For Immediate Release
January 9, 2003
Press Gaggle with Ari Fleischer
The South Driveway
9:04 A.M. EST
MR. FLEISCHER: Good morning, nation's press corps. Good morning.
This is the back of Air Force One. (Laughter.) So this is a
newfangled gaggle.
Q Driveway journalism.
MR. FLEISCHER: What kind of journalism?
Q Driveway journalism. (Laughter.)
MR. FLEISCHER:
The President this morning had an intelligence
briefing followed by an FBI briefing. Then he will depart the White
House en route National Capital Flag Corporation -- or Company in
Alexandria, Virginia. National Flag Company manufactures custom flags
and flag poles for personal, commercial and government use, including
the flags that fly on the Presidential limousine.
The company was founded in Claude Haynes' living room in 1962 and
has since grown roughly 5 percent a year. Al Ulmer, Jr., became
president in 2000. He increased the company's labor force to 35
employees and moved the company to Alexandria, Virginia.
The flags held by Boy Scouts and other groups for the informal
observance of Flag Day that the President held last year were purchased
at the National Capital Flag Company.
The President is going here to promote his package to help get the
economy growing even faster. He wants to highlight the job-creating
powers that are in his economic package and call on Congress to pass
it. He will be joined at this event by several people who will benefit
from it.
The company, first of all, because of the -- the small business,
because of the expensing provisions in tripling the amount you can
expense from $25,000 to $75,000, Mr. Ulmer believes that he will be
able to purchase two additional pieces of equipment which he will show
the President during the demonstration that will lead to his hiring
what he believes will be two additional workers. That's a clear sign
of how the package creates jobs.
In addition, other people who will join the President this morning
will be Joseph and Kristen Pappano. They are in their mid-30s, they're
married with two young children. Together, they earn approximately
$75,000 a year. In total, they'll receive a $900 savings on their
yearly tax bill -- an 18 percent tax cut.
He's not ready to go yet.
Donald Lucas -- has this been handed out to you guys, yet? Okay,
then you have that. I won't go through then all the facts of the
families that will benefit.
Very briefly, Donald Lucas, 74, retired. His annual income is
approximately $65,000 a year, including $5,000 roughly in taxable
dividends. His savings will be approximately $1,800 year, an 18
percent reduction.
In other issues today, we've just put this out, the President
announced today the appointment of Ambassador Otto Reich as Special
Envoy for Western Hemisphere Initiatives. And with that, I'm happy to
take any questions.
Q
Let me just back up on the specifics of the plan. What is
the provision exactly that the owner of this business says is going to
help him?
MR. FLEISCHER: Expensing -- under current tax law, you're
allowed to expense $25,000 worth of equipment and no more than
$25,000. The President proposed a provision to help small businesses
expand by allowing them to expense $75,000 worth of equipment. Because
he would be up against his cap, now the cap would grow to $75,000, he
would have more of an incentive to buy these two pieces of equipment,
which would allow him to hire more workers.
Q What do those two pieces of equipment do?
MR. FLEISCHER: They manufacture flags.
Q What, they're just sewing machines?
MR. FLEISCHER: We'll see when we get there. I'm not sure.
Do you know, Reed, specifically?
MR. DICKENS: They're large versions of sewing machines.
Q Ari, can you give us a spelling of the guy, the owner's
name. I'm not sure -- the one who's buying the two new pieces of
equipment.
MR. FLEISCHER: Al Ulmer, Jr., U-l-m-e-r, junior.
Q
You've had a full day now to gauge support on the Hill.
There was a story in a newspaper today suggesting Democrats supported
it last time, don't necessarily support it this time. Have you had a
chance to --
MR. FLEISCHER: Let me make two points. Number one, if you recall
what happened in 2001, the Democrats did not support it at the
beginning, either; they supported it at the end. The 12 Democrats who
voted for it in the Senate, when the President announced it, they
didn't come out for it, but they emerged there toward the end. So
that's no surprise.
But, in fact, we do expect there will be some positive things
coming from the Democrats. Senator Bayh, for example, has already
weighed in rather favorably toward the package. And this is the
beginning of what will be a very productive process in the President's
judgment and opinion.
Q
What's going on in North Korea, Iraq today?
MR. FLEISCHER: We still have not heard back from the North
Koreans, and we await their official word.
Q
Since the President today is highlighting the proposals
that help small businesses, that's not a particularly controversial
part of the plan. Will he be talking up the other more controversial
things, like the dividend tax cut, things that have more opposition?
MR. FLEISCHER: In the President's remarks, he'll talk about the
plan in its entirety. He'll talk about everything.
Q This isn't just focusing on the small business part, but
the whole thing?
MR. FLEISCHER: Well, the visit, of course, highlights it creates
jobs.
Q Right. Will he be making, though, other trips like this,
just to focus on some of the other parts?
MR. FLEISCHER: You can anticipate, as the new year begins, the
President aggressively pursuing his domestic agenda for the country.
That will include a number of new initiatives, it will include a number
of visits throughout the country to different places, and the President
looks forward to working vigorously on behalf of American people for a
robust domestic agenda.
Q So he'll be traveling, though, specifically for the plan,
for the economic plan?
MR. FLEISCHER: Among other initiatives, yes.
Q He's been to this factory before, hasn't he, the
President?
MR. FLEISCHER: I don't think so.
Q A year or so ago?
MR. DICKENS: I don't believe so.
MR. FLEISCHER: I don't recall it.
Q Where is Turkey right now, in it's -- (Laughter.)
MR. FLEISCHER: -- Mediterranean --
Q
I opened myself up to that one. Where are they in
supporting a possible war on Iraq? Where do they stand?
MR. FLEISCHER: Let me -- let me help you on that geographic
question, Ron. (Laughter.) Scott. (Laughter.)
Turkey is a very valuable friend and ally. It always has been and
always will be. And we continue to work with Turkey on a number of
issues that are diplomatic, that are military, that are economic. And
we continue to work with our friends the Turkish government on a number
of these initiatives.
Q Where do they stand in terms of a commitment to help the
United States in a possible --
MR. FLEISCHER: Anything that comes from Turkey has to come from
Turkey. It's a very complex situation, many different aspects to it.
And we'll continue to work with Turkey on it.
END 9:10 A.M. EST
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