President Bush says his economic policies are beginning to show results, with improved growth in the second financial quarter. Democrats say the president's tax cuts are creating huge federal deficits.
President Bush says record tax cuts mean Americans have more money to spend to help stimulate the economy.
"The best way to promote growth and job creation is to leave more money in the pockets of households and small businesses, instead of taxing it away," the president noted. " So we lowered income tax rates, cut taxes on dividends and capital gains, reduced the marriage penalty and increased the child tax credit."
The U.S. gross domestic product rose more than two percent between April and June, but unemployment stayed above six percent, with businesses cutting jobs for the sixth month in a row.
Without his tax cuts, Mr. Bush says, 1.5 million Americans would not have the jobs they have today. In his weekly radio address, the president says he is taking action to help small businesses, which he says are America's job creators.
"We increased tax incentives for equipment purchases, giving small businesses an additional reason to invest. More orders for machinery and equipment means more jobs. And more business investment can lead to greater worker productivity, which helps raise worker wages," Mr. Bush said.
Democrats say the president's tax cuts are running up huge federal deficits at a time when the United States is paying for military action in Afghanistan and Iraq. Since Mr. Bush took office, the U.S. economy has lost more than three million jobs.
In the Democratic response to the president's radio address, Virginia Governor Mark Warner says President Bush and the Republican-led Congress are ignoring the needs of low and middle-income Americans.
"They forced through massive tax cuts to provide the greatest benefits to the wealthiest Americans. So, instead of getting our economy moving again, Republican policies have made the fiscal crisis of the states only worse, forcing most states to cut vital programs or raise taxes," governor Warner said.
Governor Warner says Washington is refusing to live-up to its share of spending on public safety, education, and health care. He says the president's "political victory" in cutting taxes ends up passing the burden down to states and local governments that are already facing lower revenues in a still struggling economy.
