August 1, 1985
Today's budget resolution compromise follows a long and difficult effort by the Senate and House conferees, but it marks only a beginning, not an end. I would have preferred more substantial reductions, such as were in the original Senate version in May, so I will continue to work to reduce spending even further and put budget deficits on a downward path.
In this connection, I plan to examine each and every upcoming appropriations bill line by line; and if it is excessive, out of line, or in any way jeopardizes our national security, I will not hesitate to use my veto pen. I am pleased that the deficit reductions agreed to by the conferees are achieved through spending reductions and not tax increases and are consistent with the budget philosophy we proposed in February. Large budget deficits were not created by the American people paying too little in taxes, but by the Federal Government spending too much of the people's money.
Over the long term, the budget can be brought into balance by a steadily expanding economy and a firm grip on the Federal purse. Therefore, we intend to redouble our efforts in the weeks ahead to secure passage of tax reform, the line-item veto, and a constitutional amendment mandating a balanced Federal budget.
With these changes and the prospect of additional budget reductions in the future, there is every reason to expect continued strong economic growth. This should have a positive effect in encouraging lower rates of interest, creating new jobs, and keeping inflation down, which is very good news for every American.