 this year. We need your help. It is a battle. It's going to go through all summer. And then I think we'll solve the problem. Thank you. We will have a brief pause until the President arrives. Gentlemen, the President of the United States. Thank you. Thank you very much. Thank you all very much. And good afternoon and welcome to the White House. Something about Washington that even though we're clear across the street in the White House, this is still part of the White House. Well, it's good to be meeting with you again. And I'm glad to have this opportunity to thank you personally for your support on the recent MX Peacekeeper vote. I think we deserve to take just a few moments to celebrate not only a strengthened U.S. deterrent and improved leverage of the arms talks in Geneva but what I sincerely hope will be a return to seriousness in the budget negotiating on the Hill. Until the MX Peacekeeper issue was resolved, it was too easy for some to use the missile as a scapegoat rather than face the tough decisions involved in reigning in runaway domestic spending. Of course, those who can't bring themselves to do what they know is right on domestic spending will still try to look big by beating up on the defense budget. To listen to the debate in Congress, you might think that defense spending is responsible for the growth in the deficit. In fact, the opposite is true. In spite of all the drumbeat of propaganda that you've been hearing, projected defense spending for fiscal year 1986 has decreased by $26 billion in real terms over the last two years. Well, some say if it isn't defense causing the growth in the deficit, it must be the tax cuts. But in fact, those tax cuts have produced an economic expansion so strong that revenues far out of surpassed expectations. Total revenues for this fiscal year are running a $30 billion higher in real terms than was projected in 1983. In fact, our economies become the envy of the world, a miracle of productivity, invention and resourcefulness. Our gross national product growth has far outstripped that of Europe and even topped that of Japan for two years running. The first time that's happened since the 1950s, the spirit of enterprise is moving full speed ahead in this country. It's the American people who, through hard work and perseverance, have made this dramatic breakthrough into prosperity. But Congress will always be able to spend your money faster than you can earn it. So we have less projected defense spending and we have more revenues from a strong expansion. But still, our deficit grows because since 1985, or 83 I should say, our projected non-defense, non-debt service spending, domestic spending in other words, has grown about twice as fast as the revenues, around $60 billion in real terms. Now there's only one unanswered question clouding the horizon. Does Congress have the courage to get control of domestic spending? Former French Prime Minister Raymond Barr has described the United States as becoming once again, quote, the pole of stability and growth in the international economy, unquote. Well, if Congress doesn't bring its present spending spree under control, if it continues to squander our hard earned prosperity, it will not only be failing the American people, but the hopes of people throughout the world who are counting on the American economy to lead them into the future. We've simply reached the point where we can no longer afford to pay for the special privileges of a few at the expense of the American people as a whole. All of us must look beyond our short term special interest to the longer term. Solid economic growth without which no one ultimately can prosper. In this, the AGC stands out as a proud example of those who put America first. In 1981, you were leading supporters of our tax cutting economic recovery program, even though that program called for cuts of billions of dollars in construction spending. You knew that in a healthy growing economy, there would be more work, hope, and opportunity for everyone. Ernie Lindstrom and Burt Beatty and all the other members of the AGC have been staunch, vital allies throughout the last four years. I just thank you for your help on the MX Peacekeeper vote. And now I'm already going to ask you for another favor. Help convince Congress they should be doing us all a favor by putting America first, too. Tell them to stop putting our economy at risk. Tell them to cut deficit spending and secure strong, stable economic growth throughout the rest of the decade. And that will send a clear message that will help bring down interest rates and free up more money for capital investment. For the past week or so, the senators looked like it's moving in the right direction, but they need all the encouragement they can get. If in the end, Congress can't bring itself to do what's right, I have a suggestion. Give me what 43 governors have. Line item veto. If Congress can't cut, I will. I'll take the political heat. As a matter of fact, I'll enjoy it. In this session of Congress, we'll also be presenting our plan to drive our economy to new heights of productivity, innovation and enterprise. It's called tax simplification and it will cut marginal tax rates further while maintaining incentives for investment and capital formation. We must relax government grip on our private lives even further. The lighter the burden of government, the faster the American people can sprint ahead. Well, our agenda is full. There's a lot of very important work to be done in the next few months. Your support has enabled us to come as far as we have in the last four years. Your support will be essential as we go forward from here. Maybe you've heard this before, but I have to tell you an example of what I think when I see some of the people up there trying to deal with the budget deficit, or at least they say they're trying to deal with it. And they remind me of those three characters that went back to their car one night after an evening out in the town, found they'd locked themselves out. And one of them says, let's get a wire coat hanger. We can get in that way. And someone said, no, you can't do that. Someone don't think we're stealing the car. He said, I know what I've got. I've got a pocket knife. I'll cut a little of the rubber around the window and get a finger and we can unlock the door. And the other one said, no, then they'll, they see us that think we're too stupid to use a coat hanger. And the third one, the third one says, well, we better do something pretty quick because it's starting to rain and the top's down. You know, in your trade, you might like to hear another one also. It's a story about Moses calling on the Lord and the Lord said, what is it this time? Well, he said, I've got my back and all the children of Israel are back to the Red Sea. The Egyptians are amassed with their army and they're coming after us. And the Lord said, I'll drop a pillar of fire between the Egyptians and you. And he said, and I'll part the waters of the Red Sea and you can go on through. And when you're all safely through, I'll put out the fire and I'll let the water then come in and bury the Egyptians as they try to follow you. But he says, that's the good news. And Moses said, well, what's the bad news? He said, you've got to make out the environmental impact statement. Well, thank you all very much. God bless you all. Thank you.