Economic Growth and Job Creation
"Today we are taking essential action to strengthen the American economy.... We are
workers who need more take-home pay. We're helping seniors who rely on dividends. We're
helping small business owners looking to grow and to create more new jobs. We're helping
families with children who will receive immediate relief. By ensuring that Americans have
more to spend, to save, and to invest, this [tax relief] legislation is adding fuel to an
economic recovery. We have taken aggressive action to strengthen the foundation of our
economy so that every American who wants to work will be able to find a job."
-President George W. Bush, May 28, 2003
A Growing Economy
Historic Tax Relief
- Since last summer, the American economy has grown at the fastest
rate of any major
- America's economy has been growing at rates as fast as any in
nearly 20 years.
- Nearly 1.5 million jobs have been created since August 2003
1.3 million new jobs have
been created this year alone. The unemployment rate today is below the average unemployment
rate of the 1970s, the 1980s, and the 1990s.
- From 2000 to 2003, productivity grew at the fastest three-year rate in more than a
half-century, raising the standard of living for all Americans.
- The Conference Board's index of leading indicators has risen at an average annual rate of
4.2 percent since March 2003 - the fastest 15-month period of increase in 20 years -
suggesting vibrant economic growth in the near term.
- The stock market regained more than $4 trillion in equity since its low in mid-2002. In
2003 the Dow Jones Industrial Average rose 25 percent and the NASDAQ rose 50 percent.
- Manufacturing activity expanded in July 2004 for the 14th consecutive month.
- Real after-tax incomes are up 11 percent since December 2000.
- Interest rates reached their lowest levels in decades during the Bush Administration.
- Homeownership reached an all-time high and mortgage rates reached their lowest level in
- During the Bush Administration, we have experienced one of the lowest core inflation
rates (averaging two percent per year) in the past 40 years.
- President Bush, working closely with Congress, provided the largest tax relief in a
- The President secured enactment of three major tax relief bills, providing tax relief to
every taxpayer who pays income tax while completely eliminating the income tax burden for
nearly five million families.
- In 2004, taxpayers will receive, on average, a tax cut of $1,586.
- The marriage penalty for low and moderate income taxpayers has been reduced. In 2004, 49
million married couples will receive an average tax cut of $2,602.
- The child tax credit has been doubled, increasing from $500 to $1,000. In 2004, 43
million families with children will receive an average tax cut of $2,090.
- Twenty-five million small business owners will receive tax relief averaging $3,001. The
President's tax relief also provides America's businesses with incentives to invest in new
equipment to make their workers more productive and to create new jobs.
- President Bush, working with Congress, is phasing out the death tax.
Providing Job Training
Helping America's Small Businesses
- President Bush proposed the Jobs for the 21st Century initiative, providing more than
half-billion dollars in funding for new education and job training initiatives. The plan
includes $250 million to fund partnerships between community colleges and employers to help
Americans prepare for the higher-skilled, higher-paying jobs of the new century, and $33
million for expanded Pell Grants for low-income students.
- The Bush Administration proposed $23 billion for job training and employment assistance
- The President proposed a $50 million Personal Reemployment Accounts pilot program,
allowing unemployed workers who have the hardest time finding jobs to choose the services
they need to return to work, including assistance with training, child care, and
- President Bush has supported extension of Federal unemployment benefits three times,
providing more than $23 billion to help almost eight million American workers.
- President Bush proposed to reform major Federal job training programs to double the
number of people trained, and to ensure more people receive flexible Innovation Training
Accounts which allow workers to make choices about the skills they need.
- President Bush's historic tax relief reduced marginal income tax rates
benefiting the more than 90 percent of small businesses that pay taxes at individual income
tax rates. In 2004, 25 million small businesses will save, on average, $3,001 due to the
President's tax relief.
- President Bush raised from $25,000 to $100,000 the amount that small businesses can
expense for new capital investments, reducing the cost of purchasing new machinery,
computers, trucks, and other qualified investments.
- The number of women-owned businesses has continued to grow at twice the rate of all
United States businesses. Women are now the owners of 10.6 million businesses in the
country, which generate $3.6 trillion in sales, and between 1997 and 2002, employment at
majority-women-owned private companies increased by 30 percent.
- The Bush Administration proposed and supports Association Health Plans (AHPs) to help
employees of small businesses afford health coverage.
- The regulatory burden on small businesses has been reduced. Small business owners have
also been given a bigger voice on ways to improve regulations.
- The Administration has implemented new regulations that help small businesses compete for
Federal procurement dollars and streamlined the appeals process.
Promoting Minority Small Businesses
Supporting Technological Innovation
- Business loans to minorities increased by 40 percent in 2003.
- President Bush proposed a 21 percent increase for the Minority Business Development
Agency, the largest increase in more than a decade.
Restraining Federal Spending and Improving Government Efficiency
- President Bush has proposed the largest Federal research and development budget in
- President Bush proposed making permanent the research and experimentation tax credit to
promote private sector investment in new technologies and manufacturing techniques.
- The President created a new math and science partnership program to improve teacher
training and student learning. The President's 2005 budget meets his commitment to fully
fund his five-year, $1 billion goal.
- The Bush Administration set a national goal of universal, affordable access to broadband
technology by the year 2007 - and it has opposed all efforts to tax access to broadband.
- President Bush brought the annual rate of growth in non-security discretionary spending
down from 15 percent in the last budget enacted during the Clinton Administration to a
proposed 0.5 percent for next year.
- The President's budget will put the country on a path toward cutting the deficit in half from its peak over the next five years. And better progress is being made than anticipated
just six months ago. Rising revenues, spurred by a growing economy, are decreasing the
deficit faster than anticipated.
- The Bush Administration launched the President's Management Agenda (PMA) to make the
Federal government more results-oriented and accountable. For the first time, a majority of
agencies evaluate their employees based on how well they are performing relative to clear
expectations. Departments and agencies have assessed the performance of more than 600
programs, representing approximately $1.4 trillion in Federal spending, And by working to
eliminate more than $35 billion in improper payments and producing more timely and accurate
financial information, more Federal agencies than ever are being held accountable for
spending the taxpayers' money wisely.
- The Bush Administration has achieved the biggest overhaul of the Federal civil service
system in a quarter-century and opened up hundreds of thousands of Federal jobs to
competition. The result is that government provides better results at lower costs to