    [Public Papers of the Presidents of the United States: George W. Bush (2003, Book I)]
    [May 28, 2003]
    [Pages 544-548]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks on Signing the Jobs and Growth Tax Relief Reconciliation Act of
    2003
    May 28, 2003

        Thank you all very much. Good afternoon, and welcome to the White
    House. Today we are taking essential action to strengthen the American
    economy. With my signature, the Jobs and Growth Tax Relief
    Reconciliation Act of 2003 will deliver substantial tax relief to 136
    million American taxpayers.
        We are helping workers who need more take-home pay. We're helping
    seniors who rely on dividends. We're helping small-business owners
    looking to grow and to create more new jobs. We're helping families with
    children who will receive immediate relief. By ensuring that Americans
    have more to spend, to save, and to invest, this legislation is adding
    fuel to an economic recovery. We have taken aggressive action to
    strengthen the foundation of our economy so that every American who
    wants to work will be able to find a job.
        I want to thank the members of my team who have worked so hard to
    get this bill to this desk. [Laughter] I particularly want to thank
    Secretary John Snow and Secretary

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    Don Evans for their tireless efforts to
    convince members of both political parties what we're doing today is the
    right thing to do on behalf of all Americans.
        I want to thank Steve Friedman for his
    good work, and his staff. I want to thank Mitch Daniels,  Jr. ``the Blade.'' [Laughter] I want to thank
    members of my Cabinet who are here, Secretary of Labor Elaine Chao and Mel Martinez. Thank
    you both for coming.
        I particularly want to thank the Members of the United States
    Congress who worked closely with the administration to do what was right
    for the American people. Speaker Hastert--Speaker Denny Hastert  Dennis isn't with us, but he put forth a monumental effort
    to get this bill done, as did Senate Majority Leader Bill Frist.
        I'm particularly pleased that not only did the majority leader join
    me up here, but so does the chairman of the Ways and Means, Chairman
    Bill Thomas. He got the job done along with
    Senator Chuck Grassley of Iowa, the
    Finance chairman in the Senate. These two good men worked out
    differences in a quick period of time and got the bill to the respective
    bodies quickly, where both Republicans and Democrats supported this
    major piece of legislation.
        I want to thank the Members from the United States House of
    Representatives who are with us today as well as Senator Thad
    Cochran, representing other Members of the
    Senate. We're honored you all are here. I want to thank all the Members
    who voted for this bill. We had great support in the House. Senators
    Miller and Nelson also
    supported the Republican majority in the Senate, so that we can say loud
    and clear to the American people, ``You got more of your own money to
    spend so that this economy can get a good wind behind it.''
        I want to thank Dirk from Omaha, Nebraska, is
    here with us today. Jenny's husband, David, is
    a staff sergeant based at Offutt Air Force Base and right now on duty in
    the Pacific and the Indian Ocean. Jenny and David work hard to provide
    for their children, just like a lot of other Americans do as well, and
    right now Jenny says she tries to save $200 a month for her girls'
    college savings account. But sometimes other bills have to be paid
    first, is what she says. Under this proposal, under the bill I sign,
    it's going to be a lot easier for the Theisen family to save for the
    future because they will keep an extra $1,300 a year of their own money.
        Tax relief matters a lot to the average citizen here in America.
    This tax bill will make it easier for moms and dads to save for their
    children's education, and that's vitally important for the future of
    this country.
        The benefits of the Jobs and Growth Act will also go to investors.
    The top capital gains tax rate will be reduced by 25 percent, which will
    encourage more investment and risktaking, and that will help in job
    creation.
        The bill also allows for dividend income to be taxed at a lower
    rate. This will encourage more companies to pay dividends, which in
    itself will not only be good for investors but will be a corporate
    reform measure. It's hard to pay dividends unless you've actually got
    cashflow. The days when people could say, ``Invest with me because the
    sky's the limit,'' will be changed by dividend policy. It's hard to
    promote the sky being the limit and pay dividends unless you're actually
    profitable and have cashflow. Getting--reducing the tax rate on
    dividends will also increase the wealth effect around America and will
    help our markets. And the good news is, a lot of senior citizens rely on
    dividend income to meet their daily needs, and under this legislation,
    12 million seniors will receive an average tax reduction of $1,401.
        We're delivering substantial tax relief to small-business owners and
    entrepreneurs. Most small-business owners are Subchapter S--own
    Subchapter S corporations or sole proprietorships or limited
    partnerships, so the small business pays taxes at the individual tax
    rate. By cutting individual tax rates and by delivering other incentives
    for investment in new equipment, 23 million small-business owners will
    receive an average tax cut of $2,209. This law reflects a commonsense
    economic principle: The best way to have more jobs is to help the people
    who create new jobs, and those are the small-business owners of America.
        Scott Harding is with us today. He's the
    CEO of a family-owned electrical contracting business in Rockville,
    Maryland. Scott's company is a Sub S company. He spends more than
    $100,000 a year on new equipment. His savings under the tax relief will
    let him keep $7,300 of his own money, and his business will save at
    least $12,000 because of this legislation's increased expensing rules.
    His savings, plus those of the other people who own this company, will
    help this company buy more equipment for their 50 employees, which will
    make the employees more productive, which will make it more likely that
    he'll be able to expand the number of employees who works for him.
        Scott says, ``The more money we make, the
    bigger bonuses there are for workers. It's that simple.'' No matter how
    complicated tax policy may seem here in Washington, people like Scott
    understand it all too well. If businesses keep more of their own money,
    their workers benefit right away. By leaving families and entrepreneurs
    more to spend, more to save, more to invest, these reforms will help
    boost the entire economy and create jobs.
        When people have more money, they can spend it on goods and
    services. And in our society, when they demand an additional good or a
    service, somebody will produce

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    the good or a service. And when somebody produces that good or a
    service, it means somebody is more likely to be able to find a job.
    Increased hiring happens gradually, but we're on the path to greater job
    creation across this country.
        We know that tax relief is going to help this economy because it has
    done so in the past. The tax relief we passed in 2001 helped make the
    recession one of the shallowest in American history. It gave millions of
    families needed relief during a difficult time for our country. It
    helped many entrepreneurs to pursue their dreams.
        I recently got a letter from Rusty Loiselle, who lives in Illinois. Rusty had seen some hard times,
    but he always had a dream to start his own business and to be his own
    boss. He says the tax relief in 2001 helped him create a small custom
    painting business. He bought a computer, some airbrushes, lights, and
    sanders, and he's done well. He's done well enough to be able to buy
    himself a home for he and his son. He said, ``It probably doesn't sound
    much like--sound like much to you all, but it means a lot to my son and
    me.''
        That's what America's all about, providing opportunity. The bill I'm
    going to sign provides opportunity for millions of Americans across this
    country. And the more opportunity there is, the more likely it is
    somebody is going to find work in this country.
        This legislation is a major step forward in our economic agenda. Yet
    other steps are also needed. We must hold Federal spending to a
    responsible level. Our budget for this year calls for discretionary
    spending to rise only 4 percent, or as much as the average household
    income will go up this year. Government should follow the example of
    American families by setting clear priorities and by staying within
    them.
        We must act in other areas to ensure the economic security of
    American families and workers. There could be no economic security
    unless people can count on affordable health care. Critical measures
    before Congress would address this issue. Our country must get a handle
    on rising health care costs, so we must pass reforms to end the junk
    lawsuits that drive good doctors out of practice and drive the costs up
    for everybody.
        The biggest threat to economic security of our seniors is the
    affordability of prescription drugs. We must make available a
    prescription drug benefit to all our seniors. And we must assure that
    the commitments of Medicare are kept to every future generation of
    Americans.
        To enhance economic security for working people throughout the
    economy, we must reduce the burden of regulation and litigation on small
    businesses as well. Employers don't want to spend their time and
    resources filling out forms or fighting junk lawsuits. They want to be
    out on the shop floor or behind the cash register creating profits and
    jobs. And that is why this administration has launched a task force to
    find ways to reduce paperwork for small-business owners in America. We
    must enact regulatory and lawsuit reforms so that our business owners
    can do what they do best, create jobs.
        We must also help build economic security for workers by preparing
    citizens to fill the new jobs this economy will create. We're
    aggressively implementing higher standards in our public schools so that
    every child--every child--learns to read and write and add and subtract.
    We've increased funding for Pell grants, making higher education a
    possibility for more young Americans.
        I've proposed innovative reemployment accounts to help unemployed
    workers cover the cost of job training or relocation. For those
    currently unemployed, earlier today I signed legislation extending
    unemployment insurance benefits for an additional 13 weeks. And when we
    reauthorize welfare reform, we must make sure that more and more
    Americans are set on the path of work, which is the path of dignity and
    independence.

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        I'm confident we can make progress in all these areas, because the
    Congress is showing the good will and hard work that makes progress
    possible. Already we've achieved many of the goals that I outlined last
    January. Congress passed a budget resolution that follows my call to
    restore spending discipline to Washington, DC. We passed a focused
    supplemental spending bill to support our brave men and women in
    uniform. We passed a Global AIDS Initiative to help millions of people
    fighting for their lives. And now we have passed a bold package of tax
    relief for America's families and businesses which will help turn our
    recovery into a lasting expansion that reaches every single corner of
    America.
        I believe in the future of this economy, in our Nation, because I
    know the character of the American people. In 20 months, Americans have
    been tested by a national emergency, corporate scandals, war, and
    recession. And time after time, we've responded effectively to the
    challenges we have faced. Time after time, Americans have shown a firm
    resolve and an unshakable faith in our future.
        And now, with this bold legislation, we're sending a clear message
    to the doubters, the doubters that Washington can respond. We can
    respond. We can respond in a positive way. We're building on the
    strengths of our economy so that everybody who wants to work can find a
    job in this great country.
        Congratulations to the Members of the United States Congress for
    rising to the challenge. May God bless America.

    Note: The President spoke at 2:20 p.m. in the East Room at the White
    House. In his remarks, he referred to Senator Ben Nelson of Nebraska;
    and Dirk Van Dongen, president, Tax Relief Coalition. H.R. 2, approved
    May 28, was assigned Public Law No. 108-27. The Office of the Press
    Secretary also released a Spanish language transcript of these remarks.