2001 US press briefings
Aboard Air Force One
En Route Toledo, Ohio
1:41 P.M. EDT
MR. FLEISCHER: As you know, the President met earlier today with congressional leaders. And during the meeting they focused very strongly on proposals that will promote growth and they all agreed to resist any attempts by Democrats in Congress to raise taxes.
The President said, "We have plenty of money to meet our budget." And he also said, "I like our position on a number of fronts." Those are quotes from the President.
Q "We have plenty of money to meet our budget"?
MR. FLEISCHER: "To meet our budget." That's basically what he said on the lawn. And then the second quote was, "I like our position on a number of fronts."
And then they had a very broad discussion about taxes, about energy, about education, about spending, about appointments, nominations. They covered a wide variety of topics. But the focus of the meeting was that they have agreed and put a plan in place that will promote economic growth. The President believes the plan is working and it's very important for all members to resist the Democrat attempts to raise taxes.
Q Can you repeat that, please?
MR. FLEISCHER: The meeting focused on, especially the beginning of it, that the President had faith in the economic plan that had been put into place, that is now making its way through the economy, that promotes growth. And they all agreed on the need to resist any attempt by Democrats to raise taxes.
Q Who's attempting to raise taxes? What's going on?
MR. FLEISCHER: As the President said at the news conference, he's aware of people saying that, criticizing the tax cut, as the Democrats say, for causing any budget surplus issues. Well, if you criticize something, implicit in that is that you oppose it. Well, the question then becomes, what's your proposal; do you have a growth proposal of your own, or, implicit in your criticism is, if you could, you'd do something about it, since you're criticizing it.
Q -- implicit. I mean, you're drawing conclusions from Democratic -
MR. FLEISCHER: Some Democrats have already talked about raising revenue.
Q Who?
MR. FLEISCHER: Chairman of the Senate Budget Committee. He said that about a month ago, raise revenue. The Democrats can't have it both ways. They can't criticize the tax cut and say, but, we're not going to do anything about it.
Q -- the revoking of the already scheduled tax cut as, you know, the phase-in rates, or changing the phase-in rates, as a tax increase; is that right?
MR. FLEISCHER: It is a tax increase. Otherwise, how does it raise revenue? I don't know, you tell me.
Q But, I mean, it hasn't taken place yet. The tax increase, or decrease, isn't in anybody's pocket.
MR. FLEISCHER: It's scored by CBO and OMB as a tax increase, because it's already anticipated - this is the Democrat complaint, that it's anticipated it will take money away from Washington, because it has already been adjusted for by CBO and OMB. So if you prevent it from going into place, you're raising money, it's a tax hike. If you raise money it's called a tax hike.
Q Well, not to split hairs, but you -- I mean, the President himself called the capital gains tax cut a revenue raiser. It would, "pile up a lot of revenue." So, is it really fair for you to say anybody who talks about raising revenues is talking about raising taxes?
MR. FLEISCHER: It's a scoring issue. There's no question about it that if you tell somebody, you're slated to get an income tax rate cut, you are slated to get more money in your paycheck beginning January 1st, and you tell them, we're from the government, we didn't mean it, we're taking it away, the American people are going to feel it like a tax hike.
The capital gains tax cut has always felt like a tax reduction, regardless of its revenue effect. They really are different issues, Sondra.
Q Did they discuss a game plan for a capital gains tax cut?
MR. FLEISCHER: The President reiterated that he has an open mind on the question of capital gains.
Q So, politically, you've got -- you feel like you've got the Democrats over a barrel, any squawking they do about the tax cut turns into an argument for a --