National Federation of Independent Business
WASHINGTON, DC Thank you, Jack, for your generous introduction. I appreciate you and Tom Musser and Dan Danner for your leadership at the NFIB and for inviting me here today. The National Federation of Independent Business is a strong voice in Washington for the entrepreneurs and small business owners who bring innovation and growth to our economy.
Thanks in large part to the 25 million small businesses in America, our economy is growing, workers are finding jobs, and productivity is at historically high levels. American companies and American workers are the best in the world, and as a result, the U.S. economy is growing faster than the economies of all other major industrialized nations.
I want to thank all the entrepreneurs and innovators in America who take a risk, follow their dreams and create prosperity. Your vision and tireless pursuit of success are pillars of Americas strength.
The President and I spent most of our lives in the private sector. We know what it is like to run a business and make a payroll. We have been through ups and downs and cycle-tested in a tough industry.
As a CEO, I can tell you that nothing felt better than changing a persons life by offering them a job. Nothing was more painful than telling someone at our company that we no longer had a job for them. That experience has stayed with me. And it is why the President and I will not rest until the economy is creating a job for every American who wants one.
I have spent many hours with President Bush discussing economic issues, and I can say from personal experience that he is always focused on the importance of small businesses and entrepreneurs.
You are the job creators of this nation and the President, and all of us who serve in his Administration, are in your corner. Americas entrepreneurs and innovators thrive and Americas economy grows when Washington lowers taxes, encourages investment, and eliminates unnecessary and inefficient regulations. Companies have more money to hire and pay workers, provide good benefits, expand their operations, and create wealth when they arent burdened by high taxes, excessive regulation, frivolous and junk lawsuits, and rising energy and health care costs.
We know the Presidents pro-growth approach is taking us in the right direction, but it is facing some fierce criticism. We face a choice between the Presidents record of promoting competitiveness, innovation and growth and an approach that would bring more money and power to Washington, and let government dictate where you invest and who you hire. Today, I want to lay out the case for the Presidents pro-growth agenda that leaves more money and power in the hands of the American people.
Over the last three years, the Presidents policies have brought us through a recession that had been brewing for months, the collapse of the dot-com bubble, the tragedy of September 11, the march to war and the discovery of years of corporate malfeasance. There is no doubt these policies are working. And when I hear the Presidents critics I wonder what economy they are looking at:
* We have an $11 trillion economy that is in the midst of nine consecutive quarters of economic growth. GDP grew in the last half of 2003 at a higher rate than any six-month period since 1984. And we are growing faster than any nation in the developed world.
* Interest rates are at a 45-year low.
* Inflation is in check.
* Homeownership and household net worth are at record highs.
* The unemployment rate, at 5.7 percent, is well below its peak of 6.3 percent last June. This is below the average of the 1970s, 1980s and 1990s. And well below the 8.8 percent unemployment rate of the EU.
* Our economy has created 513,000 jobs since the beginning of the year.
This is the reason the NFIBs small business optimism survey in December was the highest it has been in 34 years and the Conference Board CEO survey is the strongest its been in 20 years.
We are moving in the right direction -- our economy is strong and getting stronger.
A big part of President Bushs pro-growth agenda has focused on small businesses.
You know better than anyone else the positive impact of the Presidents tax cut. Not because you are rich as the naysayers of the Presidents growth agenda say, but because your personal and business taxes are lumped together. The Presidents tax cuts went to families and small businesses in this country. And small businesses create 70 percent of the jobs in our economy.
Other tax relief measures aimed at small business such as the increased expensing allowance and an acceleration of depreciation schedules are resulting in greater business investment and expansion.
The President didnt wait to go after the new challenges facing small businesses and our economy. He has been leading an aggressive pro-growth agenda from the first day of his Administration:
* We have worked to end frivolous and junk lawsuits that cost companies and workers billions each year. In 2002, the lawsuit burden was $809 for every single American. More than $200 billion is spent on our tort system, and only 20 percent of that compensates those injured for economic damages.
* The President has developed a comprehensive energy plan to reduce costs, increase efficiency and reduce our dependence on foreign supplies. Congress should take action and pass the Presidents plan.
* The President has made innovative proposals to allow small businesses to address the rising cost of health care.
* We are continuing to identify and weed out unnecessary regulations that stifle growth and job creation.
* Our record investments in R&D help ensure that the U.S. remains the home of cutting edge technologies that lead to new breakthroughs, new cures and new industries.
* And, as the President demonstrated with the job training initiative he launched this week, we will prepare our workers to take advantage of the exciting opportunities that lie ahead.
President Bush is leading our economy into the 21st Century with policies that focus on growth, innovation, competitiveness and entrepreneurism.
But despite the success of the Presidents policies, we hear, and will continue to hear over the coming months arguments against a pro-growth agenda. Senator John Kerry and all the other Democratic candidates from Howard Dean to Al Sharpton have attacked the policies that have contributed to our robust economic growth and are necessary for us to move ahead.
The last time America experimented with policies like the ones Senator Kerry advocates was in the 1970s, and most of us remember that those werent the best of times.
We remember inflation topping 11 percent and interest rates surging toward 20 percent. The top individual tax rate was 70 percent. President Carter raised the capital gains tax rate to 49 percent in 1977 and the S&P 500 dropped more than 11 percent the next year. This crushed economic output and destroyed incentives to invest.
We all look back at those days and say thank goodness we came to our senses a few years later. Thank goodness we elected a President in 1980 who had the vision to cut taxes, promote free trade, and eliminate inefficient regulations to position our economy for the expansion we still enjoy today.
A key element of Senator Kerrys economic proposal is a tax credit that closely mirrors the plan Jimmy Carter enacted in 1977. It would set the government up to determine which industries should hire more workers. His plan would reward companies in the sectors that the government dictates and who hire workers that the government approves. Other industries and business owners who want to add workers would be at a competitive disadvantage to the governments preferred companies.
Who would judge which industries benefit and which dont? Three Cabinet Secretaries. I appreciate Senator Kerrys confidence in Members of the Cabinet, but a complex network of government rewards and gimmicks should not replace the real-world decision-makers running their businesses on Main Street.
Under President Bush, we will continue to empower small business owners and the workers that drive them, not constrain you with a government-knows-best employment scheme.
Senator Kerry advocates raising taxes to pay for massive new spending commitments. We dont know how high the spending tab will go because the Senator has not submitted his budget for an independent analysis of its costs. But we do know that every penny in increased spending must be covered by tax increases or other spending cuts because Senator Kerry agrees with President Bush that the budget deficit should be cut in half.
Today, Senator Kerry is expected to outline his economic and budget policies. We look forward to hearing the Senator provide answers to important questions, but we already know this: Senator Kerrys record indicates that he will get the money he needs not by reducing spending, but by burdening workers and business owners with even higher taxes.
President Bush believes that ideas and capital should fuel the entrepreneurial spirit of businesses not the development of new government programs.
In the midst of announcing new government spending programs, major tax increases and a pullback from the global economy, Senator Kerry has begun to compare our current economic environment to that of the Great Depression. That was a time of tremendous hardship for American -- unemployment was over 25 percent, 10,000 banks failed and U.S. economic activity fell by a third. I suppose it is more personal for some of us who can remember the stories our parents told
I cant understand how the economic naysayers can have such a pessimistic view of America. The United States now has the highest standard of living in the history of the world and unemployment is lower than the average of the last three decades.
In 1996, President Bill Clinton said in his State of the Union that, "Our economy is the healthiest it has been in three decades [and] we have the lowest combined rates of unemployment and inflation in 27 years." At that time, that number -- the combined rate of unemployment and inflation -- stood at 8.3 percent. Under President Bush the number now stands at 7.7 percent - much better than President Clintons healthiest economy in 27 years.
Our strong economy and free-enterprise system are the envy of the world.
We have been through a lot in the past few years and we have emerged with strength, focus and resolve. This is not a depressed nation. And Senator Kerry and the economic naysayers do a disservice to American workers and businesses by trying to convince them that we are returning to one of the most painful times in American history.
President Bush realizes that we cannot look backwards to find the keys to the future. He is leading us into what he calls the innovation economy. This does not mean that we wont face challenges along the way. But it does mean we need leadership that is focused on reinforcing our competitiveness, preparing our workers, encouraging our entrepreneurs and connecting with the 95 percent of the world that lives outside the United States.
These are President Bushs priorities.
When I hear Senator Kerry and the economic naysayers, the image that comes to mind is of President Carter sitting in the White House blaming the state of the economy on malaise. What they fail to realize is that this is a growing economy in which we must foster job growth and opportunity, not close it off.
President Bush is creating the pro-growth environment that will foster the next generation of great American companies. We see the promise of innovation and entrepreneurism on factory floors, in high-tech laboratories and in garages all across America. Our amazing economic engine has created millions of jobs and brilliant new technology that has transformed the world economy and helped people across the globe enjoy greater prosperity than ever before.
America cannot afford to go back to the days when the government kept more of your money and decided how to spend it. Back to the days when the government decided which investments were worthy of your capital. Back to the days when the government decided which jobs needed to be filled and which businesses deserved help. Back to the days when America lacked confidence and sought protection from other countries rather than partnership with them.
The United States in this new century leads the world in spreading prosperity and freedom to all corners of the globe. And President Bushs agenda will keep America at the forefront of innovation, job creation, and economic growth. The President is committed to helping businesses seize the opportunities of the new global economy for the benefit of our citizens here in America, and the betterment of our neighbors around the world.
Thank you very much.
http://www.georgewbush.com/News/Read.aspx?ID=2423
WASHINGTON, DC Thank you, Jack, for your generous introduction. I appreciate you and Tom Musser and Dan Danner for your leadership at the NFIB and for inviting me here today. The National Federation of Independent Business is a strong voice in Washington for the entrepreneurs and small business owners who bring innovation and growth to our economy.
Thanks in large part to the 25 million small businesses in America, our economy is growing, workers are finding jobs, and productivity is at historically high levels. American companies and American workers are the best in the world, and as a result, the U.S. economy is growing faster than the economies of all other major industrialized nations.
I want to thank all the entrepreneurs and innovators in America who take a risk, follow their dreams and create prosperity. Your vision and tireless pursuit of success are pillars of Americas strength.
The President and I spent most of our lives in the private sector. We know what it is like to run a business and make a payroll. We have been through ups and downs and cycle-tested in a tough industry.
As a CEO, I can tell you that nothing felt better than changing a persons life by offering them a job. Nothing was more painful than telling someone at our company that we no longer had a job for them. That experience has stayed with me. And it is why the President and I will not rest until the economy is creating a job for every American who wants one.
I have spent many hours with President Bush discussing economic issues, and I can say from personal experience that he is always focused on the importance of small businesses and entrepreneurs.
You are the job creators of this nation and the President, and all of us who serve in his Administration, are in your corner. Americas entrepreneurs and innovators thrive and Americas economy grows when Washington lowers taxes, encourages investment, and eliminates unnecessary and inefficient regulations. Companies have more money to hire and pay workers, provide good benefits, expand their operations, and create wealth when they arent burdened by high taxes, excessive regulation, frivolous and junk lawsuits, and rising energy and health care costs.
We know the Presidents pro-growth approach is taking us in the right direction, but it is facing some fierce criticism. We face a choice between the Presidents record of promoting competitiveness, innovation and growth and an approach that would bring more money and power to Washington, and let government dictate where you invest and who you hire. Today, I want to lay out the case for the Presidents pro-growth agenda that leaves more money and power in the hands of the American people.
Over the last three years, the Presidents policies have brought us through a recession that had been brewing for months, the collapse of the dot-com bubble, the tragedy of September 11, the march to war and the discovery of years of corporate malfeasance. There is no doubt these policies are working. And when I hear the Presidents critics I wonder what economy they are looking at:
* We have an $11 trillion economy that is in the midst of nine consecutive quarters of economic growth. GDP grew in the last half of 2003 at a higher rate than any six-month period since 1984. And we are growing faster than any nation in the developed world.
* Interest rates are at a 45-year low.
* Inflation is in check.
* Homeownership and household net worth are at record highs.
* The unemployment rate, at 5.7 percent, is well below its peak of 6.3 percent last June. This is below the average of the 1970s, 1980s and 1990s. And well below the 8.8 percent unemployment rate of the EU.
* Our economy has created 513,000 jobs since the beginning of the year.
This is the reason the NFIBs small business optimism survey in December was the highest it has been in 34 years and the Conference Board CEO survey is the strongest its been in 20 years.
We are moving in the right direction -- our economy is strong and getting stronger.
A big part of President Bushs pro-growth agenda has focused on small businesses.
You know better than anyone else the positive impact of the Presidents tax cut. Not because you are rich as the naysayers of the Presidents growth agenda say, but because your personal and business taxes are lumped together. The Presidents tax cuts went to families and small businesses in this country. And small businesses create 70 percent of the jobs in our economy.
Other tax relief measures aimed at small business such as the increased expensing allowance and an acceleration of depreciation schedules are resulting in greater business investment and expansion.
The President didnt wait to go after the new challenges facing small businesses and our economy. He has been leading an aggressive pro-growth agenda from the first day of his Administration:
* We have worked to end frivolous and junk lawsuits that cost companies and workers billions each year. In 2002, the lawsuit burden was $809 for every single American. More than $200 billion is spent on our tort system, and only 20 percent of that compensates those injured for economic damages.
* The President has developed a comprehensive energy plan to reduce costs, increase efficiency and reduce our dependence on foreign supplies. Congress should take action and pass the Presidents plan.
* The President has made innovative proposals to allow small businesses to address the rising cost of health care.
* We are continuing to identify and weed out unnecessary regulations that stifle growth and job creation.
* Our record investments in R&D help ensure that the U.S. remains the home of cutting edge technologies that lead to new breakthroughs, new cures and new industries.
* And, as the President demonstrated with the job training initiative he launched this week, we will prepare our workers to take advantage of the exciting opportunities that lie ahead.
President Bush is leading our economy into the 21st Century with policies that focus on growth, innovation, competitiveness and entrepreneurism.
But despite the success of the Presidents policies, we hear, and will continue to hear over the coming months arguments against a pro-growth agenda. Senator John Kerry and all the other Democratic candidates from Howard Dean to Al Sharpton have attacked the policies that have contributed to our robust economic growth and are necessary for us to move ahead.
The last time America experimented with policies like the ones Senator Kerry advocates was in the 1970s, and most of us remember that those werent the best of times.
We remember inflation topping 11 percent and interest rates surging toward 20 percent. The top individual tax rate was 70 percent. President Carter raised the capital gains tax rate to 49 percent in 1977 and the S&P 500 dropped more than 11 percent the next year. This crushed economic output and destroyed incentives to invest.
We all look back at those days and say thank goodness we came to our senses a few years later. Thank goodness we elected a President in 1980 who had the vision to cut taxes, promote free trade, and eliminate inefficient regulations to position our economy for the expansion we still enjoy today.
A key element of Senator Kerrys economic proposal is a tax credit that closely mirrors the plan Jimmy Carter enacted in 1977. It would set the government up to determine which industries should hire more workers. His plan would reward companies in the sectors that the government dictates and who hire workers that the government approves. Other industries and business owners who want to add workers would be at a competitive disadvantage to the governments preferred companies.
Who would judge which industries benefit and which dont? Three Cabinet Secretaries. I appreciate Senator Kerrys confidence in Members of the Cabinet, but a complex network of government rewards and gimmicks should not replace the real-world decision-makers running their businesses on Main Street.
Under President Bush, we will continue to empower small business owners and the workers that drive them, not constrain you with a government-knows-best employment scheme.
Senator Kerry advocates raising taxes to pay for massive new spending commitments. We dont know how high the spending tab will go because the Senator has not submitted his budget for an independent analysis of its costs. But we do know that every penny in increased spending must be covered by tax increases or other spending cuts because Senator Kerry agrees with President Bush that the budget deficit should be cut in half.
Today, Senator Kerry is expected to outline his economic and budget policies. We look forward to hearing the Senator provide answers to important questions, but we already know this: Senator Kerrys record indicates that he will get the money he needs not by reducing spending, but by burdening workers and business owners with even higher taxes.
President Bush believes that ideas and capital should fuel the entrepreneurial spirit of businesses not the development of new government programs.
In the midst of announcing new government spending programs, major tax increases and a pullback from the global economy, Senator Kerry has begun to compare our current economic environment to that of the Great Depression. That was a time of tremendous hardship for American -- unemployment was over 25 percent, 10,000 banks failed and U.S. economic activity fell by a third. I suppose it is more personal for some of us who can remember the stories our parents told
I cant understand how the economic naysayers can have such a pessimistic view of America. The United States now has the highest standard of living in the history of the world and unemployment is lower than the average of the last three decades.
In 1996, President Bill Clinton said in his State of the Union that, "Our economy is the healthiest it has been in three decades [and] we have the lowest combined rates of unemployment and inflation in 27 years." At that time, that number -- the combined rate of unemployment and inflation -- stood at 8.3 percent. Under President Bush the number now stands at 7.7 percent - much better than President Clintons healthiest economy in 27 years.
Our strong economy and free-enterprise system are the envy of the world.
We have been through a lot in the past few years and we have emerged with strength, focus and resolve. This is not a depressed nation. And Senator Kerry and the economic naysayers do a disservice to American workers and businesses by trying to convince them that we are returning to one of the most painful times in American history.
President Bush realizes that we cannot look backwards to find the keys to the future. He is leading us into what he calls the innovation economy. This does not mean that we wont face challenges along the way. But it does mean we need leadership that is focused on reinforcing our competitiveness, preparing our workers, encouraging our entrepreneurs and connecting with the 95 percent of the world that lives outside the United States.
These are President Bushs priorities.
When I hear Senator Kerry and the economic naysayers, the image that comes to mind is of President Carter sitting in the White House blaming the state of the economy on malaise. What they fail to realize is that this is a growing economy in which we must foster job growth and opportunity, not close it off.
President Bush is creating the pro-growth environment that will foster the next generation of great American companies. We see the promise of innovation and entrepreneurism on factory floors, in high-tech laboratories and in garages all across America. Our amazing economic engine has created millions of jobs and brilliant new technology that has transformed the world economy and helped people across the globe enjoy greater prosperity than ever before.
America cannot afford to go back to the days when the government kept more of your money and decided how to spend it. Back to the days when the government decided which investments were worthy of your capital. Back to the days when the government decided which jobs needed to be filled and which businesses deserved help. Back to the days when America lacked confidence and sought protection from other countries rather than partnership with them.
The United States in this new century leads the world in spreading prosperity and freedom to all corners of the globe. And President Bushs agenda will keep America at the forefront of innovation, job creation, and economic growth. The President is committed to helping businesses seize the opportunities of the new global economy for the benefit of our citizens here in America, and the betterment of our neighbors around the world.
Thank you very much.
http://www.georgewbush.com/News/Read.aspx?ID=2423
