 The President of the United States. Please be seated. I have a brief statement here. The Congress is back this week for a session that's lasting only until August 10th. But that's enough time for the House of Representatives to approve legislation that would benefit all Americans. Among the many important issues now facing the Congress is legislation that will help reduce deficits, reward work and thrift, make our cities and neighborhoods safer, and increase personal liberties throughout our land. Legislation that could do these things is already before the Congress. It's been bottled up in the House for months and in some instances even years. But something can be done. I have talked with the House Republican leadership. They have pledged to try again to bring six key measures to the floor for a vote. First, a constitutional amendment requiring a balanced budget, and we must balance it not by raising the tax rates of hardworking Americans, but by insisting that governments spend no more than it takes in. Second, a proposal granting spouses working in the home the same individual retirement rights, IRAs, as spouses working outside the home. Each spouse could save and deduct from taxation up to $2,000 a year. The House had a chance to enact this initiative in a bill I signed just days ago, but they dropped it. Third, a proposal offering incentives for investment in 75 enterprise zones to create jobs, independence and hope for people in inner cities and other economically distressed areas. Fourth, a bill allowing tuition tax credits for low and middle income parents who pay to send their children to parochial or independent schools while also paying their full share of taxes to support public schools. Fifth, a comprehensive anti-crime package to crack down on criminals through restrictions on bail, tougher sentencing and stricter enforcement of drug trafficking laws. And sixth, an equal access bill permitting religious student groups the same freedom to meet in public high schools during non-school hours as right now other student groups are allowed to do. These reforms are long overdue and they would benefit all the people. It's time to test the new realism and to see if the democratic leadership will move from words to action. Now, Maureen. Mr. President, your advisers have publicly disagreed with Walter Mondale's assertion that a tax increase will be necessary next year in order to help cut the enormous federal deficit. While your advisers say you don't want a tax increase next year, they have refused to flatly rule out the possibility. Will you now flatly rule out the possibility of seeking a tax increase next year if you're re-elected? Yes. I have no plans for a tax increase. I believe it would be counterproductive with regard to the present recovery or expansion. Indeed, I believe that the tax cut that we had is largely responsible for the recovery that we're having. Maybe they left that for me to say. I know that for Mr. Mondale that this he has repeatedly and over the years supported tax increases on any number of occasions. He was opposed to our indexing, which is a provision that would benefit the lower and middle income people almost exclusively because they would be the ones that without indexing could be moved up into higher tax brackets by inflation. Those who are already in the high tax brackets can't be moved up. They're already there. But I have one thing to say about a tax increase with regard to our problems. The only way that I could see is that government is taking a percentage of the gross national product that is higher than the revenues, the percentage that is being taken in revenues now from that same gross national product. Now, if after all of our best efforts, if we have gotten government costs down to the point at which we say they cannot go any lower and government still meet its responsibilities and provide the services that are required of it, and that is still then above the percentage taken by taxes, then you would have to look at the tax structure in order to bring that up, to meet that minimum level of government expenditures. But I think we're a long way from that point with regard to bringing government down to where it could be brought down. We're looking right now, and we have a task force working on 2,478 recommendations made by the Grace Commission of ways in which governments can be made more economical and more efficient by simply turning to modern business practices in all of these different ways instead of sticking with some old-time government practices that are way behind the times. And I believe that to raise taxes without waiting for what I had just said, I think that to do that would simply open the door to more spending. That's been the pattern of the past, and it is a pattern that, as a matter of fact Vice President Mondale has stated that his own belief in it, in 76, he publicly stated on a television show that he had voted time after time to raise taxes on his own constituents. So he believes in tax increases, and I believe that our goal must be to wherever possible reduce the tax burden for our people. We are, let me just say, we are, I've ordered the Treasury Department to come in before the end of the year with options on tax simplification and ways in which we can broaden the base and thus lead to the ability to further reduce the individual's rates by broadening the base. And the fairness of all of this goes without saying, but also the simplification. I think it's practically immoral the complexity of the tax laws and what we impose on the people with regard to their tax obligation. And I think it can be simplified, and I believe that there will be some options brought to me in December as I'd requested. Do you think that there's room in the federal budget to cut spending so deeply that you can balance the budget that way? And if you believe that, is it possible, do you think to do that without going into entitlements and social security? And are you willing to go that deep? The, no, what we're, what we're looking forward to is the fact that as the recovery takes place, you are going to see some contributing factors to further reducing the deficit. A large part of the deficit, when it went up so far, was because of the depth of the recession. But today there are 7 million more people working than were working in 1980. Now that's 7 million people that are not burdened on the government or being taken care of. That's 7 million more people paying taxes. And so far, we have found repeatedly and still are finding that we have overestimated the deficits. And much of the overestimation is our underestimating the revenues that we're going to get. So I think that there is still a large area in which we can go. Now you mentioned social security, and that brings to mind something I want to get off my chest right now about social security. As you know in the regulations of social security, if the inflation rate falls below 3%, there are no more colas, cost of living adjustments or additions for people getting social security. We now, in the last three months, have been down around 3.2 or 3 with regard to the inflation rate. If when we come to the period when inflation is the third quarter of the year and inflation is below 3%, we have asked the social security recipients to take a six month delay in getting their cost of living adjustment. And if it is below 3%, I am going to ask the Congress to permit the payment of the cost of living adjustment to the social security recipients. Mr. President, Geraldine Ferrero says that you are a good Christian on grounds that your budget cuts have perched the poor and the disadvantaged. Do you think you are a good Christian and why? And I would like to follow up. Well Helen, the minute I heard she made that statement, I turned the other cheek. As for her qualifiers that our budget practices had victimized the poor and the needy, there is not one single fact or figure to substantiate that charge. I know that has been the talk. I know there has been a lot of demagoguery about that. But all of the programs for the needy that are means tested programs, they were $47 billion in cost when we came here. They are now around $64 billion. We have everyone for food stamps for example that has an income or earnings of up to 150% of the poverty level is eligible for food stamps out at the state where the states administer programs like AFDC. There the requirement is based on what is the needs level in that particular state and therefore they set the basic benefit according to 130% of that. But we are aiding more people and spending more money on those programs that has ever been spent in history. So there is no basis for this demagoguery that somehow we have punished and are picking on or trying to get our recovery on the backs of the needy. Now Andrea, the other... I know that Congress doesn't agree with the Congressional Budget Office but I would like to ask you... Ed Rollins said today that the Carrero nomination to the number two spot could be one of the biggest busts in history. And do you think so? And do you think you'll be hurt? Helen, I wouldn't touch that question with a ten foot pole. I understand he's retracted it all. Andrea, I told you the other day that you could ask a question Tuesday night. Thank you very much. Mr. President, you just said that you were turning the other cheek as to Mrs. Ferrara's suggestion about whether or not you're a good Christian. Some of your own strategists have said that there's a double standard in the way that she is being covered because she is a woman that a male candidate could not get away with that particular suggestion about the President. Do you think that that's fair that she should be able to suggest that you're not a good Christian and not be criticized for it? Well, I think that's a decision that all of those who view criticizing has to make. I have never been one to credit to campaign against opponents. I prefer to campaign on our record what we've done and what we intend to do and that's the way I'm going to conduct myself in this campaign. Please, Jasmine, what kind of strategy are you going to use against the first woman Vice Presidential candidate? And if you are not willing to debate Walter Mondale, let's say a half a dozen times as Mr. Baker suggested you're not. Would you let George Bush debate Geraldine Ferrero six times? Well, I think this is a decision for those who are working on the strategy of the campaign to deal with and I'm going to let them do that and again, I know that George feels the same way as George himself has said that this campaign is going to be to try and get the top of the ticket elected which seems to make some sense. But let me, I'd better switch over here for some more and may I I don't mean to offend with regard to the follow-ups and I understand why you had them but we've been reduced to the number of questions we get to ask when everybody has a follow-up so ask them both at once. Sam, do you want to Sir, Mr. Mondale said in his acceptance speech that 100 days into his presidency he would stop the secret war against Nicaragua I assume that you're going to continue your policy down there in that respect and he also implied, of course, once again that you as president will be trigger happy and will get us into war. How will you answer both of those? Well, I'm not trigger happy and having known four wars in my lifetime I'm going to do everything I can I think that the greatest requirement is to strive for peace and I'm going to do that and again I think there was some demagoguery in this but understanding that all of you have been given a report as a kind of a green cover on the Nicaraguan situation and it has also been delivered to every member of the Congress and I think if, believe me I wouldn't round file those I'd look at them because the information is in there that reveals that everything we've said about the Sandinista government is a proven fact they are trying to destroy El Salvador by providing the rebels there with the wherewithal to do it they are a totalitarian government but you'll also find in there a statement Biogarkov of the Soviet military this was prior to our rescue mission in Grenada but he openly stated that after all the years of only having a base in the western hemisphere in Cuba that now they had bases here in Nicaragua and in Grenada well they don't have one in Grenada anymore and I think that it is responsibility of this government to assist the people of Nicaragua in seeing that they don't have one in Nicaragua President on the same subject Vice President Bush has asserted that Mondale and the Democrats don't understand the communist threat to Central America do you agree that they don't understand the communist threat well either that or they're ignoring it do you think they're ignoring it? what? do you think they're ignoring it? well they seem to be opposing everything that we've tried to do including the aid to El Salvador as a matter of fact I've been very worried that their niggardly treatment of El Salvador is such that we might see that it's comparable to letting El Salvador slowly bleed to death and say well see your program didn't work but Bill President you say that you won't raise taxes yet people in your administration have said including Mr. Stockman that if the huge budget deficit is to be reduced at all that there will probably have to be cuts in some of the major entitlement programs such as Medicare Veterans Benefits Farm Price Supports now you said in an interview earlier this year that you weren't going to discuss things like that and I'd like to ask if you don't think that you owe an explanation of what you might cut to the people in an election year well I've told you about those 2,478 recommendations that have been made we are going to look at every area where we can cut but at the same time we're going to do what I said from the very beginning we are not going to destroy the safety net for those people who through no care of their own must depend on government that wouldn't rule out looking at those programs Veterans Benefits Medicare Farm Price Supports for example number of those that I'm sure will be looked at Mr. President the Polish Government is releasing hundreds of political prisoners and a move that appears to meet one of your conditions for normalizing relations you have removed some of the sanctions imposed a couple of years ago will you remove others and if so when do you think you'll be acting Mr. President we're studying what they've done their legislation on amnesty very carefully right now our purpose and from the beginning has been with regard to the sanctions that we know that in some instances those sanctions are penalizing not only the government but the people themselves we don't want to impose hardships on the people and if their legislation on amnesty and things of that kind have met the conditions that we laid down yes we will meet with regard to lifting the sanctions Mr. President you've just said now that you don't conduct negative campaigns and yet your surrogates have been doing so George Bush said today that Geraldine Ferrara was too liberal Helen told you about Ed Rollins remark are you saying that these people don't speak for you well I don't think that in a campaign you can ignore the things that other people or opponents have said and pretend that they've never said them I have responded here myself to some charges that already this evening I have said had no basis in fact or figure whatsoever now that I think that we can do but to ask questions that I've thought indicated that how are you going to plan the campaign against someone basically the campaign is going to be on behalf of what our own programs are and what we intend for the people what they are speaking for you yes if there's someone says something that I have to disagree with just to let them know yes a few hours ago in the rose garden you said that with the inflation so low it's outrageous that interest rates should be so high what is who's doing this is it the money lenders and is it the bankers do you think that they're gouging the American public and if so what are you going to do about it I've said many times that I think there's a psychology at work we've had so many recessions since World War II seven or eight I've been saying seven but someone has indicated that it's wrong by one that it might be eight so seven or eight before this one all of those were cured by the quick fix all of them used the artificial stimulant of money that raised inflation and all of them only lasted for a couple of years maybe three or four at the most and then there was another recession following and this one is different I believe the basis for this recovery is sound and solid and so I just think that the that what we're seeing is an unwillingness out there an inability to believe that we have control of inflation that it's not going to go back up and anyone who's in the business of lending money must know particularly if it's going to be long-term money that he must get an interest rate he or she that is going to return the original purchasing power that was loaned making up for that loss of inflation then plus the earning power or the earning capacity the interest that they want as profit on that that loan well right now if there's still that unwillingness to accept that we have a recovery and that is one with a declining inflation rate then the financial market is very jittery and frankly I do not see any real reason other than just this kind of lack of trust or confidence that is responsible for the present interest rates President how do you feel about the fact that throughout the South your political workers are striving to register as new voters affluent people and white people while shunning poor people and black people they're not doing that I want everybody registered that can I think that democracy if it's to work then everybody that's eligible to be a voter should be registered and they should vote and I think sometimes the declining number of people voting is because we've satiated them with campaigning over such long periods of time that they finally come to a ho-hum attitude and go their way but no this whole idea that we don't want the votes of certain people in this country is absolutely ridiculous we do want them and if it comes to the affluent I did think that it was kind of interesting to see some of the people that were on stage at the convention in San Francisco that were talking about their love for the poor and our affinity for the rich when they themselves were not only rich but they were selling seats on the floor for five thousand dollars and you could meet and eat with the candidate or have your picture taken with him for a hundred thousand dollars and they had some other alternatives in there at ten, twenty-five and fifty thousand dollars the simple truth of the fact is that for more than a quarter of a century the Democratic Party has raised the bulk of its contributions from contributions of a hundred dollars and up and the Republican Party has raised the bulk of its donations from a hundred dollar contributions and down an instruction to the Republican Party that all the black voters can join the role should be joined as an effort on your part we are we've got a voter registration drive I think it goes with every campaign but we're doing it and we're not drawing the line and we don't have any everybody that will to register you know Mr. President there was some talk about whether President Carter would appear at the Democratic Convention because he might hurt Mr. Mondeo politically but he was there I'm wondering it's been ten years since Mr. Nixon was in the presidency and you've sought his advice and appeared to think highly of him I wonder whether you think it might hurt you politically if he were to be at your convention and if he were to campaign with you well it's a question that I don't have to answer because he himself has ruled out coming to the convention and as I believe publicly stated that he has no intention of participating in a campaign young lady right there Mr. President could the United States continue its defense commitments to New Zealand if it's denied port access for nuclear ships and if this happens would it affect American trade of New Zealand and I have a follow up please I don't think that would affect trade and I do know and I would rather not get in too deeply to anything because that is something that will be worked out and negotiated with the new government of New Zealand and I have every reason to be optimistic that there won't be any denial to our ships if the port access is denied as the Labor Party says it will do would the United States conclude a separate peace treaty with Australia well as I say I don't want to get into things or anything that might sound as if I'm pressuring or threatening or anything of the kind so let me just say that we're going to do our best to persuade them that it is in their best interest as well as ours for us to continue with our alliance what ends us those countries as we have been Mr. President I'd like to ask you about the leadership situation at the justice department both in terms of reality and symbolism you have an attorney general and Mr. Smith who wants to get out and you have a nominee Mr. Meese who wants to get in but the Republican Senate won't let him in is that the most effective and efficient way to run the Department of Justice does there come a time when you want Mr. Meese to withdraw his nomination right now there is an investigation going on at Mr. Meese's request and until we know the results of that investigation I don't think that there's any answer I could give to that he asked for that in response to the furor the furor that was raised about him I have every confidence in him and I'm appreciative of the fact that Attorney General Smith wanted very much to return to private life but has agreed that he will stay as long as the situation prevails and until it is resolved and I'm confident that myself that it's we're going to find out that Mr. Meese is guilty of no wrongdoing Mr. President in regard to another one of your nominations the Senate late this afternoon voted 73 to 19 to request that you withdraw the nomination of Ann Burford to serve on an environmental advisory committee that includes more than 30 Republicans will you take that direction no I won't Ms. Burford was called before a House committee when she was head of the EPA and she obeyed the instructions that we gave her the House committee was trying to obtain documents and we exercised executive privilege because on the ruling of the Justice Department that those documents were part of investigation reports and that if there was any evidence brought up that would lead to legal action against anyone they could be compromised by opening them up to the Congress so she obeyed her instructions and there was not one single allegation that was proved in any way that stood up under all the shouting and the furor that went on and therefore I am standing by the appointment that I have made and I am pleased that the resolution that was passed was non-binding in regard to that your critics have come out very strongly recently in criticism of your environmental policies do you see the Ann Burford appointment as a liability to you during this election here and in that regard once again I ask all of you of an investigative nature to take a look at what our record is with regard to environmentalism. There is not one fact substantiating many of the charges that have been made we have continued doing what we came here to do clean air and clean water and both are cleaner than they've been for a long, long time we have refurbished and reestablished the health and safety factors of the parks and are now going to return to adding territory or land to the park areas we have vastly increased the wilderness lands there isn't anything that is, can be proven that we have not been meeting fully our responsibilities with regard to the protecting of the environment. Mr. President the good Christian issue aside your plans to make a campaign stop at an Italian dinner at a Catholic church named for the patron saint of women in a New York City suburb on Thursday would indicate that you're at least a bit concerned about the impact of Geraldine Ferraro on the election could you assess for us your views on what the impact of a woman on the democratic ticket will be? Well I think that the, I think this is just another step forward in the recognition of the new place of women that has been long overdue I think it is significant I think it was significant when a woman took her place Sandra Day O'Connor on the Supreme Court when we had three women on our cabinet and when we have some 1600 in very responsible positions presidential appointees in our administration but no that's a logical step and one that possibly is overdue so that's a I have no criticism on that I think you suggested it was a token gesture I know you didn't say that outright but your remarks indicated to some you felt that way glad you asked that I was speaking to a room full the dining room is a matter of fact of Republican women all of whom were some were candidates but the bulk of them were elected or chosen and I was talking about my own personal experience with meeting Margaret Thatcher when I was a governor and she was the newly chosen head of the conservative party in England which was when we first met there and I was talking about how she had been chosen by the conservative party to be their leader obviously on the basis that she was the best qualified person in the party to do that and I had that job and I used the phrase I said there was no tokenism or symbolism connected with it I was talking about Margaret Thatcher and the conservative party of England I didn't have Ms. Ferrero in mind and certainly not when I put that down on paper well Helen we've got to get rid of these second questions