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| MR. BUSH'S SPEECH: PART TWO | |
 February 27, 2001  |
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In the second half of his speech, President Bush focuses on the surplus, national defense, energy policy and the retroactive tax cut. Part 1 of President
Bush's Speech |
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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. Earlier today I asked Attorney General Ashcroft to develop specific recommendations to end racial profiling. It is wrong and we must end it. 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. But by stopping the abuses of a few, we will add to the public confidence our Police officers earn and deserve. |
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| Paying down the debt | ||||||||||||||||||||
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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.
At the end of those 10 years, we will have paid down all the debt that is available to retire. That is more debt repaid more quickly than has ever been repaid by any nation at any time in history. 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 additional money 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. We have increased our budget at a responsible 4 percent, we have funded our priorities, we have paid down all the available debt, we have prepared for contingencies -- and we still have money left over.
Unrestrained government spending is a dangerous road to deficits, so we must take a different path. The other choice is to let the American people spend their own money to meet their own needs, to fund their own priorities and pay down their own debts. I hope you will join me and stand firmly on the side of the people. |
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| "I am here to ask for a refund" | ||||||||||||||||||||
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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 to ask for a refund. Some say my tax plan is too big, others say it is too small. I respectfully disagree. This tax relief is just right. I did not throw darts at a board to come up with a number for tax relief. I did not 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.
We simplified the tax code by reducing the number of tax rates from the current five rates to four lower ones: 10, 15, 25, and 33 percent. In my plan, no one is targeted in or targeted out -- everyone who pays income Taxes will get tax relief. Our government should not tax, and thereby discourage marriage, so we reduced the marriage penalty. I want to help families rear and support their children, so we doubled the child credit to $1,000 per child. It is 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. These changes add up to significant help. A typical family with two children will save $1,600 a year on their Federal income Taxes Sixteen hundred dollars may not sound like a lot to some, but it means a lot to many families. Sixteen hundred dollars 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 3 months. That is real money. With us tonight, representing many American families, are Steven and Josefina Ramos. Please help me welcome them. The Ramoses are from Pennsylvania, but they could be from any one of your districts. Steven is a network administrator for a school district, Josefina is a Spanish teacher at a charter school, and they have a 2-year-old daughter, Lianna. 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." After that, Steven and Josefina want to start saving for Lianna's College Education. Government should never stand in the way of families achieving their dreams. The surplus is not the government's money, the surplus is the people's money. For lower-income families, my tax relief 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. Her overtime, her hardest hours, are taxed at nearly 50 percent. This sends a terrible message: You will never get ahead. But America's message must be different: We must honor hard work, never punish it.
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 twenty years ago, two Presidents, one Democrat and 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. 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. 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 and free trade and freedom from oppression. Nations making progress toward freedom will find America is their friend. |
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| Defense, Trade and Energy | ||||||||||||||||||||
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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 and rogue nations intent on developing weapons of mass destruction. To protect our own people, our allies and friends, we must develop and we must deploy effective missile defenses. And as we transform our military, we can discard Cold War relics, and reduce our own nuclear forces to reflect today's needs. 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. As we meet tonight, many citizens are struggling with the high costs of Energy We have a serious Energy problem that demands a national Energy policy. The West is confronting a major Energy shortage that has resulted in high prices and uncertainty. I have asked Federal agencies to work with California officials to help speed construction of new Energy sources. And I have directed Vice President Cheney, Commerce Secretary Evans, Energy Secretary Abraham, and other senior members of my Administration to recommend a national Energy policy. Our Energy demand outstrips our supply. We can produce more Energy at home while protecting our Environment, and we must. We can produce more electricity to meet demand, and we must. We can promote alternative Energy sources and conservation, and we must. America must become more Energy independent. |
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| Reforming Entitlements | ||||||||||||||||||||
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Perhaps the biggest test of our foresight and courage will be reforming Medicare and Social Security.
Seven years from now, the baby boom generation will begin to claim Social Security benefits. Everyone 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. 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 at a higher rate of return. Ownership, access to wealth, and independence should not be the privilege of a few. They are the hope of every American -- and we must make them the foundation of Social Security. 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 finance reforms. The agenda I have set before you tonight is worthy of a great country. 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 good will must be dedicated to great goals. Bipartisanship is more than minding our manners, it is doing our duty. No one can speak in this Capitol and not be awed by its history. At 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 are reminded of their courage and achievement.
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. 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. Good night, and God bless America. |
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Many
of you have talked about the need to pay down our national debt. I have
listened, and I agree. My budget proposal pays down an unprecedented
amount of public debt. 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. 
Yogi
Berra once said: "When you come to a fork in the road, take it."
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 is the road our Nation has traveled in recent
years. Last year, government spending shot up 8 percent. That is 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. 
A
tax rate of 15 percent is too high for those who earn low wages, so
we lowered the rate to 10 percent. 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. 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. 
With
tax relief, overtime will no longer be overtax time for the waitress.
People with the smallest incomes will get the highest percentage reductions.
And millions of additional American families will be removed from the
income tax rolls entirely. 
We
will promote our values, and we will promote 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 have 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. 
Yet
America's purpose is never found only in statues or history. America's
purpose always stands before us. 
