Remarks Announcing a
Bipartisan Plan to Reduce the Federal Budget Deficit and a Question-and-Answer
Session With Reporters
The President. I have a statement to
make here. This country has been held captive by the threat of ever-increasing
deficits, and it became apparent several weeks ago when our nation was stunned
as the stock market took a dramatic dive. There were many reasons given for the
drop, but few wanted to take responsibility.
It
became clear, though, on that day that it was time for action, and immediately
we took the necessary steps to deal with our Federal budget problems. For the
past 20 days, my representatives have been meeting with negotiators from the
Congress, hammering out a credible and reliable deficit reduction plan, a plan
that's both fair and responsible, a plan that meets our short-term concerns
while laying the foundation for long-term solutions. And today I'm pleased to
announce that a bipartisan agreement has been reached on the budget not just
for 1 year but for 2, a blueprint that sends a strong signal both at home and
abroad that together we can and will get our deficit under control and keep it
that way.
This
agreement is probably not the best deal that could be made, but it is a good
solid beginning. It provides the necessary services for our people, maintains
our national security, and does so at a level that does not overburden the
average American taxpayer -- in a word, fairness. And while there will be other
reports to reduce the deficit, today we're sending the right message at the
right time.
So,
let me extend my personal thanks to the congressional leadership and to the
budget negotiators for the spirit of cooperation they have shown. All of us,
Republican and Democrat, Senator and Congressman, must roll up our sleeves and
go to work so that we can complete this important job. And the challenge before
us is to make our case to the American people and to urge them to join with us
in reaching our goal: a sound and enforceable budget.
Our
commitment is to continue on a path of growth and opportunity. And we have
today committed ourselves to a fiscal path that will lead to continued economic
growth and opportunity and provide a solid base for economic stability in the
future.
Jim,
would you like to say a few words?
Speaker Wright. Thank you, Mr.
President. This is truly a bipartisan agreement. It is a balanced package:
Everybody gives some; nobody gets everything he wants -- not the President, not
the Congress, not Democrats, nor Republicans. It is a real set of deficit
reductions. It isn't painless for the very reason that it is real and not
cosmetic. I believe it is a demonstration that in time of stress the
administrative and executive and the legislative branches of government can
work together, even when they are in the hands of different political parties.
And so, we anticipate its adoption in the House and in the Senate. I understand
that it has the support of all the leadership, Democrat and Republican, in the
House and the Senate.
Q.
Mr. President, Mr. President, do you think you can make it stick?
The President. Senator Byrd is -- a
few words here.
Senator
Byrd. This is a demonstration that the executive branch and the legislative
branch can work together, that they have demonstrated the discipline and the
will and the determination to reach an agreement that is a positive one, that is a substantive one. We think that this is a good
message to send to the markets and to the people, and we are pledged to give
our support to it and the full implementation of it. And I want to personally
thank the President and his representatives and Tom Foley and the Members on
both sides of the aisle in both Houses, who have worked so long in preparing
this package, which I think is a very good birthday present for me.
Q.
How old are you?
Senator
Byrd. This is the 31st anniversary of my 39th birthday. [Laughter]
Q.
Mr. President -- --
The President. There is a gentleman
here first that should be heard from -- we are all indebted to him -- and that
was the chairman of the negotiations, Tom Foley.
Representative
Foley. Thank you, Mr. President. I think we see this agreement as a milestone
in our efforts to bring about a reduction of the deficit. It represents a
consensus between both parties, the Congress, and the
President. And this is a good, solid plan. It does not have budgetary gimmicks
or smoke in mirrors, as sometimes the words are used. It is an achievable
reduction to the targets of Gramm-Rudman this year
and substantially more next year.
Q.
Mr. President -- --
The President. Andrea [Andrea
Mitchell, NBC News], did you have a question? [Laughter]
Q.
How are you going to make this stick? How are you going to sell it to the
Republicans who don't like it? And what do you say to those who say it isn't
enough?
The President. Well, I think we've
indicated up here that this is something that must be ongoing, but that it is a
good beginning. And as to selling it to our -- all of us that you see up here
are going to go to work on that right now.
Q.
But your own party doesn't like it. Your own party says it's too much taxes and
too much of a defense hit.
The President. Well, let's wait and
see what they say after we've had a chance to visit.
Q.
Well, Mr. President, many on Wall Street, sir, have already discounted this
because of the relative small numbers -- about 30 and 45 billion in the 2 years
-- and because it presumably doesn't contain any COLA reductions. So, the
Street seems to think it's not going to be enough -- won't make any difference.
The President. I have an answer to the
Street about that. Should I give it?
Q.
Yes!
Q.
Yes!
Q.
Please, please!
Q.
Yes, please!
Q.
Sure!
The President. Well, it isn't original
with me; I wouldn't plagiarize. [Laughter] But a man sent me a letter the other
day. And he just pointed out that with Wall Street looking for so many outside
areas as being responsible for the volatility of the marketplace -- he said
even a farmhand cleaning out the stalls in a barn knows that what he's cleaning
out didn't come from outside; it was produced in the barn.
Q.
Are you attacking Wall Street? [Laughter]
Q.
Mr. President, are you saying -- --
The President. No, I'm just saying
that they've got some things to straighten out themselves, also. [Laughter]
Q.
Mr. President, sir, what is your reaction to the Iran-contra report, which
charges that there was a disdain for the law in this White House and says you
were responsible for this atmosphere?
The President. Sam, [Sam Donaldson,
ABC News], this day is given over to a budget deficit. I'm not going to take
any questions -- --
Q. -- -- sign the sequester?
Q.
Well, Mr. President, how do you plan to go out and vigorously sell $9 billion
in new taxes, when you just the other day at the Chamber of Commerce said taxes
were not the way to go on this? How are you going to sell that?
The President. I would like to remind
you that in the budget last January that I sent up to the Congress I had
proposals in there for $9 billion in revenues. And this has been part of our
proposal all the way. But they are not taxes dealing with changes in the income
tax or taxes that we think would be deleterious to the economy. But these
sources of revenue are -- they've been there laying on
the shelf since January.
Q.
Are you ever going to respond?
Q.
Mr. President, people on Wall Street wonder why this deal was put together many
days ago -- the basic numbers were in place many days ago -- and they're
saying, why has it taken so long to produce so little?
The President. Well, because I think
when you get dealing here in government -- and two branches of government and
two parties involved and all -- there are people who have their own ideas and
who like to make suggestions. And some are accepted, and some are denied. And
we've finally come to an agreement.
Q.
Well, what was holding it up, Mr. President? I mean, the numbers were set
several days ago.
The President. Well, finally we came
to an agreement.
Q.
How do you think the market will react, sir?
Q.
What about our allies, Mr. President?
Q.
Could we ask the Speaker a question? Could we ask the Speaker a question?
Mr.
Fitzwater. He's going to have to go here.
Q.
Mr. President, are we going to now meet with our allies?
Q.
Mr. Speaker, have you identified for the President all of the areas where the
taxes will come from, or is that still up in the air?
Speaker Wright. Well, I don't think
it's up in the air, exactly.
Q.
Well, have you given an exact list of where these taxes will come from?
Speaker Wright. No, and he didn't ask
for one. We have a bill that we passed in the House. The Senate has a bill
which has been reported from committee. The President and Members of the Senate
may have suggestions to make with respect to additional changes, modifications,
amendments. Whatever emerges from the Senate, I presume, would go to conference
with what has passed in the House, and -- --
Q.
Do you pledge, sir, that they will not be rate increases in any sense?
Speaker Wright. I don't think it is
achievable in this climate to have rate increases, and I think it would be
unrealistic for me to expect to pass any rate increases. As you know, I have
said early on this year that my personal preference might be to extend the rate
as it is, not have rate reductions for those at the top of the economic
spectrum. But that isn't going to happen this year. It isn't in the House bill.
It isn't in the Senate bill. And the President -- --
Q.
But you are giving that pledge, sir?
Speaker Wright. Well, I don't have to
give the pledge. The President has already indicated he'd veto a bill that had
it in there.
Q.
Are you satisfied, Mr. President? Are you satisfied that they've been specific
enough about the taxes and that you're not going to be hoodwinked?
The President. Yes. Yes. And what the
Speaker says is correct. But also, in addition -- maybe he was going to get to
this -- there has been an agreement on the kind of taxes it wouldn't be.
Q.
What is that?
Mr.
Fitzwater. Let's take a 10-minute filing break, and then we'll come back for
the other briefing.
Q.
Do you know -- --
Q.
What kind of taxes won't it be, sir?
The President. My boss is kicking us
out of here.
Q.
Do you now agree, sir, that there won't be a joint session with Mr. Gorbachev,
that Mr. Gorbachev will not appear before a joint session of Congress?
The President. They've never formally
asked for one.
Q.
But would you have liked one if the Republicans had not rebelled against it?
The President. No, and this never
originated with us, at all. There was talk of it -- --
Q.
Speaker Wright announced it, sir.
The President. But there was talk of
it, yes, but no request ever did -- --
Q.
Marlin?
Q.
Is there going to be a summit?
Q.
Spending cuts -- --
The President. Yes, there will be a
summit.
Note: The President
spoke at