This is part three of the presidential candidates' answers to a series of questions put to them by the National Association of Home Builders. Parts one and two ran Monday and Tuesday. Tomorrow and Friday, the candidates' responses to questions asked of them by the National Association of Realtors.

Question: In some highly regulated markets, it can take three years or longer for a builder to obtain all the approvals and entitlements required before he or she can move ahead with construction on a new housing development. Such delays add tens of thousands of dollars to the cost of homes. What would your Administration do to encourage local and state governments to eliminate excessive fees and regulations?

PRESIDENT BUSH: Decreasing the regulatory burden on our nation's businesses, including construction and building associations, is a critical part of my plan to stimulate the economy, create jobs and promote prosperity for all Americans. Excessive paperwork and bureaucratic regulations can hinder a company's ability to do business by diverting funds that could otherwise be used to invest in new equipment, expand operations, hire new workers or increase wages. I am committed to pursuing a 'smart' regulation agenda, which involves modernizing existing rules and adopting rules only when justified by sound science, economics and law. By providing a national policy for reducing excessive regulations and fees, we are setting a good example for states and localities. I will continue to pursue the policies at the federal level that will further serve to encourage state and local government to follow suit and reduce unnecessary regulations and fees.

We are seeing results in the way of reduced regulatory costs and increased savings for business owners. The average annual economic cost of new regulations under my Administration is $1.6 billion. Under the Clinton Administration, the annual cost of new regulations was about four times higher, averaging $6.1 billion each year.

SENATOR KERRY: I am interested in hearing from all interested parties about whether states and municipalities are inappropriately using their regulatory structure to delay housing development and increase tax revenues. Obviously, this is primarily a state and local issue, but I believe we should reduce unnecessary red tape. Our state and local governments are currently facing billions in budget deficits, forcing layoffs, education cuts and tax increases. At the same time, they are facing dramatic increases in costs required to secure our homeland. John Edwards and I will create a new State Tax Relief and Education Fund that will provide $25 billion to help states balance their budgets, meet their homeland security needs and help limit excessive fees on builders.

Question: Is there anything else that you want to say to the 215,000 members of the National Association of Home Builders, who collectively employ 8 million workers?

KERRY: John Edwards and I will implement sound economic policies that create a favorable climate for the housing market. We will cut the deficit in half in our first term by rolling back the Bush tax cuts for families making over $200,000 and restraining the growth of spending. In contrast, the Administration's economic plan would continue to explode the deficit, keeping interest rates higher, raising mortgage payments and reducing home ownership.

In addition, John Edwards and I will jumpstart job growth with a New Jobs Tax Credit, enforce our trade agreements, bring down the spiraling cost of healthcare and education and invest in the industries of the future. This economic program will increase jobs, incomes and economic growth, contributing to strong demand in the housing market.

BUSH: Over the last three years, my Administration has created an environment that encourages economic expansion and job growth. With almost 1.5 million new jobs created since last August, gross domestic product on the rise, and inflation, interest rates and mortgage rates at near historic lows, there is significant evidence that my economic policies have been a success. American families are now able to use their savings to meet their own priorities -- like putting a downpayment on a new home or building an addition on an existing home.

Now, we must build on this progress and extend prosperity to every community in America. My six-point plan to strengthen the economy focuses on: reforming the legal system to prevent frivolous lawsuits that increase the cost of doing business; promoting domestic energy development and energy security; streamlining government regulations, especially for small businesses; pursuing free and fair trade agreements that open new markets for American workers; making tax relief for families and small businesses permanent; and expanding access to affordable health care. Taken together, these policies will lower the costs of doing business, which will lead to rising salaries for workers, thereby allowing Americans to keep more of their hard-earned money.

Published: September 15, 2004

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