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CNN Live At Daybreak
Should Taxpayers Pay for Former President Clinton's Harlem Office Space?
Aired July 30, 2001 - 07:43 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
COLLEEN MCEDWARDS, CNN ANCHOR: Former President Bill Clinton moves into his new Harlem office today -- one Harlem resident so happy about Bill Clinton moving in that she actually baked him a cake. The former president opens his office today. The famous New York neighborhood now his place for doing business.
Clinton chose Harlem after his first selection in Manhattan was criticized as too expensive. Taxpayers do foot the bill for the offices of former presidents. The Harlem selection has pleased most local business leaders who see it as proof of a Harlem revival.
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DONNA CLAYTON, WIMP'S BAKERY: We really are hoping that he will reach out. I mean one of the things we're doing with this cake is reaching out to him and we hope he'll reach out to us.
(END VIDEO CLIP)
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PAUL RODRIGUEZ, OWNER, SOUL SALSA: It'll help somewhat bring some attention to it. There'll be some more German tourists here but that's about it.
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MCEDWARDS: Former President Clinton will receive a big welcome when he arrives to open the office officially today. Community leaders have planned a three hour block party in his honor and that gets underway in just a couple of hours.
Parties aside, though, the cost of the president's office space has been controversial and should you be paying for it through your taxes?
Well, to talk about that, we are joined by Representative Charles Rangel, Democrat from New York. He's right upfront of the new office. And we're also joined by John Berthoud. He is with a watchdog group, the National Taxpayers Union, and he joins us from Washington.
Representative Rangel, if I may start with you, do you feel that taxpayers should be footing the bill for this? REP. CHARLES RANGEL (D), NEW YORK: Of course. All presidents are able to select where they're going to have their offices. The fact that he's not in office doesn't mean that he's not going to be involved in national-international affairs. And it's not every day that a former president picks your community as his headquarters. Incidentally, this is the Harlem State Office Building. The president will be just down the block.
MCEDWARDS: Mr. Berthoud, I imagine you beg to differ. Why don't you explain your position?
JOHN BERTHOUD, NATIONAL TAXPAYERS UNION: Well, we certainly do. This is nothing more than corporate welfare for Bill Clinton, Inc. This is a man who's going to make $125,000 a speech. He's already made 40 of those speeches this year. He's going to have his earning potential of millions and millions of dollars because he's a former president. There's no reason in the world we should be paying -- taxpayers should be paying hundreds of thousands of dollars a year to subsidize his office space. It's ridiculous.
MCEDWARDS: Well, what about the fact that he did serve the country? He is a former president.
BERTHOUD: Well, the top benefit he gets is that little title "former president," and because of that, he has an earning potential of millions of dollars a year. His book advance is going to be $8 million a year. And I'm sure there's lots of taxpayers in Harlem who would rather see their taxpayers -- dollars go back to them then subsidize a guy who's going to make millions and millions of dollars a year.
MCEDWARDS: Representative Rangel.
RANGEL: It takes a little arrogance to talk about what we in Harlem would want. We've very excited about the president being here. As a matter of fact, he's in an empowerment zone, which is federal aid for an economic depressed area. He signed my bill, and he's in the flagship of all the empowerment zones. And so we're going through an economic revitalization right here on 125th Street. So everyone's entitled to their comments, but every former president is entitled to have an office. And certainly we believe that President Clinton is entitled to his office and welcome here in Harlem, USA.
MCEDWARDS: And Representative Rangel, I mean can you point to things right now that tell you that this move has helped the community directly or would that money be better spent -- $300,000 a month, let's say, that could go directly to programs in the community?
RANGEL: You must be running out of news to be talking about what we could do with the paltry sum that's involved in the president's rent at the State Office Building. His presence here revitalizes the concept that this is an international community of national concern. Everyone's heard about Harlem and now they know that President Clinton is here.
MCEDWARDS: Well, John... RANGEL: We already...
MCEDWARDS: John Berthoud, what about...
RANGEL: ... have -- we already have gone through an economic recovery but having Clinton makes it a heck of a lot easier to move forward.
MCEDWARDS: What about that, John Berthoud, that $300,000 a month? When you look in the scheme of things, it's just a drop in the bucket.
BERTHOUD: Well look, a dollar here, a dollar there. Look, it's a fine day for Harlem. It would be a lot better day if taxpayers wouldn't -- weren't footing the bill for this.
MCEDWARDS: You know at one time...
RANGEL: I wonder if that gentlemen lives in Harlem, because I would not say...
(CROSSTALK)
BERTHOUD: I went to Columbia, so I used to live up on 116th, so I know Harlem.
RANGEL: Well, we're pretty excited about it. And I wish you'd, you know,...
BERTHOUD: You should be more excited if we all weren't paying for it.
RANGEL: ... not rain on our parade. Well listen,...
BERTHOUD: We shouldn't be paying for this. It's ridiculous.
RANGEL: ... this is what America is all about. Leave it to you, you wouldn't be paying the president when he was in office.
BERTHOUD: We wouldn't pay for his pension, we wouldn't pay for your big pension you're going to get either when you retire from Congress.
RANGEL: Well listen, you're probably bitter. I don't even know whether you avoided paying taxes at all.
MCEDWARDS: Gentlemen,...
BERTHOUD: I pay plenty of taxes.
MCEDWARDS: Gentlemen, I wanted to say...
RANGEL: Wow, how much did you pay? Let's talk about you...
BERTHOUD: Too much.
(CROSSTALK)
MCEDWARDS: Let me -- let...
BERTHOUD: Too much, Mr. Rangel.
(CROSSTALK)
RANGEL: Why don't you enjoy the day? The president's coming. Have some fun...
MCEDWARDS: Gentlemen,...
RANGEL: ... get a cup of coffee and enjoy yourself.
MCEDWARDS: ... let me -- let me interject here. John Berthoud, at one time there were limits on this kind of thing. Let's just say we can decide or some people do believe that it's worth paying but only for a certain period of time. Back in the early '90s, there was a five-year limit on this. Is it time to start talking about bringing those back, John?
BERTHOUD: I think that would be good. You know we've been -- and this is not a partisan thing, by the way. NTU has been fighting this both. We criticized it when President Reagan got his pension and his office space. He's paying -- taxpayers are paying $285,000 a year for his office. We pay a lot of money for President Carter, President Ford, it's a bipartisan thing. Their pensions, their office expenses are just excessive...
MCEDWARDS: OK, Representative Rangel,...
BERTHOUD: ... and, yes, there should -- there should be a limit on (INAUDIBLE) pays out.
MCEDWARDS: Quick last words to you, Representative Rangel.
RANGEL: John, get a life.
MCEDWARDS: Gentlemen, we're going to have to leave it there. I thank you both very much for your participation this morning. Appreciate it.
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