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Q Is that a threat? (Laughter.) Q Did the President say to Senator Dole, all right, how about this number as an overall size, or did Dole say to the President, I can go as high as this? Did they talk numbers? MR. STEPHANOPOULOS: I don't think it was a negotiation in that respect. It was more of a discussion about their positions. Q Did they discuss actual numbers? MR. STEPHANOPOULOS: I'm just not sure. I know they talked about the basic outlines of the packages. I think they talked about the programs they cared about. I don't know if they got to the level of this many x-billion dollars. Q Does Dole have to sign off before there is a package? MR. STEPHANOPOULOS: No, of course not. Q Did the White House have anything to do with the protesters who showed up in New Hampshire today where Senator Dole was speaking? Was that in any way organized by -- MR. STEPHANOPOULOS: Not to my knowledge, no. Q And has the President been in touch with Senators Kohl or Feingold? MR. STEPHANOPOULOS: I don't think he's talked to them, no. Q George, is the President considering the more palatable fact of having a national sales tax instead of having the haves having to continuously pay for the have-nots? And is he going to scrap his proposed tax on the privileged few, with the haves having to pay for the have-nots? MR. STEPHANOPOULOS: The President believes deeply that the tax rates on upper income Americans, as he presented in his budget, should go up. And I think for the second half of your question, I'll refer you to my briefing from yesterday. Q George, on the subject of accuracy in information, you suggested the other day that the stimulus package included money that would solve the water problem in Milwaukee. Apparently that is not true. It's actually waste water money. MR. STEPHANOPOULOS: It's waste water money for Wisconsin, and some could go to Milwaukee. Q But it would not affect the drinking water problem because it's waste water money, right? MR. STEPHANOPOULOS: It would affect the water treatment overall. Q But the implication from your statement the other day was that it would help fix this disease problem in Milwaukee now. Would you agree that's not the case? MR. STEPHANOPOULOS: I'm not sure of the specifics. I know that it goes to the overall water treatment in Wisconsin. Q A leftover question from this morning, which was, when did the President find out that the task force was deliberating on a VAT? MR. STEPHANOPOULOS: I'm not sure exactly when. I just don't know. I assume it came up over the last -- certainly between the time that we had commented on in the past and two days ago. Q So sometime since March 25th? MR. STEPHANOPOULOS: I think that's right. I don't know the exact date. Q George, the President this morning mentioned that some labor and business groups are for the VAT tax. Apparently, the National Association of Manufacturers talks about perhaps the VAT tax being okay if it replaces the BTU tax. So does the President feel that perhaps this might be in place of some other tax he's proposed, or is this totally in addition to the other taxes he's already proposed? MR. STEPHANOPOULOS: I think we've said all we have to say about the VAT at this point. I mean, there's just no -- this is being considered by the health care working groups, and that is all. The President hasn't made any further decisions beyond that. Q But it would be to finance health care, it wouldn't be to replace some other tax that finances -- it wouldn't replace the income tax, for instance? MR. STEPHANOPOULOS: There have been no discussions on that. Q In terms of getting a VAT tax through Congress, Senator Dole's press release today said VAT -- on tax day. Do you think -- does it have a chance of getting through Congress? Would it have a chance? MR. STEPHANOPOULOS: I have no idea. Q Is that a consideration whether you all put it forward? MR. STEPHANOPOULOS: That would become a consideration if the President were to decide to do it. It's not in consideration now. Q You said at the beginning of the briefing that circumstances had changed and that had caused the VAT to now be under consideration. MR. STEPHANOPOULOS: Yes, what the President referred to this morning. These groups came forward and said this is something that has to be considered. Q Those are the circumstances that have changed? That's the only difference between now and when he emphatically ruled it out that groups have asked it to be considered? MR. STEPHANOPOULOS: That's what he said. Q Is that true? MR. STEPHANOPOULOS: Yes. Q Was there, in fact, some understanding that sin taxes would not produce enough money for the health care benefits? MR. STEPHANOPOULOS: I'm not going to get into the deliberations. Q But, George -- MR. STEPHANOPOULOS: No. What the consideration is, as the President said, groups came forward and said this is something you ought to consider. The working groups are looking at it. Q Is that the only thing that's changed since his prior statement and your prior statement on the VAT? MR. STEPHANOPOULOS: Yes. Q Can you explain how those groups -- how that information got to him that groups wanted it? Was it just reading the newspaper or did groups make presentations? MR. STEPHANOPOULOS: I think the groups -- as you know, the health care task force has met with dozens of groups. Q But this is the President's knowledge that these groups had come forward. MR. STEPHANOPOULOS: I think he was referring to what was coming to the working groups. Obviously, there have also been published positions in the newspapers. Q Have certain groups briefed him on the group's presentations to them? MR. STEPHANOPOULOS: I don't know if they've briefed him -- I mean, how detailed the briefings have been. I know that the working groups decided to look into this after being pressed by these groups. Q What kind of arguments did the groups make that were persuasive enough that the President would change the position that he had enunciated previously? MR. STEPHANOPOULOS: I don't know, it's just they've had longstanding positions that this would be a good way to finance health care. Q The President wasn't aware of those longstanding positions? MR. STEPHANOPOULOS: He may have been at some level. Obviously, he's been a governor for a long time and he knows the basic arguments for and against a VAT tax. Q What we're trying to figure out here -- you're telling us that the only change, the only thing that affected this change in the President's attitude toward the VAT between February and now -- MR. STEPHANOPOULOS: The President's attitude hasn't necessarily changed. I mean, he has not made a decision. Q I know, but the President said that it was off the table. So did you. And you're saying that the only thing that's changed is the positions of these groups, except you're also describing them as longstanding positions. I don't see the change. If these groups haven't had any change in their position that's been made to the President -- MR. STEPHANOPOULOS: Well, they've made the presentations to the health care task force. Q There's no relationship at all between the fact that sin taxes that he had said -- suggested in February that he favored will not produce enough revenue to finance -- MR. STEPHANOPOULOS: I don't think he ever suggested that they would produce all the revenue. Q Well, he suggested that he thought that those were appropriate ways to finance health care. MR. STEPHANOPOULOS: He did say that. I don't know that he said anything to refute that. Q But, in fact, has the task force discovered that there wouldn't be enough revenue from those taxes to finance the kind of core benefits -- MR. STEPHANOPOULOS: Again, I don't think that the task force ever suggested that there would. Q George, if he advocated a VAT tax, would that break his promise not to raise taxes on the middle class to pay for his programs? MR. STEPHANOPOULOS: I can't comment on a hypothetical situation. Q But does that promise -- would that promise not to raise taxes on the middle class to pay for the programs prevent him from seeking a VAT tax? MR. STEPHANOPOULOS: The President has made no decisions on the VAT tax. When he does, we'll tell you and we'll explain the implications then. Q Which specific groups can you cite -- business, labor or otherwise -- whose recommendations to the health care task force has prompted this consideration? MR. STEPHANOPOULOS: I don't have the specific. I just don't have that. Q George, can you tell us to what extend these other alternatives, for instance, the employer tax or the sin taxes or other financing options are also still on the table and what these options are? MR. STEPHANOPOULOS: No, as members of the task force and representatives of the working groups have said, they are looking at a wide variety of options. I think that Ira Magaziner said that there are 20 different options under consideration. But I'm not going to comment -- Q What's the scope -- MR. STEPHANOPOULOS: I'm just not going to comment on them, no. Q What's the scope of the need? How much are you talking about that has to be produced by one or a combination of the -- MR. STEPHANOPOULOS: That's what the health care task force is looking at. Q Since there's not going to be any briefing on the Miyazawa visit, two questions: One, generally what does the President hope to use that meeting for, but more specifically, is his task complicated by the Japanese anger over the Vancouver note and the remark about market access at the press conference? MR. STEPHANOPOULOS: The Vancouver note? Q Does no mean yes. Q Yes and no. MR. STEPHANOPOULOS: Well, I don't know. I saw the Prime Minister's press conference where he was asked the question about that note and he gave a very gracious and complete answer when he was asked the question. The questions of trade are something that certainly will be discussed between the Prime Minister and the President. There is obviously a trade imbalance between Japan and the U.S. that we want to do something about. Q Also in those comments the Prime Minister made he suggested that the United States should come down heavy on him in terms of trade. Are you going to oblige? MR. STEPHANOPOULOS: I think the President will state our views on trade very clearly and our views on the trade deficit very clearly. I don't necessarily want to agree with your characterization of the Prime Minister's comments. Q that we need specific export targets, specific numerical targets -- is that what he's going to discuss with Miyazawa? MR. STEPHANOPOULOS: They're going to have a broad discussion of a wide range of trade issues. I don't want to get into those specifics until after the meeting. Q Why? Q That's the crux of the issue, right? Whether or not -- does the President believe that without specific numerical targets, it is really, as he said in his press conference, sort of hopeless that this is going to change very much? MR. STEPHANOPOULOS: The President believes that we must have pressure on Japan to turn the trade imbalance around. I do not want to get into the specifics of how that would be done. Q But does the President believe that their stimulus package announced yesterday will rectify the imbalance? MR. STEPHANOPOULOS: I think, first, the President wants to get a full briefing on the stimulus package from Prime Minister Miyazawa himself, and then he'll make the comment on it. Q How about the Russian aid package? There seems to be some confusion about how the U.S. views that, Secretary Christopher saying -- or Bentsen saying the Japanese may need to do more, the Japanese saying that that's not what they heard? MR. STEPHANOPOULOS: Again, we're going to continue to work with all our allies in the G-7, and we're going to continue to press for help for Russian reform, Russian democratic reform. And I think that, so far, we had a very good announcement out of Tokyo and we're going to continue to work with our allies for bilateral packages. Q Do you think the Japanese need to do more? MR. STEPHANOPOULOS: We're going to continue to work with all our allies to do as much as we can. Q Secretary Christopher was asked today on the Today Show this morning what he thought of Margaret Thatcher's comments on the Bosnia policy. And he said, "It's a rather emotional response." MR. STEPHANOPOULOS: Over an emotional issue. Q Right -- to an emotional problem. Does the White House condone that kind of remark? MR. STEPHANOPOULOS: I think that Secretary Christopher's remarks speaks for itself. The President believes also that this is a deeply troubling situation that we're trying to find answers for. Q But that specific -- "rather emotional response" -- specific term? MR. STEPHANOPOULOS: No, it speaks for itself. Q In connection with that, doesn't it seem that with the numbers of people who are being killed at this very moment, is it good American policy to put off some decisions that might be made now to help Boris Yeltsin win a referendum? MR. STEPHANOPOULOS: For example? Q To take stronger action, to take military action -- air strikes, anything that can be done? MR. STEPHANOPOULOS: The President believes that what must be done now is to push harder for sanctions. He is also -- as you know, the administration has been discussing lifting the arms embargo. He believes those are the appropriate ways to increase pressure at this time. Q What is your response to the critics who would say that the U.S. is now stymied by trying to help Boris Yeltsin retain the presidency? MR. STEPHANOPOULOS: They're wrong. We're pressing hard for the Serbs to come to the negotiating table. We're pressing hard for increased sanctions, and we're talking to our allies about the arms embargo. Q You were putting great store in Vance and Owen
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