    [Public Papers of the Presidents of the United States: George W. Bush (2006, Book I)]
    [January 7, 2006]
    [Pages 22-24]
    [From the U.S. Government Publishing Office www.gpo.gov]

    The President's Radio Address
    January 7, 2006

        Good morning. As we begin 2006, we are hearing more good news about
    the American economy. This week, we learned that our economy added
    108,000 jobs in December and has added over 400,000 jobs in the last two
    months. Our unemployment rate is now 4.9 percent, lower than the average
    rate of the 1970s, 1980s, and 1990s. Our economy grew at more than 4
    percent in the third quarter of 2005, and it has been growing at nearly
    that rate for 2 years. Productivity is high. Consumers are confident.
    And more Americans now own their homes than at any time in our Nation's
    history.

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        To keep our economy strong and secure the American Dream for future
    generations, leaders in Washington must make sound decisions. And one of
    the best decisions we made since I took office was to cut your taxes so
    you could keep more of your hard-earned money to save and spend as you
    see fit. We lowered tax rates to let workers keep more of their
    paychecks. We doubled the child credit. We reduced the marriage penalty.
    We also cut taxes on dividends and capital gains, and we created
    incentives for small businesses to invest in new equipment so they could
    expand and create new jobs.
        Some people in Washington said these tax cuts would hurt the
    economy. The day the House voted for tax relief in May 2003, one
    Democratic leader declared it a ``reckless and
    irresponsible tax plan that will undermine opportunity in our country.''
    Since those words were spoken, our economy has added more than 4.6
    million new jobs for the American people.
        Unfortunately, just as we're seeing new evidence of how our tax cuts
    have created jobs and opportunity, some people in Washington are saying
    we need to raise your taxes. They want the tax cuts to expire in a few
    years or even repeal the tax cuts now. In either case, they want you to
    get a big tax hike. If we allow that to happen, a family of four making
    $50,000 would see their Federal income taxes go up by nearly 50 percent.
        Inaction by the Congress will mean a tax increase on the American
    people. When you hear people in Washington say, ``We don't need to make
    the tax relief permanent,'' what they're really saying is they're going
    to raise your taxes. To keep our economy growing, we need to ensure that
    you keep more of what you earn, and Congress needs to make the tax cuts
    permanent.
        Our economy is also strong because we've been wise with taxpayers'
    dollars. We've now cut the rate of growth in nonsecurity discretionary
    spending each year I've been in office. Working with Congress, last
    year, we ended or reduced about 90 low-priority or poorly performing
    Government programs, cut nonsecurity discretionary spending, and stayed
    on track to meet our goal of cutting the Federal deficit in half by
    2009.
        The bigger challenge to our budget is long-term deficits driven by
    mandatory spending or entitlements. We can solve this problem. We do not
    need to cut entitlements, but we do need to slow their growth. When
    Congress returns from its recess, it has an opportunity to show its
    commitment to controlling entitlement spending. Before Members of the
    House and Senate left Washington, they agreed to rein in future spending
    on entitlements by nearly $40 billion. Now Congress needs to finish its
    work on this important bill. By passing the first reduction in the
    growth of entitlement spending in nearly a decade, Congress will send a
    clear signal that the people's Representatives can be good stewards of
    the people's money.
        As we work to keep your taxes low and restrain Federal spending, we
    have other challenges to address. A growing economy requires secure and
    affordable sources of energy, free and fair trade, legal reform and
    regulatory reform, and a health care system where workers can find
    affordable care. And we must ensure that all Americans get a good
    education so they will have the skills they need for the jobs of the
    21st century.
        In the months ahead, we will work on all these issues. By making
    choices that reward hard work and enterprise, we will keep the American
    economy prosperous and strong and guarantee opportunity for generations
    to come.
        Thank you for listening.

    Note: The address was recorded at 7:58 a.m. on January 6 in the Cabinet
    Room at the White House for broadcast at 10:06 a.m. on January 7. The
    transcript was made available by the Office of the Press Secretary on
    January 6 but was embargoed for release until

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    the broadcast. The Office of the Press Secretary also released a Spanish
    language transcript of this address.