    [Public Papers of the Presidents of the United States: George W. Bush (2006, Book II)]
    [July 15, 2006]
    [Pages 1403-1405]
    [From the U.S. Government Publishing Office www.gpo.gov]

    The President's Radio Address
    July 15, 2006

        Good morning. This weekend, I am in Russia meeting with other world
    leaders at the G-8 summit. This annual summit gives us a chance to talk
    about key issues facing all our nations, such as energy security and the
    threat of infectious diseases like avian flu.
        At this year's summit, we will also discuss how to promote the
    spread of freedom and democracy and how our countries can work together
    to expand trade and prosperity for all our citizens.
        As the world's economic powers gather for the G-8, the American
    economy remains the envy of the world. And this week, we received even
    more positive news about our economy. On Tuesday, my administration's
    Office of Management and Budget released its annual update on the budget
    outlook. This year's report is very encouraging. Because our economy
    continues to enjoy strong growth, Federal tax revenues are growing, and
    we are cutting the Federal deficit faster than expected.
        This good news is no accident. It is the result of the hard work of
    the American people and progrowth economic policies in Washington, DC.
    Since 2001, we have cut taxes for everyone who pays income taxes,
    reduced the marriage penalty, doubled the child tax credit, and put the
    death tax on the road to extinction. We cut tax rates paid by most small
    businesses and further encouraged expansion by cutting taxes on
    dividends and capital gains.

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        Together, these tax cuts have left nearly $1.1 trillion in the hands
    of American small-business owners, workers, and families. And you have
    used this money to help spur an economic resurgence that has produced 18
    straight quarters of growth.
        Some in Washington think the choice is between cutting taxes and
    cutting the deficit. This week's numbers show that this is a false
    choice. The economic growth fueled by tax relief has helped send tax
    revenues soaring. When the economy grows, businesses grow with it,
    people earn more money, and they pay taxes on this new income.
        In 2005, tax revenues posted the largest increase in 24 years, and
    they're projected to rise again this year. The increase in tax revenues
    is much better than we had projected, and it is helping us cut the
    budget deficit.
        Our original projection for this year's budget deficit was $423
    billion. This week's report from OMB projects that this year's deficit
    will actually come in at $296 billion, a reduction of $127 billion. That
    is a tremendous difference, and 90 percent of it is because our growing
    economy has produced a lot more tax revenues.
        Because of these new revenues, we now project that we'll meet our
    goal of cutting the Federal deficit in half by 2008, a full year ahead
    of schedule. This is real progress, yet we cannot depend on a growing
    economy alone to cut the deficit. We must also cut waste and restrain
    unnecessary Government spending. And my administration is doing its
    part.
        Every year since I took office, we have reduced the growth of
    discretionary spending that is not related to national security. My last
    two budgets have actually cut this kind of spending. I am also working
    with Congress to pass a line-item veto, which will help me and future
    Presidents target wasteful spending that lawmakers tack on to large
    bills. The House has already passed this measure with significant
    bipartisan support. Now the Senate needs to act and get a line-item veto
    to my desk to sign into law.
        Finally, I will continue to work with Congress to address the
    unsustainable growth of entitlement spending so that we can save
    programs like Social Security, Medicare, and Medicaid for our children
    and grandchildren.
        This week's good news confirms the wisdom of trusting the American
    people with their own money and being wise with the money they send to
    Washington. By pursuing progrowth policies and restraining Government
    spending, we will keep our economy the envy of the world. We will create
    more jobs and opportunities for all our citizens, and we will deliver
    results for the American taxpayer.
        Thank you for listening.

    Note: The address was recorded at 8:50 a.m. on July 14 at the Kempinski
    Grand Hotel in Heiligendamm, Germany, for broadcast at 10:06 a.m.,
    e.d.t., on July 15. The transcript was made available by the Office of
    the Press Secretary on July 14 but was embargoed for release until the
    broadcast. Due to the 8-hour time difference, the radio address was
    broadcast after the President's news conference in Strelna, Russia, and
    the accompanying joint statement. The Office of the Press Secretary also
    released a Spanish language transcript of this address.

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