Moving Forward
For the past several months, Americans have watched the stock markets drop, watched their 401(k)s and mutual funds shrink and raged at corporate executives who defrauded investors and employees for personal gain. It's reassuring to see that as a nation we are adjusting to these problems, making needed repairs and moving forward.</br></br>President Bush has signed legislation to improve corporate accountability and auditor oversight; the Securities and Exchange Commission has sharpened its focus; and executives and directors in boardrooms across America are scrutinizing and improving their practices to ensure accurate information for investors.</br></br>The enduring performance of our economy -- even following terrorist attacks on our political and financial capitals, corporate scandals and the end of the dot-com bubble -- has been a testament to the character of our nation. Confidence in our financial markets, in turn, does not come from talking heads on television. It derives from the economic fundamentals, which today are strong. Our economy is growing, and inflation and interest rates are low. Homeowners are refinancing their mortgages, giving them more cash to spend each month, and our economy has created additional new jobs for two months in a row. When the economic fundamentals are strong, personal incomes rise and our prosperity is more secure.</br></br>President Bush has been focused on these fundamentals since he took office, emphasizing the principles of economic freedom: simpler and lower taxes, freer trade, homeland security and fiscal restraint. Quick action last year, when the president cut taxes and the Federal Reserve cut interest rates, shortened and reversed a recession. Today our recovery is underway, and Americans are going back to work. And the president is continuing to reinforce the foundations to strengthen our recovery and to protect the savings that working Americans set aside for their economic security.</br></br>First, we are continuing to improve our tax system, by working to make tax relief permanent and to simplify our tax code. Predictability and simplicity should be our bywords. Predictability so that families, investors and small business owners can invest for the future and hire new workers without fear of surprise new costs imposed by the government. Simplicity because our overwrought tax code is an abomination. It diverts vital resources away from job creation and productive investments, puts U.S. employers at a competitive disadvantage and raises prices for consumers.