Remarks in a discussion with small-business owners in Jacksonville, Florida

Weekly Compilation of Presidential Documents, Feb 17, 2003

Secondly, the double taxation of dividends hurts our senior citizens. It's particularly acute here in the State of Florida. There's over 10 million seniors rely upon dividend income during their retirement years. Why would we want to have something unfair in the Tax Code which also penalizes those who we really need to help after their retirement?

The double taxation of dividends will also put a premium on good accounting. In other words, if you're distributing dividends, your whole growth portfolio, your whole growth agenda will be based upon yield, as opposed to pie-in-the-sky projections. Of course, people will say, "Well, gosh, I'm going to invest in this company because I want a share of their cashflow or share of their profits." And therefore, the company ownership must base its projections on how they treat the shareholder, as opposed to some pie-in-the-sky prognostication about what may or may not occur. Growth will occur based upon the certainty of the dividend being distributed. It will be a really important corporate reform in America, in my judgment.

So this is what I've asked the Congress to approve. There's a lot of talk about whether or not this is what they call stimulative, whether or not it will affect the economy. Of course it will, because over the next 15 months we'll have pumped in $100 billion of additional money into the private sector. That money will circulate. As that money circulates, it's more likely somebody is going to be able to find work.

And so I'm here not only to share the details of the plan with you; I'm here to ask you to contact your Senators and your Members of Congress, remind them of whose money we're talking about, and remind them of the philosophy I've just outlined to you as how best to create jobs. The role of Government is to create an environment in which people are willing to risk and take risks and to go to work and work hard, and tax relief encourages that kind of environment.

So we're going to first start off and hear from Sue Butts. Sue is a entrepreneur. She owns her own business. She owns Supreme Janitorial. She has owned it since 1968. Is that right?

Ms. Butts. Ninety-two.

The President. Ninety-two. Okay. [Laughter]

Ms. Butts. It's been in existence since '68.

The President. You bought it in '92.

Ms. Butts. Ninety-two.

The President. I will just tell you that she will receive a $3,300 tax reduction if Congress--when Congress passes this plan. I'm optimistic, by the way, that Congress is going to get the message. Why don't you tell us? Give us your thoughts.

[At this point, the discussion proceeded.]

The President. Yes, I think it's important for our fellow citizens to know that there are ways for Government to incent people to invest, and this is a good way. I mean, here's a classic example of somebody who has limited the amount she is going to invest based upon tax policy. And the idea of raising the limit to $75,000, in this case, it sounds like, could encourage more investment.

Now, what that means is somebody is going to be tasked with building the machine she purchases or the equipment she purchases, and that person will be working. And then, of course, the people who she hires will have more equipment. And it may mean that she needs an extra person to deal with the equipment she purchases.