly tepid." "We've had three years of
good speeches and bad policy from Bush and this was more of the
same, Mason said.
"The middle-class tax cut, which could have been and should
have been the centerpiece of Bush's plan, was stuck at the end,
almost as an afterthought," said Stuart Eizenstat, who served as
domestic policy adviser to President Carter
A top Republican involved in Bush's 1988 bid for the
presidency said that there "was no inspiration in this speech, and
I think that's what people were looking for." "I think that if
Bush were running for student council on what he said tonight, he
would lose," the campaign consultant said. (Gene Gibbons, Reuter)
FOR BETTER OR WORSE, SPEECH IS 'BEGINNING'
President Bush Tuesday night lost the State of the Union
expectations game but fulfilled the wishes of his senior aides to
propel the 1992 reelection campaign.
"It was kind of like waiting for Christmas and finding out
it's the Fourth of July," said Andy Daniels, a Tennessee political
consultant. But he said the speech, while "long-winded," is the
beginning of the campaign
Robert Teeter, in a phone call to GOP officials around the
nation, called the address "the kickoff" to the reelection. He
implored Republicans to ignore news media reports and Democratic
charges that Bush did not meet expectations. He told them instead
to describe the address as a solid economic recovery blueprint.
(Paul Bedard, Washington Times, A1)
-
White House News Summary
Wednesday, January 29, 1992 -- A-9
A DECLARATION OF POLITICAL WAR ON THE DEMOCRATS
A year after he summoned the nation to battle in the Persian
Gulf War, President Bush tried for a comeback Tuesday night. In
the name of the capital gains tax cut, alternative minimum taxes
and modifying the "passive loss rule, the President borrowed the
soaring language, the deadlines and the steely threats to Saddam
Hussein to construct a case for political war on the Democrats
"Our long nightmare is over," sighed one Bush partisan,
arguing Tuesday night that the speech "might not be great but it
gets us past the suicide stage."
(News Analysis, Ann Devroy, Washington Post, A1)
BUSH RESOLVE: TO 'DEFEAT HARD TIMES'
President Bush launched an assault on the recession Tuesday
in a stirring State of the Union speech, echoing his Gulf War
leadership as he declared, "This will not stand. "
"The Gip
couldn't have done any better,' said GOP consultant Jim Innocenzi.
Said RNC Chairman Clayton Yeutter: "He needed a performance of
that magnitude and he delivered."
(Judy Keen, USA Today, 1A)
BUSH'S SPEECH DRAWS CHEERS
There was a positive early response Tuesday night to President
Bush's nationally televised State of the Union address. In New
Hampshire, Bush's speech drew energetic applause from the crowd
gathered at T-Bones, a Bedford restaurant, that included many
patrons who said they were on the verge of voting Democratic.
"He recaptured my vote," said David Shafman, who owns used-
car dealerships in Bedford and Merrimac. "He talked tonight like
a leader. he sounded like somebody who was implementing something
instead of proposing something."
(Washington Times, A8)
SPEECH PROMPTS PRAISE AND CONCERN
LUBBOCK, Texas -- For local residents and area politicians,
President Bush's long-awaited State of the Union address was a hit-
and-miss affair that prompted both praise and concern.
"It seemed as though he hit everything pretty direct in his
address. But I've got mixed feelings. I believe he addressed the
rights things and has good ideas, but I'd rather hold off on
judgment until I see what comes about. Show me, not tell me," said
Wilfred Barton, a former Lockheed employee who has been out of work
since November
Rep. Combest praised the President's address and the economic
recovery plan. "I think he met all the expectations tonight. I
think it was something the American people will support," he said.
(Mike Erickson, Lubbock Avalanche-Journal)
-
White House News Summary
Wednesday, January 29, 1992 -- A-10
SHE'S STILL NOT SURE BUSH FULLY UNDERSTANDS
BOSTON -- A Massachusetts woman who was quoted by President
Bush in his State of the Union address a year ago said Tuesday that
she is still not sure the President fully appreciates how much
America is suffering in this recession.
"I think last year, when he said that he understood, he really
didn't understand," Kathy Blackwell said in a telephone interview
from her home in Craigville, on Cape Cod. "I think being locked
up in the White House with the advisers he had, he really didn't
have the opportunity. He wasn't out here with the real people."
(Christopher Daly, Washington Post, A12)
POST-SPEECH POLL FINDS MIX OF GLOOM, HOPE
NEW YORK -- President Bush's State of the Union address played
to a public divided much like his congressional audience of
applauding Republicans and glum Democrats, a poll taken minutes
after the speech indicated.
Forty-eight percent of those surveyed Tuesday night by CBS
News said they were worried they or an immediate family member
would lose their job this year.
Just 24 percent said they are better off than they were four
years ago. Thirty-two percent said they were worse off and 44
percent said they were about the same.
But 56 percent said they were confident Bush will improve the
economy, and 56 percent said they believe a tax cut the President
proposed will help end the recession.
(Howard Goldberg, AP)
EDITOR'S NOTE: "Budget Director Pushed To Background As Bush
Focuses On Domestic Policy," by Robert Pear, appears in The New
York Times, page A17.
"What The Bush Tax Plan Would Mean For You," by Ellen Schultz,
appears in The Wall Street Journal, page C1.
PANEL APPROVES ADDED JOBLESS BENEFITS
Measure Would Aid About 2 Million Unemployed; Bush Backs Plan
With firm backing from President Bush, the House Ways and
Means Committee Tuesday approved a $2.7 billion measure to provide
an additional 13 weeks of benefits to an estimated 2 million
unemployed workers.
The compromise measure, drafted by Reps. Rostenkowski and
Michel, would be financed with about $2.2 billion in revenues said
to have gone unspent last fiscal year and $500 million from
changing the method of paying corporate estimated taxes
The full House is expected to act on the bill next Tuesday,
while Sen. Bentsen said his committee will act on the measure
Thursday and send it to the Senate floor for approval late next
week.
"This new agreement puts additional unemployment compensation
benefits on a fast track to millions of unemployed American workers
and their families,' Bentsen said Tuesday. "Americans are hurting
and these additional weeks of benefits can help them hang on a
little longer."
(Eric Pianin, Washington Post, A4)
-
White House News Summary
Wednesday, January 29, 1992 -- A-11
ECONOMY NEARED ANOTHER DOWNTURN
The economy dipped dangerously toward a renewed downturn as
1991 ended, after appearing to emerge from the first recession in
a decade, economists say. But most analysts believe that although
the economy slowed appreciably in the fourth quarter, it did
continue growing weakly.
"On a quarterly basis, the economy hung in there, but no
better than that," said economist Robert Dederick of the Northern
Trust Co. in Chicago.
(John McClain, AP)
NARROW RALLY BOOSTS DOW BY 32 TO NEW RECORD
NEW YORK -- While most stock indexes managed only meager gains
ahead of President Bush's State of the Union address, blue chips
defied the norm Tuesday by surging nearly 1 percent to their eighth
closing record this year. The Dow Jones Industrial average rose
31.53 points to 3272.14, breaking the record of 3264.98 set Jan.
17.
(News Services, Washington Post, G2)
CONFIDENCE INDEX SLIPS AGAIN IN JAN.
NEW YORK -- Americans turned more pessimistic about their
financial and job security this month despite lower interest rates
aimed at helping the weak economy, a widely followed survey on
consumer confidence said Tuesday.
The Conference Board's consumer confidence index, which had
leveled off in December after sharp declines the previous two
months, fell again in January, largely on anxiety over future
employment and business conditions.
(AP, Washington Post, G2)
SENATE SNUBS BUSH ON PRIVATE SCHOOL FUNDS
The Senate Tuesday overwhelmingly approved legislation that
would pump new federal funds into local school improvement efforts
while denying President Bush's proposal to use some of the funds
to send low-income children to private schools
The education legislation was approved, 92-6, with most
Republicans supporting the Democratic-drafted bill despite
reservations about some provisions.
(Helen Dewar, Washington Post, A5)
STATES SPENDING LESS ON COLLEGES THIS SCHOOL YEAR
Reacting To Recession And Reduced Budgets,
Public Universities Raise Tuition, Trim Faculty
For the first time in at least 30 years, states are spending
fewer dollars on their colleges and universities this academic year
than in the year before, according to an analysis by Illinois State
University's Center for Higher Education.
After this academic year began, colleges and universities in
28 states discovered they would receive a smaller-than-promised sum
from the state as legislatures revised budgets and made spending
cuts, according to preliminary findings of a report by the American
Association of State Colleges and Universities.
(Mary Jordan, Washington Post, A6)
-970m-
White House News Summary
Wednesday, January 29, 1992 -- A-12
BUSH BOOSTS SSC BUDGET 34 %
President Bush's 1993 budget proposes a 34 percent funding
increase, to $650 million, for the Superconducting Super Collider,
one of the nation's most expensive and controversial scientific
projects. But congressional support may be wavering because Japan
has not committed itself to picking up any of the cost, Rep. Brown
said Tuesday.
Obtaining full funding for the atom-smasher is still "doable,"
said Brown, but the prospects are "not very encouraging. "
Brown, who recently visited Japan, said in a briefing and a
telephone interview that there is a "reasonable possibility" that
Japan will commit funds after elections after elections later this
year. "Is that enough to keep it going?" Brown asked. "The SCC
has a very speculative future."
(Thomas Lippman, Washington Post, A2)
POST, OTHER PAPERS ASK BYRD NOT TO SUBPOENA REPORTERS
Three major news organizations asked Sen. Byrd not to approve
subpoenas for the testimony of two reporters in a leak
investigation stemming from the confirmation hearings for Justice
Thomas.
The New York Times, The Washington Post, and the Wall Street
Journal said in letters that Nina Totenberg of NPR and Timothy
Phelps of Newsday should not be asked about their confidential
sources for reporting Anita Hill's allegations.
(Howard Kurtz, Washington Post, A5)
GOVERNOR TAPPED AS CO-CHAIR OF NEW TASK FORCE ON URBAN FAMILY
JEFFERSON CITY, Mo. -- President Bush reached into Missouri
on Tuesday and tapped conservative Gov. John Ashcroft as co-
chairman of a new task force on the urban family
In an
interview after the State of the Union speech, Ashcroft said he was
"delighted" to have been chosen. He said he would try to
strengthen the family by "reforming government programs that tear
the family apart."
(David Aguillard, St. Louis Post-Dispatch)
AT WHITE HOUSE, DEFINING THE JOB IS HALF THE BATTLE
Negotiating job assignments in the Bush White House is
starting to sound a little like negotiating a Middle East peace
-- one step forward, one step back.
The latest chapter involves Samuel Skinner's announcement on
Monday that Cabinet Secretary Ede Holiday would be the White House
liaison to the 1992 campaign.
By Tuesday, that announcement was being re-explained,
apparently after the question was raised of what Political Director
Ron Kaufman does if not act as liaison to the campaign. Holiday,
officials said, would be the legal liaison.
("Talking Points," Washington Post, A19)
EDITOR'S NOTE: "On Transit Bill, Negotiators Took Right Fork, by
Walter Pincus & Don Phillips, appears in The Washington Post, page
A19.
###
INTERNATIONAL NEWS
NAVY SUBS, BIG ARMY PROGRAMS FACING AX
The $50 billion in defense savings outlined in President
Bush's State of the Union speech would include canceling the $2
billion-per-copy Seawolf submarine and indefinitely delaying the
Army's next-generation "Block III" tank and RH-66 Comanche Light
Helicopter, the largest weapons programs in the Army's budget,
according to lawmakers briefed on the President's plan.
Secretary Cheney told key lawmakers in a closed-door briefing
at the Capitol Hill TUESDAY night that future defense budgets will
reflect a new emphasis on developing weapons technology but will
stop short of production in many cases.
(John Lancaster & Barton Gellman, Washington Post, A12)
BUSH'S PLAN WOULD CUT THE MOST MODERN, POTENT WEAPONS
President Bush's new arms control plan would reshape and
sharply reduce the strategic arsenals under Washington's and
Moscow's control by eliminating some of the most modern,
threatening and controversial weapons of the Cold War, according
to U.S. officials and independent experts
Bush said Tuesday night that the "early response" to his
initiative from President Yeltsin "has been very positive." A
senior U.S. official said Yeltsin planned to present "a program of
his own" at a planned meeting with Bush at Camp David this weekend.
(News Analysis, Jeffrey Smith, Washington Post, A12)
JAPAN HOPES BUSH PROPOSALS WILL EASE FRICTION
TOKYO -- Japanese business and government officials Wednesday
warmly welcomed President Bush's plans to stimulate the ailing
American economy, saying they would help ease friction over
trade
The officials in Tokyo said the package could have a twofold
effect on trade relations by helping to prop up the weak U.S.
economy and making American industry more efficient. "It is very
impressive to see the President's efforts to create more
competitive U.S. industry," an official at the Foreign Ministry
said.
(Scott Miller, Reuter)
TOKYO HAILS BUSH INITIATIVE ON NUCLEAR DISARMAMENT
TOKYO -- Japan Wednesday hailed President Bush's plan on
nuclear disarmament, unveiled in his State of the Union address,
and called on the Russian Federation to respond in kind. "This
initiative, following the President's initiative on nuclear
disarmament in September last year, will contribute to the peace
and stability of the world and the building of a new international
order," Foreign Minister Michio Watanabe said.
(UPI)
-
White House News Summary
Wednesday, January 29, 1992 -- A-14
JAPANESE LEADER PLANS QUIET VISIT
Miyazawa Rules Out Interviews At U.N.
TOKYO -- At a time of rising tension between the world's two
economic superpowers, Prime Minister Miyazawa till travel to the
U.S. this week -- but he will not say anything to the American
people
Though he speaks fluent English, he has turned down all
requests for interviews with American television and radio networks
during the trip, officials here said Tuesday.
"This is not a visit to the U.S. It is a visit to the United
Nations," Foreign Ministry spokesman Masamichi Hanabusa said
Tuesday. He said Miyazawa's schedule is tight and "the United
Nations is a higher priority." (T.R. Reid, Washington Post, A27)
NEW AMBASSADOR TO U.S. FEARS ESCALATING FRICTIONS
TOKYO -- Japan's newly named ambassador to the U.S. said the
world's top two economic powers cannot allow escalating frictions
"to gnaw away" at mutual trust. Worried about the apparent growth
of protectionist sentiment in the U.S., Takakazu Kuriyama said
Tuesday the situation has led to an "America as No. 1" mentality.
"We must build a relationship based on competition and
cooperation," said Kuriyama. "It is necessary to work together to
limit as much as possible the harmful influence of trade friction."
(UPI)
U.S., VIETNAM TO HOLD TALKS ON NORMALIZATION
Senior U.S. and Vietnamese officials arranged to hold talks
Wednesday to discuss issues that could lead eventually to normal
relations between the two countries.
Administration officials said Tuesday Deputy Assistant
Secretary of State Kenneth Quinn will head the U.S. side and Amb.
Trinh Xuan Lan will lead the Vietnamese delegation
"We expect that among the issues discussed will be consular
protection, financial claims and humanitarian assistance," a State
Department official said.
(Frank Csongos, UPI)
SOUTHEAST ASIANS MOVE TOWARD FREE-TRADE ZONE
SINGAPORE -- The leaders of six Southeast Asian nations signed
accords Tuesday aimed at creating a regional free-trade zone by
2008 and forging closer times with their longtime communist
adversaries in Indochina.
However, the long lead time in setting up the common market
and the limitations written into the accords suggested that the six
countries could find it difficult to live up to their rhetoric
about growing economic integration.
(William Branigin, Washington Post, A27)
-
White House News Summary
Wednesday, January 29, 1992 -- A-15
U.S. TRADE DEFICIT OVERSTATED, REPORT SAYS
Undercounting Exports Said To
Exaggerate Gap By Up To $20 Billion
The U.S. trade deficit is probably $10 billion to $20 billion
a year smaller than is officially reported because the nation's
exports are systematically undercounted, according to a study
released Tuesday by a panel of business leaders, bankers and
academics.
The group, which performed the 30-month study for the
congressionally chartered National Research Council, said the true
competitive position of U.S. companies is being misrepresented not
only by the imprecise trade data but also by many analysts' failure
to take account of the foreign manufacturing operations of U.S.
firms.
The panel noted that monthly trade data does not include the
sales of services abroad by U.S. enterprises, such as banks and
construction firms. And the figures do not reflect the profits
flowing back to the U.S. from American companies overseas. The
1991 U.S. trade deficit, without the adjustments suggested by the
panel, is estimated at $65 billion.
The report could provide comfort for the White House, which
is under fire from Democrats for its handling of trade relations,
especially with Japan. Protectionist sentiment in Congress has
been focused mainly on negative trade statistics. The group said
the timing of the report, on the eve of President Bush's State of
the Union address, was a coincidence.
(John Burgess, Washington Post, G1)
PALESTINIANS BOYCOTT MOSCOW PEACE TALKS
MOSCOW -- The multilateral phase of the Middle East peace
process got off to a discordant start Tuesday when Palestinian
delegates boycotted the opening meeting of foreign ministers
because some of the Palestinians were declared ineligible to take
part.
"We did not come to Moscow to be part of a truncated
delegation or to represent only one-third of the Palestinian
people," Palestinian spokeswoman Hanan Ashrawi said. She charged
that the rules set by the U.S. and Russia did not allow adequate
representation for Palestinians scattered throughout the Middle
East and other countries since the creation of Israel.
"We are disappointed of course that the Palestinian delegates
chose not to attend," Secretary Baker said. He said the U.S.
believes there is "merit" to the Palestinian complaint and is
seeking a compromise that would allow those excluded Tuesday to
join the talks when they break down into working groups.
"The Palestinians are making a mistake by not taking advantage
of this opportunity," Baker said. "We're sorry that they're not
here."
(John Goshko, Washington Post, A23)
-
White House News Summary
Wednesday, January 29, 1992 -- A-16
WEST BANK'S HIDDEN HOUSING BOOM
Government Smoke Screen Obscures Vast Jewish Settlement Program
ELI, West Bank -- In the last 18 months, the Jewish settlement
in the occupied West Bank has been quietly transformed by Israel's
government from a tiny hilltop outpost into one of the country's
biggest boom towns
How big has Eli grown in the last year, and how much more
housing is on the way? For the Bush Administration and the
government of Prime Minister Shamir, that information could soon
become crucial: In return for granting Israel all or a portion of
the $10 billion in U.S. loan guarantees it has requested,
Washington reportedly is seeking an Israeli commitment to limit
construction in settlements.
Yet learning what is actually being built here, as throughout
all the territories captured by Israel in 1967 has proved to be a
puzzling and controversial problem. As it has pursued the biggest
settlement-building program in the 24-year history of its
occupation of the territories, Shamir's government has appeared to
pursue a policy of obscuring the true scale and cost of its
campaign.
(Jackson Diehl, Washington Post, A1)
DEFENSE IN LETELIER CASE PUTS QUESTIONS TO BUSH
SANTIAGO, Chile -- The Chilean courts have asked to question
President Bush over allegations that the CIA, and not the Chilean
secret policy, organized the murders in Washington in 1976 of
Chilean ex-foreign minister and exile leader Orlando Letelier and
his U.S. colleague, Ronni Moffitt.
Dispatch of the request was approved by the Chilean Supreme
Court late Monday at the request of lawyers defending Gen. Manuel
Contreras and Brig. Pedro Espinoza, respectively head and
operations chief of the DINA, the secret policy. The two men were
indicted in Washington in 1978 and specially appointed Supreme
Court Judge Adolfo Banados is now investigating them here.
(Malcolm Coad, Washington Post, A6)
U.S. SAYS HAITIANS FLOODING REFUGEE SITE
The Bush Administration Tuesday said record numbers of Haitian
boat people will soon overwhelm facilities at a U.S. Navy base in
Guantanamo Bay and urged a federal appeals court to permit forced
return of Haitians who do not qualify for political asylum.
Solicitor General Starr, in papers filed in Atlanta, asked for
an "immediate" overturning of a district court judge's order in
Miami prohibiting the forced repatriation of the Haitians
Ira Kurzban, an attorney for the Haitian Refugee Center Inc.,
which sued to block repatriations, said the Administration's
arguments were a "self-created crisis" and that the camps
themselves have "a far greater capacity to hold people" than the
Administration estimates.
(Washington Post, A2)
White House News Summary
Wednesday, January 29, 1992 -- A-17
WEST SPLIT ON AID FOR RUBLE
The Bush Administration and its Western European allies are
increasingly at odds over how quickly to move in support of
President Yeltsin's financial reforms, according to diplomatic and
financial sources
The U.S. and some Europeans are split on how
quickly to pledge the billions of dollars needed to stabilize the
plummeting ruble.
(Warren strobel, Washington Times, A1)
YELTSIN PURSUES NUCLEAR ISSUES, VISITING FLEET
MOSCOW -- President Yeltsin sought Tuesday to demonstrate his
control over the former Soviet nuclear arsenal as he prepared to
announce new arms cuts prior to his visit to the Security Council
later this week.
News of Yeltsin's unannounced visit to the southern Russian
port of Novorossiysk, to consult with commanders of the disputed
Black Sea fleet, resolved the mystery of his unexplained
disappearance from Moscow Monday that had renewed rumors about his
health.
Yeltsin's spokesman said the President was gathering
information about the security of nuclear weapons prior to his
meetings with President Bush and other Western leaders.
(Michael Dobbs, Washington Post, A23)
-end of A-Section-
NETWORK NEWS
(Tuesday evening, January 28)
STATE OF THE UNION
ABC's Peter Jennings: We begin tonight with the President's annual
acknowledgment of a constitutional requirement. Article II,
Section Three: "The President shall, from time to time, give the
Congress information of the state of the union." It was pointed
out to us this morning that most Americans today can feel exactly
what the State of the Union is like, and even though the
President's speechwriters have been slaving for a month, not many
historians can remember very many memorable lines from State of the
Union speeches past. Still, the Bush Administration says tonight
is the big one. It is, after all, intended to launch the
President's re-election campaign.
ABC's Brit Hume:
(TV coverage: President Bush and officials in Cabinet Room)
In a Cabinet meeting this morning, the President was doing nothing
to dampen expectations for his speech tonight.
(Helen Thomas: "Is it gonna be a good State of the Union Address
tonight? A bell-ringer?" President, nodding: "I think it's gonna
be alright." Thomas: "Surprising?" President: "Yes."
(TV coverage: President walking to stage in Exeter, NH)
In fact, despite the intense buildup the President has given the
speech on the campaign trail and elsewhere, the Address represents
a decision basically to do nothing major on the economy.
(TV coverage: President touring factory)
Bush has received almost unanimous advice from economists that the
economy is likely to recover on its own, and if it doesn't, no
legislation will be enough to fix it. What's more, he's been
advised, an ambitious recovery program requiring the scrapping of
last year's budget deal with Congress would risk driving up
interest rates and aborting the best chance the economy has. So
tonight's speech in the House chamber will not propose abandoning
the spending restrictions agreed to with Congress last year to
reduce the deficit. It will propose some tax cuts to be financed
by cuts in defense spending. There will be proposed increases in
some domestic programs, but they will be paid for largely by
proposed cuts in other domestic programs. The President will
demand that Congress act on his proposals by mid-March, a deadline
that Congress is unlikely to either like or meet. But as one
official here put it, this is a program that could pass -- but if
it doesn't, it's also a program we can run on.
(ABC-Lead)
ABC's Cokie Roberts discusses what the Hill Democrats are saying
about the speech. It looks like the President and Congress will
reach another impasse. Some in Congress say they are coming back
from their districts with pleas from constituents to do something
and stop the bickering. But others say the thing to do is to show
that Bush is the person holding up domestic programs, and that they
should put a health care plan, a parental leave plan, and others
on the President's desk and let him veto them. They say they've
been doing polling which shows that Democrats should show up
starkly different from the Republicans.
-
White House News Summary
Wednesday, January 29, 1992 -- B-2
Roberts continues: I think you'll see tremendous progress --
surprise, surprise -- in cutting taxes, and relatively soon. But
the rest of it will definitely be loggerheads for the rest of the
year. The Democrats' campaign line is, We're the party that's most
for people like you; stick with us and throw out the guy in the
White House. The problem is, people might prefer the other line:
throw them all out.
(ABC-2)
CBS's Dan Rather: Tonight's the night President Bush has promised
to stand and deliver. Mr. Bush has been pumping up expectations
for his State of the Union speech by promising to detail his plans
to, as he puts it, turn the economy around. This could also prove
pivotal to the Bush-Quayle re-election campaign.
CBS's Susan Spencer reports that between extensive re-writes and
teleprompter rehearsals with media gurus, Mr. Bush gave a preview
of tonight's speech to his Cabinet, and did his bit to play down
expectations.
(President, in Cabinet Room: "I think it's gonna be alright."
Helen Thomas: "Surprising?" President: "Yes.")
But apart from an announcement of more defense cuts saving about
$50 billion over five years, no big surprises are expected as Bush
unveils his long-awaited economic plan, laden with billions in
election-year tax cuts. Some economists are shaking in their boots
already.
(Richard Sweeney, Georgetown University: "Many of the proposals
being put forward are not a sound, consistent program for economic
growth. The idea of tax cuts that are just going to raise the
deficit, that isn't sound for economic growth.")
(Michael Barone, U.S. News & World Report: "There are some people
among the Bush strategists that want to see him challenge an
opposition party Congress the way that President Truman challenged
an opposition party Congress in 1948 and came from behind in the
polls to win a full term in office.")
Which may be why Democrats were attacking the plan before they even
heard it.
(Rep. Schumer: "The American people are clamoring for action.
They are tired of reading President Bush's lips. Lip service is
all they've gotten out of Washington for too long.")
(Sen. Bentsen: "The country's in trouble. The economy's dead in
the water. We don't need another political statement for the
campaign.")
What the Republicans think the President does need tonight is to
look presidential and reassuring, to come off as the man with the
economic plan. Since great chunks of this plan are unlikely to be
enacted this election year, image may have a lot going for it.
(CBS-Lead)
CBS's Ray Brady reports on the economy.
(Man: "Times are really hard. Everybody's getting laid off.")
They're just like you: some of the people who will be the judge and
jury on President Bush's speech tonight. Talk to them, and you'll
hear this message:
(Woman: "I think people want to hear about jobs.")
(Man: "You turn around, it's like everybody's looking for a job.")
Professional economists will tell you about the grim reality.
(David Jones, economist: "This President should level with the
American people tonight and say there's very little the government
can do to create jobs in 1992.")
-
White House News Summary
Wednesday, January 29, 1992 -- B-3
Brady's report continues:
(Lacy Hunt, economist: "There can be a technical recovery in the
economy, perhaps around mid-year, but not a recovery that the man
in the street is going to feel.
(Nancy Lazar, economist: "A tax cut for this economy would be good
news. This has been the first recession we've had in the past 20,
30 years in which taxes have been actually going up.")
(Hunt: "The tax cuts are a very ill-conceived idea. They could
perhaps add $40 billion to the budget deficit.")
The problem: Since Mr. Bush's election in 1988, government
spending has soared, pushing the federal deficit even higher.
[TV coverage of the President walking from Marine One with
officials.]
Big tax cuts now by the President could cut government revenues,
pushing Uncle Sam even deeper into the red. And that could bring
on a backlash that would hurt consumers.
(Jones: "The President has to walk a very narrow line. If he in
fact moves too aggressively on tax cuts it will cause interest
rates to move up, even mortgage rates.")
Higher interest rates, of course, could cut off any chance of an
economic recovery this year -- just one more indication of how
tough the President's task will be tonight.
(CBS-2)
CBS's Eric Engberg reports on the Bush style: Ask not what George
Bush has done for presidential oratory. Soaring rhetoric, ala JFK
and Reagan, is just not his style. In a political dogfight like
the one he's in now, his oratory skitters from good guy to tough
guy.
[TV coverage of the President taking a picture of himself in a
crowd with an instamatic camera, then standing next to a cow.]
(President Bush, Jan. 15 in New Hampshire: "I'm a little sick and
tired of being the punching bag for a lot of lightweights around
this country yelling at me day in and day out.")
With patches bordering on incoherence thrown in:
(President Bush: "I said to him, you know there's another one
that's a nitty ditty -- a nitty -- nitty ditty" [President starts
to laugh, as does the audience.]
This State of the Union political prose note is a crisis for Mr.
Bush, not just because of the recession but because his own words
up to now have not inspired confidence.
[TV coverage of the President touring a sewing factory.]
(David Keene, GOP campaign strategist: "When the public senses
that the country's in trouble, what they're looking for in a
president is not just concern but a conviction that he knows how
to get them out of it.")
The President's most recent effort drew criticism for lacking both
substance and the common touch as he barnstormed New Hampshire.
(President Bush at cafeteria: "I just wanted you to know one, I
know you're hurting, two I care about it, three I've been wrong
about how fast this recovery would take.")
Comedian Dana Carvey from Saturday Night Live, whose portrayals
often influence public perception of the President, lampooned his
sincerity gaffe.
(Carvey as President Bush in New Hampshire, on SNL: "But the
message today is I care. And I'm ready to listen. I'm here, I'm
hands-on and I'm domestic. I'm a hands-on, domestic listener.")
Despite his reputation for malapropism and messy syntax, the
President can WOW an audience when he has to, as he did at the '88
convention.
-970m-
White House News Summary
Wednesday, January 29, 1992 -- B-4
Enqberg's report continues:
(Vice President Bush at the convention: "I'm a quiet man, but I
hear the quiet people others don't: the ones who raise the family,
pay the taxes, meet the mortgage.")
Experts say a smashing delivery won't be enough this time.
(Kathleen Hall Jamieson, University of Pennsylvania: "When the
public is unhappy, the public looks at substance much more so than
style, but expects that the substance will be delivered
convincingly.")
It will be the most important speech of George Bush's life. But
as Theodore Roosevelt noted, a president will have the upper hand
in these settings if he can harness the force of his personal
leadership to a vision of the nation's future.
(CBS-3)
NBC's Tom Brokaw: Tonight the State of the Union: President Bush
tries to repair the economy and his political fortunes. For weeks
now, President Bush and White House officials have been saying
tonight is the night. The President will set the nation on the
course to economic recovery with a wide-ranging series of proposals
and, they hope, stop -- or at least slow -- the President's free-
fall in national political polls.
NBC's John Cochran: The President will set a deadline of March 20
for Congress to act on his economic package. The President met
briefly with his Cabinet but spent most of the day reworking
tonight's speech. Bush's advisers say he needs to hit a home run,
just as he did at the '88 Republican Convention. And Bush has
brought back the speechwriter responsible for "Read my Lips" and
other lines that impress voters. But Bush cannot use the same
tactics tonight. He will be speaking to a bipartisan audience and
he will return to the themes of his inaugural address.
(President Bush, from Inaugural: "The American people await action.
They didn't send us here to bicker. They asked us to rise above
the merely partisan.")
Tonight, Bush will promise to begin working with Congress tomorrow
to repair the economy. Bush will try to assert himself as leader
on the domestic front just as he led the Desert Storm coalition.
(President Bush, addressing Congress after the Gulf War: "I can
report to the nation aggression is defeated. The war is over."
[Applause])
But Bush's popularity dropped as the economy sagged, and aides say
his morale was low this month until he worked off his frustration
campaigning in New Hampshire.
(President Bush: "I'm a little sick and tired of being the punching
bag for a lot of lightweights around this country yelling at me day
in and day out. [Applause, cheering] "And I'm sick of it. If
they want a fight, they're gonna have one.")
That is not the George Bush we will see tonight, but he will repeat
one theme: that he cares.
(President Bush: "This time, I'm going to look the American people
in the eye, as I did in the past, and say all right, people are
hurting more now. I've just come back from the state of New
Hampshire and a lot of people are out of work. And if you really
care, pass this package.")
But tonight, after three years in the White House, the President
is still trying to convince voters that he cares and that he has
a plan of action.
(NBC-Lead)
White House News Summary
Wednesday, January 29, 1992 -- B-5
NBC's Mike Jensen says he talked to people all over the country
about some of the proposals President Bush is expected to make, and
also asked economists about he effect on the country. Most
families and most economists say an increase in the personal tax
exemption would not really help. First-time homebuyers would
welcome a tax break, but it wouldn't sell many more houses. Prices
and mortgage rates are already low. People aren't buying because
they are worried about their jobs. A tax break for health care
coverage would help the middle class, but along with other tax
credits and deductions it would increase the federal deficit, which
is bad for the economy in the long run. Most economists say any
tax break that encourages companies to become more efficient and
productive is good for the economy. The problem for the President
is that in an election year he has to do something, but the budget
deficit is so huge that Washington simply doesn't have the money
it would take to give the economy a shot in the arm.
(NBC-2)
ECONOMY
ABC's Stephen Aug reports that the Conference Board says only 19
percent of consumers believe conditions will get better in the next
six months. But the President has decided not to go for a major
change in tax rates to stimulate the economy. He's going to
propose a number of modest cuts instead.
(ABC-9)
CHILDREN
ABC's Carole Simpson reports that in the face of criticism that he
was unconcerned with domestic problems, President Bush has been
spending more time highlighting children's issues -- for example,
his recent visit to a Head Start center in Baltimore, where he said
he was making good on a campaign promise to increase funding for
Head Start.
(TV coverage: President playing with kids at Head start center)
Administration sources say the President is asking for a $100
billion increase in spending for children's programs. But more
than 80 percent of that money includes automatic increases in the
cost of programs like Medicaid, Social Security and public
assistance. Child welfare advocates don't believe the President's
programs will significantly improve the condition of America's
children. They fear that since there are no new sources of revenue
to pay for additional funding, the President will take money from
other children's programs.
(ABC-10)
HEALTH CARE
ABC's George Strait reports that President Bush is expected to
mention health care reform in only general terms tonight. He will
not announce a comprehensive plan because his advisers told him the
one he was considering would be political suicide. The President
says his final proposal will be unveiled next week. Critics say
they could have been ready for tonight's State of the Union if the
Administration had realized earlier that health care was a major
concern for millions of Americans and a potential make-or-break
election issue.
(ABC-11)
-
White House News Summary
Wednesday, January 29, 1992 -- B-6
PRESIDENT/GEORGIA
NBC's Bob Kur reports from Cobb County, Georgia, where folks used
to cheer as enthusiastically for George Bush as they do for their
high school basketball teams. Seventy-three percent of voters here
helped put him in office. For some, deciding whether to keep him
in the White House begins with tonight's speech.
(Businessman: "Instead of telling us everything is going to be
great, he needs to have a plan mapped out that will show us how
it's going to become great.")
(Accounting clerk: "I think it's important to our nation that the
President project an image like he is in control. With all this
going on, I don't feel like George Bush is in control."
On the county unemployment line just after sun-up, one-time
Democrats -- now called swing voters -- jobless for the first time.
The State of the Union is their state of mind.
(Truck driver: "I've got a family. I've got a 14-year-old
daughter. And it is very, very hard to try to work for $3 to $4
an hour, which a lot of these places want you to work for.")
(Secretary: "I want security. I'm an American, and I live in the
greatest land in the world. And I want some security.")
They thought they had it, but in many cases higher-paying jobs
disappeared as the county economy changed from manufacturing and
big business to service -- leaving most with a desire for stronger
trade protectionism than President Bush wants.
(Salesman: "We turn around and say, hey Japan, whatever your
tariffs are, that's what our tariffs are. And I don't care if they
like it or not.")
Though most voters I met in these relatively prosperous Atlanta
suburbs are not ready to reject Bush, many believe he reacted too
slowly to the recession. And they do look to him and Congress for
solutions that won't get bogged down in politics.
(Student: "I think it's the whole Congress, and everyone has to
make decisions." Reporter: "Maybe work together more than they
have?" Student: "Yes, of course.")
Locally, Lockheed, a defense contractor, has laid off 9,000 workers
since the last election. Those left say a tax cut might help, but
they know it's not a long-term remedy.
(Lockheed worker: "Again, you're chasing your tail. You're gonna
make a tax cut, but all we're doing is just increasing our own debt
-- again. Somebody's got to pay that money.")
And at the Mountain View Library pre-school reading group, parents
sense more than ever that the state of the union now will affect
the state of their children later.
(Housewife: "I worry that when they get out of college, that there
won't be those jobs there for them, no matter what kind of
education they can get. And that's kind of sad.")
(NBC-13)
CONGRESS
NBC's Andrea Mitchell reports that Democrats have their best chance
in three years to put through their proposals. If recent history's
any guide, they'll blow it. In a recent survey of congressional
aides, Speaker Foley's effectiveness rating dropped 33 points since
last year, and Sen. Mitchell's rating dropped 27 points. Critics
say they aren't tough enough. On the economy, Democrats are
offering more than a dozen competing plans, making it that much
harder to present a united front against Bush.
(NBC-3)
-
White House News Summary
Wednesday, January 29, 1992 -- B-7
PRESIDENTIAL LEADERSHIP
Brokaw: It is well to remember that Americans expect a lot of their
President. Our latest NBC News/Wall Street Journal poll shows how
voters are now grading President Bush. His overall job performance
gets a B-minus, well below his earlier marks. On his handling of
foreign policy and national security, the President gets a solid
B. But when it comes to dealing with the economy, a C-minus. On
handling health care issues, the President also gets a C-minus.
When it comes to education, he barely does any better (C).
Beyond specific programs and policies, however, Americans want
something more from their President. They want leadership.
NBC's Lisa Myers:
(President Bush, from Inaugural: "Some see leadership as high drama
and the sound of trumpets calling. And sometimes it is that. But
I see history as a book with many pages, and each day we fill a
page with acts of hopefulness and meaning.")
For George Bush, there has been lots of high drama. He took the
nation to war.
(TV Coverage of the President addressing troops in Saudi: "The
occupation of Kuwait will not stand." [Cheering])
He dealt with the coup in the Soviet Union.
(Michael Beschloss, presidential historian: "This was a President
who is extremely bold, who has done a supremely competent job of
managing a very turbulent international situation.")
But boldness is not Bush's first instinct. His initial reaction
is, to use his word, prudent -- when the Berlin Wall came down,
when tanks rolled into Moscow, even when Saddam invaded Kuwait.
(President Bush in Cabinet Room following Iraq's invasion.
Reporter: "You're not contemplating any intervention."
President: "I'm not contemplating such action.")
(Barbara Kellerman, presidential historian: "It's a leadership
style that is by and large cautios, by and large careful, but that
when triggered by animosity, particularly toward an identifiable
enemy can become quite emboldened and highly competitive.")
Ask Saddam and Noriega. It's almost hard to believe a man could
have so many accomplishments internationally and so few at home.
(Beschloss: "His greatest failing is this is not someone who can
go to the American people and get millions of Americans to agree
to make sacrifices that might in the medium or long term help the
country.")
It's tough to lead when you don't know where you want to go. Call
it a vision. George Bush doesn't seem to have one. Domestically,
he's at best a broker, who works out deals with Congress. Beyond
education, the environment and his crime bill, he hasn't really
addressed major domestic problems such as health care. Even judged
by the words of his own Inaugural Address, he comes up short.
(President Bush: "My friends, we have work to do. There are the
homeless, lost and roaming.")
Yet Bush has never visited a homeless shelter, and homelessness
continues to increase.
(President: "There are the children who have nothing.")
Today, one million more children live in poverty.
(President: "There are those who cannot free themselves of
enslavement to whatever addiction -- drugs, welfare, the
demoralization that rules the slums.")
Today, while casual drug use is down, hard core addiction is not.
White House News Summary
Wednesday, January 29, 1992 -- B-8
Myers continues: Two million more Americans are on welfare, and
despair rules the inner cities. This lack of domestic leadership
finally has taken a heavy political toll. So the Commander-in-
Chief of Desert Storm has begun to remake himself.
(President: "It was a clear, solid victory. I want to take that
same sense of leadership and, again, solve the problems that have
been plaguing this nation and the economy. I believe I can do it."
[Applause])
Whether George Bush can lead this country to deal with daunting
domestic challenges is an open question, but it would be a mistake
to underestimate him. He is capable of the unexpected, and time
and again has risen to the challenge.
(NBC-6)
CAMPAIGN '92
Rather: In presidential politics, Pat Buchanan got word today that
he had qualified for $100,000 in federal campaign matching funds.
And supporters of so-far non-candidate Mario Cuomo filed today to
put him on the Democratic primary ballot in Illinois.
(CBS-4)
CLINTON
Jennings reports that at several stops today, Gov. Clinton
denounced what he called "trash for cash." It appears quite a few
people agree. We asked people across the country last evening if
they would vote for a candidate who had an extramarital affair, and
26% said no [66% said yes]. But the polling unit points out that
at least half of those people who said no are Republicans and
unlikely to vote for Clinton anyway.
ABC's Jim Wooten reports on the Clinton campaign in New Hampshire.
When Clinton volunteers went door-to-door today, only a few voters
showed any concern for the Gennifer Flowers issue. The latest New
Hampshire poll from Manchester TV station WMUR shows Clinton still
leading his closest rival, Paul Tsongas, by 30% to 25%, with the
rest of the Democrats far behind. And the ABC News Poll shows that
most Americans, 81%, believe the media should drop the issue of
adultery. Most people don't seem to care much about his personal
life, but they do care about his truthfulness. That's the issue
on which his campaign now seems to hang.
(ABC-3)
CBS's Richard Threlkeld reports from Manchester, New Hampshire,
that in a Boston Globe/WJZ-TV poll, the villain in all this is the
press. By more than two-to-one, voters here think the news media
has been unfair to Clinton, and that digging into a candidate's
past sex life has no place in a presidential campaign.
(CBS-5)
JAPAN/U.S.
Jennings reports a Japanese government spokesman said today that
all the talk in the U.S. about buying American is just that -- a
lot of talk. Increasingly, Japanese business leaders are talking
back.
ABC's Bill Redeker reports. Yutaka Kume of Nissan said during
President Bush's visit that the Japanese Big Five automakers and
the U.S. Big Three should meet every year. Now he bluntly says the
Japanese have no intention of doing that.
-920m-
White House News Summary
Wednesday, January 29, 1992 -- B-9
Redeker continues: Kume took special offense at the remarks Lee
Iacocca made when he returned to Detroit from Tokyo.
(Iacocca, Jan. 10: "Japan has no use for free trade; it certainly
has never practiced fair trade. No, what Japan practices is
predatory trade.")
Kume says Iacocca is anti-Japanese, outrageous and insulting. He
said it is incomprehensible that Detroit has not yet responded to
Japan's offer to buy more American auto parts. The Japanese say
Chrysler has aggravated the situation by announcing it will cut
imports of Japanese steel by 25 percent this year and will stop
buying imported steel altogether in two years. Automakers on both
sides are on a collision course.
(ABC-4)
ABC's Tom Forman reports on American companies which are
successfully trading with the Japanese. They are worried that the
new round of Japan-bashing will be bad for their business.
Colorado is one of the most successful states for such trading.
(Morgan Smith, Colorado Trade Office: "Business relationships take
a long time to build, and these kinds of political overtones I
think can damage those relationships and hurt business.") (ABC-5)
MIDEAST PEACE TALKS
ABC's John McWethy reports on the Mideast peace talks in Moscow,
where another historic barrier was overcome today: never before
had the rich Arab Gulf states sat down at a conference with Israel.
It was a major victory for the Israelis, because it provided a
chance of recognition from those nations. This meeting was to
begin a new phase of the peace process, exploring regional issues
such as water shortages, pollution, arms control and economic
development. If progress is made here, Secretary Baker argued,
one-on-one talks will be easier. Syria and Lebanon did not attend,
though, and the Palestinians refused to enter the building,
complaining that they were not allowed to bring an expanded
delegation to the meeting.
(Baker: "We regret that the Palestinians are not here. They have
chosen not to come, and in my view they have once again passed up
an important opportunity.")
But even without them, a new dimension to the peace process was
launched today.
(ABC-6)
NBC's John Dancy reports that at a news conference, Israel's
foreign minister was ecstatic. But the Palestinians boycotted.
(Hanan Ashrawi: "We have our position very clear to the co-
sponsors. We have insisted that we wanted to participate
effectively, fully and legitimately.")
(Secretary Baker: "We believe that the Palestinians are making a
mistake by not taking advantage of this opportunity.")
Baker did hold out an olive twig by saying Palestinians from
outside the occupied territories might participate later, when
refugees are being discussed. The U.S. hopes the Palestinians,
having made a statement, will show up tomorrow.
(NBC-4)
YELTSIN
Rather reports that after dropping out of sight yesterday, Boris
Yeltsin turned up today visiting the Black Sea fleet.
(CBS-8, NBC-5)
-End of News Summary-
News Summary
OFFICE OF THE PRESS SECRETARY
THE WHITE HOUSE
WASHINGTON
THURSDAY, JANUARY 30, 1992
6:00 A.M. EDITION
NATIONAL NEWS
BUSH PRESENTS $1.52 TRILLION BUDGET -- A day after promising the
American people a variety of tax benefits, President Bush Wednesday
presented them with his detailed budget plan, which spelled out
spending cuts, a higher budget deficit and an accounting change.
(Washington Post, Chicago Tribune, Boston Globe,
Washington Times, New York Times)
DETAILS OF HEALTH CARE PLAN FILTER OUT -- The basic shape of
President Bush's still unreleased plan to solve the health care
crisis became clearer Wednesday as details began filtering out from
Administration officials and other sources.
(Washington Post)
INTERNATIONAL NEWS
WHITE HOUSE OUTLINES VISION OF NEW MILITARY -- Bush Administration
officials Wednesday outlined their vision of a new, post-Cold War
military that would include sharply reduced purchases of advanced
weapons but no personnel cuts beyond previously announced plans to
shrink the armed forces by 25 percent.
(Washington Post)
U.S. SET TO DROP SANCTION IF CHINA OBEYS MISSILE PACT -- The Bush
Administration is prepared to remove a ban on exporting high-
technology items to two Chinese missile manufacturers in exchange
for China's pledge to abide by a non-proliferation treaty.
(Washington Times)
NETWORK NEWS (Wednesday evening)
BUDGET -- President Bush sent
Congress his battle plan in the
war against economic hard times.
NATIONAL NEWS
A-1
HOMEBUYERS REBATE -- President
INTERNATIONAL NEWS
A-12
Bush's plan to give first-time
homebuyers a tax credit brought
NETWORK NEWS
B-1
cheers across the country.
EDITORIALS
C-1
STATE OF THE UNION -- After
hearing President Bush's address,
FOREIGN MEDIA
C-2
56 percent of Americans polled
said they believe President Bush
can improve the economy.
This Summary is prepared Monday through Friday by the White House News Summary Staff.
For complete stories or information, please call 456-2950.
NATIONAL NEWS
BUSH PRESENTS $1.52 TRILLION BUDGET
A day after promising the American people a variety of tax
benefits, President Bush Wednesday presented them with his detailed
budget plan, which spelled out spending cuts, a higher budget
deficit for the current year and an accounting change to pay for
the tax cuts without violating budget rules
The Administration said its 1993 budget plan and more
immediate economic measures would help prod the sluggish economy
and also help growth over the longer term. Richard Darman said,
"Clearly, the President has a plan, a comprehensive plan, a strong
plan, a substantively responsible plan which, if enacted,
will
work."
Rep. Panetta and Sen. Sasser criticized the President's
budget, charging that the White House had resorted to budget
"gimmickry" and "smoke and mirrors" to finance his tax package and
spending initiatives
Though the Administration has asserted that it would stick by
the 1990 budget agreement, in his preface to the budget Darman
suggested Congress could break down the "fire walls" between
spending categories, thus allowing about half of military spending
cuts to be used for something other than deficit reduction.
"If the Congress were unwilling to accept fully the
President's proposed pay-as-you-go financing of tax initiatives,
the President would be prepared to consider modifying the Budget
Enforcement Act to allow the projected defense outlay savings to
offset the proposed increase in the personal exemption," Darman
said.
(Steven Mufson & Eric Pianin, Washington Post, A1)
Bush Proposes Unusual Plan To Curb Medicare, Social Security Growth
In a budget that critics denounced as unresponsive to the
nation's economic woes, President Bush proposed an innovative but
politically risky plan Wednesday to rein in the explosive growth
of cherished social programs such as Medicare and Social
Security
"The President disappointed me by coming up with only
$50 billion in defense cuts," said Stephen Roach, economist for
Morgan Stanley & Co. He said a $100 billion cut would have been
impressive in light of the collapse of the Soviet Union.
(William Neikirk & Michael Arndt, Chicago Tribune)
$1.5 Trillion Bush Budget Shifts Some Spending, Increases Deficit
President Bush Wednesday offered a $1.5 trillion budget for
the 1993 fiscal year that reshuffles some spending to pay for slim
election-year tax breaks and that all but concedes that the federal
deficit will remain a fixture of American politics through the end
of the century
"The surprising thing about this budget is that
it projects deficits off into the future that don't fall much below
$200 billion a year, even if all of the President's proposals are
accepted," said Robert Reischauer, director of the Congressional
Budget Office. "That was never acceptable before. Even President
Reagan's budgets showed the lines going down."
(Peter Gosselin, Boston Globe)
-
White House News Summary
Thursday, January 30, 1992 -- A-2
Deal's Cuts Put Deficit At The Rear
President Bush drew a political line in the sane Wednesday,
submitting to Congress a $1.52 trillion "children's budget" that
cuts defense and proposes the smallest spending increase of his
presidency
"We have said that we think that the peace dividend, as a
matter of principle, should be available primarily for deficit
reduction, but if a portion of it is needed in order to get the
personal exemption through, the President would be prepared to
consider it under some pretty stringent circumstances, Richard
Darman conceded reluctantly. (Frank Murray, Washington Times, A1)
President Offers Cautious Changes In Spending Plan
In an election-year budget of $1.52 trillion, President Bush
called Wednesday for a modest increase in a wide range of popular
domestic programs, but he avoided any major change in spending
priorities to fight the recession
Sen. Byrd said, "I saw no
immediate burst for the economy in any of the tax-cut proposals"
offered by Bush in either the State of the Union message or the
budget request.
(Robert Pear, New York Times, A1)
BUSH ASKS FEDERAL WORKERS FOR ONE-TIME DELAY IN NEXT PAY RAISE
President Bush has proposed delaying the annual pay raise for
federal employees from next January until Spril and making the 1.7
million federal workers who belong to the older of two retirement
systems pay more to stay in
"I think, quite honestly, I and others are going to have to
look at the proposal in the context of where the economy is now,"
said Rep. Hoyer. "Normally I would be a lot stronger in
opposition" to the proposal, he said, but "these are tough times."
Hoyer and others pointed out that the President has the
authority to decline to give any annual pay raise to civil servants
when the economy has suffered two consecutive quarters of negative
growth in the gross national product, which it has this year.
"I'm pleased it wasn't worse," said OPM Director Constance
Newman. "There will be some fussing. I'll probably get sued, but
"people understand."
(Dana Priest, Washington Post, A11)
BUSH SEEKS $35.6 MILLION FOR N.H. ANNEX
President Bush wants to give New Hampshire a $35.6 million
annex to the existing federal building and courthouse in Concord,
according to his fiscal 1993 budget released Wednesday
When told Wednesday that Bush's new budget contained
construction funds for Concord, an aide for Sen. Rudman responded:
"That's new to us." Rudman had not expected to ask his Senate
colleagues to approve building money until the design was near
completion, the aid said.
In a later interview, Rudman's aide said, "You can't consider
this 'pork' for the (President') New Hampshire primary. I'll steer
you away from that
This is a Rudman project."
(Walter Pincus, Washington Post, A11)
-more-
White House News Summary
Thursday, January 30, 1992 -- A-3
U.S. BUDGET LIMITS D.C. PAYMENT
Proposal Also Delays Federal Pay Raises
President Bush's budget proposes freezing the federal payment
for the District of Columbia and delayed the scheduled 1993 pay
raise for all federal workers, angering both city officials and
employee unions.
Mayor Sharon Pratt Kelly and Del. Eleanor Holmes Norton
accused the Administration of reneging on its pledge last year to
provide more federal aid to the city under a new formula
Kelly issued a statement describing the proposed freeze in the
federal payment as "this executive staff-level recommendation from
the Office of Management and Budget," and in an interview that it
demonstrates a "kind of disrespect" for Bush's endorsement last
year.
Norton said, "I was inclined to give Mr. Darman the benefit
of the doubt until I learned he believed he could unilaterally
alter the will of Congress
He's going to lose badly this
time."
A spokesman for Darman said Wednesday that the Administration
last year "made it clear that we wouldn't necessarily recommend
that the amount" set by Congress would be appropriated. The
spokesman also said that "the amount on the table is not a giant
amount of money."
(Kent Jenkins, Washington Post, A1)
ARTS ENDOWMENT BUDGET HELD DOWN UNDER BUSH PROPOSAL
For the second year in a row, the White House has requested
increases in funding for most federal arts and humanities agencies
but left the battered National Endowment for the Arts out in the
budgetary cold
"There is no written justification in the proposal so we don't
really know for sure, but on the fact of it, it looks as if someone
has it in for the NEA, and if that's the case I don't understand
it," said Rep. Weiss.
(Elizabeth Kastor, Washington Post, C1)
BUSH LOOKING FOR PUBLIC SUPPORT OF HIS BUDGET
President Bush is quickly seeking to build public support for
his challenge to Congress to pass his proposals for stimulating the
economy within the next eight weeks
Meeting Wednesday with a
group of business and civic leaders at the White House, Bush heard
nothing but praise for his proposals for using tax breaks to
stimulate consumer spending, home buying and capital investment.
"It's a very strong package for the manufacturing sector,"
said Dexter Baker, chairman of the National Association of
Manufacturers
Bill Donaldson, chairman of the New York Stock
Exchange, said a lower capital gains tax would "be a tremendous
boost to the savings of America
It's not just stocks and
bonds." Jay Buchert, chairman of the National Association of Home
Builders, said, "We think the March 20 deadline is very, very
important.'
(Christopher Connell, AP)
-
White House News Summary
Thursday, January 30, 1992 -- A-4
BUSH TAKES PLAN ON THE ROAD
President Bush Thursday begins the merchandising of the
economic rescue plan outlined in his State of the Union speech
The White House views the 50 days until Bush's March 20 deadline
for Congress as a compact political campaign. "If we handle it
like a campaign and repeat the message and drive it home every day,
he'll do fine," says Charles Black. "He'll bounce back with the
voters."
(Judy Keen, USA Today)
BUSH PLAY COULD WIN EITHER WAY
The Bush-Quayle reelection team set out Wednesday to paint
opponents of President Bush's economic recovery plan as party
stooges ready to torpedo the economy for political advantage.
Working behind the scenes, GOP officials are orchestrating a
campaign to force congressional Democrats to meet the President's
March 20 deadline for action or face charges of slowing the
economic recovery.
Robert Teeter explained the effort this way: "Democrats will
be called on to pass the Bush growth plan "or bear the
responsibility for keeping our economy in a slow growth mode for
political advantage."
(Paul Bedard, Washington Times, A1)
CONGRESSIONAL REPUBLICANS RALLY
BEHIND BUSH'S PLAN; DEMOCRATS CAUTIOUS
President Bush won the support of once-restive Republicans and
wary pledges of cooperation from Democrats as he personally lobbied
Congress Wednesday on behalf of his new program for economic
recovery.
Returning to Capitol Hill less than 12 hours after he finished
outlining the program in his State of the Union address, a buoyant-
appearing Bush met with Democratic and Republican leaders and with
rank-and-file Republicans of both houses in an attempt to build
pressure for prompt approval of his plan.
But there were strong signals that Democrats would continue
to pursue their priorities, including higher taxes on the rich to
finance more tax relief for middle-income Americans
"We will cooperate wit the President, but, to some extent,
there's a sense in the speech of combativeness and challenge that
I think creates some sense of concern" about the President's
political motives, Rep. Foley told reporters at a breakfast
meeting.
There was an "almost swaggering suggestion that after the 20th
of March, well, if there is going to have to be a fight, then you
know how I welcome fights," Foley said. "And I'm not sure that
meshes with his call for cooperation."
Bush's attempt to establish a deadline for action "doesn't
mean anything" because Congress already intended to act swiftly
because it is "the right thing to do" in light of the country's
economic distress, said Sen. Mitchell.
(Helen Dewar & Kenneth Cooper, Washington Post, A7)
-920M-
White House News Summary
Thursday, January 30, 1992 -- A-5
DEMOCRATS POUNCE ON BUSH'S BUDGET
Democrats, pouncing on the architect of President Bush's
proposed $1.52 trillion budget, say it succors the wealthy and is
unfair to working Americans. "Big tax cuts for the rich,
sacrifices for everybody else," is how Rep. Panetta characterized
the election-year spending plan Wednesday
"If ever there was
a reelection document, this is it," complained Sen. Sasser, echoing
the skepticism of several other Democrats.
(Alan Fram, AP)
HILL PHONES QUIET DESPITE BUSH PLEA
Americans weren't burning up the phone lines to Capitol Hill
Wednesday to urge prompt passage of the economic recovery plan
unveiled by President Bush in his State of the Union address
"We got a grand total of two calls," said Bill Powers,
spokesman for Sen. Symms
Jack DeVoors, spokesman for Sen.
Bentsen, described the number of speech-related calls that office
received as "very few.
(Joyce Price, Washington Times, A9)
ECONOMISTS SKEPTICAL OF BUSH PLAN
President Bush had promised that the initiatives he detailed
in his budget this week will "lift the nation out of hard times
inch by inch," but economists interviewed Wednesday said that with
the economy advancing just one inch at a time, there will be no
quick return to prosperity
The President has proposed "a nice mix of sound policies,"
said economist Jerry Jasinowski, president of the National
Association of Manufacturers. But the limited scope of the
programs makes it clear that the Administration's main strategy for
economic revival is a continued reliance on lower interest rates
engineered by the Fed, he added.
"He has avoided the problem of going forward with extreme
programs that would raise long-term interest rates," Jasinowski
said. "Extreme" in this sense would be a much bigger package of
tax cuts that could give a big boost to consumer spending, but also
send prices sharply upward
"If it doesn't work economically, it's not going to work
politically," warned Fabian Linden, chief economist for the
Conference Board.
(Jerry Knight & Kirstin Downey, Washington Post, A1)
Bush Confident His Economic Plan Will Work; Economists Less Sure
"The President's program is lacking in vision and
confidence-building for the long run," said David Jones, an
economist at Aubrey G. Lanston & Co
Many analysts said they believed the biggest mistake Bush made
in his budget was greatly expanding the tax relief he was seeking
from a reduction in capital gains rates and demanding that Congress
pass it by March 20.
"By including capital gains, he is throwing open the entire
process to a massive partisan squabble," said Roger Brinner, senior
economist at DRI-McGraw Hill. "That is not going to leave the
public or financial markets feeling good as they watch this farce
unwind."
(Martin Crutsinger, AP)
-
White House News Summary
Thursday, January 30, 1992 -- A-6
Experts Doubt Bush Plan Will Spur Economy
President Bush has fielded a battalion of proposals to fix the
economy. Squarely in the front rank, he has planted his most
beloved battle flag: a tattered banner that says, "Capital Gains
Tax Cut. "
"I give him an A for his stand on capital gains. It
sounds like he means it this time," says Robert Eggert, economist
and editor of Blue Chip Economic Indicators. "It's extremely
critical to our competitiveness.' (Kevin Anderson, USA Today, 1B)
ECONOMY'S FLIGHT TO FREEDOM?
Plan Wins Praise -- As A First Step
President Bush's rousing call to "set the economy free" isn't
likely to help consumers feel better about their economic future,
but most business groups said the President's new growth plan is
a good first step
Some economists were disappointed with the President's
plan
"There's a huge gap between public confidence and
economic reality," said Raymond Worseck, chief economist with A.G.
Edwards & Sons Inc. "From my vantage point the whole point is how
to get people to be more confident. When you examine the
proposals, they are very anemic."
(Anne Veigle, Washington Times, C1)
HOME-BUILDING INDUSTRY GOT EVERYTHING IT ASKED FOR AND MORE
CHICAGO -- The beleaguered home-building industry, reeling
from its worst year since World War II, got everything it asked for
and more in President Bush's budget proposals, and builders
generally reacted with delight.
But some concern was expressed Wednesday that Bush's package
might go too far in accelerating the real estate sector of the
economy which has been already showing signs of recovery in
response to interest rate declines.
"We're pleased," said Kent Colton, executive director of the
National Association of Home Builders. "This is the stimulus that
the economy and home building desperately need."
(Linn Allen, Chicago Tribune)
BUSH FIGURES ON EDUCATION BUDGET CHALLENGED
President Bush boasted Wednesday that his $32.3 billion
education budget represents a 42 percent increase over 1989. This
triggered an immediate challenge by the National Education
Association, the nation's largest teachers' union.
"Last year Congress approved $32 billion for education, but
Bush is using $29 billion as a base line to indicate a greater
commitment than there really is," said Michael Pons, an NEA
spokesman.
Secretary Alexander defended the Bush budget as "helping to
transform the nation's schools." He pointed to a $267.5 million
item that would pay for school choice plans that "put trust in the
parents rather than in government." (Muriel Cohen, Boston Globe)
-
White House News Summary
Thursday, January 30, 1992 -- A-7
BOATING INDUSTRY LEADERS APPLAUD PROPOSAL TO REPEAL EXCISE TAX
CHICAGO -- President Bush's call for the repeal of the 10
percent excise tax on larger boats will go a long way toward
reinflating an industry that is nearly sinking, industry leaders
say
"Our industry has been recession for about three years, If
said Jeff Napier, president of the National Marine Manufacturers
Association. "We are delighted to hear the President's proposal.
Many large boat manufacturers are in dire straits -- some firms
have gone to Chapter 11, others are on the verge."
(William Recktenwald, Chicago Tribune)
LITTLE TO SOFTEN SQUEEZE OF RECESSION
AND STATE CUTS ON THE POOR
For America's recession-battered families, President Bush's
domestic budget offers a dollop of increases in high-visibility
programs for children and a dose of tax relief aimed at the upper
middle class and wealthy. But there is little to offset the
combination of hard times and state budget cuts that has landed
with special fury on the poor and working poor
"The numbers don't match the rhetoric," said David Liederman,
executive director of the Child Welfare League of America. "I
think this budget creates more holes in the safety net than it
fills.
"
Sen. Rockefeller said he was "very disappointed" in the
President's speech and his budget document. "If ever there was a
moment when a president had the opportunity to lead on the domestic
front, this was it. But he turned away from the challenge,"
Rockefeller said.
(Paul Taylor, Washington Post, A10)
EDITOR'S NOTE: "Bush Seeks To Set Election-Year Course," by
Marshall Ingwerson, is in The Christian Science Monitor, page 1.
"Tables, Charts, Smoke And Mirrors -- Annual Budget Process
Begins," is in "The Federal Page, " The Washington Post, page A21.
"Bush Wins Applause But No Ovation," a roundup of reactions to the
President's economic plan, is in The Wall Street Journal, page B1.
ECONOMY GREW SLIGHTLY IN LAST QUARTER OF 1991
The U.S. economy barely grew in the final three months of last
year, as a surge in demand for American exports kept the nation's
production of goods and services from actually shrinking, the
Commerce Department reported Wednesday.
The department said the nation's gross domestic product rose
at an annual rate of only 0.3 percent in the fourth quarter after
adjustment for inflation, down from increases at 1.8 percent and
1.4 percent rates in the previous two quarters
CEA Chairman Michael Boskin said the "very flat, sluggish
position the economy's been in since the late summer will
continue in the early part of 1992. " If President Bush's various
new proposals to stimulate the economy are quickly adopted, "people
will notice a demonstrably higher rate of growth" by the middle of
the year, he said.
(John Berry, Washington Post, A6)
-
White House News Summary
Thursday, January 30, 1992 -- A-8
BUSH ADMINISTRATION, GREENSPAN SEE ECONOMIC RECOVERY AHEAD
The Bush Administration Wednesday forecast modest U.S.
economic improvement for later this year and said Congress could
accelerate it by passing Bush's new agenda for recovery. But Fed
Chairman Greenspan minimized the need for programs aimed at
promoting growth, saying he could see signs of life returning to
the economy already
"It's not a question of the economy coming back on its own.
Of course it's going to," Secretary Brady told a news conference
at which the budget proposals were announced. "The President's
feeling is that the recovery is on its way. Obviously, the
proposals that he put forward are ones that will accelerate the
speed of that recovery.
(Susan Cornwell, Reuter)
GREENSPAN FACES BARRAGE OF SENATORS' COMPLAINTS
Fed Chairman Says He still Fears Inflation
Sen. D'Amato recalled Wednesday that a year ago he asked Fed
Chairman Greenspan, "What world do you live in? You were worried
about inflation. Businesses are closing. We're in a recession.
Cut the interest rates."
After more months of recession and a stalled recovery, D'Amato
complained that rather than following his advice, the Fed "did too
little too late" and the country suffered as a result. "I think
a great deal of the pain that we have endured could have been
minimized" with faster action by the Fed to cut interest rates, the
senator said.
Greenspan, seeking confirmation to a second four-year term,
listened Wednesday to a barrage of such complaints from D'Amato and
other members of the Senate Banking Committee who were unhappy
about the state of the American economy.
(John Berry, Washington Post, D12)
BEWARE A BIDDING WAR AS BUSH AND DEMOCRATS COMPETE ON TAX CUTS
President Bush's new budget is the first bid in a high-stakes
gamble to spur the economy. Now, the Democrats in Congress will
try to trump it. The likely outcome, legislators in both parties
agree, is that a significant tax cut will be enacted by summer.
And a real danger is that a partisan bidding war could cause that
tax cut to grow into a budget-busting fiasco.
The President has "already put the ball in motion for a repeat
of 1981,' worries Rep. Panetta, referring to the 1981 tax-cutting
that's widely blamed for putting the U.S. $3 trillion in debt.
(Jackie Calmes, Wall Street Journal, A1)
-
White House News Summary
Thursday, January 30, 1992 -- A-9
DETAILS OF HEALTH CARE PLAN FILTER OUT
Bush Would Rely On Tax Credits, Private Insurance Reform
The basic shape of President Bush's still unreleased plan to
solve the nation's health care crisis became clearer Wednesday as
details began filtering out form Administration officials and other
sources.
The plan rejects the two favorite Democratic solutions --
national health insurance and a federal requirement that all
employees provide health insurance to their workers -- in favor of
expanding coverage through tax credits and reform of the private
insurance market
Sen. Mitchell said that on the basis of what is known, the
Bush plan is "a non-solution
It will do nothing to control
costs, and does not appear in the brief summary available so far
to provide insurance coverage for all Americans. The President has
yet to tell us what it will cost. and how he proposes to pay for
it."
Sen. Kennedy said the proposal "flunks the two basic tests of
real reform -- they refuse to guarantee coverage for all Americans
and they pay only lip service to control health care costs."
(Spencer Rich, Washington Post, A10)
BUCHANAN SAYS BUSH CO-OPTED HIS IDEAS
MANCHESTER, N.H. -- The conservative thrust of President
Bush's State of the Union address temporarily knocked the wind from
the sails of Patrick Buchanan's insurgent campaign Wednesday.
Buchanan put it best: Bush co-opted many of the conservative
themes and ideas of Buchanan's campaign, including his call for tax
cuts, a freeze on federal spending and hiring, and a curb on
federal regulation. "There is no doubt there is a little bit of
intellectual property theft that has been going on here in the last
few weeks," Buchanan said.
(Chris Black, Boston Globe)
KEMP STUMPS FOR PRESIDENT OUT OF LOYALTY
MANCHESTER, N.H. -- Secretary Kemp defended his campaigning
here for President Bush Wednesday as an act of loyalty, while
Patrick Buchanan accused Bush of running like a conservative but
governing like a liberal. "The President boldly took on the forces
of (income) redistribution (in his State of the Union speech),
Kemp said at a news conference at Bush-Quayle '92 headquarters
At his own news conference, Buchanan said that although the
"President delivered a strong, forceful, well-crafted speech it
seems clear that George Bush as candidate is going to run against
his own record as president. He governs as a liberal but runs as
a conservative.
Many conservative activists who agree with Buchanan's
assessment of Bush also express dismay that leaders on the right
like Kemp have come here to claim the President as a fellow
conservative.
(Ralph Hallow, Washington Times, A3)
-920m-
White House News Summary
Thursday, January 30, 1992 -- A-10
CLINTON: BUSH OUT OF TOUCH
PORTSMOUTH, N.H. -- Beleaguered Gov. Clinton said Wednesday
that President Bush is out of touch with the nation's economic
needs. The other four Democratic candidates also criticized Bush's
State of the Union proposals
"He was lecturing Congress as if he just showed up yesterday,"
said Clinton
"Nothing the President proposed will create jobs
or end the growing inequality and injustice in America," said Jerry
Brown. "It is too little and too late. "
Sen. Harkin said: "The State of the Union speech was really
a speech about the state of President Bush's reelection campaign
-- fraught with bad economic news, absent concrete solutions
and
offering too little too late."
(Ronald Taylor, Washington Times, A4)
THE DEADLINE: A TACTIC WITH POLITICAL ROOTS
The March 20 deadline that President Bush set in his State of
the Union address for Congress to pass his economy growth agenda
is one firmly rooted in politics, not law. There is no legal
sanction if the deadline is missed, but, as Bush made clear Tuesday
night, there will be a rhetorical one.
(John Yang, Washington Post, A7)
SPEECH PRAISED FOR STYLE, NOT CONTENT
Democrats Who Voted For Bush In 1988 Express Mixed Reactions
TIMONIUM, Md. -- Before President Bush began his State of the
Union address, the 11 men and women gathered here -- all of them
Democrats who had backed Bush in 1988 -- said in urgent tones that
they hoped he would speak to their concerns about the recession and
unemployment, imports, education, health care and homelessness.
When he had finished, most of them said he hadn't really done
that -- or done it as well as they had hoped. But they liked the
speech and the man who gave it because he was "real positive,"
"confident," "very strong. "
All of them came away from the speech confirmed or
strengthened in their inclination to vote for Bush again -- unless
an unexpectedly attractive alternative appears. "He's my man until
somebody better comes along,' said Raymond, 61, a janitorial
supplies salesman who asked that his last name not be used
Mike Raetjes, a 42-year-old landscaper, had said before the
speech that "unemployment and the homeless are the two big issues
-- very big issues" for him. After the speech, he agreed with
others who said, "I really didn't hear how we're going to take care
of our people here that need food and shelter."
Yet Raetjes said, "He came off sounding very strong, very
strong indeed, about his plans
I kept expecting him to say,
'Read my lips,' but he said, 'This will not stand' instead
His
credibility is strong for me
My opinion is he intends to do
the best he can. I really believe that."
(David Broder, Washington Post, A1)
-
White House News Summary
Thursday, January 30, 1992 -- A-11
HOUSE TO EXPAND RESEARCH-COST PROBE
Rep. Dingell Says New Audits
Show Widespread Abuse of U.S. Funds
A congressional oversight committee Wednesday vowed to
investigate virtually every university and nonprofit organization
receiving federal research money after revealing more examples of
questionable spending, including an $11,000 St. Patrick's Day party
at Syracuse University
Rep. Dingell said new audits provided "stunning findings" of
widespread abuse of government funds. Dingell plans to expand the
inquiry to include nonprofit organizations involved in government
research, such as the National Academy of Sciences.
(Mary Jordan, Washington Post, A4)
KELLY CITES U.S. FOR PLIGHT OF D.C. HISPANICS
Mayor Sharon Pratt Kelly blamed the federal government
Wednesday for many of the problems that led to three days of civil
unrest in Mount Pleasant and adjacent neighborhoods last May.
"The frustrations have been festering for 12 years," Kelly
told the U.S. Commission on Civil Rights, as it began three days
of hearings in Georgetown. "Because of federal policy that forced
immigration into this area with no programs to accommodate the new
thrust and no dollars for education or jobs or social services, we
have become a repository
but no beneficiary of any federal
dollars."
(Carlos Sanchez, Washington Post, B1)
WHITE HOUSE STAFF SHUFFLE WOULD MAKE
YEUTTER DOMESTIC POLICY ADVISER
President Bush is nearing a decision on a staff shuffle that
would produce a new Republican Party chairman for the election year
and a new White House domestic policy chief, sources say.
Samuel Skinner is advancing proposal that would move RNC
Chairman Clayton Yeutter to the White House to coordinate domestic
policy, said GOP and Administration officials. The officials also
said longtime Bush consultant Rich Bond was the President's first
choice to succeed Yeutter at the RNC
Yeutter confirmed in an interview that he had been approached
about becoming White House domestic policy adviser. "There's no
decision on it yet, he said. "I have to make the evaluation and
so does the President.
Bond said he was following the speculation but that no one had
offered him the job. If Yeutter decided to leave the RNC and if
the President and the party offers him the job, "then I'm certainly
available," Bond said. "It sounds like a terrific thing all
around. But it's something that Clayton would have to want."
(Tom Raum, AP)
EDITOR'S NOTE: "Skinner Brings New Openness And Flexibility To
White House, But His Style Has Its Pitfalls," by John Harwood,
appears in The Wall Street Journal, page A14.
"The First Lady, Shopping For A Second Decorator?" appears in "The
Reliable Source," The Washington Post, page C3.
###
INTERNATIONAL NEWS
WHITE HOUSE OUTLINES VISION OF NEW MILITARY
Plan Includes Sharply Reduced Purchases of
Advanced Weapons But No Added Personnel Cuts
Bush Administration officials Wednesday outlined their vision
of a new, post-Cold War military that would include sharply reduced
purchases of advanced weapons but no personnel cuts beyond
previously announced plans to shrink the armed forces by 25
percent.
Secretary Cheney and Gen. Powell strongly defended the so-
called base force plan, which would reduce the armed forces to 1.6
million active-duty personnel by the mid-1990s
"We don't think we ought to change that plan every six months
or 12 months, based upon developments either on Capitol Hill or
overseas," Cheney said at a Pentagon news conference Wednesday.
"It's important for us to remember that future peace and stability
in the world will continue to depend in large measure upon the
willingness of the United States to deploy forces overseas in
Europe, the Pacific and the Middle East and to retain high-quality
forces here at home."
(John Lancaster, Washington Post, A10)
PENTAGON SAVINGS WON'T BE REALIZED UNTIL 1998
President Bush's proposed $50.4 billion in military spending
cuts actually would save only about half that much between now and
1997, Pentagon officials acknowledged Wednesday. The remaining $23
billion won't be saved until at least 1998
Even hawkish
lawmakers, like Sen. Gramm, want to cut $24 billion more than Bush
has proposed for next year. "I am afraid there will be a bidding
war as to who can cut defense the most," said Sen. Nunn.
(Mark Thompson, Knight-Ridder)
PRICE OF COLD WAR VICTORY IS JOBS, JOBS, JOBS
At the White House, they're calling it a bit of an economic
headwind -- but post-Cold War defense budget cuts will hit with
gale force at plants, bases and payrolls across the country.
That's the down side of the peace dividend, and it will cost jobs
just as President Bush prods Congress for a program he says will
revive the economy and get people back to work
"We're throwing a lot of people out of work," Sen. Dole noted.
"Defense was never meant to be a jobs program, but it's got to be
done in an orderly way
CEA Chairman Michael Boskin said it is a transition from "a
situation in the '80s of the big defense buildup being a boost to
the economy" to the prospect "of this defense downsizing being a
bit of a drag." "There are a variety of those other things that
are a bit of a headwind for the economy," Boskin said
"The only way to cut the defense budget is to actually cut
it," Secretary Cheney said Wednesday. "And as much as I would like
to make decision based only on preserving X number of jobs out
there, I can't do that."
(News Analysis, Walter Mears, AP)
-more-
White House News Summary
Thursday, January 30, 1992 -- A-13
PENTAGON STALLS ON WOMEN PILOTS
The Pentagon's top personnel officers Wednesday built a united
front in opposing a quick opening of combat pilot jobs to women.
Their testimony elicited a scolding from Rep. Byron, who championed
the vote in Congress last year to lift the ban on female combat
pilots. "I got the feeling their feet are going to be dragged,'
Byron said after the hearing. "The committee is going to watch you
guys
The American public is ready to see women in units that
are in harm's way. "
(Rowan Scarborough, Washington Times, A1)
YELTSIN OFFERS CUTS IN A-ARMS
MOSCOW -- President Yeltsin, making his debut on the
international stage as a major world leader, Wednesday called for
sweeping cuts in nuclear arsenals and announced that he had halted
production of several long-range nuclear weapons systems.
In a television address on the eve of a visit to the U.S.,
Yeltsin said Russia was striving for "minimum sufficiency" in
nuclear and conventional weapons. He welcomed arms control
proposals made by President Bush in his State of the Union address
and suggested that Moscow could join Washington in creating and
jointly operating a global defense system against nuclear attack
in place of SDI
Yeltsin said he would propose deep reductions in strategic
offensive weapons when he meets with President Bush in Camp David
on Saturday. Under his proposal, each side would be left with only
2,000 to 2,500 strategic nuclear weapons
Welcoming the Yeltsin initiative at a news conference in the
Kremlin, Secretary Baker said that both the U.S. and Russian
proposals were "worthy of consideration." He said they reflected
"new political realities and the changed circumstances of relations
between the United States and Russia."
(Michael Dobbs, Washington Post, A1)
BUSH, YELTSIN ADD MOMENTUM TO REDUCTION OF ATOMIC ARSENALS
New arms control proposals by Presidents Bush and Yeltsin have
added substantial momentum to the dismantling of the world's most
extensive nuclear weapons arsenals and industries, U.S. officials
and independent experts said Wednesday. The latest U.S. offer and
Russian counteroffer, exchanged in speeches by the two leaders that
seemed to have been coordinated in advance, will almost certainly
move both nations towards much smaller and somewhat less
provocative nuclear arsenals, the sources said.
(News Analysis, Jeffrey Smith, Washington Post, A18)
BRITAIN TO EXPAND NUCLEAR SYSTEM
LONDON -- Britain Wednesday insisted it would forge ahead with
expanding and modernizing its supply of nuclear warheads even while
welcoming new U.S. and Russian proposals for deep cuts in their
nuclear arsenals. Despite a televised plea from President Yeltsin
to the world's other nuclear powers to cut back, British officials
said they plan to go ahead with building four Trident submarines
with multiple-warhead ballistic missiles to replace the country's
aging Polaris fleet.
(Glenn Frankel, Washington Post, A19)
White House News Summary
Thursday, January 30, 1992 -- A-14
PALESTINIANS RECEIVE PLEDGE FROM BAKER
MOSCOW -- Secretary Baker Wednesday assured Palestinian
participants in the Middle East peace process that if they end
their boycott of talks on regional problems he will support their
call for broadened representation when those talks involve issues
such as refugees and economic development that are of concern to
Palestinians. However, Israel warned anew that it would quit the
talks if the rules governing which Palestinians are eligible are
changed.
(John Goshko, Washington Post, A17)
BAKER KEEPS SYRIA ON TERRORISM LIST DESPITE IMPROVED TIES
Despite approved U.S. relations with Syria, Secretary Baker
won't remove Syria from the list of countries alleged to engage in
state-sponsored terrorism, U.S. officials say. At the conclusion
of the State Department's annual review, Baker has decided that
there was no justification for removing Syria or any of the five
other countries from the list, the officials said Wednesday.
(George Gedda, AP)
ISRAELI PARTIES AGREE ON JUNE 23 ELECTION
Campaign Seen Likely To Slow Peace Talks
JERUSALEM -- Prime Minister Shamir's ruling Likud and the
opposition Labor Party Wednesday reached a tentative agreement to
move general elections up from November to June 23, setting the
stage for a political campaign likely to have a crucial influence
on the Middle East peace process
The five-month campaign seems likely to slow Arab-Israeli
peace negotiations, although Shamir has insisted that he wants the
talks to continue. At the same time, politicians say the results
of the vote may be key to determining how far Israel will be
willing to go to reach an agreement with Palestinians on self-rule
in the occupied territories, as well as in peace talks with Jordan,
Syria and Lebanon.
(Jackson Diehl, Washington Post, A16)
DATA SHOW U.S. APPROVED $60 MILLION IN SALES TO IRAN
The Bush Administration approved $60 million in high-tech
sales to Iran over 13 months starting in September 1990, and most
had potential military value, documents show. Even as the Commerce
Department was approving the exports, other agencies were sounding
alarms about Iran's efforts to develop nuclear weapons and its
support of terrorism.
(AP, Washington Post, A6)
SADDAM FORMS SPECIAL FORCE FOR PROTECTION
NICOSIA -- Saddam Hussein has formed a special military force
to protect him, his palaces and key government centers against
internal opposition, diplomats said Wednesday. The
troops
reportedly were taken from the Republican Guard.
(AP, Washington Times, A10)
-
White House News Summary
Thursday, January 30, 1992 -- A-15
U.S. SET TO DROP SANCTION IF CHINA OBEYS MISSILE PACT
The Bush Administration is prepared to remove a ban on
exporting high-technology items to two Chinese missile
manufacturers in exchange for China's pledge to abide by a non-
proliferation treaty.
According to Administration officials, China will agree in
writing to abide by the 1987 Missile Technology Control Regime
An announcement to lift the June sanctions is expected before
President Bush meets Prime Minister Li in New York and could come
as early as Thursday, according to officials.
(Bill Gertz & Warren Strobel, Washington Times, A1)
CHINESE PREMIER IN NEW YORK FRIDAY
FOR U.N. SUMMIT, TALKS WITH BUSH
BEIJING -- Premier Li's trip to New York Friday to attend the
Security Council summit with President Bush and other world leaders
marks a personal victory for the Chinese official most closely
identified with the crackdown on the democracy movement
It is unclear if the Chinese would take any new measures on
human rights and arms proliferation to the separate Li-Bush
meeting, but Li's visit is viewed here as an unexpected opportunity
to break the logjam in U.S.-Chinese relations.
(Lena Sun, Washington Post, A20)
U.S. SEEN WITH FEW GOOD POLICY OPTIONS ON HAITI
Military Action 'Isn't Even Being Debated,'
Official Says; Blockade Called Unlikely
The deteriorating political and economic situation in Haiti
leaves the Bush Administration with thousands of boat people on its
hands and very few good policy options, Administration officials
said Wednesday
Privately, increasingly frustrated officials
concede there is little being proposed that would force a return
to democracy in that troubled country
Military action, which would almost certainly have to be
approved by the OAS, "isn't even being debated now," one official
said. "People think that because Haiti is in the Western
Hemisphere and so close that it is manageable. But it's not.
There is no there there. It has never had an honest or democratic
government in 200 years
If you invade you're going to be in
Haiti for years
There is a minute center and a history of
violence and polarization."
(Al Kamen, Washington Post, A15)
-end of A-Section-
NETWORK NEWS
(Wednesday evening, January 29)
STATE OF THE UNION/BUDGET
ABC's Peter Jennings: We begin tonight with the fine print. In
his State of the Union speech, President Bush called on Congress
and the nation last night to go to war against economic hard times.
In fact, he used exactly the same language he used a year ago, when
he demanded that Iraq get out of Kuwait. This recession, he said,
will not stand. Today Bush sent Congress the battle plan: 1,600
pages of charts and numbers that make up the budget that he wants
Congress to enact. At the same time, the nation's leading bankers
sounded a note of caution. Federal Reserve Chairman Greenspan says
the economy may already have started to turn around, and he warned
the President and the Congress not to get in the way.
ABC's Brit Hume:
(TV coverage: Senate Republicans holding up "A+ speech report
card" sign behind President)
On Capitol Hill today to promote his program, the President
received some assurance that his performance last night had at
least rallied his own party behind him.
(TV coverage: President walking through halls of Congress with
Speaker Foley)
Bush also spent some time with Speaker Foley, but there was no
indication Foley and his party are prepared to accept either the
Bush program or his March 20 deadline for passing it.
(President Bush: "I think we're preoccupied [unintelligible] stay
in touch.
Fed Chairman Greenspan, meanwhile, was telling Congress ever-so-
cautiously that an economic upturn may now be at hand.
(Greenspan: "We are beginning to see some very subtle signs that
the erosion in the economy is beginning to stabilize.")
(TV coverage: President Bush walking down Capitol steps)
Greenspan gave Bush's recovery program the most backhanded sort of
endorsement by saying it wasn't big enough to do any real harm --
by enlarging the deficit and thus pushing up interest rates, for
example. But he warned both the White House and Congress against
cooking up anything bigger.
(Greenspan: "The type of negotiations that could occur could
create a much larger and potentially fiscally disruptive package.'
The Administration's economic team agreed today that the economy
is poised to grow again, but they argued the Bush program would
make the rate of growth even stronger.
(CEA Chairman Boskin: "Two-point two percent this year and three
percent next year. If the President's policies are not enacted,
we expect the economy to do substantially worse than that.")
The Administration and the Federal Reserve chairman are saying
basically the same thing in slightly different ways. The
Administration thinks its modest program will help; the Fed
chairman thinks it can't hurt. And both agree that the economy's
main lifeline and hope for growth is now the Federal Reserve and
continued low interest rates.
(ABC-Lead)
-
White House News Summary
Thursday, January 30, 1992 -- B-2
CBS's Dan Rather: President Bush delivered his State of the Union
speech last night. Today he sent Congress the fine print. This
is the federal budget proposal Bush says will turn the economy
around this election year.
CBS's Ray Brady reports on what the budget means for taxpayers.
President Bush proposed a bundle of financial goodies aimed at
boosting the economy and ensuring his reelection. You get maybe
$350 a year more to spend.
(President, during Address: "Something tells me a number of
taxpayers may take us up on this one.")
Well, maybe. But the plan cuts withholding, not taxes. The
address did little to ease the main concern of many Americans.
(Audrey Freedman, economist: "In the long-term and even in the
medium-term, none of his proposals will create jobs.")
Critics say many of the proposals are short-term fixes for an
election year, not likely to promote long-term growth. (CBS-Lead)
Rather: President Bush was back on Capitol Hill today for spin
control on the speech and the hard sell on his budget.
CBS's Susan Spencer:
(TV coverage: President walking through halls of Congress)
With the White House trumpeting his performance last night, Bush
braced for Act 2, today explaining how he'll pay for all of his
election year promises and tax cuts.
(President, seated with congressmen: "We do not need more domestic
spending; we're cutting back on defense. And so it's a very well-
thought-out package.")
The '93 budget out today makes it clear: defense savings may be
the linchpin to tax cuts in what the White House called its growth
package and others call smoke and mirrors.
(OMB Director Darman: "We would be willing to consider the use of
the outlay savings from the defense cut to support the investment
in families, personal exemptions. And only that.")
Details are all laid out in a five-pound budget book with a bottom
line of $1.5 trillion, a deficit estimated at over $350 billion,
a projected unemployment rate bound to upset the Bush campaign of
6.4 percent, and recovery -- well, just around the corner.
(CEA Chairman Boskin: "By mid-1992, if the President's proposal
is passed, people will notice demonstrably higher rate of growth.")
And some popular programs will have lots more money, among them
highway construction, R&D, Head Start, science and math education.
Among the budget's big losers are new public housing construction,
community services block grants, money to remove asbestos from
schools, and low-income energy assistance. Medicare takes a $1.4
billion hit in this plan, but beyond that the budget has no real
specifics on comprehensive health care reform.
(Ron Pollack, Families USA: "Unfortunately, what we saw with
George Bush is a new medical Darwinism. Not survival of the
fittest, but survival of the richest.")
Bush does promise now absolutely to detail his health care plan
next week. That plan and this budget will serve as ammo against
campaign charges that he really has no domestic policy. (CBS-2)
CBS's Bob Schieffer reports that on the campaign trail President
Bush got hammered from the right and the left.
-
White House News Summary
Thursday, January 30, 1992 -- B-3
Schieffer's report continues:
(Sen. Harkin: "I heard it all before four years ago. Said he was
going to be the Education President, gonna be the Environment
President, gonna create millions of jobs. So we've heard it
before.")
(Pat Buchanan: "For three years he has presided over one of the
biggest spending splurges in American history, and now he's gonna
freeze spending.")
But the speech accomplished one thing: at the Capitol this
morning, Republicans gave him a big A-plus. Even those who had
been threatening to bolt and design their own economic plan said
they're back with the President.
(Rep. Gingrich: "I think up until 9:00 last night it was fair to
ask the question, Does President Bush have a program? I think by
10:00 last night, it was clear that President Bush has a program
and the key question is will the Democratic leadership cooperate."
(Sen. Dole: "This plan, we're gonna stick together. And that's
very important. Republicans have to stay united.")
It was the President setting a deadline that rankled Democrats
here.
(Sen. Sasser: "The President has given us 50 days to send him a
solution, when it took him 480 days to notice we had an economic
problem.")
(Rep. Panetta: "This Administration is not thinking about 20-year
plans and it's not thinking about 10-year plans. It's thinking
about the 10 months between now and Election Day.")
Even so, criticism from the Democratic leadership was fairly muted.
After all, they said, it was Democrats who first proposed a lot of
what the President wants now.
(Sen. Mitchell: "The President previously opposed a middle-income
tax cut and extended unemployment insurance. Now that he's come
around on those, joined with us on the others, I think they form
a basis for action.")
The President's popularity is down, but polls also show that voters
hold Congress in even lower regard. So among legislators there is
a new sense of urgency about saving jobs -- especially theirs.
(CBS-3)
NBC's Tom Brokaw: President Bush today carried through on at least
one of his promises from last night's State of the Union speech:
he was out selling hard. He went to Capitol Hill mindful that with
a sharp recession and an election year, he now faces double
jeopardy.
NBC's John Cochran: The President's budget, like his economic
recovery package, is aimed at restoring confidence in two things:
the economy and George Bush.
(TV coverage: President receiving "report card" from Senate
Republicans)
Today the President returned to Capitol Hill, where Senate
Republicans, without even blushing, gave him a grade of A-plus for
last night's speech. Bush explained he set a March 20th deadline
for Congress to act on his package because it is an election year.
(President: "I am running; many other Democrats are out there
running; and it would be unrealistic to think that as we get later
in this year we could get as much done as we should get done for
the American people.")
Bush's budget will set a record -- the wrong kind: the biggest
deficit ever, almost $400 billion.
-more-
White House News Summary
Thursday, January 30, 1992 -- B-4
Cochran continues: Bush says it'll bend his 1990 budget agreement
with Congress, but won't break it, mostly because he'd cut defense
spending by almost $10 billion. But spending will go up for some
programs, including an increase of more than half a billion dollars
to fight AIDS and $240 million to feed poor children and pregnant
women. Bush would also cut taxes for families with children, and
he wants Congress to move now on tax breaks for investors and
first-time homebuyers. Bush's economic advisers say the recession
will end faster if Congress acts quickly.
(CEA Chairman Boskin: "By mid-1992, if the President's proposal
is passed, people will notice demonstrably higher rate of growth.")
Republican challenger Pat Buchanan said the tax cuts Bush announced
last night were an attempt to undo the damage he did earlier by
supporting tax increases.
(Buchanan: "Mr. Bush appears to have decided that as a candidate,
he's gonna run against the record of George Bush, president.")
Politics aside, if that is possible, Bush's aides say the key to
recovery is not really his plan; the key is for interest rates to
stay low and for Americans to see that the President and Congress
really are capable of reaching a sensible compromise. (NBC-Lead)
Brokaw: In Congress, Democrats have a majority, and polls that
tell them the President these days is not exactly operating from
political strength.
NBC's Andrea Mitchell reports that even before the President
arrived at the capitol, Democrats were picking apart his program.
(Rep. Gephardt: "Rather than giving a $15,000 tax cut to the
people at the very top, we should be giving a much larger tax cut
than the President called for for middle-income families.")
Democrats sat on their hands last night.
(TV coverage: Vice President Quayle and Speaker Foley seated
behind President; only Quayle is applauding)
They want a bigger middle-class tax cut sooner than the President's
proposal, which wouldn't kick in until October. But if the
President accepts higher income taxes on the rich, he may get some
form of cut in the capital gains tax rate.
(Sen. Hollings: "The House is gonna pass it, and if we brought it
up this afternoon in the United States Senate, it would pass in the
United States Senate.")
The President said his tax cuts would not increase the deficit.
But Democrats said the breaks were paid for by gimmicks adding up
to $100 billion to future deficits.
(Rep. Panetta: "It's election year, and obviously smoke and
mirrors is back in style.")
And what about the President's threat to declare political war if
Democrats don't pass his tax cuts right away?
(Sen. Mitchell: "We will act, not because of this so-called
deadline, but because it's the right thing to do.")
(Sen. Bentsen: "I think when the President talks about getting it
all done by March 20, he knows it can't be done that quickly. And
that's to try to set up a political confrontation.")
He'll get a confrontation on defense. Democrats say his proposal
would cut only $4 billion in actual spending next year. They want
much more. Predictably, Democratic contenders were also critical.
Bush didn't propose enough for Bill Clinton:
(Clinton: "It was too little too late, band-aids where major
surgery is required.")
-
White House News Summary
Thursday, January 30, 1992 -- B-5
Mitchell continues:
He'd give away too much for Paul Tsongas.
(Tsongas: "What the President did last night was drain the
Treasury. Every possible group: 'Here's a goodie, folks.
But congressional Democrats are afraid of voter backlash if they
appear to drag their feet, so they'll pass a tax package in the
next few months. But it may be one that the President will want
to veto.
(NBC-2)
Jennings: The biggest surprise from the President last night for
many people was his Executive Order -- requiring no agreement with
Congress -- that the IRS change the rate at which tax is withheld
from nearly everybody's paycheck; to take out less so that most
everyone would get a slightly fatter paycheck, and hopefully pump
about two billion dollars a month back into the economy. As ABC's
Jim Hickey reports, that may well be a mixed blessing.
Hickey reports on the decision. The President hopes taxpayers will
spend the extra money, an extra $15 or $20 a month. Taxpayers can
choose not to have their withholding decreased, but according to
the IRS they will have to file a new tax withholding form.
(Dave Berenson, tax accountant: "You're gonna have some surprised
people who will find they will owe something at the end of the
year; for other people that really counted on getting a refund,
it's not going to be there.")
And the government won't have temporary use of the extra money.
The President is betting the loss will be worth it -- if he gets
that $25 billion shot in the arm for the economy.
(ABC-2)
HOMEBUYERS REBATE
ABC's Stephen Aug reports on the President's plan to give a $5,000
tax credit to first-time homebuyers. It brought cheers across the
country.
(Virginia woman: "It's definitely an incentive to get us into a
house. It's gonna make us maybe work a little harder and try to
move a little faster.")
(Ohio man: "We have enough for the downpayment, but we don't have
enough for the closing costs and the little incidentals that go
with that."
(Rich Porter, Richport Homes: "If in fact he can maneuver this
through Congress, then we are going to be looking at adding more
people and starting more homes and in fact creating some jobs.")
President Bush chose housing for special tax benefits because it
has lifted the nation out of past recessions.
(David Seiders, National Assoc. of Homebuilder: "It has to be a
shot in the arm. We're estimating that this program could generate
an additional roughly 500,000 new home transactions over the course
of the program."
That could mean 400,000 additional jobs, like roofers and
carpenters. Other businesses could benefit as well. The credit
will cost money, which the government will have to get from other
programs, and there's no guarantee the incentive will cure consumer
confidence.
(ABC-3)
NBC's Mike Jensen reports on the homebuyers rebate, which set off
a flurry of activity. Congress is expected to approve it.
-more-
White House News Summary
Thursday, January 30, 1992 -- B-6
Jensen's report continues:
(Homebuilder: "We think it's real positive for the industry. It's
gonna allow us to sustain the existing growth and the existing
increases that we're seeing in our business.")
As for the plan to cut withholding, a lot of people think this is
a bit of a gimmick.
(Woman: "It's a placebo. It's not something that I think is going
to have a great affect on the economy, on people's spending.")
(NBC-3)
STATE OF THE UNION REACTION
Rather: Right after the address, CBS News took a poll: 56 percent
of the Americans who responded said they believe President Bush can
improve the economy. But about the same number said they don't
think Bush understands problems of the middle class.
CBS's Richard Threlkeld reports from Larry O'Neal's house in
Londonderry, New Hampshire.
(O'Neal, watching speech with others, listening to President say
"this will not stand": "Unbelievable that he says that.")
Four years ago, all the people in this room voted happily for Bush.
Now with the recession, they feel left out and fed up, and the
speech didn't make them feel much better. Fred Perry lost his job
last July. He thinks Bush was too late with too little.
(Perry: "I think he could've done more sooner, like he did in
Desert Storm. He didn't drag his feet, he went at it right away.
I think he should've done the same thing with the recession.")
Drew Creets, a single mother who was laid off in November, thinks
there was a message missing.
(Creets: "It's still bits and pieces to me: there's a little bit
here to satisfy the urban area, and there's a little bit here to
satisfy transportation. But what about the whole big picture?")
John Bicknell has been job-interviewing for six months now. He's
decided Bush is no Ronald Reagan.
(Bicknell: "He does not do battle very well with the Congress, and
they've overwhelmed him. And he has given way to their wants and
whims.")
Debbie O'Neal is willing to give Bush the benefit of her doubts,
but not Larry.
(Larry O'Neal: "If the election were tomorrow, I probably wouldn't
vote for President Bush. I'd probably vote for one of the
Democrats.")
(CBS-4)
ABC's Jim Wooten reports on one family's reaction to the State of
the Union Address: the Smiths of Pembrook, New Hampshire --
middle-class Americans nearing financial disaster thanks to
layoffs. Bush was their man in '88, but that was before the
recession. His proposals last night meant pennies to them.
(Mrs. Smith: "I personally don't believe that President Bush has
said anything that will affect us.")
(Mr. Smith: "'Rally 'round me, ladies and gentlemen; rally 'round
me. I'm the President, I'm gonna pull us out of this.' How? It
needs money. We don't have the money.")
Aside from the proposed increase in tax exemptions for dependents.,
they found nothing in the President's plan that seemed to apply to
them. Mrs. Smith sent a letter to Bush last fall: "We're trying
not to let our children know what might happen. But Mr. President,
I'm scared." And she and her family are still scared. (ABC-13)
-more-
White House News Summary
Thursday, January 30, 1992 -- B-7
NBC's Robert Hager reports on a family near Ithaca, New York, which
earns about $28,000 a year but has no health insurance because they
can't afford it. A planned Bush Administration tax break for
middle-class families like one family was eliminated at the last
minute as a budget-buster. Instead, the Administration promises
to try to make insurance less expensive by persuading people to
join HMO's. The family agreed with the President on one score:
(Woman: "That play-or-pay plan to me sounds like something that
would just break the backs of small businesses and really prevent
people from starting new businesses.")
But they thought the President was short on solutions. For now,
they lean toward a national health care plan.
(NBC-7)
COMMENTARY
NBC's John Chancellor:
Last night we got politics as usual
The President said things the Republicans wanted to hear; the
Speaker of the House said things the Democrats wanted to hear
We're getting old-fashioned partisan bickering.
(NBC-9)
FED
Rather reports Fed Chairman Greenspan warned both the President and
Congress not to meddle too much in the economy, and he said he does
not see the need for further interest rate cuts.
(CBS-5)
GDP
Jennings reports the gross domestic product was up in the fourth
quarter, but not by much: .3 percent.
(ABC-5)
DEFENSE BUDGET
ABC's Gary Shepard reports on the reduced defense budget. Since
the beginning of 1988, 70,000 jobs have been lost in the California
aerospace industry. Stopping the B-2 Stealth program after only
20 planes are completed will mean another 14,000 jobs lost at the
Northrop Corp. as well as 25,000 others in related industries. At
Northrop today, B-2 workers said it will not be easy finding work
elsewhere, especially at previous salaries or benefits. (ABC-6)
NBC's Fred Francis reports on the defense budget, which is in many
ways a "guns and butter" proposal, putting the political burden on
Congress to slash jobs for deeper savings on defense.
(Jeanette Smith, Northrop Corp.: "How can we forget that a year
ago we were at war? How can we forget that there are still the
Saddam Husseins and the Khadafys and we don't know what's gonna
happen in Russia?")
(Secretary Cheney: "We are taking the force down now just as
rapidly as we could take it down without breaking it, and the only
people who are going to suffer if in fact you do that will be our
men and women in uniform.")
The budget is strong on preserving the U.S.'s role as world
policeman, however.
(NBC-4)
NUKES/YELTSIN
ABC's John McWethy reports on Boris Yeltsin's reaction to President
Bush's nuclear reduction proposals.
-
White House News Summary
Thursday, January 30, 1992 -- B-8
McWethy continues: Yeltsin was even more ambitious than Bush
expected: he gave a television speech saying Russia will stop
producing cruise missiles and bombers and that he will cut the size
of the army by nearly one-fourth. He outlined for Secretary Baker
a sweeping proposal to speed up nuclear arms reductions already
agreed-to by treaty and to cut much deeper. Yeltsin proposed that
each country which now has more than 20,000 nuclear warheads be
left with just 2,000.
(Yeltsin: "We no longer look upon the United States as an enemy,
and therefore our missiles will not be targeted on either military
or civilian facilities in the United States.")
Yeltsin's ideas may well go beyond what President Bush is willing
to accept when the two meet in Camp David.
CBS's Anthony Mason reports on Yeltsin's response. Military
commander Yevgeny Shapashnikov seemed confident the cuts would not
undermine Soviet security when he met with Baker this morning, but
other Commonwealth leaders were noticeably not included. Yeltsin
seemed to be steering the ship on his own, and he reportedly
impressed Baker's entourage with his technical knowledge. The U.S.
team liked what it heard.
(Baker: "And I think both proposals could be characterized as
broad and far-reaching.")
(ABC-7, CBS-8, NBC-8)
HAITIAN REFUGEES
NBC's Jim Miklaszewski reports the Administration is considering
drastic action on the Haitian refugee flood. Refugees are fleeing
in record numbers, overloading the U.S. refugee system so rapidly
that one U.S. official called it a national security crisis. The
temporary U.S. refugee center at Guantanamo Bay in Cuba will be
overloaded within days. In addition, U.S. officials say one out
of every 10 of the refugees has tested positive for the AIDS virus.
The Administration wants to send most of the refugees back to
Haiti, but a federal court in Miami has ruled that each one must
be given a full immigration hearing, taking months. Administration
officials complain that the court order has encouraged refugees to
flee Haiti. One official said if the order is not overturned, the
Administration could take its case to the Supreme Court within 24
hours. Bush has insisted his policy does not discriminate. NAACP
Director Hooks has just returned from the center.
(Hooks: "It will be hard to dispel the notion that it is not based
on race unless the Justice Department acts quickly to erase any
reason for that to exist.")
Late U.S. intelligence reports indicate that as many as 20,000 more
Haitians are preparing to flee.
(NBC-5, ABC-9)
MIDEAST PEACE TALKS
Jennings reports the latest round of Middle East peace talks came
to an end in Moscow. More than 20 countries, including Israel and
many Arab states, have agreed to talk again in the spring on
regional issues.
(ABC-8, CBS-9)
JAPAN/TRADE
Rather reports Prime Minister Miyazawa reversed gears again today.
He's now saying again that Japan's pledge to buy more American auto
parts was, after all, a promise and not just a target.
-
White House News Summary
Thursday, January 30, 1992 -- B-9
Rather continues: He said each Japanese automaker has come up with
a "firm number of imports over the next three years.'
(CBS-6)
SEXUAL HARASSMENT/MILITARY
CBS's David Martin reports on civilian women invited to a U.S. Navy
and Marine Corps' pilots' cocktail party who say they found
themselves trapped in a sexual combat zone. The men are under
investigation for what the Navy says may be serious sexual criminal
offenses.
(TV coverage: unidentified women give graphic representations of
what they say happened that night)
So far, none of the pilots involved has been disciplined. The Navy
says its investigation is continuing. in the meantime, it is
considering a tougher policy under which anyone guilty of
aggravated sexual harassment would be kicked out of the service.
(CBS-15)
PRISONERS/BUDGET
Jennings reports on a small item in the budget: President Bush is
proposing that those prisoners in federal jails who are financially
well-off should pay their own way, about $18,000 a year. The
Administration figures nearly one in ten convicts can afford it.
(ABC-4)
YOUNG vs. OLD
ABC's Rebecca Chase reports on the battle between children and the
elderly for shrinking federal resources. In the budget sent to
Congress, nearly half the money designated for all domestic
programs is designed to be spent on the elderly. The money spent
on children is less than one-fourth of that. Spending on the
elderly has increased 52 percent in the past decade, while spending
on children has declined four percent. The poverty rate of the
elderly, once the highest of all groups, is now the lowest.
Children have now become the poorest: a record one in four live
in poverty. Welfare benefits for mothers and children are not
protected by cost-of-living increases, while senior citizens'
benefits are protected every year with no congressional debate.
Also, 12 million children have no health insurance, while every
rich and poor American over age 65 have Medicare. No other nation
has such a spending gap between young and old. There are proposals
to tax Social Security benefits, limit COLA's and raise Medicare
premiums. But change will come slowly because seniors are a
powerful voting bloc, while children cannot vote.
(ABC-12)
CLINTON
Rather reports that Gennifer Flowers has lost her state job in
Arkansas for failing to show up or call in for three days. Her job
as a secretary paid her less than $18,000 a year. By some
accounts, she received well over $100,000 for selling her story to
The Star.
(CBS-14)
-End of B-Section-
EDITORIALS/COLUMNISTS
STATE OF THE UNION
The President's Speech --
"
President Bush's underlying point was
on target: let the nation grow out of its economic problems mostly
on its own. Indeed, Bush's call for a freeze on government hiring
as well as domestic discretionary spending was a potent symbol that
the President is interested in getting the deficit under control.
Yet Bush marred that proper approach with proposed tax cuts that
will do little for the long-term economy except increase the
deficit
Indeed, about the only Bush tax cuts that will
stimulate the economy are his proposals for investment tax credits
and incentives for buying real estate." (Orlando Sentinel, 1/29)
Prudence Not The Answer
"
President Bush failed at his most
important task, which was to restore a degree of America's
confidence in itself as well as in its President
If the public
believes, as does Bush, that the country's problems are temporary
and can be cured by small adjustments to current policy, then the
speech is indeed likely to play well. But if instead voters sense
that the problems are more profound and require a government
willing to consider making real change, then they likely found the
speech deeply disappointing, and will begin now to look elsewhere
for leadership."
(Atlanta Constitution, 1/29)
The Speech And The Vision --
"
Although some of the President's
proposals were clear enough
other proposals were delivered in
only vague outline
Where Bush was on solid ground indeed was
his restated insistence on the need to open world trade markets and
the need to fight protectionism
The President's delivery was
forceful and assured. But the message he delivered needed to
outline a better sense of America's compelling domestic needs --
such as jobs.'
(Los Angeles Times, 1/29)
Presidency On The Line -- "George Bush bet his Presidency last
night on an uptick in the economy before election day. Yet
compared to what his Democratic foes are proposing, his State of
the Union Address was a modest beginning to his campaign for re-
election
Bush was eager to do battle. But the struggle will
do him little good, even if he wins on debating points, unless the
economy turns around. "
(Baltimore Evening Sun, 1/29)
Bush Plan: Help For Now, But What About The Future? -- "
Serious
doubts persist that the President has any meaningful long-term plan
for winning war on the nation's economic woes
Tax hikes or far
deeper cuts will be needed once the recession ends. Big ones. "
(USA Today, 1/29)
The State of The Union -- " On domestic affairs, President Bush
outlined a dressed-up, standstill program of more of the same. His
proposals struck us as being not at all up to the challenges before
him
The speech sort of seemed to dwindle, to shrink in vision
as it moved along. "
(Washington Post, 1/29)
FOREIGN MEDIA REACTION
STATE OF THE UNION
Address Will Not Solve President's Problem
"
Last night's address will not solve the problems of the
Bush Presidency. It will reopen a war with Congress which the
White House has probably neither the principle nor passion to
win
It will not create some mystic turning point on the
declining graph of the President's popularity. What is worrying
is that so many people thought that it might." (Times, Britain)
Ambitious Crisis Agenda
"
President Bush promised the U.S. economy was safe in his
hands, and borrowed the Democrats' best ideas to revitalize his own
sagging campaign."
(Guardian, Britain)
A Real Triumph For Bush
"It is a real triumph Bush brought himself last night before
the U.S. Congress
His program raised great enthusiasm in the
Congress, although dominated by the Democrats." (TV La 5, France)
Most Spectacular News: Military Cuts
"
Nothing indicates the President's ratings will increase
in the polls. However, business circles and business owners are
satisfied this morning."
(Radio France Internationale, France)
Lacking: Bold, Visionary Plan
"
Reactions of political commentators, Democrats in Congress
and citizens to the State of the Union so far are predominantly
negative. Lacking is the great, bold and visionary plan for
America, and there is nothing to remove Americans' fears about
unemployment, health care and education.'
(BRTN, Belgium)
Bush Sounded Like A Defendant
"
Instead of a hero, the President sounded like a defendant.
Bush's faults are generally minor, with one serious exception:
The speech last night may be too ambiguous. In trying to please
everyone, he may have pleased no one. If
(Il Giornale, Italy)
Bush Trying To Squeeze Funds To Stimulate Economy
"
It is questionable whether the address will serve as a
positive factor to secure his bid for a second term."
(NHK-TV, Japan)
Speech Did Not Fulfill Expectations
"Longer on rhetoric than on concrete proposals, Bush's speech
did not fulfill the expectations created by the White House."
(O Estado de Sao Paulo, Brazil)
-End of News Summary-
(March 19, 1992)
PRESIDENTIAL REMARKS:
ANNOUNCEMENT OF TAX BILL VETO
THE WHITE HOUSE
FRIDAY, MARCH 20, 1992
Good afternoon and welcome to the White House.
Fifty-two days ago, in my State of the Union Address, I asked
Congress to act on my agenda for economic growth. I asked for
immediate action, by March 20th, on a series of proposals to help
rekindle the economic recovery.
I asked the Democratic leadership to put partisanship aside,
pledging to do the same, in order to enact seven sensible steps to
increase investment, strengthen the value of American homes, and
create jobs.
Well, March 20th has arrived. Last night, the Congressional
Jime
conferees finished work on the conference report on the tax bill.
It would increase taxes, and harm the economy. So today, I want to
Affairs
do three things.
First, I am going to sign the veto message and stop the
Counsel
Democrat's tax increase. Second, I am taking several additional
115
steps on my own to help the recovery, with or without Congress. And
third, while the Democrats in Congress dither, I am proposing
action on the real challenges facing America -- on my long-term
plans to help America compete in the global economy of the future.
I am disappointed in Congress. In fairness, some Democrats
didn't want to put a tax increase in the bill. But politics
prevailed. A slim majority passed the bill in the face of a
certain veto. But they aren't blocking my economic recovery plan
2
because they're afraid it won't work, they're blocking it because
they're afraid it will work.
I don't take this step lightly. This is the first time a
President has vetoed a tax bill since Harry Truman did it in 1948.
But I submitted an economic growth package to Congress for a
reason -- to promote a recovery in which every American has an
interest. The bill I proposed was carefully tailored. It was paid
for -- without raising taxes. It was designed to encourage and
Commerce Pub Affairs
strengthen the positive economic signs we are beginning to see
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produced a bill which will not strengthen the economy -- it will
Spencakrane 5086 Treasury
weaken it. It has produced a bill which will not stimulate
growth -- it will retard it. As if by reflex, the Democrats in
ACA
Congress could not resist their natural impulse to raise taxes.
OK
But I assure you of this: I will not let them do it.
Letermar's
With this pen, I am now going to sign the veto message for the
Counsel
Democrats' tax increase -- because raising taxes will not help
create jobs.
The bill is not yet here -- but the conference report tells me Lee
to identify my objections folt
all I need to know When the bill is sent down tonight, this
message and the bill
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signed message will be waiting for it -- and my veto will go to the
office
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Hill the minute the bill arrives here.
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3
The message is clear: my veto pen, and a block of votes ready
to sustain it, stands ready to stop any tax increase on the
American people.
With that clear, I ask the Democratic leadership to put aside
once and for all the idea of a tax increase. And I ask the
Congress again: Pass the 7 common-sense measures I've proposed to
help the economy now. Do so without raising taxes, and I will sign
it. Then let's get on to the long-term agenda. But stop holding
the American economy hostage in a partisan game.
Passing a tax increase is bad enough. But here's what really
troubles me:
The irresponsibility of Congress on this plan is part of a
pattern. It reflects a more serious problem -- a deeper systemic
problem that is gnawing at the strength of our nation. It is no
wonder that Americans are mad. Today, looking at the accumulated
evidence of several years, it must be said: our Congressional
system is broken.
We have a long tradition in this country of pulling together
when national need demands that we do so. Over the years, many
accomplishments, large and small, have been truly bipartisan.
But Congress today is different. It is more partisan.
It
is financed by special interests. It has grown out of control. It
has lost the ability to police itself. And, perhaps most
importantly, it is no longer accountable to individual American
citizens and voters.
4
Yes
One party has controlled the House of Representatives for 37
years. Staff has become institutionalized. Twenty-five years ago,
there were 2,000 Congressional staff. Today, there are more than
12,000 staff for Congress itself -- almost 40,000 if you include
the entire legislative branch. The number of committees and
subcommittees has grown from 38 fifty years ago to over 300 today.
And for this -- we get a Congress incapable of passing the
simple plan I presented almost two months ago. Today, the Congress
can't manage a one-teller bank.
In the 1990 elections, special interest political action
committees -- "PACs" -- gave about 117 million dollars to incumbent
Congressmen and Senators. Only 15 million dollars were donated to
challengers. With this 8-to-1 spending advantage, obvious voter
discontent was smothered in a wave of PAC-financed television
advertising. so, nearly every incumbent won.
The time has come for change -- because when the system is
broken, you do have to fix it. I have proposed to eliminate the
PACs which are poisoning our system.
Changes
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I propose also to increase accountability. I am directing the
Secretary of Labor to implement promptly the Supreme Court's Beck
has
changes
decision. No worker should be forced to have money taken out of
his paycheck to fund politicians he disagrees with.
We should apply to Congress the same laws -- from employment
OK
ok
conditions to civil rights -- which it imposes on every other
tay
business and every other citizen in this country.
John 70k Lieberman
Gregg Walden
Counsel's
office
5
And I believe the time has come to limit the terms of
Congressmen. The term of a President is limited. It is time for
the terms of Congressmen to be limited.
The bottom line is that we all need a new Congress -- one that
can work to do what is right.
In the meantime, I will take additional actions on my own,
with every legal means at my disposal, to keep the economy moving
up. I will do so in spite of the hopelessly tangled Congressional
web of PACs, perks, privilege, partisanship and paralysis.
There is, of course, a serious limit on what a President can
do without Congress. But I am determined to do all I can.
First, I want to underline a fundamental point: government is
too big and spends too much.
I've already proposed to freeze domestic discretionary
spending and federal employment next year. I've also proposed to
cap the growth of "mandatory" programs (other than Social
Security). These are programs that grow automatically -- without
Congressional review, or even a chance for a Presidential veto.
Their uncontrolled growth is fast becoming another Washington
scandal.
Today I am sending to Capitol Hill the first of a package of
additional measures to cut Federal spending now -- this year.
These line-item rescissions, in total, will cancel about $4 billion
in unnecessary spending.
Funds for local parking garages. One hundred thousand dollars
for "asparagus yield declines." Mink research. Prickly pear
6
research. The examples would be funny if the effect weren't so
serious. This kind of wasteful spending destroys public confidence
in the integrity of the government. Americans have every right to
be outraged, and disgusted. It is their money.
I will work with the Republicans in the House to bring each of
these items to a vote. That will bring us a step closer to the
accountability and power that 43 Governors have -- the line-item
veto.
Second, I have directed the Vice President to step up the
assault on unnecessary regulation and paperwork. Let me give you a
progress report. While Congress has spun its wheels for these past
two months, we've already taken specific steps to remove the
regulatory roadblocks to growth.
We've implemented plans to promote biotechnology, lower
construction costs, help small business, ease the credit crunch,
help clean up the air, reduce costs in transportation, and cut
through the morass of regulation in agriculture. Today, we're
launching a new public-private partnership to promote research and
development by bringing the good ideas from our Federal labs into
the marketplace.
Over the coming months, we will be announcing many more such
steps to chop away at needless regulation and paperwork wherever we
can. Too much regulation stifles innovation and makes America less
competitive.
I realize that these are only modest steps. But they reflect
a fundamental attitude.
7
If the Democrats who run the status quo Congress will not help
us change America, we will have to change it without them. If the
Democrats who run the status quo Congress will not help us reform
government, we must reform it without them.
You see, change is nothing to fear. For more than two
centuries, America has been a force for change. Our restlessness
is legendary. Our energy boundless.
Because of this, today America is the most productive nation
on earth, with the highest standard of living. We have only one-
twentieth of the world's population. But we produce one-fourth of
the world's output -- twice that of Japan, and four times that of
Germany. Today, America's credibility and prestige in the world --
not to mention our strength -- have never been greater. But we
didn't get where we are by standing still.
We got where we are by always striving to do better. That's
why the current paralysis of the Congress is so troubling.
It has caused too many Americans, at the exact moment of
triumph for American values around the world, to lose confidence.
Americans are understandably worried about their future. Not
only about the economy right now, although that is a key problem,
but about the economic competition of the future. About the
central question that lies at the heart of the American dream:
will our children have a better life than we do?
Make no mistake: we can compete and win in the global
economy. In the last ten years, we've become more productive. Our
exports have more than doubled. Manufacturing productivity has
8
increased. We are capturing markets around the world -- from
Europe, to Africa, to Latin America.
But in order to keep succeeding in this global economic
competition, we've got to change America in five key ways. We need
a strategy that is confident, forward-looking, future-oriented --
and we need to be willing to change.
First, we must expand markets for American products. So I
will continue to pursue open markets in the GATT. I will push for
a North American Free Trade Agreement, to unlock the potential of
markets in Mexico and Canada. And I will work for bilateral
agreements to knock down barriers to American exports.
To win these markets, we must guarantee that America will
lead the world in knowledge, in new ideas, and in making products
of the highest quality. That requires specific investments --
today.
I've proposed to invest more in basic R&D, and in key
technologies like high performance computing, new and advanced
materials, and biotechnology. Congress should approve these
investments.
And not only the government must invest more in the future.
To maintain our edge by increasing private sector investment,
Congress should pass the capital gains tax cut and make the R&D tax
credit permanent.
Second, we must prepare our workforce to compete -- through
better education and training. I've proposed a set of radical
9
reforms in education called America 2000, and a new approach to job
training -- Job Training 2000.
The idea of America 2000 is simple -- to revolutionize
American education. That means creating new kinds of schools with
new technology and new ways of learning. It means measuring
progress, and holding schools accountable for their performance.
And it means giving all parents -- including and especially the
poor -- choice in picking the schools that can do the job best for
their kids.
We've put the resources behind our efforts. I've increased
the Federal budget for education by 42 percent just since 1989.
I've put in place a new program to train teachers in math and
science, and increased funding for math and science education by
over 69 percent. But more money alone won't do it -- we need
reform.
Third, we must reform health care. America has provided the
best quality health care in the world -- but we are plagued by two
problems: too many Americans are not covered by health insurance,
and health care costs too much.
I have proposed a plan to make health care more affordable,
more available, and more sensible. Congress should pass it -- and
that will help our competitiveness.
Fourth, we've got to fix our legal system. America is
drowning in a sea of litigation. Too many lawsuits means higher
prices for consumers, and reduced competitiveness for America.
10
In some cases, we should require the loser to pay the winner's
legal fees. That will stop frivolous lawsuits.
When parents won't coach Little League teams, when
obstetricians won't deliver babies, and when community pools are
closed in the summertime -- all because of the fear of liability --
we know that something is wrong. Now is the time to fix it.
Fifth, we must tackle each of these challenges without higher
taxes or more government spending. America doesn't need bigger
government -- it needs better government.
On every one of these issues, the Democrats in Congress are
standing in the way of reform. They have cut my budgets for R&D
and investing in the future, and voted instead for pork. They have
stripped choice and accountability out of the education bill. They
are working on a government takeover as the solution to our health
care problem, to be financed by a massive tax increase. And the
special interests have made them afraid of legal reform.
It is time for Congress to either lead, follow, or get out of
the way.
On every one of these challenges, there are two very different
ways of looking at the world. One is reformist, the other protects
the status quo.
That difference is driven by values. The special interests
and the footdraggers do not believe in the kind of change we seek:
change which respects markets more than government dictates; which
recognizes fundamental American values and the difference between
11
right and wrong; which rewards excellence and punishes wrongdoing.
They do not believe that actions should have consequences.
Well, one set of actions should have consequences. The
failure of Congress to move on our program of change means only one
thing: it is time for a new Congress.
Because it is precisely the strength of the values the
naysayers reject that has made America the envy of the world and
the engine of democracy.
Over the coming weeks, I will be speaking more about these
challenges. I'll be laying out further specific plans I have for
each. And I ask the American people to compare those plans to the
response of the status quo Congress and the do-nothing caucus that
has dominated the Democratic Party for too long.
Patrick Henry said: "I like the dreams of the future better
than the history of the past."
Patrick Henry was right. Imagine the irony, as the world is
beating a path to freedom's door, if we ourselves were to turn back
now. If we carry the change forward, we can have a nation of
productive workers and competitive companies, of healthy and secure
communities, of schools that are the best in the world. America
can remain a nation whose exuberant confidence and commitment to
freedom are admired worldwide.
I'm ready to build such an America.
Because if we can change the world, we can change America.
Thank you and God bless you.
Withdrawal/Redaction Sheet
(George Bush Library)
Document No.
Subject/Title of Document
Date
Restriction
Class.
and Type
01. Note
DoB
n.d.
(b)(6)
[Birthdate and Social Security Number Redacted.] (1 pp.)
Collection:
Record Group:
Bush Presidential Records
Office:
Speechwriting, White House Office of
Series:
Speech File, Backup Files
Subseries:
Chron File, 1989-1993
WHORM Cat.:
File Location:
Budget Deadline Research, 3/20/92 [2]
Date Closed:
11/30/2023
OA/ID Number:
13804-008
FOIA/SYS Case #:
Appeal Case #:
Re-review Case #:
Appeal Disposition:
P-2/P-5 Review Case #:
Disposition Date:
AR Case #:
MR Case #:
AR Disposition:
MR Disposition:
AR Disposition Date:
MR Disposition Date:
RESTRICTION CODES
Freedom of Information Act (FOIA) - [5 U.S.C. 552(b)]
Deed of Gift Restrictions
(b)(1) National security classified information
C(1) Closed by Executive Order 13526, governing access to national
(b)(2) Release would disclose internal personnel rules and practices of an
security information
agency
C(2) Closed by statute or by the agency which originated the information
(b)(3) Release would violate a Federal statute
C(3) Closed in accordance with restrictions contained in donor's deed of
(b)(4) Release would disclose trade secrets or confidential or financial
gift [formerly listed as only C]
information
PRM. Removed as a personal record misfile
(b)(6) Release would constitute a clearly unwarranted invasion
of personal privacy
(b)(7) Release would disclose information compiled for law enforcement
Presidential Records Act - [44 U.S.C. 2204(a)]
purposes
(b)(8) Release would disclose information concerning the regulation of
P-2 Relating to the appointment to Federal office [(a)(2) of the PRA]
financial institutions
P-5 Release would disclose confidential advice between the President and
(b)(9) Release would disclose geological or geophysical information
his advisors, or between such advisors [(a)(5) of the PRA]
concerning wells
DOB
michelle (b)(6) Frances Freid