Lawrence Ari Fleischer

“ The President proposed a tax plan that he believes is the best tax plan for the country, both to give people their money back that they paid in high taxes to return the tax surplus to the voters before the politicians can spend it, and also to promote economic growth. There, are, of course, First Amendment speech issues that are involved in what people can do who are not elected officials, and we don't presume to tell people what to do or how to carry out their business, but the President will fight for the plan that he sends up to the Hill. ”

“ When you add into it the amount of taxes people pay for their Social Security and for their Medicare, and for the deductions that they're no longer entitled to take, the federal taxes alone can be in excess of 50 percent for some people. ”

“ The budget the President will send to the Congress will continue that pattern of paying down the debt and, until we are able to enact a Social Security reform, which the President is committed to, $2.5 trillion over the next 10 years of Social Security surplus will be earmarked for debt reduction. And that also puts us in a stronger position, then, to reform Social Security, because we will be doing so from a basis of less debt. In fact, by some estimations all available debt, even after our tax cut is enacted, will be paid off by 2006. ”

“ Well, I would have to say that I thought those remarks were disappointing. I think that it is incumbent on all people and all parties, even those who occupy the party posts, which are normally the most vociferous, to recognize that a new beginning is starting here in Washington. There is an old Washington, and that old Washington is often marked by rancor and division and partisanship, which leads to gridlock. President Bush is endeavoring to create a new Washington, and that new Washington should be marked, in the President's opinion, by principled disagreements and by civility. ”

“ Now that the President has justified our inquiry into the January 21st past, can you, looking to the future as you've asked, can you assure us that in 2005 or 2009 when you leave, there will be no such vandalizing or looting of Air Force One? MR. FLEISCHER: You can check my pockets now if you would like. Let me look into the past for a moment. When the President made that remark -- that's a remark, for those of you who covered the campaign, you've heard it many times prior in Austin, as people visited the governor's mansion. It's one of his favorite things to say. ”

“ The economic blueprint traditionally has a series of costs of the major programs and of, all, for example, domestic discretionary spending, defense spending. So you will have a lot of top line hard and accurate numbers. Then the follow on in April will be down to the appropriated item levels which is the big, thick phone book worth of statistics and facts. But you will have an awful lot of what you are looking for in that February blueprint. Q Ari, the Democrats, in addition to the size of the tax cut, many have talked about the distribution of it. ”

“ President Bush, as you know, comes from the school of thought that says cutting marginal income tax rates leads to higher rates of growth, and if you have higher rates of growth, you, of course, increase revenues. Q So he doesn't mind the new growth then? MR. FLEISCHER: We're all going to see what the dollar amounts are as the proposal moves forward. But the President and Mr. Lindsey clearly spoke today about the ultimate size that we think the tax cut should be limited to. Q If the size is clear, Ari, will you, in fact, attach a cost estimate when it goes up on Thursday? ”

“ I think the likelihood is, what you will see is a number of Democrats say they want to keep taxes higher, and therefore they shouldn't cut taxes -- Bush shouldn't cut taxes as much. I think you might see some Republicans who say it's not enough tax relief. The President's proposal, in his opinion, is the right amount to cut taxes. Q Is it their position that they want to keep taxes higher, or they just want to give back what we can currently afford? ”

“ Q And that was framed along the idea of making sure the people in the upper income brackets get income tax relief. But, as people start talking about this on the Hill, they are going to have to live within a budget. And, as you know from your time in Congress, those with the most influence get what they want. And the people with the most influence tend to be corporations and upper income earners. What will this President do to ensure that middle and lower income Americans do get their tax relief as this process goes through on the Hill? ”

“ The President believes very much that we need to make certain that America's military is the best in the world and is able to complete its mission and is very concerned about cutbacks that have affected the military. ”

“ It can be a stimulus of a level that I think economists will discuss, and some will agree with more wholeheartedly than others. But it is the belief of many people, including the President, that cutting taxes can be a stimulus. ”

“ Q Ari, the embassy bombing trial just got started in New York today. I wonder what the President's expectations are for the trial's outcome, and also, since two of the suspects are charged with worldwide conspiracy associated with Osama bin Laden to kill Americans and to destroy American property; so I wonder what steps President Bush is going to take to counter terrorism? MR. FLEISCHER: I'm going to, for the moment, refer that question to Mary Ellen, to the Department of Defense. Q On the tax plan, Bush indicated today he was in favor of making it retroactive to the first of January. ”

“ The biggest percentage gainers will be low-to-moderate income people. But he will indeed cut taxes for all income tax-paying Americans. He thinks it's the right thing to do. Q Ari, how realistic is it to think of this as an economic stimulus plan, given the size of the non-Social Security surplus this year and next year? ”

“ By providing that from the other states, it creates an impact on those other states. It affects their ability to have energy for their needs within those states. It's not as if you can just flip on a Western switch and power California. ”

“ They would have a $1,000 -- they currently pay about $1,000 in taxes and this proposal would eliminate virtually all their income taxes that they pay. On the other side of the scale, when it comes to taxes paid by the top percentage groups in the country, the President believes very strongly that no one should pay more than 33 percent of their income in taxes. Under the current system, the top rate, just for income alone, is approximately 40 percent. ”

“ Q But there was silverware on Air Force One, though, Larry. Q Larry? Q He must have known there was silverware on Air Force One, didn't he, that was missing? MR. FLEISCHER: I would remind you that silverware existed before Air Force One existed. Q In response to the question about the defense budget, you seem to be saying it'll be Clinton plus $45 billion. Did I hear you right? MR. FLEISCHER: The President proposed increasing defense spending by $45 billion during the course of the campaign above baseline. Q Right. And the question was, will that be on top of what Clinton proposed? ”

“ Q The administration has said repeatedly that it's not going to get involved or interfere in the election. But is President Bush consulting with foreign policy advisors about different scenarios that could emerge after tomorrow's election? MR. FLEISCHER: He's always talking with his foreign policy advisors. He met with Secretary Powell this morning, for example. But I'm not going to indicate anything beyond that, obviously, the election takes place tomorrow. Q Ari, you had said two weeks ago that the administration was going to keep its promise and move the embassy to Jerusalem. ”

“ There are many things we can't ever make it go away. But we can try to do less of it. Q Sorry, another question on the tax cut. In his remarks a couple of weeks ago, Chairman Greenspan made a special point of urging members of the Finance Committee to try to create some kind of mechanism for a trigger that would suspend tax cuts if these extraordinary surplus projections did not come to pass. Will there be anything in the legislation that the President sends to Capitol Hill on Thursday on that topic? ”