[Weekly Compilation of Presidential Documents Volume 44, Number 3 (Monday, January 28, 2008)]
[Pages 91-92]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
The President's Radio Address

January 19, 2008

    Good morning. Yesterday I visited Wright Manufacturing, a business 
in Frederick, Maryland, that makes commercial lawnmowers. Businesses 
like Wright are the driving force behind our economic success. They 
create jobs and opportunities for millions of workers. And entrepreneurs 
like those at Wright Manufacturing keep our economy growing.
    This is a challenging period for our economy, and I know many of you 
listening are concerned about the future. My advisers and many outside 
experts expect that our economy will continue to grow over the coming 
year, but at a slower rate than we have enjoyed for the past few years. 
And there's a risk of a downturn. Continued instability in the housing 
market, for example, could cause additional harm to the overall economy 
and put our growth and job creation in jeopardy.
    In recent months, we have taken steps to shore up the housing 
sector, including measures to help struggling homeowners avoid 
foreclosure and keep their homes. I have also asked Congress to pass 
legislation to modernize the Federal Housing Administration

[[Page 92]]

and enable it to provide more assistance to struggling homeowners. 
Congress needs to send me a bill with these reforms right away.
    After careful consideration and discussion with Members of Congress, 
I have concluded that additional action is needed to keep our economy 
growing and creating jobs. Congress and my administration need to work 
together to enact an economic growth package as soon as possible.
    As Congress considers such a plan, there are certain principles that 
should guide their deliberations. This growth package must be big enough 
to make a difference in an economy as large and dynamic as ours, which 
means it should be about 1 percent of GDP. This growth package must be 
built on broad-based tax relief that will directly affect economic 
growth, not the kind of spending projects that would have little 
immediate impact on our economy. This growth package must be temporary 
and take effect right away so we can get help to our economy when it is 
needed most. And this growth package must not include any tax increases.
    Specifically, this growth package should bolster both business 
investment and consumer spending, which are critical to economic growth. 
This requires two key provisions. To be effective, a growth package must 
include tax incentives for American businesses, including small 
businesses, to make investments in their enterprises this year. And it 
must also include direct and rapid income tax relief for Americans like 
you.
    Passing a new growth package is our most pressing economic priority. 
And when that is done, Congress must turn to the most important economic 
priority for our country: making sure the tax relief now in place is not 
taken away from you. Unless Congress acts, the marriage penalty will 
make a comeback, the child tax credit will be cut in half, the death tax 
will come back to life, and tax rates will go up on regular income, 
capital gains, and dividends. This tax increase would put jobs and 
economic growth at risk. So it is critical that Congress make this tax 
relief permanent.
    I am optimistic about our economy because people like you have shown 
time and again that Americans are the most industrious, creative, and 
enterprising people in the world. That is what has made our economy 
strong, and that is what will make it stronger in the challenging times 
ahead.
    Thank you for listening.

Note: The address was recorded at 12:15 p.m. on January 18 in the 
Cabinet Room at the White House for broadcast at 10:06 a.m. on January 
19. The transcript was made available by the Office of the Press 
Secretary on January 18 but was embargoed for release until the 
broadcast. The Office of the Press Secretary also released a Spanish 
language transcript of this address.