For Immediate Release
February 24, 2003
President Meets with Nation's Governors
For full transcript click here
What's on my mind is to make sure this country is strong and safe. One
way to make it strong is to do everything we can to encourage job
growth. My attitude is -- I'm sure you share the same attitude -- is
that if somebody is looking for work and can't find a job, it means
we've got a problem. And, therefore, to the extent that government
influences job creation, we've got to do everything we can to create an
environment for the entrepreneur to flourish.
I believe strongly in the notion that if a person has more money in
their pocket, I know they're likely to demand a good or a service and
when they do so, in a market-oriented economy, somebody is likely to
produce that good or service, which means somebody is more likely to
find work.
That's the whole principle behind that which I laid out for the
country in '01. It's a principle which the Congress listened to -- and
passed meaningful tax relief, because we were in a recession at the
time. I worked -- we worked with Congress in '01 and they phased-in
this tax reduction plan over a period of years.
My attitude is, since the economy is not as good as we like it to
be, we ought to accelerate the tax relief which they've already
planned. That will put about $70 billion immediately into our economy,
since I intend to ask for this plan to be made retroactive to January
1st of this year.
It's got a lot of positive effects in it. First of all, you know,
I'm always startled to talk about the marriage penalty in the tax code.
I don't know why we penalize marriage in the tax code. It doesn't make
sense. It seems like to me we ought to encourage marriage and so we
ought to accelerate that aspect of the tax relief. We've increased the
child credit to $1,000. It ought to be done this year, and not in the
out years.
And as importantly, when you reduce the tax rates at the individual
level, you also provide capital for small business growth. See, most
companies are -- most small businesses are sole proprietorships or
limited partnerships or sub-chapter S's. And, therefore, that entity
pays tax at the individual tax rate. And so the reduction of all rates
-- not just a selected few -- but the reduction of all rates provides
needed capital in the small business sector of our economy.
Secondly, I'm asking Congress to allow for the deduction of up to
$75,000 worth of capital expenditure for small businesses, which will
have a stimulative effect on our economy. And, thirdly, I believe we
ought to get rid of the double taxation of dividends. It's bad for --
when you tax something twice, it's unfair tax policy. It's fair to tax
corporate profits; it's unfair to tax the senior who receives the
dividend from the corporation you've already taxed.
I think getting rid of the double taxation of dividends will not
only help our seniors -- I know it will help our seniors -- it will be
stimulative in the sense that it gets $20 billion into our economy this
year. But, more importantly, it helps capital formation, in a society
which -- if jobs equal capital, we ought to be working on policy to
encourage more capital formation.
It's a positive -- it'll also have the positive effect of corporate
reform. After all, we went through a period of time when people said,
invest in my company because the sky is the limit, see. We may not have
any cash flow, but our story is a good one. You know, we may not be
able to show tangible assets, but we've got a wonderful story, so buy
on us.
When you have a dividend-oriented policy, the only thing you can
distribute is cash, not false promises. And so the elimination of the
double taxation of dividends will, in itself, serve as a corporate
reform measure, which is important.
So this is the plan that I'm asking Congress to pass. And I believe
we're going to get a lot of it passed. And I believe it's going to
encourage growth. As a matter of fact, you know, these economists
predicted in the blue chip forecast that the economy would grow at 3.3
percent if the Congress responded to a stimulative package. If it
responded. And so you just need to know that jobs are on my mind, and
I'm going to work hard to get Congress to pass the package. And I'm
optimistic about it.
In this town, you hear a lot of early noise which sometimes fades
when a chief executive starts taking the message to the people. And
that's what I intend to do. And I know you do the same things, when you
sell your packages at home. It's got a good effect, and I'm just
beginning to make the case.
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