[Weekly Compilation of Presidential Documents Volume 39, Number 30 (Monday, July 28, 2003)]
[Pages 963-968]
[Online from the Government Publishing Office, www.gpo.gov]
<R04>
Remarks in Livonia, Michigan
July 24, 2003
Thank you for the warm welcome. Thanks for letting me come by to say
hello. First, let me just say I appreciate the hard-working folks here
at Beaver Aerospace for making sure that Air Force One functions
properly. [Laughter] Otherwise, it might have been a long flight.
[Laughter] I appreciate what you do for America's defense. I appreciate
your hard work. I appreciate your talent. I appreciate you helping make
this country strong.
I want to thank Bill Phillips and his family for inviting me. You
know, one of the great things about America is the entrepreneurial
spirit of our country, and Mr. Phillips is an entrepreneur. And one of
the things we've got to do in America is keep that entrepreneurial
spirit alive and well. And Mr. Phillips knows what I know: You can be an
entrepreneur, but without good workers, good, dedicated, hard-working
people willing to run the machines and show up on time and work hard,
the entrepreneurial spirit is kind of empty. And so, first of all, I
want to not only thank the Phillips folks, I want to thank the people
who work here in this facility. Thanks for making America go.
And I am interested in making sure every one of our fellow citizens
who wants to work can find a job, and that's what I want to talk about
today. I want to talk about how to make sure this economy is strong and
vibrant so our citizens can work and families can be hopeful for the
future.
First, I want to thank the Secretary of Commerce, Don Evans, my
long-time friend. I appreciate his service. He's part of my economic
team that is staying focused on economic vitality and growth. I
appreciate so very much Jack Kirksey. He's the mayor here. Mr. Mayor,
you've got a tougher job than I do. [Laughter] You've got to empty the
garbage and fill the potholes. [Laughter]
I appreciate the State attorney general, Mike Cox, for joining us
today. He's right here from Livonia. I want to thank members of the
legislative body, Senator Laura Toy and John Pastor, who have joined us
today. I want to thank the chief of police, who's with us. I want to
thank the president of the city council that's with us. I want to thank
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you all for coming. We've got quite a distinguished group.
I want to share the name of one person you've probably never heard
of. It's a fellow I just met when I landed at the airport, and his name
is Walter Piper. Walter is right there. Walter has been an active member
of what they call SCORE, which is Service Corps of Retired Executives.
That should tell you two things or three things about Walter: One, he is
retired--[laughter]--two, he was an executive; and three, he is in
service. And what he has done is he's decided to provide counsel and
advice to people who want to start their own small business. He is
volunteering his time to try to make the community in which he lives a
better place.
The reason I bring that up is there's a lot made about how strong we
are militarily. And we are strong militarily, and we will remain strong
militarily. But the true strength of America is found in the hearts and
souls of our fellow citizens. The true strength of our country is found
in those hearts and souls that have heard the universal call to love a
neighbor just like you'd like to be loved yourself. No, the strength of
our country is the compassion of our fellow citizens, people like Walter
who are willing to dedicate their time and talents to make somebody
else's life better.
My call to you is when you see a neighbor in need, when you see
somebody who's hurt, don't turn your back but love them just like you'd
like to be loved yourself.
This country of ours has faced many challenges over the last couple
of years, and I believe those challenges have brought out the best in
America. Terrorists declared war on us. On September the 11th, a date we
will not forget, people who hated our country, hate it for what we stand
for, hated the fact that we love freedom, declared war on the United
States of America, and war is what they got. We are hunting down the
killers one at a time. We are slowly but surely dismantling the Al Qaida
network, and we will continue to find them and to bring them to justice.
We owe that to this generation of Americans and future generations to
come.
In Afghanistan, a cruel regime, a brutal regime, had turned that
country into a training camp for terrorists. I declared as clearly as I
could, ``If you harbor a terrorist, you're just as guilty as the
terrorists.'' So we removed the Taliban from power and freed people from
the clutches of a barbaric regime.
In Iraq, a brutal dictator was arming to threaten the peace. This
brutal dictator defied the demands of the free world. For years, he
thumbed his nose at the United Nations Security Council, time and time
again. We gave him plenty of time to disclose and disarm. He chose
defiance, and the regime of Saddam Hussein is no more.
Our brave troops still face danger in Iraq because there are people
there who hate the thought of a free society. They can't stand freedom,
and they're dangerous. But we're finding these terrorists as well, and
we're bringing them to justice. As you know, earlier this week, two of
the favorite henchmen of Saddam Hussein were brought to justice. They
were discovered, and their violent careers ended in justice. These two
sons of Saddam Hussein were responsible for hundreds and hundreds of
people being tortured and maimed and murdered. And now the Iraqi people
have seen clearly the intent of the United States to make sure that they
are free and to make sure that the Saddam regime never returns again to
Iraq.
Our brave men and women serving to free--make sure Iraq is free are
serving as well in the war on terror. A free and democratic and peaceful
Iraq will not threaten America and our friends with illegal weapons. A
free Iraq will not provide harbor and money to terrorist organizations
which would like to hurt America. A free Iraq will not destabilize the
Middle East. A free Iraq can set a hopeful example for the entire
region. And as the pursuits of freedom replace hatred and resentment and
terror in the Middle East, the American people will be more secure, and
the world will be more peaceful. We owe a significant debt of gratitude
to the men and women who wear the uniform of the United States of
America.
Our Nation has responded to challenges here at home as well. Think
about what we've been through. As I was showing up into office, the
stock market had been falling for nearly a year, and the country was
headed into recession. And then after the recession
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came the attacks of September the 11th, a significant attack on our
homeland. It caused the economy to sputter. It significantly affected
our capacity to generate jobs.
And then we found out that some of our fellow citizens forgot what
it means to assume responsibility. They didn't tell the truth. Corporate
CEOs around this country didn't tell the truth to their shareholders and
their employees, and that shook the confidence of America. And then, of
course, the drumbeat of war shook the--began to affect the ability for
this economy to grow strong.
We've overcome a lot because we acted. First and foremost, in 2001,
I worked with Congress to pass tax relief, and history will show that
the recession we're in is one of the shallowest recessions our country
has had. We passed tough laws that say to a corporate criminal, if you
lie, cheat, or steal, you will be held to account.
Last year, when it looked like the economy was still sputtering and
wasn't strong enough, when we realized too many Americans were still
struggling to find work and too many families were having trouble
meeting their monthly bills or saving for their child's education, we
acted again, and I convinced the Congress to pass the Jobs and Growth
Act.
And that's a significant development in terms of economic vitality,
because the more money people have in their pockets, the more they will
demand a good or a service. And when somebody demands a good or a
service, in this economy of ours, somebody will produce a good or a
service. And when somebody produces that good or a service, it means
somebody is more likely to find work.
The jobs-and-growth plan came at the exact right time in our
history. Part of that jobs-and-growth plan is to increase the child
credit from $600 to $1,000 per child. But I thought it was necessary to
act quickly, so I asked Congress to make it retroactive to January 1st
of this year, and they agreed.
Today I went to Philadelphia. I saw firsthand the checks that are
being printed, that are fixing to be sent to the people who have got
children who qualify for the child credit. That is, $13 billion is going
out the door to be in the pockets of our fellow citizens; $13 billion
for more money for people to save or to spend but to do with it which
you want to do with it. After all, we're talking about your money, not
the Government's money.
Part of the Jobs and Growth Act continue to bring down the marriage
penalty. Seems like to me that the Tax Code ought to encourage marriage,
not discourage marriage. I don't know why you want to penalize marriage.
But part of the Jobs and Growth Act also reduced the overall tax rates
people pay. It cut the individual tax rates across the board. You're
going to have more money in your pocket. That's what we want. That's
part of the economic jobs-and-growth plan.
The interesting thing about reducing taxes as well, it helped a lot
of small businesses. And the cornerstone of any good jobs plan is to
encourage small-business growth. A lot of small businesses pay tax at
the individual tax rate. They're Subchapter S's, or they're what they
call sole proprietorships. And so when you hear us talking about rate
reduction, I also want you to think about your neighbor who is a small-
business owner. And their taxes are going down, and that will have a
positive effect on economic vitality and growth.
We also changed the policy on taxes on dividends and capital gains.
And let me talk about what that means. It means many companies have now
decided to pay a dividend to the people who own the company, the
thousands of shareholders all across our country. Many others have
increased their dividend. And as a result, there are billions of dollars
of cash now going into the economy, to the people, to the shareholders,
large and small, and that will encourage savings and investment and
spending.
Now, let me talk about the jobs act in terms of small business. Not
only will it affect small businesses by reducing the income taxes on
small businesses, we allowed small businesses to deduct more money up
front when they buy new equipment. And that's important. We want people
to buy more equipment. You know why? Because somebody has got to make
the equipment. When there's an incentive for small businesses across the
country to buy a new piece of machinery to make their business more
productive, it means somebody has got to make that machine. And when
somebody makes that
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machine, it means somebody is going to be working, making the machine.
Here at Beaver, you're going to save about $70,000 on taxes, and
that means more money that goes into research to develop new products.
And that's important. If I were a worker here, I'd want to be on the
cutting edge of new products. I'd want the people who run this company
being--thinking about how best can I use my talent and my skills to
build a new product to stay competitive. As Bill Phillips said, ``It
gives us the money to do some research.''
But he also said, ``It gives us some money to build new products.''
He's already hired 14 workers this year. He says to me, the tax relief
will enable him to hire 10 more workers. That's 10 more people working.
There are small businesses--see, we're not talking about just this
company here. There are companies all across the country like this
company. And if you have 10 hired here and 10 hired there and 10 hired
over there, and all of a sudden those 10 start adding up and our fellow
citizens are getting back to work. And that's what we're here to talk
about, how to get Americans back to work.
Mike Gendich is here with us. I had a chance to visit with Mike. He
owns a company called Metalmite. He makes parts for Beaver Aerospace. He
had a backlog of orders of only 2\1/2\ weeks over the past 3 years. His
orders are picking up. That's a good sign. See, when the small-business
guy's orders begin to pick up, he begins to get a little confidence, a
little bounce in his step. And the backlog is now 2\1/2\ months. He's
added three workers in the last 2 months. And now, with $22,000 of tax
relief, he's decided he can afford a vertical milling machine to keep
those three workers busy, to make sure they're more productive.
But somebody has got to build that vertical milling machine. And so
there's some person out there whose job is more secure, or perhaps a new
job, thanks to the fact that Mike is taking advantage of the tax relief.
And that's what's important for our fellow citizens to know. There's a
ripple effect throughout our economy. And as people make decisions,
whether you're a consumer or whether you're a small-business owner
trying to buy a machine, it affects economic vitality and growth. It
affects more than just one life. And that's the whole purpose of the tax
plan, was to have a ripple effect throughout the economy that's positive
and far-reaching.
Nevin Groce is with us. He's from Grand Rapids. He owns L&G
Industrial Products. He said times are a little slow. But all of a
sudden, he's beginning to see action being taken, and he sees a better
future for his company. He's going to save $20,000 under the 2003 tax
relief act.
He says that what he's thinking about doing is buying a large
industrial saw. In other words, here's a guy whose business isn't quite
the way he wants it to be, but he's getting optimistic because he's got
a little more money in his pocket--more than a little money, $20,000,
which is a lot of money for a small business. And so he's thinking
positively. He's thinking about making new investments.
Dennis Orlewicz is here. He's a small-business owner, Magnum
Manufacturing. He's an S corp. That means he pays taxes at the
individual income tax rate. We've reduced the taxes on his business by
$3,500. It will save him $8,000--individually and then $8,000 in his
business, excuse me. He's thinking about buying a $250,000 machine. His
quote is, ``Tax relief makes investment more enticing.''
Here's what I'm telling you. We've got to focus on small businesses,
first and foremost. Most new jobs in America are created by
entrepreneurs and small-business people. The plan I'm describing to you
creates incentive for people to make investments to make their small
business more competitive, to make their workers more productive. And
when they make investment, it helps somebody else who has to make the
machine in the first place. The jobs-and-growth bill is important for
economic vitality in America.
I want to make sure the jobs-and-growth bill extend to all our
citizens. The child credit must be given to low-income Americans as
well. They passed a bill in the Senate. They passed a bill in the House.
They need to get the differences resolved and to my desk. I want the
benefits of tax relief all across the spectrum of our society.
Economists were saying this economy is picking up. They're
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feeling positive about America and its economic future. They know what I
know: We've been through a lot, and we're strong.
Interest rates are down. That makes it easier for a person to buy
their house. If you got your house and interest rates are down, it means
it makes it profitable to refinance your house, put a little extra money
in your pocket. Inflation is low, which is positive. Productivity is up.
No, signs after sign after sign says we're poised for growth so people
can find work.
But there is more to do. I want to share some other thoughts with
you. First, we need an energy policy in America. We need a policy that
recognizes we can do a better job of conservation, that we can do a
better job of developing technologies that will enable us to develop
energy sources in a cleaner way. But I'm worried about natural gas. See,
the demand for natural gas is going up but the supply isn't, which means
it's going to start affecting people's pocketbooks. We've got to do
something about that. We need an energy plan. We need to be less
dependent on foreign sources of energy. The House passed a bill; the
Senate--is stuck in the Senate. They need to get moving and get a bill
to my desk.
We need to make sure that we have--diminish the number of frivolous
lawsuits in our society--pushing hard for class-action reform. The House
passed a bill. The Senate has got to act. It's junk lawsuits that are
affecting the cost of your health care. Listen, if you got hurt by a bad
doc, you've got to have your day in court. But what we don't need is
lawyers fishing for a rich settlement all across the country, which
means you're either driving up the cost of health care or you're driving
the docs out of business. One of the things we ought to make sure in
America is health care is affordable and accessible.
When you're good at something, you ought to make the environment
such that you can move product. If you're good at manufacturing, you
want to sell it all around the world. If you're good at growing crops,
we want to be able to sell our crops around the world. If you're good at
growing cows, we ought to be selling our cows around the world. One way
to make sure that we can increase jobs is to get some of these countries
to open up their markets to United States' products. We're competitive.
We've got the best workers in the world.
Well, these are some of the things we can do to make sure this
economy grows. I'm interested in helping people find work. I want it so
that everybody in America who wants to work and can't find a job today
can work. I also know that we've got to help people who are trying to
find work. Sometimes technology races ahead of the workforce. Sometimes
people can't find work, even though they want to.
So what I proposed to the Congress is they create what they call
unemployment accounts for people that are seeking jobs that are hard to
find a job. This basically says that you get $3,000 to help yourself
find a--to help find a job. If you need--and you can use the money the
way you see fit. For example, if you need child care, it will help you
pay for the child care or if you need extra job training or if you need
to move to a community in which there's a job. And part of the incentive
in there is that if you can find a job within 13 months, you get to keep
the balance of the money from what you've spent to help yourself find a
job and the $3,000 as a reemployment bonus. We've got to help our
workers be ready to work and find work.
Now, I know you've heard talk about the deficit in Washington, DC.
Yes, we've got a deficit. We've got a deficit for a couple of reasons.
The main reason is, is that when you're in a recession, less money is
coming into the Treasury. When the economy slows down, there's less tax
revenue coming into the U.S. Treasury, and we've been going through slow
economic times.
Another reason we've got a deficit, because I asked Congress to
spend enough money to make sure our troops had the best equipment
necessary to fight and win war. Anytime this Nation puts one of our
youngsters into harm's way, we'd better--and we will--make sure they get
the best training, the best equipment, the best possible support.
And so we got a deficit. But I've got a plan to cut the deficit in
half over the next 5 years. It starts with making sure this economy
grows. First thing you want to do in trimming
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the deficit is to make sure you get more revenues into the Treasury. The
best way to get more revenues in the Treasury is not raise taxes,
slowing down the economy; it's cut taxes to create more economic growth.
That's how you get more money into the U.S. Treasury.
And the other way is you make sure Washington doesn't overspend,
that there be fiscal discipline. I got the Congress to support a 4-
percent increase in discretionary spending. That's about the size of the
average household budget will increase this year. If it's good enough
for the households in America, it ought to be good enough for the House
of Representatives. They agreed to the budget of a 4-percent increase in
discretionary spending, and now we intend to make them--hold them to
their word. There's going to be budget discipline in Washington. That's
how you deal with the deficit.
The main--my main focus is making sure our citizens can find a job,
and I believe it's going to happen. See, I believe in the future of the
country in all aspects because I know the character of our people. This
country has been through emergencies and scandals and war and recession,
and we have responded. We're a strong country because we're full of
strong people. We've got people of character. We've got determined
people. We've got people who understand values. We've got people who
understand service to something greater than yourself. This is a
fabulous land, and I am so honored to be the President of the greatest
country on the face of the Earth.
Thank you for coming. Thank you for giving me a chance. May God
bless. Thank you all.
Note: The President spoke at 3:29 p.m. at Beaver Aerospace and Defense,
Inc. In his remarks, he referred to William T. Phillips, chairman,
Phillips Service Industries, Inc.; State Attorney General Mike Cox,
State Senator Laura M. Toy, and State Representative John Pastor of
Michigan; Mayor Jack E. Kirksey, Chief of Police Peter Kunst, and City
Council President Jack Engebretson of Livonia; and Uday and Qusay
Hussein, sons of former President Saddam Hussein of Iraq, who were
killed July 22 by U.S. military forces in Mosul, Iraq.