FROM THE OFFICE OF PUBLIC AFFAIRS

August 13, 2004
JS-1856

The Honorable John W. Snow
Prepared Remarks to the Greater Boca Raton Chamber of Commerce
and the South Florida Business Alliance
August 13, 2004
Boca Raton, FL

Thank you so much for having me here today; it's great to be in Boca Raton and it's always a privilege to meet with the people who are creating jobs for their communities.

It's also a pleasure to see Congressman Clay Shaw here. He does a terrific job representing this district, and I certainly enjoy working with him on keeping your taxes as low as we can.

The economy here in Florida is doing very well, and I want to commend the business leaders here today for their role in Florida's success. You've created almost 82,000 jobs for Floridians so far this year, and that's terrific news for Florida families.

Growth among companies like yours is benefiting our economy on a national level as well. Although the President would like to see even stronger job growth, the good news is that jobs have been added to the national payrolls for 11 months in a row.

I anticipate that growth will continue on a national level, with states like Florida leading the way.

The President and I want all job-seekers to be rewarded with paychecks, and we know that the reward cannot come soon enough for them and their families. Even though lots of new jobs have been created in the last year, we're not satisfied.

The underlying fundamentals of our economy are very strong. We've seen that tax cuts work and that job creation does follow economic growth. I'm optimistic. An analyst at Prudential had it right this week when he said that you could fit the number of economists who think the economy is going south in a phone booth!

But beyond that academic, economic analysis, there is something else that is standing out to me. Everywhere I travel, I meet with small-business owners who drive our economy. And everywhere I go, they tell me that they are using their tax savings to grow their business and hire new employees; they know that the president's tax cuts have made all the difference in the world to them, putting oxygen into their businesses.

From a land surveyor in New England who is employing three times more workers than he did two years ago to a pet food manufacturer in Alaska who was finally able to buy an expensive new piece of equipment to increase his company's productivity – the news is good among this critical segment of our economy.

And since small business creates two out of every three net new jobs, good news for small business is good news for Americans who are seeking work.

An interesting small-business story I heard recently that I think shows the underlying health of our economy – and the direct impact of the tax cuts – was from the owners of Mug-a-Bug Pest Control Inc. in Lawrenceville, Georgia. They report that homeowners who had previously canceled their quarterly pest-control service during the slow days of the economy re-instated the service after tax cuts went into effect. As a result of the increase in business, Mug-a-Bug purchased five new route vehicles and hired three new employees.

Another great story came from Bob Ford, President Abrasive Blast Systems in Abilene, Kansas.

Bob has seen a big increase in orders at his small manufacturing firm from client businesses over the past two years due to the strengthening economy, enabling him to hire four additional workers in the past year, bringing his total number of employees to 20.

He said that in 2001 and early 2002, companies were very reluctant to spend money on the new equipment that he makes. But from mid-2002 through 2003 and 2004, he has seen a big increase (by at least 50%) in small companies placing orders for new equipment.

You'll often hear the President say that what's good for small business is good for America, and that's why his tax cuts were designed to help businesses like the ones represented in this room today.

When you are growing, the American economy is growing.

And it is important to remember that the benefit, the stimulating effect, of those tax cuts is ongoing.

Nearly 1.4 million business taxpayers like you in Florida will be able to use your tax savings this year to invest in new equipment, hire additional workers or increase employee compensation.

And more than 6.1 million individual taxpayers in Florida will have lower income tax bills for 2004 thanks to the President's tax relief.

When individuals and small-business owners are able to keep more of their own money to spend or invest they way they see fit, good economic news follows.

We still have challenges, to be sure. The price of oil is causing an economic headwind, and it's critical that the Congress act to pass the President's energy plan which has been stalled in the Senate. The Senate needs to act, and act now.

We need to enact his energy policy because it will make us less dependent on foreign sources of energy and help to keep and create energy industry jobs here in America. We've also got to conserve better, we've got to work on renewable energy sources, and we've got to explore in environmentally friendly ways in places like ANWR in Alaska. The President's plan will lead to lower costs, and that's very important for our economy.

High health care costs are another challenge for individuals, families and employers. The recently enacted Medicare prescription drug bill contains an innovative new program to empower consumers to make better health care choices. HSAs, Health Savings Accounts, are really super-charged IRAs that put patients back in charge of their health care. You own it, you control it, you can leave it to your heirs.

I believe we made real progress this year helping seniors to afford their prescriptions with the President's Medicare Drug Discount Cards. More than 4.1 million seniors are already using their cards, and I encourage others to take advantage of the new program by calling 1-800-MEDICARE, visiting www.medicare.gov or calling their state's Health Insurance Assistance Program (SHIP).

Seniors can use the card to save 15 to 30 percent off the usual retail price of most brand name drugs and more on generics at neighborhood pharmacies, and potential savings from the cards are even greater when seniors choose generics. Low-income seniors can get these savings and an additional $600 a year – $1,200 through the end of next year. This subsidy, combined with discounts available through the card, can save eligible seniors 32 to 86 percent off what they are now paying for their medicines.

These are reforms that impact people's day-to-day lives. Tax cuts have put more money back into the family budget. The Medicare drug benefit eases the budgets of seniors.

We are also impacted on a daily basis by our relationships with other countries, and the President is working tirelessly on those issues as well.

Our policy towards Cuba is, of course, of great interest to folks here in Florida. The objectives of United States policy towards Cuba are clear: bring an end to the ruthless and brutal dictatorship; assist the Cuban people in a transition to representative democracy; and assist the Cuban people in establishing a free market economy.

Both in October 2003 and May 2004, President Bush announced stepped-up initiatives intended to hasten the arrival of a new, free and democratic Cuba by strengthening enforcement of U.S. laws prohibiting travel-related transactions with the island.

The Treasury Department is implementing President Bush's strengthened regulations to help keep hard currency and travel-related dollars out of Castro's coffers.

These strengthened measures, which took affect June 30 th, include: issuing specific licenses for family travel; restricting family travel to once every three years; limiting family travel to two weeks in Cuba; extending family travel solely to immediate family; limiting the scope of remittances to immediate family; restricting the remittances U.S. visitors are allowed to carry to Cuba to $300; and requiring educational programs in Cuba have a 10-week minimum stay.

Estimates show between $700 million and $1.2 billion flows from the U.S. to Cuba each year. It is estimated that this amount will be cut by one-third under the strengthened measures, which would reduce flows from between $470 million and $804 million per year.

The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) is responsible for administering and enforcing the 29 sanction programs imposed by the United States against rogue nations. Cuba , because of its proximity and distinctive relationship with the United States , has a unique and critical sanction program which receives strict attention.

Our relationship with Haiti is unique as well, and I'd like to give you an update on that relationship.

The United States is continuing its role as a strong supporter of Haiti. At the July 20th donors conference, the United States pledged $230 million in additional grant assistance to Haiti as a part of the over $1 billion in new assistance the international community has mobilized for that country. Our aid will help to create jobs, provide clean water, build infrastructure, improve access to educational and health services, develop social safety nets, and strengthen institutional capacity. The Treasury Department has also played a special role in promoting rapid engagement by the IMF, World Bank, and Inter-American Development Bank with the interim Haitian government.

Treasury Under Secretary John Taylor traveled to Haiti in early July for discussions with government officials as well as private sector representatives on the policies needed to restore economic stability and lay the basis for sustained growth. Treasury technical assistance advisors have initiated work with the Haitian government to identify measures to strengthen tax administration, budget management, and financial crimes law enforcement.

From tax cuts to international relationships, your government is working hard, every day, to ensure your freedom and encourage your prosperity. Because we understand that government can't make your business grow… but we can create an environment in which you have the room you need to flourish.

It's good to be here with you… I look forward to hearing your ideas and concerns, and thank you again for all you do for this great American economy.

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