May 16, 2006
JS-4265

Statement of Secretary John W. Snow
Economic Press Briefing

I am pleased that you could join us this afternoon. We are coming up on the third anniversary of the historic Jobs and Growth bill, which has propelled the American economy forward for a long time now. It has put the American economy on a good path – a sound path that clearly has us going in the right direction.

Tomorrow there will be a signing ceremony in the White House on important tax legislation that extends the lower rates on dividends and capital gains, protects millions of Americans from the AMT and provides small businesses with the continuing advantage of expanded expensing. This is all good news for American taxpayers and American families and American businesses and American investors.

That legislation was essential to avoid a tax increase on American families and America's small businesses, and it was a victory for America's taxpayers. The legislative success is a tribute to Chairman Grassley and the Senate Finance Committee for their hard, painstaking work in making this day possible. Senator Frist is also due congratulations for his leadership on this bill and on the issue of the economy more broadly. In the House, whose vote on preventing tax increases came first, Chairman Thomas and Speaker Hastert are to be commended for their leadership.

What the President's leadership of the economy has demonstrated is that low tax rates create investment, create jobs, create growth; and now with the surge of revenues we are seeing as a result we can also say that low taxes are consistent with rising federal revenues which of course help bring the deficit down.

I am pleased to see the progress we are making on that count. April receipts were very strong, just what you would expect with an economy that is growing, expanding, creating jobs and with rising equity markets.

CBO recently released new estimates on the budget deficit for the year, bringing it to the range of $300 to $350 billion. Our own estimates will be out sometime soon after we complete the mid-session review.

I am confident we will continue to see good progress on the deficit. It is clear now that the President's objective of cutting the deficit in half will be met and exceeded ahead of schedule.