December 6, 2005
JS-3037

Statement of Secretary John Snow on Third Quarter Productivity Data

"The productivity of American workers increased at a 4.7 percent annual rate in the third quarter. Since productivity ultimately leads to higher wages and higher standards of living, this economic indicator is very good news for American families, both for today and for the future.

"Combined with the recent news of GDP growth – 4.3 percent in the third quarter – and a solid rate of job creation, today's productivity number is one more clear indication of the success of the President's economic policies. Talk on Capital Hill of undoing some of this policy – by raising taxes – is of great concern to me. Having lower tax rates on capital is good policy, and the results for workers and families proves it; 4.5 million new jobs can't be wrong. Furthermore, the thriving economy has created increased federal tax revenues that have helped to bring the deficit down.  Congress needs to continue the policies that have worked so well.  Raising taxes on capital at this time takes us in the wrong direction and would jeopardize the strong recovery we're seeing."