You, the Congress, have already passed all these reductions, and promised them for future years. If this tax relief is good for Americans three, or five, or seven years from now, it is even better for Americans today.
We also strengthen the economy by treating investors equally in our tax laws. It is fair to tax a company’s profits. It is not fair to again tax the shareholder on the same profits. To boost investor confidence, and to help the nearly 10 million seniors who receive dividend income, I ask you to end the unfair double taxation of dividends.
Lower taxes and greater investment will help this economy expand. More jobs mean more taxpayers - and higher revenues to our government. The best way to address the deficit and move toward a balanced budget is to encourage economic growth - and to show some spending discipline in Washington, D.C. We must work together to fund only our most important priorities. I will send you a budget that increases discretionary spending by four percent next year - about as much as the average family’s income is expected to grow. And that is a good benchmark for us: Federal spending should not rise any faster than the paychecks of American families.
A growing economy, and a focus on essential priorities, will also be crucial to the future of Social Security. As we continue to work together to keep Social Security sound and reliable, we must offer younger workers a chance to invest in retirement accounts that they will control and they will own.
Our second goal is high quality, affordable health care for all Americans.
The American system of medicine is a model of skill and innovation - with a pace of discovery that is adding good years to our lives. Yet for many people, medical care costs too much - and many have no coverage at all. These problems will not be solved with a nationalized health care system that dictates coverage and rations care. Instead, we must work toward a system in which all Americans have a good insurance policy...choose their own doctors..and seniors and low-income Americans receive the help they need. Instead of bureaucrats, and trial lawyers, and HMOs, we must put doctors, and nurses, and patients back in charge of American medicine.
Health care reform must begin with Medicare, because Medicare is the binding commitment of a caring society. We must renew that commitment by giving seniors access to the preventive medicine and new drugs that are transforming health care in America.
Seniors happy with the current Medicare system should be able to keep their coverage just the way it is. And just like you, the members of Congress, members of your staffs, and other federal employees, all seniors should have the choice of a health care plan that provides prescription drugs. My budget will commit an additional 400 billion dollars over the next decade to reform and strengthen Medicare. Leaders of both political parties have talked for years about strengthening Medicare - I urge the members of this new Congress to act this year.
To improve our health care system, we must address one of the prime causes of higher costs - the constant threat that physicians and hospitals will be unfairly sued. Because of excessive litigation, everybody pays more for health care - and many parts of America are losing fine doctors. No one has ever been healed by a frivolous lawsuit - and I urge the Congress to pass medical liability reform.
Our third goal is to promote energy independence for our country, while dramatically improving the environment.