For Immediate Release
Office of the Press Secretary
February 27, 2001
Address of the President to the Joint Session of Congress
The United States Congress Washington, D.C.
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9:10 P.M. EST
THE
PRESIDENT: Mr. Speaker, Mr. Vice President, members of
Congress: It's a great privilege to be here to outline a new
budget and a new approach for governing our great country. I
thank you for your invitation to speak here tonight. I know
Congress had to formally invite me, and it could have been a close
vote. (Laughter.) So, Mr. Vice President, I
appreciate you being here to break the tie. (Laughter.)
I want to
thank so many of you who have accepted my invitation to come to the
White House to discuss important issues. We're off to a good
start. I will continue to meet with you and ask for your
input. You have been kind and candid, and I thank you for
making a new President feel welcome. (Applause.)
The last
time I visited the Capitol, I came to take an oath on the steps of this
building. I pledged to honor our Constitution and laws.
(Applause.) And I asked you to join me in setting a tone of
civility and respect in Washington. (Applause.)
I hope
America is noticing the difference, because we're making
progress. Together, we are changing the tone in the Nation's
Capital. And this spirit of respect and cooperation is
vital, because, in the end, we will be judged not only by what we say
or how we say it, we will be judged by what we're able to accomplish.
America
today is a nation with great challenges, but greater
resources. An artist using statistics as a brush could paint
two very different pictures of our country. One would have
warning signs: increasing layoffs, rising energy prices, too many
failing schools, persistent poverty, the stubborn vestiges of
racism. Another picture would be full of
blessings: a balanced budget, big surpluses, a military that
is second to none, a country at peace with its neighbors, technology
that is revolutionizing the world, and our greatest strength --
concerned citizens who care for our country and care for each other.
Neither
picture is complete in and of itself. And tonight I
challenge and invite Congress to work with me to use the resources of
one picture to repaint the other; to direct the advantages of our time
to solve the problems of our people. Some of these resources
will come from government. Some, but not all.
Year after
year in Washington, budget debates seem to come down to an old, tired
argument: on one side, those who want more government,
regardless of the cost; on the other, those who want less government,
regardless of the need. We should leave those arguments to
the last century, and chart a different course. (Applause.)
Government
has a role, and an important role. Yet, too much government
crowds out initiative and hard work, private charity and the private
economy. Our new governing vision says government should be
active, but limited; engaged, but not overbearing. And my
budget is based on that philosophy.
It is
reasonable, and it is responsible. It meets our obligations,
and funds our growing needs. We increase spending next year
for Social Security and Medicare, and other entitlement programs, by
$81 billion. We've increased spending for discretionary
programs by a very responsible 4 percent, above the rate of
inflation. My plan pays down an unprecedented amount of our
national debt. And then, when money is still left over, my
plan returns it to the people who earned it in the first
place. (Applause.)
A budget's
impact is counted in dollars, but measured in lives. Excellent
schools, quality health care, a secure retirement, a cleaner
environment, a stronger defense -- these are all important needs, and
we fund them. The highest percentage increase in our budget
should go to our children's
education. (Applause.) Education is not my top
priority -- education is my top priority and, by supporting this
budget, you'll make it yours, as well.
Reading is
the foundation of all learning. So during the next five
years, we triple spending, adding $5 billion to help every child in
America learn to read. Values are important, so we've
tripled funding for character education to teach our children not only
reading and writing, but right from wrong. (Applause.)
We've
increased funding to train and recruit teachers, because we know a good
education starts with a good teacher. And I have a wonderful
partner in this effort. I like teachers so much, I married
one. (Applause.) Laura has begun a new effort to recruit
Americans to the profession that will shape our future --
teaching. She will travel across America to promote sound
teaching practices and early reading skills in our schools and in
programs such as Head Start.
When it
comes to our schools, dollars alone do not always make the
difference. Funding is important, and so is
reform. So we must tie funding to higher standards and
accountability for results. (Applause.)
I believe
in local control of schools. We should not, and we will not,
run public schools from Washington,
D.C. (Applause.) Yet when the federal government
spends tax dollars, we must insist on results. Children should be
tested on basic reading and math skills every year between grades three
and eight. Measuring is the only way to know whether all our
children are learning. And I want to know, because I refuse
to leave any child behind in America. (Applause.)
Critics of
testing contend it distracts from learning. They talk about
teaching to the test. But let's put that logic to the
test. If you test a child on basic math and reading skills,
and you're teaching to the test, you're teaching math and
reading. And that's the whole idea.
(Applause.) As standards rise, local schools will need more
flexibility to meet them. So we must streamline the dozens
of federal education programs into five, and let states spend money in
those categories as they see fit. (Applause.)
Schools
will be given a reasonable chance to improve and the support to do
so. Yet, if they don't, if they continue to fail, we must
give parents and students different options -- a better public school,
a private school, tutoring or a charter
school. (Applause.) In the end, every child in a
bad situation must be given a better choice because, when it comes to
our children, failure is simply not an option. (Applause.)
Another
priority in my budget is to keep the vital promises of Medicare and
Social Security, and together we will do so. To meet the
health care needs of all America's seniors, we double the Medicare
budget over the next 10 years. My budget dedicates $238
billion to Medicare next year alone, enough to fund all current
programs and to begin a new prescription drug benefit for low-income
seniors. (Applause.) No senior in America should
have to choose between buying food and buying
prescriptions. (Applause.)
To make
sure the retirement savings of America's seniors are not diverted in
any other program, my budget protects all $2.6 trillion of the Social
Security surplus for Social Security, and for Social Security alone.
(Applause.)
My budget
puts a priority on access to health care, without telling Americans
what doctor they have to see or what coverage they must
choose. Many working Americans do not have health care
coverage, so we will help them buy their own insurance with refundable
tax credits. (Applause.) And to provide quality care in
low-income neighborhoods, over the next five years we will double the
number of people served at community health care
centers. (Applause.)
And we will
address the concerns of those who have health coverage, yet worry their
insurance company doesn't care and won't pay. Together this Congress
and this President will find common ground to make sure doctors make
medical decisions, and patients get the health care they deserve with a
patients' bill of rights. (Applause.)
When it
comes to their health, people want to get the medical care they need,
not be forced to go to court because they didn't get it. We will
ensure access to the courts for those with legitimate
claims. But first, let's put in place a strong, independent
review so we promote quality health care, not frivolous
lawsuits. (Applause.)
My budget
also increases funding for medical research, which gives hope to many
who struggle with serious disease. Our prayers tonight are
with one of your own who is engaged in his own fight against cancer --
a fine representative, and a good man, Congressman Joe Moakley.
(Applause.) I can think of no more appropriate tribute to
Joe than to have the Congress finish the job of doubling the budget for
the National Institutes of Health. (Applause.)
My new
Freedom Initiative for Americans with Disabilities funds new
technologies, expands opportunities to work, and makes our society more
welcoming. For the more than 50 million Americans with
disabilities, we need to break down barriers to equality. (Applause.)
The budget
I propose to you also supports the people who keep our country strong
and free, the men and women who serve in the United States
military. (Applause.) I'm requesting $5.7 billion
in increased military pay and benefits, and health care and
housing. Our men and women in uniform give America their
best and we owe them our support. (Applause.)
America's
veterans honored their commitment to our country through their military
service. I will honor our commitment to them with a
million-dollar increase to ensure better access to quality care and
faster decisions on benefit claims. (Applause.)
My budget
will improve our environment by accelerating the cleanup of toxic
brownfields. And I propose we make a major investment in
conservation by fully funding the Land and Water Conservation Fund.
(Applause.) Our national parks have a special place in our
country's life. Our parks are places of great natural beauty and
history. As good stewards, we must leave them better than we
found them. So I propose providing $4.9 billion over five
years for the upkeep of these national
treasures. (Applause.)
And my
budget adopts a hopeful new approach to help the poor and the
disadvantaged. We must encourage and support the work of
charities and faith-based and community groups that offer help and love
one person at a time. (Applause.) These groups
are working in every neighborhood in America to fight homelessness and
addiction and domestic violence; to provide a hot meal or a mentor or a
safe haven for our children. Government should welcome these groups to
apply for funds, not discriminate against them. (Applause.)
Government
cannot be replaced by charities or volunteers. Government should not
fund religious activities. (Applause.) But our
nation should support the good works of these good people who are
helping their neighbors in need. (Applause.) So I
propose allowing all taxpayers, whether they itemize or not, to deduct
their charitable contributions. Estimates show this could encourage as
much as $14 billion a year in new charitable giving, money that will
save and change lives. (Applause.)
Our budget
provides more than $700 million over the next 10 years for a federal
compassion capital fund, with a focused and noble mission, to provide a
mentor to the more than 100 million children with a parent in prison,
and to support other local efforts to fight illiteracy, teen pregnancy,
drug addiction and other difficult problems. (Applause.)
With us
tonight is the Mayor of Philadelphia. Please help me welcome
Mayor John Street. (Applause.) Mayor Street has
encouraged faith-based and community organizations to make a
significant difference in Philadelphia. He's invited me to
his city this summer to see compassionate action. I'm
personally aware of just how effective the Mayor is. Mayor
Street's a Democrat. (Applause.) Let the record
show, I lost his city, big time. (Applause.) But
some things are bigger than politics. So I look forward to
coming to your city, to see your faith-based programs in
action. (Applause.)
As
government promotes compassion, it also must promote justice. Too many
of our citizens have cause to doubt our nation's justice, when the law
points a finger of suspicion at groups, instead of
individuals. All our citizens are created equal, and must be
treated equally. (Applause.)
Earlier
today, I asked John Ashcroft, the Attorney General, to develop specific
recommendations to end racial profiling. It's wrong and we
will end it in America. (Applause.) In so doing,
we will not hinder the work of our nation's brave police
officers. They protect us every day -- often at great
risk. (Applause.) But by stopping the abuses of a
few, we will add to the public confidence our police officers earn and
deserve. (Applause.)
My budget
has funded a responsible increase in our ongoing
operations. It has funded our nation's important
priorities. It has protected Social Security and
Medicare. And our surpluses are big enough that there is
still money left over.
Many of you
have talked about the need to pay down our national debt. I
listened, and I agree. (Applause.) We owe it to
our children and grandchildren to act now, and I hope you will join me
to pay down $2 trillion in debt during the next 10
years. (Applause.) At the end of those 10 years,
we will have paid down all the debt that is available to
retire. (Applause.) That is more debt, repaid
more quickly than has ever been repaid by any nation at any time in
history. (Applause.)
We should
also prepare for the unexpected, for the uncertainties of the
future. We should approach our nation's budget as any
prudent family would, with a contingency fund for emergencies or
additional spending needs. For example, after a strategic
review, we may need to increase defense spending. We may
need to increase spending for our farmers or additional money to reform
Medicare. And so, my budget sets aside almost a trillion
dollars over 10 years for additional needs. That is one
trillion additional reasons you can feel comfortable supporting this
budget. (Applause.)
We have
increased our budget at a responsible 4 percent. We have
funded our priorities. We paid down all the available
debt. We have prepared for contingencies. And we
still have money left over.
Yogi Berra
once said, "When you come to a fork in the road, take
it." (Laughter.) Now, we come to a fork in the
road; we have two choices. Even though we have already met our needs,
we could spend the money on more and bigger
government. That's the road our nation has traveled in
recent years.
Last year,
government spending shot up 8 percent. That's far more than
our economy grew, far more than personal income grew, and far more than
the rate of inflation. If you continue on that road, you
will spend the surplus and have to dip into Social Security to pay
other bills. (Applause.) Unrestrained government spending
is a dangerous road to deficits, so we must take a different
path. (Applause.) The other choice is to let the
American people spend their own money to meet their own
needs. (Applause.)
I hope you
will join me in standing firmly on the side of the
people. You see, the growing surplus exists because taxes
are too high and government is charging more than it
needs. The people of America have been overcharged and, on
their behalf, I am here asking for a refund. (Applause.)
Some say my
tax plan is too big. (Applause.) Others say it's
too small. (Applause.) I respectfully
disagree. (Laughter.) This plan is just
right. (Applause.) I didn't throw darts at the
board to come up with a number for tax relief. I didn't take
a poll or develop an arbitrary formula that might sound
good. I looked at problems in the Tax Code and calculated
the cost to fix them.
A tax rate
of 15 percent is too high for those who earn low wages, so we must
lower the rate to 10 percent. (Applause.) No one
should pay more than a third of the money they earn in federal income
taxes, so we lowered the top rate to 33 percent. (Applause.)
This reform
will be welcome relief for America's small businesses, which often pay
taxes at the highest rate. And help for small business means
jobs for Americans. (Applause.) We simplified the
Tax Code by reducing the number of tax rates from the current five
rates to four lower ones, 10 percent, 15, 25 and 33
percent. In my plan, no one is targeted in or targeted
out. Everyone who pays income taxes will get
relief. (Applause.)
Our
government should not tax, and thereby discourage marriage, so we
reduced the marriage penalty. (Applause.) I want
to help families rear and support their children, so we doubled the
child credit to $1,000 per
child. (Applause.) It's not fair to tax the same
earnings twice -- once when you earn them, and again when you die -- so
we must repeal the death tax. (Applause.)
These
changes add up to significant help. A typical family with
two children will save $1,600 a year on their federal income
taxes. Now, $1,600 may not sound like a lot to some, but it
means a lot to many families: $1,600 buys gas for two cars
for an entire year; it pays tuition for a year at a community college;
it pays the average family grocery bill for three
months. That's real money.
With us
tonight representing many American families are Steven and Josefina
Ramos. (Applause.) They are from
Pennsylvania. (Applause.) But they could be from any one of
your districts. Steven is the network administrator for a
school district. Josefina is a Spanish teacher at a charter
school. And they have a two-year-old daughter.
Steven and
Josefina tell me they pay almost $8,000 a year in federal income
taxes. My plan will save them more than
$2,000. Let me tell you what Steven says: "Two
thousand dollars a year means a lot to my family. If we had
this money, it would help us reach our goal of paying off our personal
debt in two years' time." After that, Steven and Josefina
want to start saving for Lianna's college education.
My attitude
is, government should never stand in the way of families achieving
their dreams. (Applause.) And as we debate this
issue, always remember, the surplus is not the government's money, the
surplus is the people's money. (Applause.)
For
lower-income families, my tax plan restores basic fairness. Right now,
complicated tax rules punish hard work. A waitress
supporting two children on $25,000 a year can lose nearly half of every
additional dollar she earns above the $25,000. Her overtime,
her hardest hours, are taxed at nearly 20 percent. This
sends a terrible message: you'll never get ahead.
But
America's message must be different. We must honor hard
work, never punish it. (Applause.) With tax
relief, overtime will no longer be over-taxed time for the
waitress. (Applause.)
People with
the smallest incomes will get the highest percentage of
reductions. And millions of additional American families
will be removed from the income tax rolls
entirely. (Applause.)
Tax relief
is right and tax relief is urgent. The long economic
expansion that began almost 10 years ago is faltering. Lower
interest rates will eventually help, but we cannot assume they will do
the job all by themselves.
Forty years
ago, and then 20 years ago, two Presidents, one Democrat, one
Republican, John F. Kennedy and Ronald Reagan, advocated tax cuts to,
in President Kennedy's words, get this country moving
again. They knew then what we must do now. To
create economic growth and opportunity, we must put money back into the
hands of the people who buy goods and create
jobs. (Applause.)
We must act
quickly. The Chairman of the Federal Reserve has testified
before Congress that tax cuts often come too late to stimulate economic
recovery. So I want to work with you to give our economy an
important jump-start by making tax relief
retroactive. (Applause.)
We must act
now because it is the right thing to do. We must also act
now because we have other things to do. We must show courage
to confront and resolve tough challenges, to restructure our nation's
defenses, to meet our growing need for energy, and to reform Medicare
and Social Security.
America has
a window of opportunity to extend and secure our present peace by
promoting a distinctly American internationalism. We will
work with our allies and friends to be a force for good and a champion
of freedom. We will work for free markets, free trade and
freedom from oppression. Nations making progress toward
freedom will find America is their friend. We will promote
our values. We will promote the peace. And we
need a strong military to keep the peace.
But our
military was shaped to confront the challenges of the
past. So I've asked the Secretary of Defense to review
America's Armed Forces and prepare to transform them to meet emerging
threats. My budget makes a down payment on the research and
development that will be required. Yet, in our broader transformation
effort, we must put strategy first, then spending. Our
defense vision will drive our defense budget, not the other way
around. (Applause.)
Our nation
also needs a clear strategy to confront the threats of the 21st century
-- threats that are more widespread and less certain. They range from
terrorists who threaten with bombs to tyrants in rogue nations intent
upon developing weapons of mass destruction. To protect our
own people, our allies and friends, we must develop and we must deploy
effective missile defenses. (Applause.)
And as we
transform our military, we can discard Cold War relics, and reduce our
own nuclear forces to reflect today's
needs. (Applause.) A strong America is the
world's best hope for peace and freedom.
Yet the
cause of freedom rests on more than our ability to defend ourselves and
our allies. Freedom is exported every day, as we ship goods
and products that improve the lives of millions of
people. Free trade brings greater political and personal
freedom. Each of the previous five Presidents has had the
ability to negotiate far reaching trade agreements. Tonight I ask you
to give me the strong hand of presidential trade promotion authority,
and to do so quickly. (Applause.)
As we meet
tonight, many citizens are struggling with the high cost of
energy. We have a serious energy problem that demands a
national energy policy. (Applause.) The West is
confronting a major energy shortage that has resulted in high prices
and uncertainty. I've asked federal agencies to work with
California officials to help speed construction of new energy sources,
and I have direct Vice President Cheney, Commerce Secretary Evans,
Energy Secretary Abraham and other senior members in my administration
to develop a national energy policy. (Applause.)
Our energy
demand outstrips our supply. We can produce more energy at
home while protecting our environment, and we
must. (Applause.) We can produce more electricity to meet
demand, and we must. (Applause.) We can promote alternative
energy sources and conservation, and we must.
(Applause.) America must become more energy-independent, and
we will. (Applause.)
Perhaps the
biggest test of our foresight and courage will be reforming Medicare
and Social Security. Medicare's finances are strained and
its coverage is outdated. Ninety-nine percent of
employer-provided health plans offer some form of prescription drug
coverage; Medicare does not. The framework for reform has
been developed by Senators Frist and Breaux and Congressman Thomas, and
now is the time to act. (Applause.)
Medicare
must be modernized, and we must make sure that every senior on Medicare
can choose a health care plan that offers prescription
drugs. (Applause.)
Seven years
from now, the baby boom generation will begin to claim Social Security
benefits. Every one in this chamber knows that Social
Security is not prepared to fully fund their retirement. And
we only have a couple of years to get prepared. Without
reform, this country will one day awaken to a stark
choice: either a drastic rise in payroll taxes or a radical
cut in retirement benefits.
There is a
better way. This spring I will form a presidential
commission to reform Social Security. The commission will
make its recommendations by next fall. Reform should be
based on these principles: It must preserve the benefits of all
current retirees and those nearing retirement. It must
return Social Security to sound financial footing. And it must offer
personal savings accounts to younger workers who want
them. (Applause.)
Social
Security now offers workers a return of less than 2 percent on the
money they pay into the system. To save the system, we must
increase that by allowing younger workers to make safe, sound
investments that yield a higher rate of return. Ownership,
access to wealth and independence should not be the privilege of the
few. They are the hope of every American, and we must make
them the foundation of Social Security. (Applause.)
By
confronting the tough challenge of reform, by being responsible with
our budget, we can earn the trust of the American people. And we can
add to that trust by enacting fair and balanced election and campaign
reforms. (Applause.)
The agenda
I have set before you tonight is worthy of a great
nation. America is a nation at peace, but not a nation at
rest. Much has been given to us, and much is
expected. Let us agree to bridge old divides. But
let us also agree that our goodwill must be dedicated to great
goals. Bipartisan is more than minding our
matters. It is doing our duty. (Applause.)
No one can
speak in this Capitol and not be awed by its history. As so many
turning points, debates in these chambers have reflected the collected
or divided conscience of our country. And when we walk
through Statuary Hall and see those men and women of marble, we're
reminded of their courage and achievement.
Yet
America's purpose is never found only in statues or history. America's
purpose always stands before us. Our generation must show
courage in a time of blessing, as our nation has always shown in times
of crisis. And our courage, issue by issue, can gather to
greatness and serve our country. This is the privilege and
responsibility we share. And if we work together, we can
prove that public service is noble.
We all came
here for a reason. We all have things we want to accomplish
and promises to keep. Juntos podemos -- together we can.
(Applause.)
We can make
Americans proud of their government. Together we can share
in the credit of making our country more prosperous and generous and
just, and earn from our conscience and from our fellow citizens the
highest possible praise: Well done, good and faithful
servants.
Thank you
all. Good night and God bless. (Applause.)
END 10:00 P.M. EST
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