Lawrence Ari Fleischer

“ Only now that taxes are going to be cut do people express that concern. And the greatest danger, again, is if you don't cut taxes, that money will be spent. That's the history of Washington, and that's what we're up against this year, as well. ”

“ Certainly any trigger that is designed to stop a tax cut from going into place would result in a tax hike, according to -- Q But these are all incremental. So if I get so much this year and so much the following year, and then it's frozen, that doesn't take back what I've already gotten. MR. FLEISCHER: One of the greatest effects of a tax cut on the economy is the psychological sign that it sends to people, that it's permanent. No, but it's permanent -- that you know that you will have more money to spend each year. ”

“ Many seniors, unfortunately, in our society are faced with that choice. So what the President has sent up to the Hill is a proposal to have an Immediate Helping Hand, so low income seniors can get immediate relief through the states for their prescription drug needs. He also recognizes that there are many people on Capitol Hill who prefer, instead, to work forward on comprehensive reform plan, and that's a group of the people he's going to meet with today. Of course, any comprehensive reform plan would include prescription drugs for seniors, as well as take other steps to modernize Medicare. ”

“ But I think it's also clear that there is a limit to how many votes we're going to be able to get on any given issue, but we're going to continue to reach out to work with the Democrats on all issues. And then the Democrats have to decide -- so, too, do the Republicans -- when it comes time to vote, how they will vote. And we will be respectful of those who vote against the President, and we will continue to put together bipartisan coalitions. Sometimes they'll be bigger then others, sometimes they'll be smaller then others. ”

“ On the second part of the question, the President will be traveling to Chicago, Illinois tomorrow, where he'll be talking, making the case for his budget and tax plan, talking about the importance of economic growth, talking about how we are all in this economy together. And one of the interesting phenomenons that have happened in the American economy in the last decade or so is this growing investor class, the surge of middle income Americans, who now invest in markets, have mutual funds, who have other investments. ”

“ If the suggestion is that it's somehow inappropriate for the President of United States to travel the country, to talk to the voters who elected him, and to make his case to the people and urge them to contact their representatives, that's a new and novel notion. ”

“ Well, certainly, many of the proposals on the Hill that dealt with Medicare reform did allow seniors to have more options and more choices, so they could get a package of health care benefits that suited their individual needs. The other interesting thing about Medicare today that was so different from when Medicare was created in 1965, is the fastest growing group of Americans are octogenarians, people in their 80s. ”

“ And that's proof-perfect, in the President's opinion, that the biggest threat to the surplus is spending increases, not tax relief. One final point on triggers. What you're saying is, if the politicians spend too much money, we should reimpose a marriage penalty on people, for example. ”

“ We want more choices and more options for seniors, so what seniors are able to enjoy when they're 64 years old, they're still able to enjoy when they're 65 years old, while still protecting 80-year-olds and other seniors who want no change whatsoever, by maintaining the current Medicare system. And that really is what the bipartisan reforms on the Hill have focused on, in terms of Medicare. Q Is the President going to call today or early this week some House Democrats to talk to them about the tax plan? ”

“ And you have tremendous differences in health care needs between somebody who just turned 65, for example, and someone who is in their 80s. They have different needs from a health care system. The Medicare system, though, currently really remains a one-size-fits-all system. But there are many people who had a tremendous number of options in the work place when they were 64 years old and 364 days old. ”

“ Q Ari, you said a few moments ago that surplus estimates are exploding. And if that's the case and we're going to have these big surpluses going forward, what's the danger in agreeing to some sort of trigger mechanism like the Democrats want to do with regard to a tax cut? MR. FLEISCHER: Well, as the President has indicated, he thinks there are only two things that are going to lead to a smaller surplus. One is a failure to have economic growth. ”

“ But I think what you're seeing is a President who is very concerned, as you saw on the executive orders that he issued a couple of weeks ago, to make sure that there is fairness and balance in the system, and that the federal government doesn't tip its hand to union shops or non-union shops. ”

“ There are many people who are very wealthy, who are able to hire the best tax attorneys and CPAs to get around the tax because of its complexities. The President is prepared to engage in further tax relief items after this year -- additional tax simplification items. But he's focused right now on passage of his tax plan for 2001 and those simplification items that are contained in that plan. Q Ari, not all of the trigger mechanisms that were proposed would necessarily raise taxes; some would simply freeze the process if there is no further increase in the surplus. ”

“ He understands that, and he only asks that the disagreements be kept at a civil level and that the politics of personal destruction, which has been the hallmark of this town for too long, be laid to rest, and that we have disagreements based on principle. ”

“ I think you see less and less people interested in looking back, and more people looking forward, more people interested in working on the substantive agenda. And I do submit that there is, over the last several years, a case of pent-up demand for getting things done. ”

“ The Senate requires a 10-year budget window. So no matter what the President submitted in his budget, the House and the Senate would have no choice but to follow suit -- five years House, 10 years Senate. And that's in keeping with the -- actually, I don't know if it's statute, but it's the long-standing procedures of the House and the Senate. So the President's budget can be viewed as a one-year, five-year, 10-year, whatever window you like. And the budget specifies in each of the next 10 years what those numbers are. Q Ari, what's he going to do this week to get the thing through? ”

“ You say he's tired of the investigations and wants -- should they come to a halt? MR. FLEISCHER: As the President said last week, he has moved on, he's looking forward. He understands that Congress will do as Congress does. Congress is a separate institution, and I remind you that many of the things that people talk about on the Hill are bipartisan in their expressions of concern. But the President has moved forward. Q Does that mean that he wants Congress to hear that message? ”