Bush Unveils Plan to Bolster Economic Expansion
(Focuses on boosting consumer spending and small business investment)

Source: Office of International Information Programs, U.S. Department of State.
7 Jan 2003

President Bush has announced a "growth and jobs" plan to accelerate economic recovery in the United States by encouraging consumer spending, promoting small business growth, boosting confidence in U.S. markets and helping the unemployed.

Outlining his proposal in remarks to the Economic Club of Chicago, Bush said January 7 the proposal responds to three challenges facing the U.S. economy - increasing the amount of money Americans can spend, save or invest, encouraging greater investment by individuals and small businesses and helping unemployed workers.

The president called on Congress to make effective in 2003 the income tax cuts that are due in future years in order to increase the rate of economic growth and the pace of job creation.

With additional disposable income American consumers would support the market by injecting more money into the economy, Bush said, and small businesses would be more likely to expand sooner, hire new people faster and build a stronger foundation for the recovery.

Bush called for abolishing double taxation of dividends, a move that he said would strengthen investor confidence and, in turn, bring more money into the markets to provide capital for investment and hiring more people. In addition, he proposed raising the limits for small business tax deductions that he said would work as an incentive for small firms to grow and create more jobs.

The president said that extending unemployment benefits that expired in December 2002 and making them retroactive should be a priority for the new Congress. And to give the unemployed more flexibility in their job searches, he proposed giving them money to cover the costs of job training, relocation to another city or other expenses through personal re-employment accounts.

Bush said that his growth and jobs package would provide an immediate boost to the economy and help lay the foundation for future growth and prosperity.

He promised to work on removing obstacles to long-term economic growth, including "unreasonable" regulations and the "lawsuit culture of this country that imposes unreasonable costs."

The president also made comments about Iraq, North Korea and the war against terrorism.

Read the text of President Bush's prepared testimony here.