August 1, 1985
Today's budget resolution compromise follows a long and difficult effort by the Senate and House
conferees, but it marks only a beginning, not an end. I would have preferred more substantial
reductions, such as were in the original Senate version in May, so I will continue to work to
reduce spending even further and put budget deficits on a downward path.
In this connection, I plan to examine each and every upcoming appropriations bill line by line; and
if it is excessive, out of line, or in any way jeopardizes our national security, I will not hesitate to
use my veto pen. I am pleased that the deficit reductions agreed to by the conferees are achieved
through spending reductions and not tax increases and are consistent with the budget philosophy
we proposed in February. Large budget deficits were not created by the American people paying
too little in taxes, but by the Federal Government spending too much of the people's money.
Over the long term, the budget can be brought into balance by a steadily expanding economy and
a firm grip on the Federal purse. Therefore, we intend to redouble our efforts in the weeks ahead
to secure passage of tax reform, the line-item veto, and a constitutional amendment mandating a
balanced Federal budget.
With these changes and the prospect of additional budget reductions in the future, there is every
reason to expect continued strong economic growth. This should have a positive effect in
encouraging lower rates of interest, creating new jobs, and keeping inflation down, which is very
good news for every American.