Remarks to Business
Leaders on the Deficit Reduction Plan
Mr.
Baker. Mr. President, the group you have here is a representative group from
the Wall Street community, from the industrial community, from labor, and from
the farming sector, from associations such as the Chamber of Commerce, and
other representatives of important sectors of the economy. It's been our
privilege and pleasure to have lunch together and to talk about the package
just negotiated between the White House and Congress in an effort to reduce the
deficit and to avoid a sequester. It's been a good conversation. And I think
there's a general consensus that you are entitled to high marks for having
taken this initiative, and we were fortunate that we were able to produce a
result. They each have their own views on the various aspects of it, and I'm
sure they would like very much to discuss this with you.
The President. Well, I want to thank
you all for coming today, especially on such short notice. I thought that it
was important quickly to begin a series of meetings with a wide range of
opinion leaders to tell you what is in and what is not in our agreement on the
budget. And I know that you have received a rather detailed assessment from
Howard and Jim Baker and Jim Miller.
Let
me mention three things about this agreement that I believe are important to
reiterate. As I said on Friday, this agreement must not be the last word on
deficit reduction. This is a good first step, a basic framework to work within
for this year and next. And we can and should do more.
Second,
let me share with you the personal assurances that I have from the
congressional leaders as well as the chairmen of the tax writing committees
that they have committed to hold the level of taxes to no more than the $9
billion this year and the $14 billion next. They've also committed to leave our
tax reform intact. There will be no change in marginal rates or indexing, and
there will also be no new broad-based taxes, such as a sales tax or new excise
taxes. I know that you're concerned about provisions I haven't mentioned, like
taxing mergers and acquisitions. Just let me say that this agreement does not
preclude us from vetoing any or all of the legislation that comes out of this
agreement, and I will veto any bad tax bill.
Finally,
I believe, and I think that you will agree, that this package is better than
the automatic sequester under the
Gramm-Rudman-Hollings law. It prevents the otherwise indiscriminate,
across-the-board cuts of a sequester, especially those
that will cripple our national defense, and it provides for more reforms in
entitlement programs, reforms that will provide lasting reductions. It calls
for the imposition of over $1 billion in user fees to advance my policy of
requiring people to pay for the services they receive. And perhaps most
importantly, it shows that the executive and the Congress can come together to
produce a credible package rather than to have to rely on the autopilot
approach of Gramm-Rudman-Hollings. I think that's what the American people are
looking for: the ability of this government to make choices.
And
now, John, I'd like to call on you, John Phelan, to tell us how you think the
markets here and abroad will react and perform in the foreseeable future.
Mr.
Phelan. Well, I would merely echo what others have said, Mr. President,
that I think one of the important things about this agreement and this
accord is not that it's an end, but it's a beginning. As you've said, it must
continue in some way. It's much better than sequester. I think this at least
sends a message both domestically, but more importantly abroad, that the
leadership in this country is willing to sit down to work on an agreement,
realize the seriousness of it. And I think that a lot of people don't
understand the impact of interest rates that all of this has had not only on
our domestic markets but overseas, as well. And I think, without a voluntary
agreement like this, that would certainly be viewed in
foreign markets and by foreign governments as an extremely serious situation in
which it was not possible to get an agreement of this country, and I think that
would be to the long-term detrimental interest of this country. It certainly is
the beginning.
Reporter. Mr. President, can you set the record
straight, sir, as to whether you would consider any pardons in the Iran-contra
affair before Mr. Walsh's investigation is over?
The President. This is a subject I
have not and will not discuss at this time.
Q.
Until what point, Mr. President?
The President. Well, just let's say
sometime in the future.
Q.
Would you address the Iran-contra report sir? You have not commented on that.
It's been out almost a week.
The President. Well, maybe no comment
is called for.
Q.
Sir, why is that? After months of investigations, you said that when the report
was finally in we would hear a lot from you -- that we
wouldn't be able to shut you up, I think was your words.
The President. Well, maybe they
labored and brought forth a mouse.
Note: The President
spoke at