THE PRESIDENT: Bienvenidos. I want to thank mi abogado and my
close friend for his leadership and his participation in our
government. Everybody has got to have a good lawyer. (Laughter.)
Especially in my line of work. (Laughter.) And I've got a great one
with Al Gonzales. I'm proud to call him friend.
I also want to thank the members of the Latino Coalition who are
here today. I want to thank for your work in -- obviously, on
political issues. But really I want to thank you for what you're doing
in your own community, showing people that through hard work there's
opportunity and hope; that if you're an entrepreneur, thanks for
setting such a great example. Truly, one of the greatest things about
the nation is that somebody who has got a dream and who works hard can
own their own business, realize their own potential. So thanks for
setting the example for a lot of our fellow citizens.
I'm honored that Mel Martinez is here with us, and Hector Barreto,
serving my administration. Both men are doing a fine job in important
positions. I want to thank Ambassador Hans Hertell, from the Dominican
Republic for coming. (Applause.) I see your brought an entourage with
you. (Laughter.) Rosario Marin, who's the Treasurer, is here.
Rosario, great to see you. Josefina Carbonell, who is the Assistant
Secretary for Aging, Health and Human Services, is with us.
I want to thank very much the -- Robert Deposada, who is the
President of the Latino Coalition. I also want to thank Jane Delgado,
as well, for your leadership and for working for what you think is
right for the country. (Applause.) El gobernador del estado de
Hidalgo is with us today. Gobernador, bienvenidos. Glad you're here.
(Applause.)
I see my friend Alfredo Phillips. One of the great honors when I
was the governor of Texas was to work closely with our Mexican
counterparts. Senor Phillips was a man who came to Austin quite
frequently to talk about NADBANK and mutual development programs. I'm
honored you're here. I appreciate your delegation coming.
This nation is committed to making sure we've got great relations
with Mexico. The cornerstone of good foreign policy starts with making
sure the neighborhood is prosperous and peaceful. I look forward to
continuing to work with Vicente Fox on advancing a common agenda for
the good of both nations.
And so I welcome you all here. You come to America today during
times of great challenges. There are some challenges which face us.
But there's no hurdle big enough for the American people not to cross.
This is -- we've got some mighty challenges -- to make sure the
country is more prosperous and more hopeful, and the world more
peaceful. But sin duda, we're going to achieve what we need to
achieve, porque este pais es un gran pais, with great values and great
hope and great strength.
The first challenge we have is to make sure people can find work.
We want everybody working who wants to find a job. The challenge was
created, really, because of a recession, and an attack on America, and
the fact that some of our fellow citizens didn't realize that they
needed to tell the truth all the time when it came to the numbers on
their balance sheets. All three of those circumstances has created a
challenge for the country. And the challenge is how to make sure the
entrepreneurial environment is strong and steady, so that people are
confident in taking risk; that small businesses are willing to take
risks to expand.
And so I put out an economic plan that addresses the challenges
that we face. First, I want to remind you we responded to the
recession by tax relief. We believe that if a person has more money in
their pockets, they're likely to demand a good or a service. And when
they do so, in the marketplace, somebody is likely to produce the good
or a service. And when that happens, somebody is more likely to find
work. That's the premise of the economic policy we laid out in '01. I
worked with the Republicans and Democrats to get the tax plan through.
We responded to the attacks on September the 11th, 2001. We had a
terrorism insurance bill passed to encourage construction programs to
go forward. We dealt with the airline issue. We got the stock market
opened up quickly. And, of course, then we liberated Afghanistan as we
sought to bring justice to the killers of the thousands of Americans
and others.
We dealt with the corporate scandals by passing the law that
clearly says that if you lie, cheat or steal, that if you defraud a
shareholder or an employee, there is going to be certain consequences.
And so we made progress. But the economy still needs more work as
far as we're concerned. And so I've gone to Congress, and I want to
share with you quite quickly, quite briefly what I am asking Congress
to do.
First of all, I think it's very important for us to focus on small
business growth. We're interested in job creation. The first thing
-- the first fact that Congress has got to understand is most small
-- most jobs are created by small businesses, most new jobs. And so,
therefore, any package ought to be focused on small business in
America. And this package is. It basically says, we're -- we've
asked Congress to cut rates; they did. But they phased in the tax rate
cuts over three, five or seven years. Well, if the economy is not
doing as well as it should today, and if Congress has one time seen the
wisdom of letting people keep more of their own money, then step one is
they ought to accelerate the tax relief plan to this year. All tax
cuts in the future ought to be accelerated to this year. If they're
good enough five years from now, they're good enough today.
(Applause.)
Most small businesses are sole proprietorships, or limited
partnerships, or sub-chapter S corporations, which means that they pay
tax at the individual income tax rate. And so, therefore, when you
accelerate rate cuts, you're really accelerating capital to be invested
by small businesses. And that's what Congress must understand. The
rate reduction package is good for the small business sector of the
American economy. (Applause.)
As well, we believe we ought to increase the amount of expensing
available to small businesses from the current limitation of $25,000 to
$75,000 a year. This will encourage capital expenditure. (Applause.)
It will provide incentive for people to expand their businesses.
Capital expenditure equals jobs, and the more capital accumulation and
capital expenditure we can encourage, the more likely it is somebody is
going to find work.
And so this plan focuses on boosting the amount of money consumers
have to spend, strengthening demand for products. But it also focuses
on capital accumulation, capital formation, particularly at the small
business sector of the American economy.
Furthermore, I believe we ought to eliminate the double taxation on
dividends, and I will tell you why. If capital equals jobs, the double
taxation of dividends means there is less capital in the private
markets for investment. It's fair to tax a company's profits. It is
unfair to tax that profit again when it's distributed to one of the
shareholders. (Applause.) And so our plan encourages capital
formation. Our plan addresses the needs of the 10 million seniors who
have dividend income; it is beneficial for those seniors not to have to
pay a tax on their dividends -- as a matter of fact, it will help them
in the later years of their lives.
The dividend plan also is going to have a positive effect on our
accounting process. I mean, after all, we went through a period of
time when people said, invest in my company even though I may not have
any earnings, I've got a good idea, so let's invest -- let's invest
in something that may or may not happen.
A society which is focused on dividends says, you know, cash is
really what matters. You can't -- you say, invest in my company, I'm
going to pay a dividend -- is not based upon some pie-in-the-sky
protection; it's based on the reality of cash. The dividend policy, if
more companies pay dividends, will have a positive effect when it comes
to the balance sheets of America. It will have a reform effect,
because you can't project what may be. When you're promising
dividends, you've got to project what is. And that's going to be good
for investors, and it's going to be good for accountability when it
comes to the corporate sector of America.
So this is the plan I'm asking Congress to look at. It's a
reasonable plan, it's a stimulative plan, it's a plan that makes
sense. And I'm asking for your help. I'd like for you to contact your
congressman or your senator and let him know that this plan makes sense
for the economic vitality of this country.
We continue to face a hurdle with our schools. If you want America
to be a hopeful place, we better make sure the public school system of
America works. And so I want to continue -- (applause.) I say we
face a problem because not every school is working the way we want it
to. I proposed reform which the Senate and the House passed in my
first year as the President. The reform said, if you spend money, then
it makes sense to demand results. We spend money at the federal level;
therefore, we ought to ask, what are the results. We're asking the
simple question, if you receive money, can the children read and write
and add and subtract. That's what we want to know. It's really
important for Latino parents to have that question asked.
It's essential to ask that question if you want to future of this
country to be bright. Because, oftentimes, the Latino child just gets
passed through the system, without asking the fundamental question of
whether or not that child can read and write and add and subtract.
You see, it's oftentimes easy to walk into a classroom full of the
so-called "hard to educate" and say, we're moving you through. It's
what I call the soft bigotry of low expectations. I told the American
people when I was running for office, I will challenge the soft bigotry
of low expectations, because I believe every child can learn,
regardless of the status of their parents. (Applause.) And we have
done that. We have done that. We've increased federal education
spending by 50 percent from the time I got here. But more importantly,
we're demanding accountability, because we believe in the value of
every child, and we don't want one child left behind here in America.
(Applause.)
We look forward to working with you on health care matters. We
want the Medicare system to function well. We want to make sure that
there is a capacity for people to get primary care through community
health centers. It's an initiative which I strongly support and I'm
pushing Congress to fund to its fullest.
We want to make sure that there is a -- health tax credits to
help the working uninsured. And we want to make sure there's medical
liability reform to make sure that health care is not only affordable,
but available. In other words, we don't want our docs sued to the
point where they're leaving the profession, where people can't find
good medical care.
There's a lot we can work with you on, and intend to do --
associated health care plans, incredibly important part of making sure
small business owners can provide affordable health care to their
employees.
I also want to work with -- continue to work with you all in
America on making sure that our welfare system is complete. I say
complete because the best welfare programs oftentimes are those found
in our iglesias, our churches, and synagogues, and mosques. And our
government must not fear the power of faith in our society, but must
welcome faith-based programs, which exist to heal hearts and provide
hope for broken lives.
The great strength of this country lies in the hearts of our fellow
citizens. The great power of transformation in neighborhoods can take
place because thousands of citizens have heard the universal call to
love a neighbor like they would like to be loved themself. And so
you'll see us continue to work with our neighborhood helpers and
healers at the federal level to encourage faith-based programs to
flourish and exist.
I recognize that one person can't solve all of our society's
problems, but one person can help save one life. And it's that
accumulative effect, what I call the gathering momentum of millions of
acts of kindness which take place on a daily basis, which literally can
transform this country, one heart and one soul at a time.
I also want to talk to you about how to make sure our judiciary
works well -- historically, with me naming good people to serve on
the bench -- good, solid, honest, decent Americans who are willing to
forego the private practice of law, the comforts of private life and
serve on the federal bench. And that's exactly what I've done. I've
named some incredibly fine Americans to serve in this important part of
our government. And no finer American is Miguel Estrada. (Applause.)
He is a man I have named, nominated for the D.C. Circuit Court of
Appeals. When confirmed he'll be the first Hispanic to serve on what
they call "the second most important court in America". (Applause.)
His story is the American story. His story -- it's what makes this
country so profound and so hopeful and so promising. After all, he
came to the country from Honduras. He could barely speak English. He
came as a teenage boy, had trouble with our native language and, yet,
ends up shortly thereafter in Harvard Law School as one of the top
students.
It speaks about a man who has a dream and works hard to achieve
that dream; understands the value of education; overcame difficulties
and became one of the top law students out of Harvard. He has argued
15 cases before the Supreme Court. He has taken his knowledge and
capacity and argued before the highest court of our land. He has
served in the Justice Department under Presidents from both political
parties. He is a incredibly bright mind.
Yet, his nomination is being delayed and stalled by Democratic
senators. His nomination has been stalled for two years. They're
blocking the vote on this good man for purely political reasons. The
senators are applying a double standard to Miguel Estrada by requiring
him to answer questions that other judicial nominees, over time, have
not been forced to answer. And that is not right, and that is not
fair.
By blocking a vote on Miguel Estrada, some Democrats in the Senate
are flaunting the intention of the United States Constitution and the
tradition of the United States Senate, itself. Alexander Hamilton
wrote that, the purpose of the Senate confirmation was to prevent the
appointment of unfit characters. No one can possibly call Miguel
Estrada "unfit." (Applause.)
The American Bar Association has given him its highest ratings --
highest ratings. And he has the qualifications and the experience and
the temperament to make an outstanding judge. The partisans in the
Senate are subjecting Miguel Estrada to an unfair double standard.
Failing to allow an up or down vote -- a vote which will pass -- on
Miguel Estrada's nomination is a travesty, an injustice being carried
out by those responsible for helping to uphold justice in this
country.
I want to thank you for your work on Miguel's nomination. I will
stand by that man's side until he is sworn in as a judge. (Applause.)
And, finally, we have been called to defend America and to keep the
peace. We face a significant challenge, and that is to protect the
homeland of the American people. Prior to September 11, 2001, we
thought oceans would protect the homeland of the American people. We
thought that history would continue to repeat itself, that this nation
was safe and secure; that if there was a gathering threat overseas, we
could deal with it if we felt like dealing with it, but it was not a
problem for the home people. Yet, on September the 11th, the world
changed; it changed dramatically and sadly for thousands of citizens.
It also changed for how this country must view our position in the
world. The strategic vision of the country shifted.
We're doing everything we can here at home to secure the homeland.
We've got agencies working overtime, people sharing information. Our
borders are becoming more efficient. We want people, commerce to move
freely, but we don't want terrorists to move freely. So we're doing as
good a job as we possibly can to protect you. But the best way to
secure the homeland is to find killers before they kill us and bring
them to justice. And that's what we're going to do. (Applause.)
So we're on the hunt, on al Qaeda. This is a different kind of
war. It's a war which requires a good intelligence-sharing, and it
requires cutting off money. It requires specially skilled troops to
smoke these people out of their caves and to bring them to justice.
And that's what we're doing -- one by one. Sometimes you'll see
success and sometimes you won't. You just got to know the mighty
United States, along with 89 other countries in our coalition for
Enduring Freedom, are doing everything we can to protect you and
protect other people who love freedom.
There's also a threat gathering in Iraq. It's been gathering for a
long period of time. The danger with Iraq is that he can strike in the
neighborhood. And the danger with Iraq is that he has got the
willingness and capacity to train al Qaeda-type organizations and
provide them with equipment to hurt America.
The world has waited a long time for Mr. Saddam Hussein to disarm.
They've waited a long time. He is a master of disguise and delay.
He'll say, oh, I'm disarming -- after he said he has no arms.
(Laughter.)
We will continue to work with our friends, people who understand
the value of freedom. We will insist that the United Nation Resolution
1441 be adhered to in its fullest. After all, we want the United
Nations to be a legitimate, effective body. But for the safety of the
American people and for peace in the world, Saddam Hussein will be
disarmed, one way or the other. And this nation does so for the sake
of peace.
The use of our military is the absolute last option. It is the
last alternative for the -- for the President. But the risk of doing
nothing, the risk of assuming that Saddam Hussein will change, the risk
of thinking and hoping for the best for the American people far
outweighs the risk of committing troops, if we have to. The choice is
Saddam Hussein's to make. It's been his to make all along. He gets to
choose between peace and war.
And the other thing that is an inherent part of our view of Iraq is
how I started the discussion here. See, we believe everybody matters,
everybody counts. It doesn't matter your background, where you're
from, everybody has worth. As I said in my State of the Union address,
liberty is not America's gift to the world; liberty is God's gift to
human -- to the human -- mankind. And that's what we believe.
(Applause.)
So in the days ahead, as we deal with this challenge facing our
country, you need to know that the value of freedom and liberty will be
at the forefront of a policy designed to make the world more peaceful,
and a policy designed to protect the American people.
Thank you for your interest. May God bless you all, and may God
bless America. (Applause.)