For Immediate Release
Office of the Press Secretary
May 24, 2003
President's Radio Address
Radio Address by the President to the Nation
Audio
THE PRESIDENT: Good morning. This week Congress took vital
action to create jobs in America. Following the outlines of a jobs
and growth package I announced in January, members of the House and
Senate reached agreement on a bill to strengthen our nation's economy
by reducing income tax rates, lowering the marriage penalty,
increasing the child credit from $600 to $1,000, increasing the
expensing the allowance for small business investment, and
significantly reducing taxes on dividends. These tax cuts will go into
effect immediately, and some retroactively.
About 25 million families with children will see their child
credit increase and will receive checks of up to $400 per child. And
136 million Americans who pay income taxes, including 23 million small
business owners who pay taxes at the individual rate, will see their
taxes lowered.
By leaving American families with more to spend, more to save
and more to invest, these reforms will help boost the nation's
economy and create jobs. When people have extra take-home pay,
there's greater demand for goods and services. And employers will
need more workers to meet that demand.
A higher expensing allowance will help small firms, including
farms and ranches, to buy new equipment so they can become more
productive and expand their operations. They will also have
more money to add new employees. And reducing the tax rate on
dividends will help shareholders across America, from teachers
invested in 401(k) accounts, to seniors who depend on dividends for
their financial well being.
I appreciate the leadership of Congressman Bill Thomas of
California and Senator Chuck Grassley of Iowa, who worked with
their colleagues to hammer out a final agreement. This
achievement is a victory for every family struggling to pay the bills,
every entrepreneur hoping to expand the business and create new jobs
and every American looking for work. I look forward to signing this
jobs and growth legislation in the coming week.
I will also work with Congress to bring down the budget deficit
that has resulted from war, recession and terrorist attacks. Faster
growth in the economy will bring more revenues into the federal
Treasury. Yet moving toward a balanced budget also requires that we
hold federal spending to a responsible level. Spending discipline is
crucial to my economic program. I urge the Congress to set
priorities and stick to the responsible budget plan they passed back in
April.
By that measure, discretionary federal spending will rise by
4 percent, about the same as the increase in the average American
family's income. Governments should not grow faster than
worker's paychecks. Governments should follow the example the
American families by setting priorities and staying with them.
Our citizens and our economy have endured great challenges over
the last two and a half years. Yet this nation's workers and
entrepreneurs, who remain the most productive in the world, are
rising to meet every challenge. Our economy continues to grow, and
inflation and interest rates remain low. With new relief for the
taxpayers, we have laid the foundation for even stronger growth in
the years ahead and more jobs for American workers.
Thank you for listening.
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