Steve Forbes Legislative Speech, Endorsement Press Conference with Sen. Gordon Humphrey

Thank you. Thank you very much Mr. Speaker. Thank all of you. Mr. Speaker. Mr. President Honorable members of the General Court. It was a genuine pleasure to be here today. I'm going to take this opportunity to make a few remarks about the upcoming election and to give you reasons why I think America is on the cusp. One of the most extraordinary eras in our history this election will be important. Because it will set the direction for our country at home and overseas for the rest of this decade going right into the new millennium Not only will it have an impact on us. It will have an impact on the rest of the world. The rest of the world still looks to us for leadership especially today. If America is thriving if America is self-confident if America is moving forward and innovative energetic imaginative way. Not only are we doing well but the world will do well because inspired by our example they will follow our example and that will be good for them. It will be good for America and good for

the future of world history. So we are at a unique juncture if we don't do it right here at home. If we get in trouble here at home then the world is in trouble. If America gets in trouble the world is in trouble. So this has global importance. America has the potential for the greatest economic boom and spiritual renewal in our history. The key issue in 1996 is how do we reduce or get rid of the barriers the roadblocks the obstacles that stand in the way of fulfilling our promise as a people and as a nation as you well know the American people are frustrated today. We won the Cold War. We're the strongest nation on Earth. We're the strongest nation in history. Yet people rightly wonder why is it that we're aren't that we aren't doing better here at home. Why is it that two incomes in a family can't seem to do the job that one income could in previous generations. Why is it that so

many young people feel that they won't have the opportunity to get ahead the way their parents and grandparents did. And why is it that the quality of life in our country seems to have been under assault in the last 30 years in our schools in our streets and for our families in 1996 we have an opportunity to get a nationwide mandate to get rid of the barriers that stand in the way of our moving ahead. Get rid of these obstacles that stand in the way of growth hope and opportunity. That is the promise of 1996. Before I touch on these barriers what I think needs to be done to get rid of them I would like to make this general observation and that is contrary to what a lot of commentators would have you believe in America. The distinction between values and economics is no distinction. It's a false one the one in the same. They're indivisible by values. I mean honesty hard work. Thrift faith trust. A belief

an individual opportunity and responsibility a belief in progress and a belief that we're on this earth and in this land for a higher purpose. All of the reforms all the changes that I'm talking about in 1996 all share the common thread and common theme of giving individual Americans more opportunity and responsibility more control over their lives. Because the key thing to get America doing is growing and that is why we've got to get these barriers out of the way to get America moving. We have to start I believe and I think the people of New Hampshire believe it. I think you understand it perhaps better than some others in our country. We have to start with the tax code the federal income tax code. No one outside of Washington could have consciously devised something more complex more comprehensible more

understandable more corrupting more anti-growth anti-family anti anything you like. And the tax code that we have today. It is a monstrosity. Just to put it in perspective. Our Declaration of Independence was 3300 words. The Bible seven hundred seventy three thousand words. The federal income tax code seven million words and rising. That says it all. That puts it in perspective. Ladies and gentlemen there's only one thing to do with this monstrosity. You can't reform it. You can't trim it around the edges. The only thing to do is to scrap it. Kill it. Drive a stake through the heart bury it and hope it never rises again to terrorize the American people. We must place replace this monstrosity with a simple flat tax

that has generous exemptions for individuals and for children. This way every individual American gains with these generous exemptions. Thirteen thousand dollars for each individual $5000 for each child or dependent. This means if you're a couple your first twenty six thousand dollars of income is free. A federal income tax if you're a family of four your first $36000 of income is free from federal income tax. That family of four today for example pays a tax of almost $3000 to Uncle Sam. Under the flat tax they would pay zero. Anything above that $36000 level would be taxed at a flat simple 17 percent rate that pay no tax on pensions no tax on personal savings no tax and Social Security or capital gains or inheritances.

This is the way this is the way this flat tax that get America moving again. Every American gains from it. Just remember the game Washington Place each dollar Washington gives you in deductions they find $2 a way to take two dollars out of your pockets with a flat tax that pickpocketing goes away. No more political pickpocketing from Washington. Every individual comes out ahead. Every couple comes out ahead. Every family comes out ahead. So it's good for families it's good for America it's good for America because by allowing by enabling families to keep more of what they earn by reducing barriers to job creating investments we'll have more growth will not only create more jobs we will create better paying jobs. The fundamentals are there for an enormous advance for the greatest boom in our history and we must

start by removing the greatest obstacle standing in the way of realizing that great boom and the flat tax is the way to do it. But the flat tax is simply a start. There are other reforms that have to be done to get America moving again to realize our full potential. They include term limits for Congress. Term limits for congress will enable citizens to participate in national politics without feeling they have to spend a lifetime in politics. You understand the need of citizen involvement. New Hampshire is a tribute to citizen involvement in public life. We badly need that on the national level and term limits is the first and essential step to do what other reforms include lower interest rates by making the dollar sound and honest again by making it a fixed measure. Now let me just pander to you for a moment by pointing out that none of you here are old enough to remember but 30

years ago in America. The mid and late 1960s. In the mid and late 1960s. A typical American family. And this was before the dollar became a yoyo when it wasn't in the hands of Washington politicians it was a fixed measure of value. In those days a typical American family could get a 30 year fixed rate mortgage at four and a quarter four and a half percent. We can bring those low rates back again. You do those two things. Just imagine for a moment waking up tomorrow morning. Flat tax 17 percent rate above 36000 of exemptions for a family of four combined with a four and a half percent mortgage. You know we know I think the American people would know that this will improve the quality of life in America. This will enable families to get off the treadmill they're on the treadmill now. Now the treadmill is winning. This will enable families to have more quality time get more control over their lives and have more opportunity to move ahead. Do those.

Do those two things do those two things. Flat tax and lower interest rates and America will move ahead. And an astonishing fast speed even though a lot of economists say it can happen. A lot of doomsayers say it can't happen. It's hogwash. We can make it happen and by reducing these barriers the American people will make it happen. There are other reforms including medical savings accounts on Medicare which will give beneficiaries more coverage cheaper costs more control. That's the way to go. Social Security will keep our promises to current beneficiaries and those are going to retire in the next 12 years because real life promises have been made on the basis of those decisions have been made on the basis of those promises. But the fact of the matter is we all know we all know that for younger people the system is going to go broke. They know it better than we do. So why not why we still have time to start a new system for younger people where a portion of the payroll tax instead of going to

Washington would instead go to their own individual savings and retirement account give them something to look forward to enable them to build up a nest egg for retirement. This too is an essential reform to get America moving again on education. I truly believe to get America's schools the way we know they should be. We must have more parental involvement. We must have more parental control. And I believe that can be done best with choice charter schools but particularly with choice. Let me step on some toes here since I've already been guaranteed my free lunch today and I know what the exit is. We must in education. We must in education. I believe in many of our school districts. Break the lock of the National Education Association. They now have an escort to that exit. But.

Obviously too obviously too we have a lot of work ahead in reforming the unbelievably tangled finances of Washington right now. They're proposing a budget that will simply slow the rate of increase in spending by the time I'm through as president. We're not only going to slow the growth. We're going to cut actual spending. As you're starting to do in New Hampshire we're going to do it nationwide. Cut spending. There are a number of departments that can be downsized or eliminated including Education Energy Commerce. Numerous alphabet agencies including the FCC that can be trimmed down or eliminated as well. The General Accounting Office in Washington each year comes out with numerous voluminous reports about inefficiencies in government. No reason why we can't dust those off and start doing something with them as president being a businessman. We will we will downsize Washington and we'll have the political support with these other reforms to make the long term

changes in Washington to get its finances in order for the first time almost in this century. We will do that. Moreover contrary to what some people say in terms of the balanced budget I think we can achieve a balanced budget very rapidly. But I want to emphasize my balanced budget and a balanced budget amendment I proposed is going to have is going to have safeguards against raising taxes. And my balanced budget is going to have tax cuts only if the American people are moving ahead. Which can only be achieved with tax cuts. Can we get that budget in balance in a true true American way. But we're not going to have. I'll never support a balanced budget amendment that will be a tool for a tax increase. I will support it as a means of controlling spending and reducing taxes but not increasing taxes. And the reason is we all know that the American people are smarter with their money

than the government. It's that simple. Ladies and gentlemen. Honorable members. Let me just close by again emphasizing in a central point America is at a critical juncture in our history if we do these kinds of reforms starting with a flat tax that is a tax cut for all Americans. Our best days are ahead. We will astound ourselves and the world with our achievements because what we're talking about in this campaign gets to the heart of the American experiment which is simply this that seemingly ordinary people can achieve extraordinary deeds when allowed and encouraged to take responsibility for themselves their families and their communities. It gets to the heart of the American dream which is allowing each of us and all of us to discover and develop to the fullest. Our God given talents. I'm an optimist. I think we will do as a nation thinks more right than wrong. And I'm convinced that when historians look back on this period

they'll conclude once again that America will be proven wrong. The critics the skeptics and the crep hangers. And America once more will take her place as the leader and inspiration of the world. Thank you very very much. We. Have property taxes that match in New Hampshire and we've got a state income tax with it. So they they they they can be reduced. But the key is with a flat tax you keep more of what you earn. You don't pay tax and your personal savings which means you can say for education for your house for retirement not having the crushing burden today and by keeping more of what you earn America moves ahead which means more opportunities to get better paying jobs with the pattern before we're going to do

it again. So you're not alone. What do you think of that. I think it advanced the theoretical framework of the need to jump the tax code and replace it with a simple flat tax. My proposal puts flesh on that to get America moving again. Give people more jobs and better paying jobs by enabling families to keep more of what they earn. Two incomes in a family don't do what one income could in previous generations. Primarily because one of the chief villains is the high tax rates. This will start tackling that and high interest rates will start tackling that. My other proposals will do it as well. So we've got to get the families off the treadmill. Thank you all very much. Good afternoon ladies and gentlemen. Thank you for coming by this afternoon today. I'm very pleased to announce the newest supporter for the Forbes campaign of hope growth and opportunity. The man I'm about to introduce to you is one who

truly needs no introduction in New Hampshire nor nationwide. He is one of those great conservative leaders one of the architects of the Reagan revolution a man who self practiced term limits a man who understands the need to get America moving again reducing the tax burden. He understands the enormous potential for America for an economic boom and a spiritual renewal. He served in the Senate from 1979 to 1991. During his years in the Senate I got to know him working for Radio Free Europe and Radio Liberty. He is a man of total integrity a man who understands conservative principles of growth and opportunity. He's a man who is a great American. It's an overused phrase but he is the genuine article. He has agreed to endorse our campaign. He's also agreed to serve as co-chair national co-chairman of our campaign. Now before I turn over the podium to our newest supporter I would like to introduce two other people who are supporters but

I want to introduce them in case you don't know them. One is another great New Hampshire person and a great American. And that is Patty Humphrey Tea Party party party party was one of the first supporters of my campaign. Even before I announced also I think most of you know one of the great people of New Hampshire senator at Dupont and right here also Wally Stickney who is also on our delegation. And also a surprise visit from a congressman from Ohio. I know this man because I helped work with him last year. He is a businessman who went into politics and he has the kind of individual that we need more of in American politics. Congressman Frank cremains Thank

you. Now let me turn the podium over to a wonderful man. He's a good friend and I can't tell you how delighted I am that he is on board for this campaign to get America moving again. Senator Gordon Humphrey thank you. Hello everyone. Good afternoon. I'm pleased today to announce my support and my endorsement for Steve Forbes for president of the United States and I'd like to tell you why very briefly I've watched Steve very closely for several months. I was immediately attracted to his ideas. I knew him so I was have been a longtime fan of him but I wanted to watch him and see how he withstood the fire of public campaigning and he's withstood it magnificently. He hasn't backed up an inch. He's been firm and clear in his positions. And yet all the same time

very pleasant and polite and upbeat and that's what attracts me the total candidate strong conservative roots principle a vision for our country an optimistic vision for our country and an upbeat personality with whom everyone can be confident and comfortable. He's very much like Ronald Reagan I think among all the candidates out there and there are many fine candidates. I know most of them personally. And that makes it all the more difficult to choose. But I've chosen and with great confidence of all of the candidates out there he most reminds me of Ronald Reagan conservative roots of positive upbeat vision for our country and a pleasant reassuring personality. He's a strong candidate. He's already moved into into the number two slot here and in other states and I believe that he can win and that he will make a fine outstanding president to lead us into the next century. What are the things that most attracted me to Steve in regard to his ideas is the flat tax. We hope and fervently hope that it's an idea whose time has

come it's been talked about for a long time. It's not a new idea but we hope it's an idea whose time has come. Or so it seems. It seems to have come. The economy of the United States might be likened to an Olympic athlete with a 100 pound weight shackled to his leg. You needn't tell that these days to the employees of AT&T or as of yesterday Apple Computer who are suffering layoffs numbering in the tens of thousands. Job insecurity is becoming a major issue in this country. We need to replace these jobs in order to do that. We need to form capital. We need to create new jobs. There is only one way to do that and that is to basically reform our tax code. We need to get rid of this Frankenstein monster to throw it out to junk it and to start from scratch. And there is no better proposal in my view than a flat tax. And so for these reasons and for many many others I'm pleased and proud indeed to endorse Steve Forbes today and urge my fellow Republicans to rally around his banner.

Thank you. Thank you very much. Gordon thank you very very much. Now we have a few minutes for questions please please feel free to raise your hand. Yes ma'am. In terms of a balanced budget I support a balanced budget amendment that includes a tax cut. What I don't want to do is give Washington an excuse to raise taxes in the name of balancing the budget therefore it must have a provision against raising taxes. And I would prefer to have it combined with a tax cut otherwise seeing the behavior of Washington insiders over the years that the first opportunity they'll use it as an instrument to pick the pockets of the American people the pockets have been picked enough of the American people in these political pick pockets. We need a balanced budget with that tax protection provision. Where.

The marginal rates 35 years ago were high as more and more Americans were kicked into higher tax brackets. Therefore John Kennedy proposed major reduction in those rates. He helped bring them down. They also enacted investment incentives as well. So America was on the move. By no means were those tax cuts the final word. Much more had to be done. Instead we went backwards in the 1970s thanks to inflation. Americans were kicked into extremely high tax brackets even though the real cost real incomes were stagnant or were declining. That was the reason for the stagnation of the 70s in the 1980s. Ronald Reagan like John Kennedy realized we had to get America moving again. So he enacted tax cuts. We created a record number of jobs including a record number of high paid jobs several times more than Western Europe and Japan put together. But instead of building upon that foundation we went backwards in the 1990s. We've raised taxes instead of reducing them. Now we must

reduce them again. The rates that we have today and the brackets that most Americans find themselves in are a critical reason why two incomes in a family can't do the job that one income could in previous generations. Moreover John Kennedy recognized and said that the American dollar must be as good as gold. He kept the dollar sound. Unfortunately his successors did not follow his example and we have the high interest rates that we have today by making the dollar a fixed measure again will not only get low interest rates which will enable Americans to get those four and a half percent mortgages again but also with a flat tax combining with the tax cut. We will get the kind of growth that this country is very very capable of. Are you back aren't any greater Reagan large one person between you.

I think it is the politics of the past versus a vibrant vision of the future. America is at a critical juncture. We must overcome certain obstacles to realize were false promises of people and as a nation. And that is what my campaign is all about offering that vision showing how we can get these barriers out of the way to move ahead. So its a contrast of visions. I think Americans can move. It's going to take an outsider to make those changes against the culture of Washington. It depends on the time of day. But I would say I'm just offering what I have to the American voters and to the voters in New Hampshire a program of hope growth and opportunity a program of getting America moving. Discussing specific issues and I think that's why we're gaining the support we are gaining. When you say that you will be liable will you not.

Well the voters make their decision and I think that the support we've been attracting in recent weeks demonstrates. Voters are very responsive to a forward looking message of getting America moving again and they're the ones who make the decision. Those comments by the others are what you might call typical comments of politicos who are way behind who realize that Inside Politics is not going to work. Certainly not in 1996 John Force. So. Well again again his comment is typical of an insider politician who realizes his old time message is not resonating with the voters. I have a

positive message a forward looking message. As for leadership I've been in the private sector run a real company dealing with real customers dealing with the real world which cannot be said of those who've spent their lifetime making speeches inside the Beltway. My idea. So. So I think that in terms of my flat tax proposal I'm absolutely delighted that certain Republicans are now beginning to see the light on the flat tax. I think it was Ronald Reagan who said that if you apply enough heed the politicians will see the light. I'm glad that Phil Gramm and other politicians are beginning to see the light. I just hope that it is more than election year conversion and that it is more than Poll deep. But mine is real. And that's why we're gaining strength. Yes. I think the Kemp commission absolutely helps me in the sense that it sets the theoretical

framework for junking the tax code putting in a low flat rate. And the thing to remember about my flat tax is simply this. My opponents are going to talk about all of the loopholes all of the deductions that we're going to get rid of to try to scare and frighten people. But at the end of the day the thing to remember is simply this. I'm getting rid of it. Getting rid of the tax code making it simple so that individual Americans and families get to keep more of what they earn with those generous exemptions. Thirteen thousand dollars for each adult $5000 for each child will get most Americans many millions of Americans off the tax rolls and will provide a tax break for other millions of Americans. A family of four for example under my flat tax would pay no federal income tax on their first $36000 of income and only a flat 17 percent rate above that. That family today pays $3000 a year to Uncle Sam. Under my flat tax they will

pay zero. The way to get America moving again is the way we've done it before. And enabling Americans to keep more of what they earn and enabling job creating investments to be made so we not only create more jobs but better paying jobs. So the past is clear and the future is very clear make these and other changes pro-growth pro-individual changes and America's best days are ahead. Yes you are right. All right. Now the point I want to make on crime is with the discussion of three strikes and you're out. And I support the proposal if you've committed three violent crimes you should be in life without parole. But unfortunately under the current criminal system too often a violent criminal in effect gets to violent crimes on the House if

a violent criminal is sentenced for 10 years for a crime. Too often today that criminal only serve two or three years in jail before being out on the streets again. I want truth in sentencing. If you're committed if you're commit a violent crime and you're sentenced to 10 years you should serve that 10 years or certainly 85 to 90 percent of it that way it's less likely you'll make that second or third violent crime if you serve the full time the first time. So for full time the first time I think that is effective crime measure and that's what I've been advocating. Yes you are well there's several basic principles in terms of environmentalism to continue to get cleaner air and better water and the things we want for a good quality of life. First we must respect science and not get into emotionalism as we sometimes have done in the

past on things like our on the apples which destroyed the livelihood of many innocent people and was based on bogus science. Second there is nothing wrong with cost benefit analysis. Even America does not have infinite resources. So let's be sure we get something for those resources dedicated to cleaning up the environment that we get some some good clean air in return. Third you might call it do it right and make it effective i.e. Superfund on Superfund. Too much of the money goes in courts and lawyers. If we have a health hazard clean the darn thing up and finally allow a little bit of innovation and imagination if we have a goal there's no need for Washington or even the state to give you ten thousand pages of instructions on how to achieve it have a goal allow people to exercise some imagination innovation to achieve it. We'll get more from less and we'll achieve more here. Well first of all the American people at the end of the day are less concerned with the

size of your balance sheet than they are. Does this person have what it takes to be president. Does this person understand what the frustrations are in America. Does this person understand what the problems are what the obstacles are and does this person understand what the enormous opportunities are for America at this juncture in our history. They also want to have a feeling. Does this person have the internal strength the compass a sense of direction to see that change is through the necessary changes through against the culture of Washington. That's what they're going to judge me on. That's what they're going to judge the other candidates on my own resume is explicit. I've been in the private sector. I've actually run a real company work with real people visited with real Americans starting struggling to start real businesses around America the last 25 years. I know what holds people back in America. I know what enables them to get ahead. I've seen the same thing in over 50 countries around the world in the last 25 years. Moreover I've had some

experience in Washington. I headed up Radio Free Europe and Radio Liberty for seven and a half years. I work with authorizing and appropriating committees. I've seen how staffs can work on Capitol Hill. I've also seen the numerous bureaucratic infighting that goes on. I was involved a lot of it almost on a daily basis. I won't bore you with details of it. So I've seen how that town works probably in a way that many of those sitting on their lofty purchases on Capitol Hill probably haven't seen. But even though I've had experience with Washington I've not been part of that culture and it's going to take an outsider who has an appreciation for the enormous opportunities for America. Who knows how Washington works and doesn't work to get the necessary changes through for America to move ahead. Yes. I would propose to let him explain in detail. But I can assure you and I would call everyone's attention to this pin that I've been wearing for 15 years or more.

I would not be supporting him if I believed him to be someone who espouses the so-called pro choice point of view. I think indeed I'm convinced that like Abraham Lincoln abhor slavery and wish to find a way to do something about it as opposed simply to to be Monett that Steve Ford Steve Forbes abhors abortion and seeks to do something concrete about it. And I would prefer to leave a fuller answer to him. On abortions. I want abortions to vanish in America. I want to create an environment where abortions can go in America. Disappear in America. To do that in a democracy you need a change of heart. Change of attitude change of opinion change of conscience from where we are today to move the issue forward to move the issue forward. I'd oppose abortions for late pregnancies barring the emergency. I'd oppose abortions for purposes of sex

selection. I'd oppose mandatory government funding and being the father of five daughters I would support parental notification. In the case of minors to move forward from that we'll take persuasion will take persuading other people. There's no other way in a democracy. Can it happen. I believe it can. I want to create an environment where that can happen. Just remember as Gordon indicated to change the law you have to change the culture to change the culture. You change the law. Little by little. There is no other way in a democracy. The delegates who will be elected fairly soon will make the final determination on the plank in the platform. But I think the goal of having abortions disappear in America is one that we all share. I mean I think the plank is a goal.

I'm with what I'm doing. I'm showing how we can move the issue forward. Ladies and gentlemen let me say again how happy we are to have you here this afternoon. I'm very very happy that Gordon Humphrey is now part of my campaign. He is the kind of American I want as part of this campaign. We've got a good team going and working together. We are going to get a mandate to change America and move America forward as we all know our country can do. Thank you all very much. We're all with