[Weekly Compilation of Presidential Documents Volume 39, Number 22 (Monday, June 2, 2003)]
[Pages 666-669]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks on Signing the Jobs and Growth Tax Relief Reconciliation Act of 
2003

May 28, 2003

    Thank you all very much. Good afternoon, and welcome to the White 
House. Today we are taking essential action to strengthen the American 
economy. With my signature, the Jobs and Growth Tax Relief 
Reconciliation Act of 2003 will deliver substantial tax relief to 136 
million American taxpayers.
    We are helping workers who need more take-home pay. We're helping 
seniors who rely on dividends. We're helping small-business owners 
looking to grow and to create more new jobs. We're helping families with 
children who will receive immediate relief. By ensuring that Americans 
have more to spend, to save, and to invest, this legislation is adding 
fuel to an economic recovery. We have taken aggressive action to 
strengthen the foundation of our economy so that every American who 
wants to work will be able to find a job.
    I want to thank the members of my team who have worked so hard to 
get this bill to this desk. [Laughter] I particularly want to thank 
Secretary John Snow and Secretary Don Evans for their tireless efforts 
to convince members of both political parties what we're doing today is 
the right thing to do on behalf of all Americans.
    I want to thank Steve Friedman for his good work, and his staff. I 
want to thank Mitch Daniels, ``the Blade.'' [Laughter] I want to thank 
members of my Cabinet who are here, Secretary of Labor Elaine Chao and 
Mel Martinez. Thank you both for coming.
    I particularly want to thank the Members of the United States 
Congress who worked closely with the administration to do what was right 
for the American people. Speaker Hastert--Speaker Denny Hastert isn't 
with us, but he put forth a monumental effort to get this bill done, as 
did Senate Majority Leader Bill Frist.
    I'm particularly pleased that not only did the majority leader join 
me up here, but so does the chairman of the Ways and Means, Chairman 
Bill Thomas. He got the job done along with Senator Chuck Grassley of 
Iowa, the Finance chairman in the Senate. These two good men worked out 
differences in a quick period of time and got the bill to the respective 
bodies quickly, where both Republicans and Democrats supported this 
major piece of legislation.
    I want to thank the Members from the United States House of 
Representatives who are with us today as well as Senator Thad Cochran, 
representing other Members of the Senate. We're honored you all are 
here. I

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want to thank all the Members who voted for this bill. We had great 
support in the House. Senators Miller and Nelson also supported the 
Republican majority in the Senate, so that we can say loud and clear to 
the American people, ``You got more of your own money to spend so that 
this economy can get a good wind behind it.''
    I want to thank Dirk and members of the Tax Relief Coalition who 
rallied the grassroots all across the country to remind Members of the 
House and the Senate that there are people out there that understand 
that with tax relief will come more jobs for the American people.
    I appreciate members of the roundtables we had all around America. I 
see a lot of familiar faces from people that allowed me to come and 
listen to their stories and then translate those stories into the public 
arena so that our Congresspeople and citizens knew that behind every 
number there was a story to be told. I see small-business entrepreneurs 
and taxpayers and people who need dividends to help with their 
retirement. All of them stood up as we went around the country and spoke 
clearly--much more clearly than I can--about the need for tax relief. 
And I appreciate you all being here. And I want to thank you for your 
care for our country, and welcome to the White House.
    The Jobs and Growth Act reduces Federal income taxes across the 
board. And today the Internal Revenue Service will post new withholding 
tax tables so that employers can begin leaving more money in the 
paychecks of American workers, starting next month.
    The Jobs and Growth Act increases the per-child tax credit from $600 
to $1,000. So today I'm directing the Department of Treasury to issue 
checks of up to $400 per child to 25 million eligible families. And 
those checks will begin arriving in July.
    This combination of income tax rate reductions, a higher child 
credit, and a reduction in the marriage penalty will make a difference 
for families in every part of this country. A family of four with a 
total income of $75,000 will receive a 19-percent reduction in Federal 
income taxes, saving $1,122 per year, per family. A family of four with 
an income of $40,000 will see their income taxes drop from $1,178 to 
$45, a 96-percent tax cut. And under this new law, 3 million individuals 
and families will have their Federal income tax liability completely 
eliminated. Altogether, 34 million families with children, including 6 
million single moms, will receive an average tax cut of $1,549 per year.
    Jenny Theisen, from Omaha, Nebraska, is here with us today. Jenny's 
husband, David, is a staff sergeant based at Offutt Air Force Base and 
right now on duty in the Pacific and the Indian Ocean. Jenny and David 
work hard to provide for their children, just like a lot of other 
Americans do as well. And right now Jenny says she tries to save $200 a 
month for her girls' college savings account. But sometimes other bills 
have to be paid first, is what she says. Under this proposal, under the 
bill I sign, it's going to be a lot easier for the Theisen family to 
save for the future because they will keep an extra $1,300 a year of 
their own money.
    Tax relief matters a lot to the average citizen here in America. 
This tax bill will make it easier for moms and dads to save for their 
children's education, and that's vitally important for the future of 
this country.
    The benefits of the Jobs and Growth Act will also go to investors. 
The top capital gains tax rate will be reduced by 25 percent, which will 
encourage more investment and risktaking, and that will help in job 
creation.
    The bill also allows for dividend income to be taxed at a lower 
rate. This will encourage more companies to pay dividends, which in 
itself will not only be good for investors but will be a corporate 
reform measure. It's hard to pay dividends unless you've actually got 
cashflow. The days when people could say, ``Invest with me because the 
sky's the limit,'' will be changed by dividend policy. It's hard to 
promote the sky being the limit and pay dividends unless you're actually 
profitable and have cashflow. Getting--reducing the tax rate on 
dividends will also increase the wealth effect around America and will 
help our markets.
    And the good news is a lot of senior citizens rely on dividend 
income to meet their daily needs. And under this legislation, 12

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million seniors will receive an average tax reduction of $1,401. We're 
delivering substantial tax relief to small-business owners and 
entrepreneurs.
    Most small-business owners are Subchapter S--own Subchapter S 
corporations or sole proprietorships or limited partnerships, so the 
small business pays taxes at the individual tax rate. By cutting 
individual tax rates and by delivering other incentives for investment 
in new equipment, 23 million small-business owners will receive an 
average tax cut of $2,209.
    This law reflects a commonsense economic principle: The best way to 
have more jobs is to help the people who create new jobs, and those are 
the small-business owners of America.
    Scott Harding is with us today. He's the CEO of a family-owned 
electrical contracting business in Rockville, Maryland. Scott's company 
is a Sub S company. He spends more than $100,000 a year on new 
equipment. His savings under the tax relief will let him keep $7,300 of 
his own money, and his business will save at least $12,000 because of 
this legislation's increased expensing rules. His savings, plus those of 
the other people who own this company, will help this company buy more 
equipment for their 50 employees, which will make the employees more 
productive, which will make it more likely that he'll be able to expand 
the number of employees who works for him.
    Scott says, ``The more money we make, the bigger bonuses there are 
for workers. It's that simple.'' No matter how complicated tax policy 
may seem here in Washington, people like Scott understand it all too 
well. If businesses keep more of their own money, their workers benefit 
right away. By leaving families and entrepreneurs more to spend, more to 
save, more to invest, these reforms will help boost the entire economy 
and create jobs.
    When people have more money, they can spend it on goods and 
services. And in our society, when they demand an additional good or a 
service, somebody will produce the good or a service. And when somebody 
produces that good or a service, it means somebody is more likely to be 
able to find a job.
    Increased hiring happens gradually, but we're on the path to greater 
job creation across this country. We know that tax relief is going to 
help this economy because it has done so in the past. The tax relief we 
passed in 2001 helped make the recession one of the shallowest in 
American history. It gave millions of families needed relief during a 
difficult time for our country. It helped many entrepreneurs to pursue 
their dreams.
    I recently got a letter from Rusty Loiselle, who lives in Illinois. 
Rusty had seen some hard times, but he always had a dream to start his 
own business and to be his own boss. He says the tax relief in 2001 
helped him create a small custom painting business. He bought a 
computer, some airbrushes, lights, and sanders, and he's done well. He's 
done well enough to be able to buy himself a home for he and his son. He 
said, ``It probably doesn't sound much like--sound like much to you all, 
but it means a lot to my son and me.''
    That's what America's all about, providing opportunity. The bill I'm 
going to sign provides opportunity for millions of Americans across this 
country. And the more opportunity there is, the more likely it is 
somebody is going to find work in this country.
    This legislation is a major step forward in our economic agenda. Yet 
other steps are also needed. We must hold Federal spending to a 
responsible level. Our budget for this year calls for discretionary 
spending to rise only 4 percent, or as much as the average household 
income will go up this year. Government should follow the example of 
American families by setting clear priorities and by staying within 
them.
    We must act in other areas to ensure the economic security of 
American families and workers. There could be no economic security 
unless people can count on affordable health care. Critical measures 
before Congress would address this issue. Our country must get a handle 
on rising health care costs, so we must pass reforms to end the junk 
lawsuits that drive good doctors out of practice and drive the costs up 
for everybody.
    The biggest threat to economic security of our seniors is the 
affordability of prescription drugs. We must make available a 
prescription drug benefit to all our seniors. And we must

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assure that the commitments of Medicare are kept to every future 
generation of Americans.
    To enhance economic security for working people throughout the 
economy, we must reduce the burden of regulation and litigation on small 
businesses as well. Employers don't want to spend their time and 
resources filling out forms or fighting junk lawsuits. They want to be 
out on the shop floor or behind the cash register creating profits and 
jobs. And that is why this administration has launched a task force to 
find ways to reduce paperwork for small-business owners in America. We 
must enact regulatory and lawsuit reforms so that our business owners 
can do what they do best, create jobs.
    We must also help build economic security for workers by preparing 
citizens to fill the new jobs this economy will create. We're 
aggressively implementing higher standards in our public schools so that 
every child--every child--learns to read and write and add and subtract. 
We've increased funding for Pell grants, making higher education a 
possibility for more young Americans.
    I've proposed innovative reemployment accounts to help unemployed 
workers cover the cost of job training or relocation. For those 
currently unemployed, earlier today I signed legislation extending 
unemployment insurance benefits for an additional 13 weeks. And when we 
reauthorize welfare reform, we must make sure that more and more 
Americans are set on the path of work, which is the path of dignity and 
independence.
    I'm confident we can make progress in all these areas, because the 
Congress is showing the good will and hard work that makes progress 
possible. Already we've achieved many of the goals that I outlined last 
January. Congress passed a budget resolution that follows my call to 
restore spending discipline to Washington, DC. We passed a focused 
supplemental spending bill to support our brave men and women in 
uniform. We passed a Global AIDS Initiative to help millions of people 
fighting for their lives. And now we have passed a bold package of tax 
relief for America's families and businesses which will help turn our 
recovery into a lasting expansion that reaches every single corner of 
America.
    I believe in the future of this economy, in our Nation, because I 
know the character of the American people. In 20 months, Americans have 
been tested by a national emergency, corporate scandals, war, and 
recession. And time after time, we've responded effectively to the 
challenges we have faced. Time after time, Americans have shown a firm 
resolve and an unshakable faith in our future.
    And now, with this bold legislation, we're sending a clear message 
to the doubters, the doubters that Washington can respond. We can 
respond. We can respond in a positive way. We're building on the 
strengths of our economy so that everybody who wants to work can find a 
job in this great country.
    Congratulations to the Members of the United States Congress for 
rising to the challenge. May God bless America.

Note: The President spoke at 2:20 p.m. in the East Room at the White 
House. In his remarks, he referred to Senator Ben Nelson of Nebraska; 
and Dirk Van Dongen, president, Tax Relief Coalition. H.R. 2, approved 
May 28, was assigned Public Law No. 108-27. The Office of the Press 
Secretary also released a Spanish language transcript of these remarks.