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President Clinton's Radio Address to the Nation: Urging Congress to Maintain Fiscal Discipline to Extend America's

                             August 5, 2000

In his weekly radio address today, President Clinton will announce that he is vetoing the Republican version of marriage penalty relief because it is part of a reckless tax cut plan that would threaten our fiscal discipline, drain the entire on-budget surplus, leave no money for key priorities like Medicare prescription drugs, and provide little benefit to most taxpayers. He will contrast the Republican plan with his approach which maintains the same fiscal discipline that has contributed to our current prosperity, prepares for the future by strengthening Social Security and Medicare, invests in key priorities like a voluntary Medicare prescription drug benefit, provides targeted tax relief -- including marriage penalty relief -- for American families, and pays down the debt by 2012. This week is the 7th anniversary of the Clinton/Gore 1993 deficit reduction plan that has turned record budget deficits into surpluses and produced the longest economic expansion in history -- with over 22 million new jobs, the lowest unemployment rate in 30 years, and the lowest minority unemployment rate on record.

                     Administration's         Congressional Republican
                         Framework                    Tax Plans

Middle Class     More Middle Class Benefits   More for the Wealthiest 1
Tax Cut          at Lower Cost: President     Percent, Less for Working
                 Clinton's proposed           Families: A Treasury
                 targeted tax cuts provide    Department analysis of the
                 substantially more tax       major Republican tax cuts
                 relief for middle class      found that families in the
                 families -- including        middle fifth of the income
                 targeted marriage penalty    distribution would get an
                 relief -- and do so at       average tax cut of just
                 less than half the cost.     $220.  Meanwhile, the top
                 The President would          1 percent of families will
                 provide an average tax cut   receive an average tax cut
                 of $371 to middle-class      of $16,000.
                 families to encourage
                 retirement savings, help
                 families with long-term
                 care expenses and expand
                 college opportunity.

National Debt    Debt-Free by 2012: The       No End to Red Ink:
                 President's budget           Congressional Republicans'
                 framework pays off the       tax plans would use up the
                 entire debt by 2012,         entire budget surplus,
                 making the U.S. debt-free    making it impossible to
                 for the first time since     pay off the debt by 2012,
                 the administration of        and significantly less
                 Andrew Jackson.              likely that we would ever
                                              pay off the debt.

Low Interest     Keep Interest Rates Low:     Discards Fiscal
Rates            The Administration's         Discipline:  Republican
                 framework is a fiscally      tax policies would abandon
                 disciplined approach that    our strategy of fiscal
                 will pay off the debt and    discipline, threatening to
                 keep interest rates low.     return us to the days of
                 Each 1-point drop in         deficit spending and
                 interest rates saves         higher interest rates.
                 families $250 billion over   Interest rate increases of
                 10 years.  Fiscal policies   1/3 of a point would wipe
                 advanced by the              out all benefits of
                 Clinton-Gore                 Republican tax cuts for a
                 administration have          middle class family.
                 already lowered interest
                 rates by 2 points.

Medicare         Preserve and Strengthen      No Medicare Drug Benefit:
                 Medicare:  President         A Congressional Budget
                 Clinton has proposed a       Office analysis of the
                 meaningful and affordable    House plan says it fails
                 prescription drug benefit    to provide prescription
                 for all Medicare             drug coverage to 50
                 beneficiaries.  He also      percent of seniors and
                 would take Medicare          disabled Americans who are
                 off-budget and use the       not currently covered.
                 funds to pay down the debt
                 and further strengthen
                 Medicare, extending its
                 solvency to at least 2030.

Social Security  Protect and Strengthen       Nothing for Social
                 Social Security: The         Security: The 106th
                 President would lock up      Congress has passed tax
                 the Social Security          cuts that would use up the
                 surplus, use it to pay       entire budget surplus,
                 down the debt and extend     leaving nothing to
                 the life of the program,     strengthen Social
                 and not allow it to be       Security.
                 used for other purposes.
                 The President's plan would
                 extend the solvency of the
                 program until at least

School           Targeted Tax Cuts: The       Nothing for School
Construction     President's plan contains    Construction:  Republican
                 $24.8 billion in tax         tax cuts provide nothing
                 credit bonds to build or     to help rebuild and
                 modernize up to 6,000        modernize crumbling
                 schools and a new $1.3       schools and would consume
                 billion initiative to        the entire surplus,
                 provide urgent repairs for   leaving nothing to pay for
                 5,000 schools each and       future investments.
                 every year.

College          Targeted Tax Cuts:           Nothing for College
Opportunity      President Clinton has        Opportunity:  Republican
                 proposed a college           tax cuts provide no help
                 opportunity tax cut to       for middle-class students
                 help students pay for up     to pay for college
                 to $10,000 in tuition and    education and would
                 fees for higher education    prevent use of the surplus
                 or job training.             to open the doors of
                                              college to more Americans.
                                              In addition, Republican
                                              tax cuts could lead to
                                              hikes in interest rates,
                                              which would make student
                                              loans more expensive.

Child Care       Targeted Tax Cuts: The       Nothing for Child Care:
                 President's budget           The Republican tax cuts do
                 contains a comprehensive     nothing to help working
                 child care initiative that   families with the costs of
                 includes an expanded child   child care, and by
                 care tax credit and tax      spending the entire
                 incentives to encourage      projected surplus, make
                 businesses to provide        future investments in
                 child care for employees.    child care difficult and
                 The child care package       unlikely.
                 would benefit an estimated
                 8.1 million families.

Long-Term Care   Targeted Tax Cuts:           Less for Working Families:
                 President Clinton's plan     The Congressional
                 contains a $3,000            Republican plan provides
                 long-term care tax credit    little for families who
                 to compensate people with    are paying long-term care
                 long-term care needs or      expenses for a family
                 their caregivers for the     member.
                 cost of care.

Retirement       Targeted Tax Cuts: The       Less for Working Families:
Savings          President's Retirement       The Republican tax cuts
                 Savings Accounts proposal    include proposals from the
                 will give 76 million         President's budget to
                 families the opportunity     increase portability and
                 to build wealth and save     extend coverage to small
                 for their retirement         businesses, but the
                 through a progressive tax    Republican bill does not
                 cut.  The President's        do enough to expand
                 proposal also provides tax   savings incentives for
                 credits to encourage small   small businesses and
                 businesses to establish      working families.
                 high quality pension plans
                 for their workers.

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