For Immediate Release
October 9, 2003
President Bush Discusses Economic Strategy From New Hampshire
Excerpts from October 9, 2003 Speech in Portsmouth, New Hampshire
Click here to read full remarks
Because we believe in our free enterprise system, we can be
confident in our economy's future. Our economy has been through a lot.
When I took office, the stock market had been declining for nine
months, and our economy was headed into recession. And just as we
started to recover, the attacks of September the 11th struck another
blow to our economy. And then investor confidence was shaken by
scandals -- scandals in corporate America -- dishonest behavior we
cannot and we will not tolerate in our country. (Applause.) And then we
faced the uncertainty that preceded the battles of Afghanistan and
Iraq.
No, we've been through a lot. But we acted; we led. We acted to
overcome these challenges and acted on principle. Government doesn't
create wealth. The role of government is to create the kind of
conditions where risk-takers and entrepreneurs can invest and grow and
hire new workers. We acted to create the conditions for job growth so
people can find work. When Americans have more take-home pay, more
money in their pocket to spend, or save, or invest, the whole economy
grows, and people are more likely to find a job. So I twice led the
United States Congress to pass historic tax relief for the American
people. (Applause.)
We wanted tax relief to be broad and fair as possible -- so we
reduced taxes on everyone who pays income taxes. (Applause.) We have a
tax code that penalizes marriage. That doesn't make sense. (Laughter.)
So we reduced the marriage penalty. It costs a lot to raise children --
we understand that in Washington, D.C. -- and it costs a lot to pay for
their education. So we increased the child credit to $1,000 per child.
(Applause.) And when we said the check was in the mail, we meant it.
(Applause.)
We recognize that it's counterproductive to discourage investment,
especially during an economic recovery. So we quadrupled the expense
deduction for small business investment, and cut tax rates on dividends
and capital gains.
It is unfair to tax the estates of people -- people leave behind
after a lifetime of saving, or building a small business, or running a
farm. When you leave this world, the IRS shouldn't follow you.
(Laughter.) So we're phasing out the federal death tax. (Applause.)
I proposed and signed these measures to help individuals and help
families -- but I did so, as well, to help small businesses. See, most
small business owners pay taxes under the individual tax rates, and
therefore, when we cut all rates, small businesses benefit. We help
mom-and-pops and start-ups and small businesses by allowing higher
expense deductions.
The reason I did so is because I understand small businesses create
most of the new jobs in America. If we're worried about job creation,
if we want there to be jobs for America, we must encourage small
businesses. See, small businesses are the first to -- usually the
first to take risk, the first to hire new people. By helping small
businesses we help the entire economy. (Applause.)
These actions are helping people across this state. We've cut taxes
on 112,000 small business owners in New Hampshire. We've reduced the
marriage penalty for 192,000 couples. We've increased the child credit
for 124,000 families. See, I know this: I know that New Hampshire
citizens can spend their money better than the people in Washington,
D.C. (Applause.)
We're following a clear and consistent economic strategy, and I'm
confident about our future. Last month this economy exceeded
expectations and added net new jobs. Inflation is low. After-tax
incomes are rising. Homeownership is at record highs, and productivity
is high and it is rising, as well. Factory orders, particularly for
high-tech equipment, have risen over the last several months. Our
strategy has set the stage for sustained growth. By reducing taxes, we
kept a promise, and we did the right thing at the right time for the
American economy. (Applause.)
We're moving forward, but we are not satisfied. We can't be
satisfied so long as we have fellow citizens who are looking for work.
I understand that here in New Hampshire, one out of every five jobs
have been lost in the manufacturing sector. That's an issue we must
deal with. We must act boldly from this point forward to create jobs
for America. So I want Congress to join me in a six-point plan to
encourage job creation.
First, we must help small businesses grow and hire by controlling
the high cost of health care. I have laid out a plan to do so. We must
confront the junk lawsuits that are harming a lot of good and honest
businesses. I have laid out a plan to do so. We must have a sound
national energy policy -- we must keep the lights on, and make America
less dependent on foreign sources of energy. (Applause.) We must
continue to cut useless government regulations that choke job
creation. We must work for a free trade policy that opens up markets
and levels the playing field for American workers and manufacturing
companies. (Applause.)
And we need to make sure the tax relief we passed doesn't disappear
in future years. And you're wondering why I would say that. Well,
because of a quirk in the legislation, the tax cuts that we passed are
scheduled to go away unless we act. See, the child credit goes away in
a couple of years. In other words, you get the thousand dollars now;
it's going down to $700 in a couple years -- unless the Congress acts.
The death penalty which is scheduled to go away comes back unless the
Congress acts.
You see, when we passed tax relief, I know most Americans did not
expect to see higher taxes come back through the back door. I also
understand for job creation, it's important to have certainty in the
tax code. People have got to be able to plan. And so if Congress is
really interested in job creation, they will make the tax cuts we
passed permanent. (Applause.)
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