[Weekly Compilation of Presidential Documents Volume 39, Number 22 (Monday, June 2, 2003)]
[Pages 659-660]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
The President's Radio Address

May 24, 2003

    Good morning. This week Congress took vital action to create jobs in 
America. Following the outlines of a jobs-and-growth package I announced 
in January, Members of the House and Senate reached agreement on a bill 
to strengthen our Nation's economy by reducing income tax rates, 
lowering the marriage penalty, increasing the child credit from $600 to 
$1,000, increasing the expensing allowance for small-business 
investment, and significantly reducing taxes on dividends. These tax 
cuts will go into effect immediately and some retroactively.
    About 25 million families with children will see their child credit 
increase and will receive checks of up to $400 per child. And 136 
million Americans who pay income taxes, including 23 million small-
business owners who pay taxes at the individual rate, will see their 
taxes lowered.
    By leaving American families with more to spend, more to save, and 
more to invest, these reforms will help boost the Nation's economy and 
create jobs. When people have extra take-home pay, there's greater 
demand for goods and services, and employers will need more workers to 
meet that demand.
    A higher expensing allowance will help small firms, including farms 
and ranches, to buy new equipment so they can become more productive and 
expand their operations. They will also have more money to add new 
employees. And reducing the tax rate on dividends will help shareholders 
across America, from teachers invested in 401(k) accounts to seniors who 
depend on dividends for their financial well-being.
    I appreciate the leadership of Congressman Bill Thomas of California 
and Senator Chuck Grassley of Iowa, who worked with their colleagues to 
hammer out a final agreement. This achievement is a victory for every 
family struggling to pay the bills, every entrepreneur hoping to expand 
the business and create new jobs, and every American looking for work. I 
look forward to signing this jobs-and-growth legislation in the coming 
week.
    I will also work with Congress to bring down the budget deficit that 
has resulted from war, recession, and terrorist attacks. Faster growth 
in the economy will bring more revenues into the Federal Treasury. Yet 
moving toward a balanced budget also requires that we hold Federal 
spending to a responsible level. Spending discipline is crucial to my 
economic program. I urge the Congress to set priorities and stick to the 
responsible budget plan they passed back in April.
    By that measure, discretionary Federal spending will rise by 4 
percent, about the same as the increase in the average American family's 
income. Governments should not

[[Page 660]]

grow faster than workers' paychecks. Governments should follow the 
example of American families by setting priorities and staying with 
them.
    Our citizens and our economy have endured great challenges over the 
last 2\1/2\ years. Yet this Nation's workers and entrepreneurs, who 
remain the most productive in the world, are rising to meet every 
challenge. Our economy continues to grow, and inflation and interest 
rates remain low. With new relief for the taxpayers, we have laid the 
foundation for even stronger growth in the years ahead and more jobs for 
American workers.
    Thank you for listening.

Note: The address was recorded at 2:38 p.m. on May 23 at the Bush Ranch 
in Crawford, TX, for broadcast at 10:06 a.m. on May 24. The transcript 
was made available by the Office of the Press Secretary on May 23 but 
was embargoed for release until the broadcast. The Office of the Press 
Secretary also released a Spanish language transcript of this address.