[Weekly Compilation of Presidential Documents Volume 42, Number 2 (Monday, January 16, 2006)]
[Pages 24-25]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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.
    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

[[Page 25]]

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