We must begin with control of Federal spending.  That’s why I’m submitting a budget that holds the growth in spending to less than the rate of inflation.  And that’s why, amid all the sound and fury of last year’s budget debate, we put into law new, enforceable spending caps so that future spending debates will mean a battle of ideas, not a bidding war.

Though controversial, the budget agreement finally put the Federal Government on a pay-as-you-go basis, and cut the growth of debt by nearly $500 billion.  And that frees funds for saving and job-creating investment.

Now, let’s do more.  My budget again includes tax-free family savings accounts; penalty-free withdrawals from I. R. A.’s for first-time homebuyers; and, to increase jobs and growth, a reduced tax for long-term capital gains.

I know their are differences among us about the impact and the effects of a capital gains incentive.  So tonight I am asking the Congressional leaders and the Federal Reserve to cooperate with us in a study, led by Chairman Alan Greenspan, to sort out our technical differences so that we can avoid a return to unproductive partisan bickering.

But just as our efforts will bring economic growth now and in the future, they must also be matched by long-term investments for the next American century.

That requires a forward-looking plan of action, and that’s exactly what we will be sending to the Congress.  We have prepared a detailed series of proposals, that include:  A budget that promotes investment in America’s future—­in children, education, infrastructure, space and high technology.  Legislation to achieve excellence in education, building on the partnership forged with the 50 governors at the education summit, enabling parents to choose their children’s schools and helping to make America No. 1 in math and science.  A blueprint for a new national highway system, a critical investment in our transportation infrastructure.  A research and development agenda that includes record levels of Federal investment and a permanent tax credit to strengthen private R and D and create jobs.  A comprehensive national energy strategy that calls for energy conservation and efficiency, increased development and greater use of alternative fuels.  A banking reform plan to bring America’s financial system into the 21st Century, so that our banks remain safe and secure and can continue to make job-creating loans for our factories, businesses, and homebuyers.  I do think there has been too much pessimism.  Sound banks should be making more sound loans, now.  And interest rates should be lower, now.  In addition to these proposals, we must recognize that our economic strength depends upon being competitive in world markets.  We must continue to expand America’s exports.  A successful Uruguay Round of world trade negotiations will create more real jobs, and more real growth, for all nations.  You and I know that if the playing field is level, America’s workers and farmers can outwork and outproduce anyone, anytime, anywhere.