[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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