    [Public Papers of the Presidents of the United States: George W. Bush (2003, Book I)]
    [May 6, 2003]
    [Pages 435-440]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks to the Tax Relief Coalition
    May 6, 2003

        Thank you all. Good to see you. Thanks for coming. Thank you all.
    Thanks for coming. I heard you were in the neighborhood--[laughter]--so
    I decided to drop by and say hello. Thanks for your interest in your
    country. Thanks for your concern about the future. Thanks for worrying
    about somebody who is wondering whether he or she are going to be able
    to put food on the table, to find work. And that's what we're here to
    talk about.
        The Tax Relief Coalition is a broad group, united by the commitment
    to the spirit of risktaking. You understand that free enterprise makes
    this economy go. You understand the role of Government is not to create
    wealth but an environment in which the entrepreneur can flourish. You
    understand that our duty here in Washington is to set pro-growth
    policies in place that reward and respect Americans who work hard and
    take risks. That's what you understand.
        I appreciate your understanding, and I'm glad you're here because
    you're here at just the right time. [Laughter] You see, Congress is now
    considering what to do. Congress is debating the package. They're trying
    to figure out what course to take. And I'm glad you're bringing your
    voices to the Halls of Congress and can be a loud voice, as both the
    Secretary and I understand, and that's going to be important in the
    Halls of Congress. [Laughter]
        Last Friday, we received some troubling economic news. The
    unemployment rate is now at 6 percent. The news ought to serve as a
    clear signal to Members of the United States Congress that we need a
    bold economic recovery plan. Congress will hear from me. Congress will
    hear from the Secretary. Congress needs to hear from you. We need tax
    relief that creates the greatest number of jobs. The goal is to create a
    million new jobs by the end of next year. I've submitted a good, strong
    plan that will help meet that goal. The United States Congress must not
    only listen to your voice but must listen to the voice of somebody
    looking for work. We need aggressive action out of the United States
    Congress now.
        I want to thank our Secretary of Treasury, John Snow. He's experienced. He's capable. He's able. He just as--
    he could easily have looked me in the eye and said, ``No, I don't want
    to serve my country. I think I'm kind of happy where I am in the private
    sector.'' But no, he said, ``Mr. President, I want to serve the
    country.'' And our country is better off because John Snow said yes. Mr.
    Secretary, thank you.
        I want to thank my friend Dirk Van Dongen, who is the
    president and CEO of the Chamber, for lending this fantastic hall and
    this beautiful building for--lending us this for the

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    purposes of making a statement to the country about our mutual desire to
    help people find a job.
        I want to thank all the entrepreneurs who are with us today, the
    risktakers, the--really, truly the engine of growth for the American
    economy. We've got the Brindley boys here from Vienna, Virginia. I'm going to say something
    about them a little later on. They started what they call Jammin' Java.
    [Laughter] The good news is, Jammin' Java is succeeding. I had a chance
    to visit with them before we came in, as I did with the Rickards as well, who have
    got their own business. I'm going to say something about them a little
    later on.
        The reason I point them out is, there are people in this audience
    who own their own business, who are part of the ownership society in
    America, who are creating new jobs. So, for all the entrepreneurs who
    are here with us and all across America, thank you--thank you for
    working hard to realize your dreams.
        America is a strong and confident nation, and those qualities are
    seeing us through some challenging times. For nearly 20 months, we have
    waged a relentless campaign against global terror. For 20 months, we
    have done what the American people expect, and that is to hunt down the
    killers, one at a time, so that America is more secure. We are winning
    the war on terror.
        And as a part of the war against terror, we removed Saddam
    Hussein from power in Iraq. Thanks to the
    skill and courage of our military and other coalition forces, America is
    more secure, the world is more peaceful, and the Iraqi people are now
    free.
        We will continue to meet our responsibilities to secure America. We
    will continue to dismantle the Al Qaida network. We will continue to
    promote the peace. We will continue to promote freedom, because we know
    a free society is one that is more likely to be a peaceful society. We
    assumed those responsibilities. We'll follow through on our
    responsibilities.
        And here at home, we have responsibilities. As we press forward on
    national security, we must promote job security here in America. Our
    goal is a vibrant and growing economy--that's our goal--in which the
    entrepreneur can find new opportunities, in which every person who wants
    to work can find a job. That's the stated goal of this administration.
    It's, I know, a goal that you share as well.
        The American economy has faced one challenge after another over the
    past several years. The stock markets peaked in early 2000. The economy
    began to slow in the summer of that year. In early 2001, our economy was
    in recession. And then we got attacked by the terrorists, and that
    affected our capacity to grow. And we've endured the uncertainty of war.
    We've seen failures in corporate responsibility across America.
    Unfortunately, some of our citizens forgot what it means to be a
    responsible citizen of this country. They didn't tell the truth. They
    didn't tell the truth to their employees and their shareholders. They
    self-enriched at the expense of small investors and public interests. In
    every case, we've taken action to confront these challenges.
        Our economy is growing. We've got many strengths in our economy.
    First, the economy is growing because interest rates are low. I mean, I
    want you to know that in spite of all the hurdles and the challenges we
    faced, we're still growing faster than nearly all the industrialized
    countries. And interest rate--low interest rates help because it helps
    Americans buy a home or refinance or remodel a home. And that helps.
    That helps create employment opportunity. Inflation is low, and that
    helps. Energy prices are now falling. That's like tax relief on a daily
    basis when you go to the pumps.
        We've got two great strengths even better than the statistics I just
    cited: One, the entrepreneurial spirit is strong; and secondly, we've
    got the best workers in the world in America. Last year, productivity

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    growth in America was about 4.8 percent. That's the best annual increase
    since 1950. When you're talking about productivity increases, you're
    really talking about technology and, more importantly, the human
    capacity of the workforce. Our workers are great, the best in the world.
        But even with the strengths I just outlined, it's important for
    Members of Congress to hear from you that we've got more work to do,
    that there's unmet potential in this economy. It's not growing fast
    enough. In spite of the strengths, there's still people looking for
    work, and we've got to do more. And that's the message I want you to
    take to the Halls of the United States Congress.
        This isn't the first time I've been talking about this subject.
    [Laughter] Four months ago, I sent a jobs-and-growth package to the
    Congress. That was 4 months ago. And we've seen some progress since
    then, and that's good news. First of all, both parties in both Houses of
    Congress now recognize that tax relief helps create jobs.
        That's important, that both Houses understand that when somebody
    keeps more money, they're likely to demand a good or a service, when
    they have more of their own money to spend. By the way, when you're up
    there, remind them something that you and I know is true: The money we
    talk about in Washington, DC, is not the Government's money; it is the
    people's money.
        And so, the debate is not if there is going to be tax relief; the
    debate now is how much tax relief. And when they ask you, ``How much do
    you think, citizen?'' what you ought to say is, ``Enough to make sure
    that we create a million new jobs by the end of 2004.'' That's the
    definition of the right amount.
        The definition of the right amount is not some theory--is based upon
    theory. It's based upon the practical application of tax cuts, and it
    ought to be based in human terms. The right answer for how big the tax
    cut ought to be is a million new jobs. That's the right answer, and
    that's the package I submitted to the United States Congress.
        The good news is, many in this room have already been through the
    tax relief exercise in recent history. Many of you in this room were
    involved in the spring of 2001 to convince Congress to pass tax relief.
    And it's a good thing you were involved, and it's a good thing they did,
    because the tax relief helped make the 2001 recession one of the
    shortest and shallowest in American history.
        The issue we now face results from the fact that Congress phased in
    tax relief over 10 years. In other words, they passed tax relief, but it
    was going to be incremental. My proposal would get the tax relief into
    effect this year. Our motto is this: If tax relief is good for Americans
    years from now, it is even better when the American economy needs it
    today.
        Instead of lowering all tax rates little by little, the Congress
    needs to do it all at once and needs to do it now. Instead of gradually
    reducing the marriage penalty, we should do it now. Instead of slowly
    raising the child credit from $600 to $1,000, we ought to do it now. And
    we should send the extra $400 per child to American families this year.
        You'll hear all kinds of rhetoric about how this plan is not fair.
    Well, let me just describe to you what it means to the family of four
    making $40,000 a year. It means their taxes would go from $1,178 a year
    to $45 a year. That's what that means. That sounds fair to me. And it
    will sound really fair to the family making $40,000 a year. You see,
    that's $1,000 not just one year, but for every year. It's $1,000 of that
    family's own money coming back into their personal treasury, so they get
    to decide what to do with the money. They get to decide whether to save
    for a college tuition. They get to decide whether to prepare for
    retirement. They get to decide how to make their family stronger with
    their own money.

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        It's also important for your message to understand--it's important
    for your message to understand that this tax relief will help 23 million
    small businesses create new jobs. Any good tax relief plan must
    understand the role of the small business in American economy.
        This plan says loud and clear to the Congress: We understand the
    role of the entrepreneur; we understand most new jobs are created by
    small-business owners. And this plan directly affects small business,
    because most small businesses pay taxes at the individual tax rates. You
    know why? Because they're either a sole proprietorship or a limited
    partnership or a Subchapter S corporation. All three of those entities
    pay tax at the individual tax rates. So when we reduce individual tax
    rates, we help the bottom line of every mom-and-pop business in America.
    When we accelerate the tax rate reduction, it really means we're putting
    capital into the treasuries of the small businesses all across America.
    More capital means more investment. More investment means more jobs. If
    Congress is interested in job creation, if you want to join us in
    creating a million new jobs, cut the tax rates on the small businesses
    all across the country.
        Our Tax Code should also support small-business owners who want to
    invest in the future. So today, a small business can deduct $25,000 for
    investment in new equipment. The proposal that you're advocating there
    in the Halls of Congress, the proposal I have submitted, says that we
    would triple the amount of expensing in new equipment from $25,000 to
    $75,000 per year and index that to inflation.
        I mentioned the Brindley boys were with us today, from Vienna. They--let me talk
    about--they help define the entrepreneurial spirit in America. They
    started their business right after September the 11th, 2001. Those are
    confident people. [Laughter] Those are people that said, ``We're not
    going to allow a terrorist attack to diminish our dreams to have our own
    business.'' I appreciate not only the courage, but I appreciate this,
    that they have gone from 5 employees to 25 employees.
        Here's what Luke says. Luke says, ``Buying
    equipment is something we need to do in order to grow the business, in
    order to stay up with competition. Any break we get obviously encourages
    us to hire more people and buy equipment.'' In other words, tax relief
    will be used by the Brindleys to buy new
    equipment. And when they buy new equipment, it means their workforce
    becomes more productive. It means they can compete better in the
    marketplace. It also means that somebody has got to make that equipment.
    And when somebody makes the equipment, somebody is finding work. In
    other words, good tax policy ripples throughout our economy.
        And Randy and Harriet Rickard are with us. I cite these examples because Congress
    must understand that behind the numbers is just people that are taking
    risk for the sake of creating jobs. The Rickards are here. They started
    their own business 3 years ago. It's a home remodeling business. Randy
    runs a tight ship. He's got four employees, and he's one of them. He
    comprises 25 percent of his workforce. [Laughter] But that's the nature
    of most small businesses, people who are working hard, people who are
    expanding, people who are providing a good or a service.
        This proposal that we've proposed will save him nearly $2,400 every year. That's enough to help pay
    health insurance for employees, or it's enough to add a new truck, to
    make sure his business is competitive. He says anything is helpful. ``If
    the economy does well, I do well.'' Well, Randy, this plan is all aimed
    at making sure the economy does well, so you can do well. And when you
    do well, somebody is going to work. That's the whole basis of the plan.
        The jobs-and-growth plan would encourage investment by ending the
    double taxation on dividends. Taxing profits at the

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    corporate level is fair. That's fair. Somebody makes a profit, that
    profit ought to be taxed. However, when the profits get distributed to
    the shareholders and it gets taxed again, that's unfair. It's
    counterproductive. Ending the practice makes the Tax Code fair. It makes
    it fair especially for our seniors, who receive more than half of all
    taxable dividend income.
        Economists say that this move will boost the stock market. That's
    what the economists say--not all but a lot of the smart ones say that.
    [Laughter] In other words, there's a wealth effect that will take place.
    An increasing stock market means a lot for many of our fellow citizens,
    because we are becoming an ownership society. Many people own stocks
    directly. Many people own stocks through their pension plans. Many
    people will be directly affected by an increasing stock market. And so
    getting rid of the double taxation of dividends will help an ownership
    society realize more wealth. Getting rid of the double taxation of
    dividends will be good corporate reform.
        We went through a period where people said, ``Invest in my company
    because I happen to have a good story. I may not have any cashflow, but
    I've got a good tale to tell.'' [Laughter] The problem--the new
    economics sometimes overlooked old accounting. And that is, when you run
    out of cash, it doesn't matter what the story is like. [Laughter] A
    dividend-paying society is one that says, ``I've got a good story, and
    oh, by the way, part of my story is I'm going to distribute, on a
    regular basis, cash out of my treasury in the form of a dividend.''
        Getting rid of the double taxation of dividends will be good
    corporate reform. It will make our balance sheets more reliable. It will
    be better for small investors. It will also help create new jobs. We
    estimate that 400,000 new jobs will be created when we get rid of the
    double taxation of dividends. So when you hear people say the proposal
    only helps, you know, a certain investor class, they're not telling the
    whole story. Ending the double taxation of dividends will help 400,000
    people find work by the end of next year.
        The House of Representatives is considering a proposal that would
    include all the elements of the growth plan which I just described to
    you. It would also significantly reduce the double taxation on
    dividends. It's a positive step. And they're making progress. I'm going
    to continue to work with both the House and the Senate, with the goal of
    making sure as many people can find work as possible. But the more the
    Members of Congress hear from you, the more likely it is that this plan
    is going to pass.
        What you need to do is tell them what tax relief will do for our
    country; if you own your company, how much it will help your company
    grow, how many jobs that you'll be able to create with tax relief.
    That's what you need to tell them.
        You'll also hear talk about the deficit. And yes, we've got a
    deficit because we went through a recession. You see, a recession means
    you get less money coming into your treasury. When the economy goes
    down, there's less tax revenues coming to the Treasury.
        Secondly, we've got a deficit because we're at war. And one thing is
    for certain about this Commander in Chief: We will spend whatever is
    necessary to win the war. We owe it to every soldier in the American
    military to make sure they've got the best pay, best equipment, best
    possible training. We owe it to the families of the military to make
    sure that they're as well protected as possible. So our expenditures
    went up because of the emergency in war and revenues went down. That's
    the ingredients for what they call a deficit.
        And there's two ways to deal with that deficit, in my judgment. One
    is to hold the line on spending. I submitted a bill to the--I submitted
    a budget to the United States Congress which holds the discretionary
    spending to 4 percent. That's a reasonable level. We, of course, will
    work with Congress to make sure they stick to that

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    budget--control spending on the one hand, and on the other hand, in
    order to get rid of the deficit, you boost revenues coming into the
    Treasury by encouraging economic growth and vitality.
        I'm concerned about the deficit but not as concerned about the
    deficit as I am about people trying to find work. I'm more worried about
    the person looking for work. And therefore, we've got a plan that is
    robust and strong, that encourages economic vitality and growth, so our
    fellow citizen can get to work and get to work soon.
        You all can make a difference in this debate. Not only the people
    present in this room can make a difference, but people who are listening
    across the country can make a difference. That's why they've got e-
    mails--[laughter]--or telephones or, in some cases, buses. People on the
    Hill are responsive to the voice of their fellow citizens.
        So thanks for coming, to be a part of a process that distinguishes--
    that really distinguishes us in many ways from many parts of the world,
    a process in which the citizen can make a difference, part of the
    process that says democracy is by far the fairest way for people to
    live. And that's what we believe.
        We believe strongly in certain principles. We believe in the dignity
    of every single human being. That's why we want to make sure--that's why
    we care when we hear somebody can't find a work. That's why we grieve
    when a fellow citizen who wants to work can't find a job, and that's why
    we've put policies out there that promote growth and economic vitality.
    But we not only believe in the dignity of every American; we believe in
    the dignity of every person. See, we believe that freedom is the
    Almighty God's gift to each and every person on this--who lives on this
    globe. That's what we believe.
        You're representing the best of a free society. The willingness to
    speak out really does speak to the great freedoms of America, and we
    hold those freedoms dear. We believe in freedom not only for our own
    people, but we believe in freedom for those who are enslaved. We believe
    so strongly in freedom that we're willing sometimes to take risk for not
    only our own freedoms but the freedoms of others. That's the great thing
    about our country. We're a strong country. We're a confident country,
    but we're also a compassionate country that believes in values and
    principles that will endure the test of time.
        Thank you for coming to Washington to exercise your freedom. May God
    bless you all, and may God bless America.

    Note: The President spoke at 10:31 a.m. in the Hall of Flags at the U.S.
    Chamber of Commerce. In his remarks, he referred to Luke and Daniel
    Brindley, owners, Jammin' Java; and former President Saddam Hussein of
    Iraq. The Office of the Press Secretary also released a Spanish language
    transcript of these remarks.