[Congressional Record (Bound Edition), Volume 152 (2006), Part 1]
[Senate]
[Pages 976-977]
[From the U.S. Government Publishing Office, www.gpo.gov]




   BUDGET OF THE UNITED STATES GOVERNMENT FOR FISCAL YEAR 2007--PM 36

  The PRESIDING OFFICER laid before the Senate the following message 
from the President of the United States, together with an accompanying 
report; which was referred jointly, pursuant to the order of January 
30, 1975 as modified by the order of April 11, 1986; to the Committees 
on the Budget; and Appropriations.
  America's economy is growing at a healthy pace, and more Americans 
are working than ever. In the face of a series of challenges, including 
most recently devastating natural disasters, Americans have stood firm, 
and America's economy has demonstrated its strength and resilience time 
and again.
  My Administration has focused the Nation's resources on our highest 
priority: protecting our citizens and our homeland. Working with 
Congress, we have given our men and women on the frontlines in the War 
on Terror the funding they need to defeat the enemy and detect, 
disrupt, and dismantle terrorist plots and operations. We continue to 
help emerging democracies in Afghanistan and Iraq stand on their own. 
As the Afghan and Iraqi peoples assume greater responsibility for their 
own security and for defeating the terrorists, our troops will come 
home with the honor they have earned.
  My Administration has responded to major economic challenges by 
following this vital principle: The American economy grows when people 
are allowed to keep more of what they earn, to save and spend as they 
see fit. The results are clear.
  Since May 2003, when I signed into law major tax relief, America has 
added more than four and a half million new jobs. Productivity is high, 
disposable income is up, household wealth is at record levels, consumer 
confidence has climbed, small businesses are expanding, and more 
Americans own their homes than at any time in our Nation's history.
  Our economy is the envy of the industrialized world. To build and 
maintain our competitive edge, my Administration has a broad agenda to 
promote America's long-term economic strength. We are opening new 
markets to American-made goods and services through trade agreements. 
We are proposing reforms to prevent needless litigation and burdensome 
regulations. Through major reforms of our public schools, we are 
preparing our children to compete and succeed in the global economy. 
And my Budget includes an American Competitiveness Initiative that 
targets funding to advance technology, better prepare American children 
in math and science, develop and train a high-tech workforce, and 
further strengthen the environment for private-sector innovation and 
entrepreneurship.
  In our efforts to keep our economy strong and competitive, we will 
resist calls to raise taxes on America's workers, families, and 
businesses. Unless we act to make tax relief permanent, income tax 
rates eventually will rise, the marriage penalty will climb, the child 
tax credit will be cut, savers and investors will be hit with higher 
taxes, and the death tax will come back to life.
  With a growing economy, tax receipts are on the rise, helping to 
bring down the deficit in 2005. To stay on track to meet my goal of 
cutting the deficit in half by 2009, we must maintain our pro-growth 
policies and insist on spending restraint.
  Last year, I proposed to hold overall discretionary spending growth 
below the rate of inflation--and Congress delivered on that goal. Last 
year, I proposed that we focus our resources on defense and homeland 
security and cut elsewhere--and Congress delivered on that goal. And 
also last year, my Budget proposed major cuts in or eliminations of 154 
programs that were not getting results and not fulfilling essential 
priorities. Thanks to the work of Congress, we delivered savings to the 
taxpayer of $6.5 billion on 89 of my Administration's recommendations.
  The 2007 Budget builds on these efforts. Again, I am proposing to 
hold overall discretionary spending below the rate of inflation and to 
cut spending in non-security discretionary programs below 2006 levels. 
My Administration has identified 141 programs that should be terminated 
or significantly reduced in size. To help bring greater accountability 
and transparency to the budget process, my Budget proposes reforms so 
that firm spending limits are put in place, and public funds are used 
for the best purposes with the broadest benefits.
  The 2007 Budget also continues our efforts to improve performance and 
make sure the taxpayers get the most for their money. My Administration 
expects to be held accountable for significantly improving the way the 
Government works. In every program, and in every agency, we are 
measuring success not by good intentions or by dollars spent, but 
rather by results achieved.
  In the long term, the biggest challenge to our Nation's fiscal health 
comes from unsustainable growth in entitlement spending. Entitlement 
programs such as Social Security and Medicare are growing faster than 
our ability to pay for them, faster than the economy, faster than the 
rate of inflation, and faster than the population. As more baby boomers 
retire and collect their benefits, our deficits are projected to grow. 
There will be fewer people paying into the system, and more retirees 
collecting benefits. These unfunded liabilities will put an increasing 
burden on our children and our grandchildren. We do not need to cut 
these

[[Page 977]]

programs, but we do need to slow their growth. We can solve this 
problem and still meet our Nation's commitment to the elderly, 
disabled, and poor.
  Acting on my recommendations, both houses of Congress have taken an 
important first step, passing legislation that would produce $40 
billion in savings from mandatory programs and entitlement reforms---
the first such savings in nearly a decade. My Budget builds on this 
progress by proposing $65 billion more in savings in entitlement 
programs.
  My Budget also includes proposals to address the longer-term 
challenge arising from unsustainable growth in Medicare, while ensuring 
modern health care for our seniors. In addition, I will continue to 
call on Congress to enact comprehensive reform of Social Security for 
future generations, so that we return the system to firm financial 
footing, protect the benefits of today's retirees and near-retirees, 
provide the opportunity for today's young workers to build a secure 
nest egg they can call their own, and assure our children and 
grandchildren a retirement benefit that is as good as is available 
today.
  As this Budget shows, we have set clear priorities that meet the most 
pressing needs of the American people while addressing the long-term 
challenges that lie ahead. The 2007 Budget will ensure that future 
generations of Americans have the opportunity to live in a Nation that 
is more prosperous and more secure. With this Budget, we are protecting 
our highest ideals and building a brighter future for all.
                                                      George W. Bush.  
The White House, February 6, 2006.

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