 President of the United States Please sit down and thank you and good morning and welcome to the White House There's good news for the American people in the paper this morning Tax reform is a live and well and kicking What's that I heard about lame duckery Well Congratulations are due to all of those in the house who worked so long and hard to bring us to this point We can now look forward to a lot more hard work, but today America can feel Almost the true tax reformers within its grasp We must not disappoint the American people We must move forward from here with all deliberate speed To pass a tax reform bill that will spur economic growth Create jobs and give America's families the long overdue tax relief that they deserve In this last week We've begun to put into place a solid pro-growth framework of Lord marginal tax rates and spending restraints And together they promise to make our economy fit and trim and competitive for the future now Phil Warren and Fritz You who have given your names to Graham Rudman Hollings bill also deserve our congratulations from now on when the public hears the names Graham Rudman or Hollings they'll think deficit reduction and Connie Mack and Dick Cheney Who followed quite quickly in the house you deserve our thanks all of you here today Who have given so much time and hard work to this bill have earned your country's thanks The government gargantua has been gorging on taxpayer dollars for too long We plan to get a slim down into shape at the end of the decade For years. We've been warning that the growing deficit reflects a dangerous increase in the size of government polls to demonstrate public concern Now Graham Rudman Hollings locks in a long-term commitment To lowering and eventually eliminating deficits It's my hope that history will record last week as the time when the relentless expansion of the federal government was finally halted and Put into reverse But we can't afford to be complacent It's going to take a lot more hard work and many more difficult decisions if we're to live up to the promise of this moment The law now puts a time limit on governmental overspending it mandates a balanced budget But while Graham Rudman Hollings gives us some guidelines and directions. It doesn't take us to our destination It's essential as we embark on this journey toward a balanced budget that we keep a clear sense of our priorities and Hold our first purposes firmly in mind We must not allow Graham Rudman Hollings to become an excuse to avoid the tough decisions entailed in cutting back on runaway domestic spending we will not only be held responsible for Cutting the depths of it deficit ultimately we will be judged on how we reduce the deficit While will we for instance continue to fund welfare for the rich Will we continue to insist that low-income taxpayers? Subsidize programs for people who make ten or eleven times as much money as they do Will we fund wasteful pork barrel programs at the expense of essential defense requirements? Will we stifle economic growth and kill off our newfound prosperity with the tax increase? Graham Rudman Hollings won't make our decisions any easier, but it will make our choices crystal clear for all to see Last year for instance, we said the United States government had no business running a railroad and running it by the way hundreds of millions of dollars in the red We proposed eliminating federal subsidies to Amtrak, but intense Lobbying pressure kept money flowing Next time around no program will get a free ride We can abide by the letter of the Graham Rudman Hollings law and still violated spirit If we try to accomplish deficit reduction by tax increases or through just deep cuts in defense that endanger our national security We will have failed in our paramount duty to the American people the duty of good and responsible government Raising taxes in order to reduce the deficit is robbing Peter to pay Paul and Peter went bankrupt a long time ago Whether excess spending is financed through taxes or borrowing it puts a heavy burden on the private economy and slows the engines of prosperity In fact by slowing economic growth the tax increase might well make the deficit bigger not smaller And I want you all to know that When I sat at my desk in the Oval Office and signed Graham Rudman Hollings. I kept my veto pen ready In the top drawer. It's sitting there right now waiting for any tax increase That might come my way We should also remember that when we passed Graham Rudman Hollings. We didn't absolve ourselves of our first responsibility As the elected representatives of this country to provide for the national defense The last thing we want to do is return our country to the weakened vulnerable state in which we found it in 1980 It was a stronger and reinvigorated national defense That allowed the United States to move swiftly and confidently liberating Grenada from communism and bringing the terrorist murderers of Leon Klinghofer to justice It was this renewed sense of purpose and commitment that gave confidence to friends and allies around the globe and particularly to those struggling for freedom against Soviet imposed regimes and It was our determination to proceed with the modernization of nuclear our nuclear deterrent that Through Geneva has improved the prospects for real arms reduction Maintaining a strong national defense is not only our obligation to America It's our duty as the last best hope of mankind to the cause of human freedom. I Feel confident that if Congress abides by its already established agreement for real growth and defense We can meet our national security requirements We will meet the Graham-Rudman Hollings targets in the budgets that we submit to Congress and We'll do it the right way by cutting or eliminating wasteful and unnecessary programs. I hope that each of us Will pledge to follow through in the spirit of Graham-Rudman Hollings to see that government does only that which it must do and No more and I hope that we'll all work together To secure the deficit-cutting gains that we make by adopting a balanced budget amendment to the Constitution So as I said the real work of controlling federal spending is only just begun We've taken a dramatic step forward Let's keep the momentum going Thank you all for coming down here. God bless you all