ADDRESS OF THE PRESIDENT TO THE JOINT
SESSION OF CONGRESS
By President George W. Bush
Tobacco left behind by President George W. Bush
February 27, 2001
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.)
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