Remarks to the American Association of Community Colleges in Minneapolis, Minnesota

Weekly Compilation of Presidential Documents, May 1, 1995

Finally, let me talk about the tax cut issue. Everybody is for a tax cut. Who could be against it? Sounds great. But I would remind you that this is a serious issue, this deficit issue. We have worked very hard to reduce it by $600 billion. When we brought the deficit down, that's what drove interest rates down in 1993. That's what gave us our economic recovery. That's what unleashed the engine of American enterprise. And the uncertainty that hangs now around whether we continue to show discipline in our budget is causing difficulties for our economy.

We cannot afford a $200 billion tax cut and continue to reduce the deficit and meet our responsibilities to education and our future. We cannot afford to tilt most of the benefits of the tax cut to upper income people. They are doing very well in the economy as it is. They are doing very well. And this is not a statement of class warfare. I want to create more millionaires. I am proud of the fact that a lot of people have become millionaires since I have been President.

But what will do that is a strong economy, a healthy economy in which everybody has the opportunity to succeed. That's what will create more successful entrepreneurs. If we have a system that grows the middle class and shrinks the under class and keeps this economy strong, the entrepreneurs will do well.

So what we should do is have a much smaller tax cut. It should be targeted sharply to people who need it, middle class people. And in my judgment it should be targeted to education. People should get a deduction for the cost of education after high school, because that will raise their incomes over the long run as well as over the short run. They will more than pay it back to the Treasury in future years because we will be accelerating the number and the intensity and the pace of those getting an education in America. That's the kind of tax cut we need - less, target it to middle class, and focused like a laser beam on education. We need an education tax cut. That's all we need for this country.

Let me close by asking you once again to make your voice heard in another way. The community colleges of America look like America. If you go to a board meeting of a community college and hear people talk about what programs they're going to have and what projects they're going to have and what partnerships they're going to create, chances are a hundred to one you can't tell whether there's a Republican or a Democrat talking at the board meeting.

Community colleges are open to people of all "races and backgrounds and religious faiths and views. They bring people together. They are America at its best. We need more of that in Washington. So if you believe that we shouldn't start charging interest on the loans, especially since there's a better way to reduce the deficit; if you believe we should increase the Pell grants, not decrease them; if you believe we should keep expanding the direct loan program on a purely voluntary basis and see if our program is as good as I think it is and people keep using it; if you believe we should have this training voucher instead of this complicated welter of Federal programs; if you believe it's important to cure the education deficit and the budget deficit and therefore we should focus on a tightly targeted education related tax cut, then go back home and ask the students and the faculty members and the board members to sign petitions that you can send to your local Members of Congress and your Senators, without regard to party.