[Congressional Record Volume 153, Number 26 (Monday, February 12, 2007)]
[Senate]
[Pages S1846-S1847]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                    ECONOMIC REPORT OF THE PRESIDENT

To the Congress of the United States:
  Economic growth in the United States has been above the historic 
average and faster than any other major industrialized economy in the 
world. January was the 41st month of uninterrupted job growth produced 
by this economy, in an expansion that has thus far added more than 7.4, 
million new jobs. Unemployment is low, inflation is moderate, and real 
wages are rising. Our economy is on the move and we can keep it that 
way continuing to pursue sound economic policy based on free-market 
principles.
  Sound economic policy begins with low taxes. We should work together 
to spend the taxpayers' money wisely and to tackle unfunded liabilities 
inherent in entitlement programs such as Social Security, Medicare, and 
Medicaid. I have laid out a detailed plan in my budget to restrain 
spending, cut earmarks in half by the end of this session, and balance 
the budget by 2012 without raising taxes. The tax relief of

[[Page S1847]]

the past few years has been a ingredient in growing our economy, and it 
should be made permanent.
  Our growing economy is dynamic. The rise of new technologies, new 
competition, and new markets abroad is changing how we do business. We 
need to take action in four key areas to keep America's economy 
flexible and dynamic.
  First, we must break down barriers to trade so our workers can sell 
more goods and services to the 95 percent of the world's customers who 
live outside of our borders. Global trade talks like the Doha Round at 
the World Trade Organization have the potential to level the playing 
field so we can compete on fair terms in foreign markets, while helping 
lift millions of people out of poverty around the world.
  The only way we can complete the Doha Round and make headway on other 
trade agreements is to extend Trade Promotion Authority, which is set 
to expire on July 1st. This authority is essential to completing good 
trade agreements. The Congress must renew it if we are to improve our 
competitiveness in the global economy.
  Second, we must work to make private health insurance more affordable 
and to give patients more choices and control over their health care. 
One of the most promising ways to do this is by reforming the tax code. 
We must end the unfair bias against individuals who buy insurance on 
their own. I propose creating a standard deduction for every American 
who buys health insurance, whether they get it through their jobs or on 
their own. In a changing economy, we need a health care system that is 
flexible and consumer-oriented. With this reform, more than 100 million 
Americans who are now covered by employer-provided insurance will 
benefit from lower tax bills. Those who now purchase health inurance on 
their own would save money on their taxes. Millions of others who now 
have no health insurance at all would find basic private coverage 
within their reach. My proposal also taps the innovation of States in 
making basic, affordable insurance available to all by creating 
Affordable Choices grants to help ensure the poor and the sick have 
access to private health insurance.
  Third, we must continue to diversify our energy supply to benefit our 
economy, national security, and environment. In my State of the Union 
Message, I set an ambitious goal of reducing gasoline usage in the 
United States by 20 percent over the next 10 years. Meeting this goal 
will require significant changes in supply and demand, but we should 
let the market decide the best mix of technologies and fuels to most 
efficiently attain it. On the supply side, I propose a higher and 
reformed fuel standard that would include renewable and other 
alternative fuels. We should also allow environmentally friendly 
exploration of oil and natural gas. On the demand side, I propose 
enhancing Corporate Average Fuel Economy standards for cars and 
extending the current rule for light trucks, so that we can reduce the 
amount of gasoline that our passenger vehicles consume, and do so in a 
more efficient way.
  Fourth, a strong and vibrant education system is vital to maintaining 
our Nation's competitive edge in the world and extending economic 
opportunity to every citizen here at home. Five years ago, we rose 
above partisan differences to enact the No Child Left Behind Act, 
preserving local control, raising standards, holding schools 
accountable for results, and providing more choice. This year, we must 
reauthorize and strengthen this good law preserving its core 
principles.
  Strong productivity growth underlies much of the good economic news 
from the past few years and the policies discussed above. Productivity 
growth helps to increase our standards of living and improve our 
international competitiveness. To maintain this progress, we must 
pursue a variety pro-growth policies, including those contained in the 
American Competitiveness Initiative and comprehensive immigration 
reform.
  These and other issues are discussed in the 2007 Annual Report of the 
Council of Economic Advisers. The Council has prepared this Report to 
put into broader context the economic issues that underlie my 
Administration's policy decisions. I commend it to you.
                                                      George W. Bush.  
The White House, February 2007.

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