May 5, 2006
JS-4239

The Honorable Anna Escobedo Cabral
Treasurer of the United States
Prepared Remarks: Visit to Pohlig Brothers in Richmond, VA

Good afternoon. It is such a pleasure to be in Richmond, Virginia today. My most sincere thanks go to Pohlig Brothers owner Jim Petit, his partner Mike Gaffney and their great team for welcoming me today. I am thrilled to be with all of you this afternoon.

I really want to thank you for showing me around your company today and for allowing me the opportunity to share with you some background about much of the work the Treasury department is involved in, and also how the President's economic team is working so very hard to help ensure the ability of businesses like yours continue to grow and succeed.

We have indeed experienced remarkable economic growth in this country in the past several years. I'll today share with you some impressive recent economic indicators, which I think you all will really be able to relate to, especially given this company's continued growth.

You know, I like to get out of Washington, D.C. once in a while and meet first-hand with business leaders and workers like you – the people that are living proof of the economic growth our country has been experiencing in that past few years. You are an example of all that is possible with hard work, a living example of the American Dream.

The President's philosophy is that it is the government's responsibility to help create an environment in which businesses and individuals can flourish – where they can reach their full potential.

The federal government should not be in the business of creating unnecessary burdens or barriers to stability and growth.

I found it astounding to learn that more than 20% of this company's 70 workers have remained with here for 20 years plus. That is a mark of true economic stability.

Not only that – your business has experienced significant growth. You've got a significant retention rate, but the company has also hired more people over the past year and worked to improve technology because it was necessary to strengthen your sales force and keep up with increasing demand from your customers – small and big businesses – many of which have also seen their companies grow.

Businesses like these are truly the economic engine of this country, and investors and workers are helping to drive our growing economy.

Just stop and consider the latest economic reports:

We found out this morning that the economy created 138,000 jobs in April. It was the 32^nd straight month of job growth, and we've seen 5.2 million new jobs since the President's tax relief took effect less than three years ago.
Last year, the U.S. economy grew faster than any other major industrialized nation – we've seen it grow 3.5 percent last year.
For the first quarter of this year, growth was 4.8 percent.
The rate of productivity is the highest it has been in decades and we have added jobs to this economy for 31 months in a row – a total of 5.1 million new jobs since 2003.
More people are working than ever before. Our national unemployment rate has fallen to 4.7 percent. That is just an incredible number! That number is lower than the average for any decade since the 1950s. This also means that our children graduating from college will likely find it easier to finds jobs too. The job market for college graduates is the best it has been in five years.
Businesses are not only hiring more people – they are also expanding their reach and services. Consider that construction spending is at an all-time high and small businesses are flourishing.
We also see that individuals and their families are benefiting from these good economic times. Real after-tax income has grown by almost 9 percent per person since the President took office, despite the many challenges he inherited, and more Americans have realized the dream of homeownership. Additionally, consumer confidence is at its highest point in nearly four years.

That's a lot of good news! So now the question that remains is: what have we done right? What have we done to deserve this? And how do we ensure we can continue on this right path?

Tax Relief and a Pro-Growth Agenda

Well, you would think it's pretty easy to arrive at the answer – almost intuitive – but it is really just all about simple economics. You let people keep more of the money that they work so hard to earn, so that they can invest it and make it grow. It's really that simple! But in reality, the President needs Congress' help and collaboration will be absolutely necessary to ensure we remain on this course – specifically by keeping tax rates lower.

We've seen the benefits and positive results of reducing income taxes for more than 110 million people who pay taxes. The President did this when he doubled the child tax credit, reduced the marriage penalty, cut taxes on capital gains and dividends, created incentives for small businesses to purchase new equipment and hire new workers, and worked toward ridding us of the death tax.

As businesses like yours have grown and created more jobs in response to the reduced tax burden, the federal government has actually collected more tax revenue. Revenues have surged. That's because the tax base has expanded. Americans are paying lower tax rates, but there are more working Americans at work contributing to the pot.

I hope that Congress will not let this important opportunity slip by. It would be irresponsible to do so and would stymie our current rate of growth. Right now, the House and Senate are close to completing a bill that would extend cuts on dividends and capital gains for two years – through 2010. I am hopeful that House and Senate members will work together in passing legislation that ensures our economic well-being for years to come.

But extending tax relief is only one part of the answer to sustaining a growing American economy. This Administration is also working hard to address other important issue of concern, such as rising gas prices, cutting the deficit in half by 2008 and reigning in discretionary spending while at the same time honing in on national priorities such as fighting the war on terror, strengthening education, and improving access to affordable health care.

Health Care

Let's look more closely at just one of these important issues: improving access to health care.

One way we can address improved access to health care is through the creation of Association Health Plans to help small businesses get the same insurance discounts that bigger companies get.

You know, this country has the best health care system in the world but, but health care costs are rising and 60 percent of the 44 million uninsured Americans are small business owners, their employees or their families.

We need to seize the opportunity to improve this scenario.

Fortunately, for now, there is an important instrument already in existence that is helping more Americans obtain access to health care – Health Savings Account, otherwise known as HSAs.

HSAs are helping make health insurance more affordable and putting patients back in control of their health care.

HSAs need to be expanded to allow employers to put money into tax-free accounts to be used for out-of-pocket medical expenses. A bill introduced this week by Representative Eric Cantor, the Tax Free Health Savings Act of 2006, would help ensure that even more Americans will be able to take advantage of these revolutionary health-cost and savings vehicles.

The key to HSAs is what's called a high-deductible health care plan. A high-deductible health-care plan is offered at premiums that are dramatically lower than plans with lower-deductibles making them much more affordable.

This is the way it works: by using money in your tax-free Health Savings Account to help pay the higher deductible or any other health expenses, you reduce the cost of your health care.

Additionally, instead of sending more money off to insurance companies in the form of higher premiums, through HSAs families are in a position to keep their savings in an account that belongs to them, not to their employer or to an insurance company.

In short, HSAs bring the cost of purchasing quality health insurance within reach.

The good news is that currently, over 3 million Americans, many of who had been previously uninsured, have gained much peace of mind and are now enjoying more affordable health care because of the tax advantages and savings benefits of HAS qualified plans.

Financial Education

The creation of more jobs, more savings options, as well as affordable health care options is fantastic news.

However, in order to maximize these choices, we also need to ensure that people have the skills to wisely manage the additional dollars they are earning and hopefully continue to keep in the years to come.

Improving financial education is also a top priority for the President, the Department of the Treasury and for my office.

That is why in 2003, the President signed into law legislation that created the Financial Literacy and Education Commission, otherwise referred to as the Commission. This federal commission is lead by Secretary Snow and is also comprised of 19 other federal agencies.

The Commission is tasked with developing a plan to improve the money management skills of people in the U.S. We recently launched a national strategy to improve financial education and financial literacy levels of all Americans. The Commission was also tasked with developing a federal financial education web site and toll-free hotline, which were launched in English and Spanish in October of 2004 – MyMoney.gov and 1-888-MyMoney. And very soon, the Commission will turn its attention to developing a multimedia campaign addressing financial education needs in the U.S.

Since the strategy addressing the campaign has just been completed, the work on this campaign is just in its earliest phase.

I encourage you to visit MyMoney.gov. MyMoney.gov has resources on a whole host of personal finance topics from the federal government including: budgeting, taxes, credit, financial planning, paying for education, retirement planning and more. The web site is an effective tool and great resource you can tap.

You can also order a sample of some of the publications that are available on the web – what we call the MyMoney Tool Kit. It has information to help you choose and use credit cards, get out of debt, protect your credit record, understand your Social Security benefits, insure your bank deposits, and start a savings and investing plan. The web site was recently updated and now also includes an interactive quiz know as the "Money 20."

I hope you take some time to check it out. I'd like to say it's free, but your tax dollars have really already paid for these great resources, so don't throw away this opportunity.

Office of the U.S. Treasurer

Before I close, I'd like to take this opportunity to share with you a brief overview of my responsibilities as 42nd Treasurer of the United States.

As Treasurer, I assist the Secretary in informing the public about the President's economic priorities.

I also work in an advisory capacity on issues of coin and currency design, as well as improving public education in the area of currency security and new design features – in addition to helping improve financial literacy and education.

I spend a considerable amount of my time working on issues of coin and currency because it is important that we continue to ensure that the integrity of our currency remains uncompromised.

For example, in March of this year, the new $10 note was launched and began to circulate. I happen to think it's gorgeous. In addition to including all of the latest security features – the security thread, watermark, and color shifting ink on the number ten found on lower right corner on the face of the note – the new design has incorporated color. Tones of yellow, orange and red compliment the enhanced portrait of Alexander Hamilton.

There is one other important change to the $10 note. We have added the words "We the People" from the Constitution to the right of his portrait, in bold red letters.

I hope you will take a few moments to study the new note and tell others about the new features we've incorporated into this new beautiful note. Also, we've brought a few new notes today if you're interested in exchanging one old for a new.

In the years to come, we plan to make changes to the $100 and $5 bill as well. We will continue to make changes to our currency every 7 to 10 years to stay ahead of would-be counterfeiters.

In closing, I want to thank you once again for your interest and attentiveness. It has been a real pleasure and a privilege to share this time with you and have the opportunity to tell you a little bit about our priorities and the work we're engaged in at Treasury, particularly in my office.

I have really enjoyed my visit to Richmond – thanks for making me feel so welcome. I look forward to returning very soon.



	May 5, 2006 JS-4239 The Honorable Anna Escobedo Cabral Treasurer of the United States Prepared Remarks: Visit to Pohlig Brothers in Richmond, VA Good afternoon. It is such a pleasure to be in Richmond, Virginia today. My most sincere thanks go to Pohlig Brothers owner Jim Petit, his partner Mike Gaffney and their great team for welcoming me today. I am thrilled to be with all of you this afternoon. I really want to thank you for showing me around your company today and for allowing me the opportunity to share with you some background about much of the work the Treasury department is involved in, and also how the President's economic team is working so very hard to help ensure the ability of businesses like yours continue to grow and succeed. We have indeed experienced remarkable economic growth in this country in the past several years. I'll today share with you some impressive recent economic indicators, which I think you all will really be able to relate to, especially given this company's continued growth. You know, I like to get out of Washington, D.C. once in a while and meet first-hand with business leaders and workers like you – the people that are living proof of the economic growth our country has been experiencing in that past few years. You are an example of all that is possible with hard work, a living example of the American Dream. The President's philosophy is that it is the government's responsibility to help create an environment in which businesses and individuals can flourish – where they can reach their full potential. The federal government should not be in the business of creating unnecessary burdens or barriers to stability and growth. I found it astounding to learn that more than 20% of this company's 70 workers have remained with here for 20 years plus. That is a mark of true economic stability. Not only that – your business has experienced significant growth. You've got a significant retention rate, but the company has also hired more people over the past year and worked to improve technology because it was necessary to strengthen your sales force and keep up with increasing demand from your customers – small and big businesses – many of which have also seen their companies grow. Businesses like these are truly the economic engine of this country, and investors and workers are helping to drive our growing economy. Just stop and consider the latest economic reports: We found out this morning that the economy created 138,000 jobs in April. It was the 32^nd straight month of job growth, and we've seen 5.2 million new jobs since the President's tax relief took effect less than three years ago. Last year, the U.S. economy grew faster than any other major industrialized nation – we've seen it grow 3.5 percent last year. For the first quarter of this year, growth was 4.8 percent. The rate of productivity is the highest it has been in decades and we have added jobs to this economy for 31 months in a row – a total of 5.1 million new jobs since 2003. More people are working than ever before. Our national unemployment rate has fallen to 4.7 percent. That is just an incredible number! That number is lower than the average for any decade since the 1950s. This also means that our children graduating from college will likely find it easier to finds jobs too. The job market for college graduates is the best it has been in five years. Businesses are not only hiring more people – they are also expanding their reach and services. Consider that construction spending is at an all-time high and small businesses are flourishing. We also see that individuals and their families are benefiting from these good economic times. Real after-tax income has grown by almost 9 percent per person since the President took office, despite the many challenges he inherited, and more Americans have realized the dream of homeownership. Additionally, consumer confidence is at its highest point in nearly four years. That's a lot of good news! So now the question that remains is: what have we done right? What have we done to deserve this? And how do we ensure we can continue on this right path? Tax Relief and a Pro-Growth Agenda Well, you would think it's pretty easy to arrive at the answer – almost intuitive – but it is really just all about simple economics. You let people keep more of the money that they work so hard to earn, so that they can invest it and make it grow. It's really that simple! But in reality, the President needs Congress' help and collaboration will be absolutely necessary to ensure we remain on this course – specifically by keeping tax rates lower. We've seen the benefits and positive results of reducing income taxes for more than 110 million people who pay taxes. The President did this when he doubled the child tax credit, reduced the marriage penalty, cut taxes on capital gains and dividends, created incentives for small businesses to purchase new equipment and hire new workers, and worked toward ridding us of the death tax. As businesses like yours have grown and created more jobs in response to the reduced tax burden, the federal government has actually collected more tax revenue. Revenues have surged. That's because the tax base has expanded. Americans are paying lower tax rates, but there are more working Americans at work contributing to the pot. I hope that Congress will not let this important opportunity slip by. It would be irresponsible to do so and would stymie our current rate of growth. Right now, the House and Senate are close to completing a bill that would extend cuts on dividends and capital gains for two years – through 2010. I am hopeful that House and Senate members will work together in passing legislation that ensures our economic well-being for years to come. But extending tax relief is only one part of the answer to sustaining a growing American economy. This Administration is also working hard to address other important issue of concern, such as rising gas prices, cutting the deficit in half by 2008 and reigning in discretionary spending while at the same time honing in on national priorities such as fighting the war on terror, strengthening education, and improving access to affordable health care. Health Care Let's look more closely at just one of these important issues: improving access to health care. One way we can address improved access to health care is through the creation of Association Health Plans to help small businesses get the same insurance discounts that bigger companies get. You know, this country has the best health care system in the world but, but health care costs are rising and 60 percent of the 44 million uninsured Americans are small business owners, their employees or their families. We need to seize the opportunity to improve this scenario. Fortunately, for now, there is an important instrument already in existence that is helping more Americans obtain access to health care – Health Savings Account, otherwise known as HSAs. HSAs are helping make health insurance more affordable and putting patients back in control of their health care. HSAs need to be expanded to allow employers to put money into tax-free accounts to be used for out-of-pocket medical expenses. A bill introduced this week by Representative Eric Cantor, the Tax Free Health Savings Act of 2006, would help ensure that even more Americans will be able to take advantage of these revolutionary health-cost and savings vehicles. The key to HSAs is what's called a high-deductible health care plan. A high-deductible health-care plan is offered at premiums that are dramatically lower than plans with lower-deductibles making them much more affordable. This is the way it works: by using money in your tax-free Health Savings Account to help pay the higher deductible or any other health expenses, you reduce the cost of your health care. Additionally, instead of sending more money off to insurance companies in the form of higher premiums, through HSAs families are in a position to keep their savings in an account that belongs to them, not to their employer or to an insurance company. In short, HSAs bring the cost of purchasing quality health insurance within reach. The good news is that currently, over 3 million Americans, many of who had been previously uninsured, have gained much peace of mind and are now enjoying more affordable health care because of the tax advantages and savings benefits of HAS qualified plans. Financial Education The creation of more jobs, more savings options, as well as affordable health care options is fantastic news. However, in order to maximize these choices, we also need to ensure that people have the skills to wisely manage the additional dollars they are earning and hopefully continue to keep in the years to come. Improving financial education is also a top priority for the President, the Department of the Treasury and for my office. That is why in 2003, the President signed into law legislation that created the Financial Literacy and Education Commission, otherwise referred to as the Commission. This federal commission is lead by Secretary Snow and is also comprised of 19 other federal agencies. The Commission is tasked with developing a plan to improve the money management skills of people in the U.S. We recently launched a national strategy to improve financial education and financial literacy levels of all Americans. The Commission was also tasked with developing a federal financial education web site and toll-free hotline, which were launched in English and Spanish in October of 2004 – MyMoney.gov and 1-888-MyMoney. And very soon, the Commission will turn its attention to developing a multimedia campaign addressing financial education needs in the U.S. Since the strategy addressing the campaign has just been completed, the work on this campaign is just in its earliest phase. I encourage you to visit MyMoney.gov. MyMoney.gov has resources on a whole host of personal finance topics from the federal government including: budgeting, taxes, credit, financial planning, paying for education, retirement planning and more. The web site is an effective tool and great resource you can tap. You can also order a sample of some of the publications that are available on the web – what we call the MyMoney Tool Kit. It has information to help you choose and use credit cards, get out of debt, protect your credit record, understand your Social Security benefits, insure your bank deposits, and start a savings and investing plan. The web site was recently updated and now also includes an interactive quiz know as the "Money 20." I hope you take some time to check it out. I'd like to say it's free, but your tax dollars have really already paid for these great resources, so don't throw away this opportunity. Office of the U.S. Treasurer Before I close, I'd like to take this opportunity to share with you a brief overview of my responsibilities as 42nd Treasurer of the United States. As Treasurer, I assist the Secretary in informing the public about the President's economic priorities. I also work in an advisory capacity on issues of coin and currency design, as well as improving public education in the area of currency security and new design features – in addition to helping improve financial literacy and education. I spend a considerable amount of my time working on issues of coin and currency because it is important that we continue to ensure that the integrity of our currency remains uncompromised. For example, in March of this year, the new $10 note was launched and began to circulate. I happen to think it's gorgeous. In addition to including all of the latest security features – the security thread, watermark, and color shifting ink on the number ten found on lower right corner on the face of the note – the new design has incorporated color. Tones of yellow, orange and red compliment the enhanced portrait of Alexander Hamilton. There is one other important change to the $10 note. We have added the words "We the People" from the Constitution to the right of his portrait, in bold red letters. I hope you will take a few moments to study the new note and tell others about the new features we've incorporated into this new beautiful note. Also, we've brought a few new notes today if you're interested in exchanging one old for a new. In the years to come, we plan to make changes to the $100 and $5 bill as well. We will continue to make changes to our currency every 7 to 10 years to stay ahead of would-be counterfeiters. In closing, I want to thank you once again for your interest and attentiveness. It has been a real pleasure and a privilege to share this time with you and have the opportunity to tell you a little bit about our priorities and the work we're engaged in at Treasury, particularly in my office. I have really enjoyed my visit to Richmond – thanks for making me feel so welcome. I look forward to returning very soon.