President Clinton's Radio Address to the Nation: Urging Congress to Maintain Fiscal Discipline to Extend America's
Prosperity
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
2057.
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.
# # #