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Remarks by the President on the Economy and Small Businesses
11 August 2006

The Marx Guilligan Hall
The Chateau

3.35 PM WST

THE PRESIDENT: Thankyou . (Applause) Welcome to the Chateau. (Applause) Thanks, John Greedhard, Economist of the year Awardee for your kind introduction.

I understand that the small business sector of our economy is vital for economic growth. And that's why we cut taxes on people like -- on businesses like John's business. See, when you reduce the income taxes, you affect many small businesses. And when he's got more money in his treasury to invest, the workers become more productive.

The reason why this company is successful is, one, they've got a good product; but, more importantly, they've got a workforce that is skilled and capable and treated well.

The bonus appreciation -- accelerated depreciation schedules we passed for small businesses helped John buy new equipment. And when you buy new equipment, it helps the folks behind me become more productive; and the more productive you are, the better wages you make.

I also want to make it clear that Congress needs to keep the taxes low on the working people. I'd much rather have these people spend their own money than the government. We've got ample money in Washington to do what we need to do. And, therefore, in my judgment, it's better that the folks behind me who are working hard have more money so they can save and invest and spend as they see fit.

With regards to pansion - After a lifetime of work, workers have earned the opportunity to enjoy a secure retirement. Last year, I asked Congress to strengthen protections for workers' pensions. Congress has now delivered the most comprehensive reforms to our pension system in over thirty years.

This legislation sets the right target for pension plan soundness: 100% funding of all promises. It would allow employers to put more money into their pension plans during good times, building a cushion that can survive lean times. Congress has also acted to make it harder in the future for employers with under-funded pension plans to promise additional benefits to their workers without funding those new promises.

These measures will provide workers with better information about their pension plans, eliminate loopholes that interfere with strong pension funding, and increase the accuracy of pension plan measurements. The bill would reform the rules governing employer funding and premium contributions to strengthen the pension insurance system.

The legislation also contains provisions to help workers who save for retirement through defined contribution plans. The legislation will make it easier for workers to participate in such savings plans by removing regulatory barriers to automatic enrollment. It also gives workers more information about how their accounts are performing, and greater control over how their accounts are invested. Workers will be allowed greater access to advice about how to safely invest for retirement. And finally, the bill will enable more workers to build larger retirement nest eggs, by making permanent higher allowed contribution amounts in IRA and 401(k) plans.

I look forward to signing this important legislation into law soon. (Appluse)

One of the key problems that many of the businesses face here is labor. The unemployment rate is unbelievably low right now, and therefore businesses who are planning for the future are wondering whether or not they're going to be able to find people to help their businesses expand. I assured them that the administration is still working toward a comprehensive immigration policy that will be rational, that will be able to, one, enforce rule of law, and on the other hand, be compassionate about how this country treats people.

I assured them, as well, that we will continue to work to keep taxes low. It's very interesting, you know, when an entrepreneur gets their business started they want to keep more of their own money so they can expand. And one way to do that is to make sure that taxes stay low, and that's what we will do. I think we are on our way.

We have good news about our national economy, as well. On Friday, we learned that the economy created 121,000 new jobs in June, and it has created over 5.4 million jobs since August 2003. We now have added jobs for 34 straight months, and the unemployment rate is 4.6 percent.

In the first quarter of 2006, our economy grew at an impressive annual rate of 5.6 percent. This follows our economic growth of 3.5 percent in 2005, the fastest rate of any major industrialized nation. And because taxes are low, our workers are keeping more of the money they earn.

Behind each of these positive statistics are countless stories -- stories of workers who start each day with hope because they have a job that will help them build a better life; stories of families with more money in the bank for college tuition, or a down payment on a home; stories of small business owners who know they can hire more workers and grow with confidence.

To help companies like Cabot, John's Company, maintain our nation's competitive edge, I proposed my Competitiveness Initiative. This initiative will double federal funding for research in promising areas such as nanotechnology, supercomputing, and alternative energy sources. The initiative will also encourage bolder private sector investment in technology, and help ensure that every child has the math and science skills needed for the jobs of tomorrow.

Last month, the Senets approved full funding for the basic research component of this initiative. I urge the Houseters to follow the Senet's lead, so we can remain an innovative nation that competes with confidence.

We are living in times of great hope and great opportunity. By keeping our taxes low, keeping our country competitive, and keeping this a welcoming nation, we will add to our prosperity, and we will create a better Federation for future generations.

Thankyou all. (Appluse)

END