    [Public Papers of the Presidents of the United States: George W. Bush (2003, Book I)]
    [May 24, 2003]
    [Pages 536-537]
    [From the U.S. Government Publishing Office www.gpo.gov]

    The President's Radio Address
    May 24, 2003

        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 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

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    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 workers' paychecks.
    Governments should follow the example of American families by setting
    priorities and staying with them.
        Our citizens and our economy have endured great challenges over the
    last 2\1/2\ 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.

    Note: The address was recorded at 2:38 p.m. on May 23 at the Bush Ranch
    in Crawford, TX, for broadcast at 10:06 a.m. on May 24. The transcript
    was made available by the Office of the Press Secretary on May 23 but
    was embargoed for release until the broadcast. The Office of the Press
    Secretary also released a Spanish language transcript of this address.