[Congressional Record (Bound Edition), Volume 154 (2008), Part 2]
[Senate]
[Page 1860]
[From the U.S. Government Publishing Office, www.gpo.gov]




 ECONOMIC REPORT OF THE PRESIDENT DATED FEBRUARY 2008 WITH THE ANNUAL 
       REPORT OF THE COUNCIL OF ECONOMIC ADVISERS FOR 2008--PM 37

  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 to the Joint Economic Committee:

To the Congress of the United States:
  Over the past 6 years of economic expansion, the American economy has 
proven its strength and resilience. Job creation grew uninterrupted for 
a record period of time, inflation remains moderate, unemployment is 
low, and productivity continues to grow. The economy is built upon a 
strong foundation, with deep and sophisticated capital markets, 
flexible labor markets, low taxes, and open trade and investment 
policies.
  Americans should be confident about the long-term strength of our 
economy, but our economy is undergoing a period of uncertainty, and 
there are heightened risks to our near-term economic growth. To insure 
against these risks, I called upon the Congress to enact a growth 
package that is simple, temporary, and effective in keeping our economy 
growing and our people working.
  There is more we should do to strengthen our economy. First, we must 
keep taxes low. Unless the Congress acts, most of the tax relief that 
we have delivered over the past 7 years will be taken away and 116 
million American taxpayers will see their taxes rise by an average of 
$1,800. The tax relief of the past few years has been a key factor in 
promoting economic growth and job creation and it should be made 
permanent. We must also work together to tackle unfunded obligations 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, and balance the budget by 2012 without raising taxes.
  Second, we must trust Americans with the responsibility of 
homeownership and empower them to weather turbulent times in the 
market. My Administration has acted aggressively to help credit-worthy 
homeowners avoid foreclosure. We launched a new initiative called 
FHASecure to help families refinance their homes. I signed legislation 
to protect families from higher taxes when lenders forgive a portion of 
their home mortgage debt. We have also brought together the HOPE NOW 
alliance, which is helping many struggling homeowners avoid foreclosure 
by facilitating the refinancing and modification of mortgages. The 
Congress can do more to help American families keep their homes by 
passing legislation to reform Freddie Mac and Fannie Mae, modernize the 
Federal Housing Administration, and allow State housing agencies to 
issue tax-free bonds to help homeowners refinance their mortgages.
  Third, we must continue opening new markets for trade and investment. 
We have an unprecedented opportunity to reduce barriers to global trade 
and investment through a successful Doha round. The Congress should 
also approve our pending free trade agreements. I thank the Congress 
for its approval of a good agreement with Peru, and ask for the 
approval of agreements with Colombia, Panama, and South Korea. These 
agreements will benefit our economy by providing greater access for our 
exports and supporting good jobs for American workers, and they will 
promote America's strategic interests. I have asked the Congress to 
reauthorize and reform trade adjustment assistance so that we can help 
those workers who are displaced by trade to learn new skills and find 
new jobs.
  Fourth, we must make health care more affordable and accessible for 
all Americans. I have proposed changes in the tax code that would end 
the bias against those who do not receive health insurance through 
their employer and would make it easier for many uninsured Americans to 
obtain insurance. This reform would put private health care coverage 
within reach for millions. My Budget also improves access to health 
care by increasing the power of small employers, civic groups, and 
community organizations to negotiate lower-priced health premiums. 
These policies would encourage competition among health plans across 
State lines, help reduce frivolous lawsuits that increase patients' 
costs, and promote the use of health savings accounts.
  Fifth, we must increase our energy security and confront climate 
change. Last year, I proposed an ambitious plan to reduce U.S. 
dependence on oil and help cut the growth of greenhouse gas emissions. 
I am pleased that the Congress responded, and I was able to sign into 
law a bill that will increase fuel economy and the use of alternative 
fuels, as well as set new efficiency mandates on appliances, light 
bulbs, and Federal Government operations. In my State of the Union 
Message, I proposed that we take the next steps to accelerate 
technological breakthroughs by funding new technologies to generate 
coal power that captures carbon emissions, advance emissions-free 
nuclear power; and invest in advanced battery technology and renewable 
energy. I am also committing $2 billion to a new international clean 
technology fund that will help developing nations make greater use of 
clean energy sources. Additionally, my Budget proposes to protect the 
economy against oil supply disruptions by doubling the capacity of the 
Strategic Petroleum Reserve.
  Finally, a strong and vibrant education system is vital to 
maintaining our Nation's competitive edge and extending economic 
opportunity to every citizen. Six years ago, we came together to pass 
the No Child Left Behind Act, and no one can deny its results. Now we 
must work together to increase accountability, add flexibility for 
States and districts, reduce the number of high school dropouts, and 
provide extra help for struggling schools.
  Many of these issues are discussed in the 2008 Annual Report of the 
Council of Economic Advisers. The Council has prepared this Report to 
help policymakers understand the economic conditions and issues that 
underlie my Administration's policy decisions. By relying on the 
foundation and resilience of our economy, trusting the decisions of 
individuals and markets and pursuing pro-growth policies, we should 
have confidence in our prospects for continued prosperity and economic 
growth.
                                                      George W. Bush.  
The White House, February 2008.

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