Bill Clinton: “I think that the worst thing that could happen that could really flatten this economy is if we weaken the deficit…”

“I think that the worst thing that could happen that could really flatten this economy is if we weaken the deficit reduction package and interest rates went back up. There is a general consensus, even reinforced by Alan Greenspan, the Republican who heads the Federal Reserve Board, that the efforts we have made to bring this deficit down are mostly responsible for bringing long-term interest rates down. There are lots of folks in Louisiana who will be listening to this or who will read what you say who have refinanced their homes or refinanced their business loans or gotten lower interest car loans or consumer loans since the first of the year because interest rates are at a 20-year low. If we were to dramatically reduce the amount of deficit reduction, it would be fine if it had no other economic impact, but it will have an economic impact. It will lead to higher interest rates. And if the interest rates go back up, then people will lose more on interest rates than they would pay on this modest fuel tax. Let me say one other thing: We want to add something to what the Senate did, though. We want to put back some incentives for people to pay lower taxes if they invest in jobs and growth. And this is a very important point. A lot of these taxes can be avoided by people if they invest in jobs and growth. That is, if you increase the small business expensing provision, if you have opportunities for big companies to invest in new plant and equipment, if you have opportunities for individuals to put their savings into new businesses, and if you don't tax activities of that kind, in fact, you give a big tax break to it, then that will mean that people will say, ``Hey, I don't have to pay more taxes if I invest in things that will generate jobs for people in my State and my country.'' That is the really key thing. We've got to get the job incentives that I originally proposed back into the final bill. And if we do, most folks are going to come out well ahead and this economy is going to grow more.”