There are certain things that a president can do without Congress, and I am going to do them. I have this evening asked major cabinet departments and federal agencies to institute a 90-day moratorium on any new federal regulations that could hinder growth. In those 90 days, major departments and agencies will carry out a top-to-bottom review of all regulations, old and new, to stop the ones that will hurt growth and speed up those that will help growth.
Further, for the untold number of hard-working, responsible American workers and businessmen and women who’ve been forced to go without needed bank loans, the banking credit crunch must end. I won’t neglect my responsibility for sound regulations that serve the public good, but regulatory overkill must be stopped. And I have instructed our government regulators to stop it.
I have directed Cabinet departments and federal agencies to speed up pro-growth expenditures as quickly as possible. This should put an extra $10 billion into the economy in the next six months. And our new transportation bill provides more than $150 billion for construction and maintenance projects that are vital to our growth and well-being. That means jobs building roads, jobs building bridges and jobs building railways. And I have this evening directed the secretary of the Treasury to change the federal tax withholding tables. With this change, millions of Americans from whom the government withholds more than necessary can now choose to have the government withhold less from their paychecks. Something tells me a number of taxpayers may take us up on this one. This initiative could return about $25 billion back into the economy over the next 12 months, money people can use to help pay for clothing, college or a new car. And finally, working with the Federal Reserve, we will continue to support monetary policy that keeps both interest rates and inflation down.
Now these are the things that I can do. And now, members of Congress, let me tell you what you can do for your country. You must, you must pass the other elements of my plan to meet our economic needs. Everyone knows investment speeds recovery. And I am proposing this evening a change in the alternative minimum tax, and the creation of a new 15% investment tax allowance. This will encourage businesses to accelerate investment and bring people back to work. Real estate has led our economy out of almost all the tough times we’ve ever had. Once building starts, carpenters and plumbers work, people buy homes and take out mortgages.
My plan would modify the passive-loss rule for active real-estate developers. And it would make it easier for pension plans to purchase real estate. For those Americans who dream of buying a first home but who can’t quite afford it, my plan would allow first-time home buyers to withdraw savings from IRAs without penalty and provide a $5000 tax credit for the first purchase of that home.
And finally, my immediate plan calls on Congress to give crucial help to people who own a home, to every one who has a business, a farm or a single investment.
This time, at this hour, I cannot take “No” for an answer. You must cut the capital gains tax on the people of this country. Never has an issue been so demagogued by its opponents. But the demagogues are wrong. They are wrong, and they know it. Sixty percent of people who benefit from lower capital gains have incomes under $50,000. A cut in the capital gains tax increases jobs and helps just about everyone in our country. And so I’m asking you to cut the capital gains tax to a maximum of 15.4%. And I’ll tell you, I’ll tell you, those of you who say, “Oh no, someone who’s comfortable may benefit from this” you kind of remind me of the old definition of the Puritan, who couldn’t sleep at night worrying that somehow someone somewhere was out having a good time.
The opponents of this measure and those who’ve authored various so-called soak-the-rich bills that are floating around this chamber should be reminded of something: When they aim at the big guy, they usually hit the little guy. And maybe it’s time that stopped.
This then is my short-term plan. Your part, members of Congress, requires enactment of these common-sense proposals that will have a strong effect on the economy, without breaking the budget agreement and without raising tax rates. And while my plan is being passed and kicking in, we’ve got to care for those in trouble today. I have provided for up to $4.4 billion in my budget to extend federal unemployment benefits, and I ask for Congressional action right away. And I thank the committee--well, at last. And let’s be frank. Let’s be frank; let me level with you.
I know, and you know, that my plan is unveiled in a political season. I know, and you know, that everything I propose will be viewed by some in merely partisan terms. But I ask you to know what is in my heart. And my aim is to increase our nation’s good. And I’m doing what I think is right; I’m proposing what I know will help. I pride myself that I’m a prudent man, and I believe that patience is a virtue, but I understand politics is, for some, a game and that sometimes the game is to stop all progress and then decry the lack of improvement. But let me tell you, let me tell you, far more important than my political future--and far more important than yours--is the well-being of our country. And members of this chamber, members of this chamber, are practical people, and I know you won’t resent some practical advice: When people put their party’s fortunes, whatever the party, whatever the side of this aisle, before the public good, they court defeat not only for their country, but for themselves. And they will certainly deserve it.