Interview with the Nevada media - interview with President Bill Clinton - Interview

Weekly Compilation of Presidential Documents, August 9, 1993

You know, I come from a State which has the highest, or second or third highest amount of gasoline usage per vehicle in the United States of America. But the fact remains that gasoline is at its lowest price in 30 years and that the average person's annual bill is going to be around $35 for this. And I don't think that's going to keep anybody from coming to Nevada to vacation.

Single Parent Families

Q. We took calls this morning from our audience to find out what to ask you, and we had so many different calls about, "Hey, ask him to come and play his saxophone for us in Las Vegas, the entertainment capital of the world." But-----

The President. I'd love to do that.

Q. -----on a more serious note, we did get a lot of calls from single parents that wanted to know what your economic plan will do to help reward them; say, they are raising a child, a full time job, and you alluded to that earlier in the opening. Could you be more specific on this topic, please?

The President. Sure, very specific.

If I might, I'd like to answer that question, but I'd like to also say one other point in response to the young man who asked the previous question about the fuel tax. I believe that most people or at least a huge percentage of people who come to Nevada to vacation or to convention, fly there. And one of the things that Congress and the administration were very concerned about was the impact of this on an already troubled airline industry, on whether that would lead to big increases in fares, which really might have had an adverse impact on you. And as a result of that, relief was granted from airline fuel from this tax. So I think that was a big concession that I think will be very helpful to you and will avoid any adverse damage.

Now, to go back to the other question, single parents who work and have children in the home, have family incomes of under $30,000, all of them will be held harmless from the impact of the fuel tax by an offset in their income tax. Those who are at or near the poverty line may actually get a refund on their income tax to make sure that they will be lifted above the poverty line if they're working 40 hours a week and they have children in the home.

Interestingly enough, this expansion of the earned-income tax credit, which has received relatively little attention, is probably the most significant social reform that is profamily and prowork that the Congress has enacted in 20 years, because it will say to people like the very person you're talking to: We know you're out there working hard. We know you don't need any more taxes. We know you're doing everything you can to support your children. And because of the way the income tax system will be changed, if you're making a pretty good income, that is, let's say $29,000, $28,000, $27,000, something like that, you'll be held harmless from this. We'll give you an income tax offset for the gas tax increase. But if you make lower wages and if you're down around the poverty line, we will give you a tax refund so you can be lifted above the poverty line and support your children in dignity. Now, this will really help us to encourage people to move off welfare and into work.