Fiscal Policy

President George W. Bush delivered his “State of the Union” address in January 2003 to the members of Congress and the United States public. Within his address, he proposed his ideas to reform and improve the economy. In the previous year, the government attempted to bring the economy out of recession by instating the largest tax relief seen in a generation. His present goals have the purpose to further strengthen America’s economy.
His first proposal was to set all the income tax reductions for 2004 and 2006 as effective and permanent this year. He stated that as soon as he signs this bill, the extra money would begin to show up in workers’ paychecks. Bush also promises that he would reduce the marriage penalty and raise the child credit to $1,000 immediately rather than gradually.
Bush believes that when Americans have more money to spend and invest as a result of less taxation, the economy will grow, which will in turn create jobs. “We must have an econom...