U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 

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89–011 2001

107th Congress, 1st Session – – – – – – – – – – – – – House Document 107–1

AN ADDRESS TO A JOINT SESSION OF CONGRESS

MESSAGE

FROM

THE PRESIDENT OF THE UNITED STATES

TRANSMITTING

THE TEXT OF REMARKS IN AN ADDRESS TO A JOINT SESSION OF

CONGRESS

FEBRUARY 28, 2001.—Message and accompanying papers referred to the

Committee on the Whole House on the State of the Union and ordered

to be printed


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To the Congress of the United States:

Mr. Speaker, Mr. Vice President, Members of Congress: It is 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 want to

thank so many of you who have accepted my invitation to come to

the White House to discuss important issues. We are 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.

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, and I asked you to join me in setting a tone of civility and

respect in Washington. I hope America is noticing the difference.

We are making progress. Together, we are changing the tone of our

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, but by what we are 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 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. Government has a role, and an important one.

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.

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 have

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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.

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. Education is my top priority and by supporting this budget, you will make it yours as well.

Reading is the foundation of all learning, so during the next 5

years, we triple spending, adding another $5 billion to help every

child in America learn to read. Values are important, so we have

tripled funding for character education to teach our children not

only reading and writing, but right from wrong.

We have 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. Please help me salute our gracious First Lady, Laura

Bush.

Laura has begun a new effort to recruit Americans to the profession that will shape our future: teaching. Laura 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.

I believe in local control of schools: we should not and we will

not run our public schools from Washington. 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.

Critics of testing contend it distracts from learning. They talk

about ‘‘teaching to the test.’’ But let us put that logic to the test.

If you test children on basic math and reading skills, and you are

‘‘teaching to the test,’’ you are teaching . . . math and reading. And

that is the whole idea.

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.

Schools will be given a reasonable chance to improve, and the

support to do so. Yet if they do not, 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. In the end,

every child in a bad situation must be given a better choice, because when it comes to our children, failure is not an option.

Another priority in my budget is to keep the vital promises of

Medicare and Social Security, and together we will do so. To meet

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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. No senior in America

should have to choose between buying food and buying prescriptions.

To make sure the retirement savings of America’s seniors are not

diverted to any other program—my budget protects all $2.6 trillion

of the Social Security surplus for Social Security and for Social Security alone.

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. We

will help them buy their own insurance with refundable tax credits.

And to provide quality care in low-income neighborhoods, over the

next 5 years we will double the number of people served at community health care centers.

And we will address the concerns of those who have health coverage yet worry their insurance company does not care and will not

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.

When it comes to their health, people want to get the medical

care they need, not be forced to go to court because they did not

get it. We will ensure access to the courts for those with legitimate

claims, but first, let us put in place a strong independent review

so we promote quality health care, not frivolous lawsuits.

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. God bless you, Joe. And 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.

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 must continue to break down barriers to

equality.

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. I am 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.

America’s veterans honored their commitment to our country

through their military service. I will honor our commitment to

them with a billion dollar increase to ensure better access to quality care and faster decisions on benefit claims.

My budget will improve our environment by accelerating the

cleanup of toxic Brownfields. And I propose we make a major inVerDate 23-FEB-2001 05:37 Mar 01, 2001 Jkt 089011 PO 00000 Frm 00005 Fmt 6633 Sfmt 6602 E:\HR\OC\HD001.XXX pfrm04 PsN: HD001
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vestment in conservation by fully funding the Land and Water

Conservation Fund.

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 have found them, so

I propose providing $4.9 billion in resources over 5 years for the

upkeep of these national treasures.

And my budget adopts a hopeful new approach to help the poor

and 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. 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.

Government cannot be replaced by charities or volunteers. And

government should not fund religious activities. But our Nation

should support the good works of these good people who are helping neighbors in need.

So I am proposing 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.

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 1 million children with a parent in prison, and to support other local efforts to

fight illiteracy, teen pregnancy, drug addiction, and other difficult

problems.

With us tonight is the Mayor of Philadelphia. Please help me

welcome Mayor John Street. Mayor Street has encouraged faithbased and community organizations to make a difference in Philadelphia and he has invited me to his city this summer, to see compassion in action.

I am personally aware of just how effective the Mayor is. Mayor

Street is a Democrat. Let the record show that I lost his city. But

some things are bigger than politics. So I look forward to coming

to your city to see your faith-based programs in action.

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.

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.

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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.

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.

Yogi Berra once said: ‘‘When you come to a form 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.

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.

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.

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.

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

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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 the 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.

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.

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 stimuVerDate 23-FEB-2001 05:37 Mar 01, 2001 Jkt 089011 PO 00000 Frm 00008 Fmt 6633 Sfmt 6602 E:\HR\OC\HD001.XXX pfrm04 PsN: HD001
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late 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 inter-nationalism. 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.

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

downpayment 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.

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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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, it is time to act. Medicare must be modernized. And we must make sure that every senior on Medicare can choose a health plan that offers prescription

drugs.

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 out 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 point, 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.

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.

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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.

GEORGE W. BUSH.

THE WHITE HOUSE, February 27, 2001.

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