Bush speaks at the Labor Department ReportAired July 2, 2004- ETTHIS is a hurried transcript at 11: 00. This copy may not be in final form and may be updated. Betty NGUYEN, cnn anchor: It\'s 11: 00 in the morning. m. On the East Coast, 8: 00 in the morning. m. in the West. I\'m Betty Nguyen from CNN News Center in Atlanta, and I\'m reporting for Darin Kagan today. We are waiting for President Bush to speak in the East Hall of the White House. He will discuss economic issues today after the new Labor Department report, which created about 112,000 jobs last month. Of course, when this happens, we will be live on CNN. CNN first reported rocket attacks in Iraq. In the attack on two hotels in Baghdad, insurgents used a rigged vehicle for lunch. Both the Sheraton Hotel and the Baghdad hotel are used by Westerners. Two people were injured in the attack. In Iraq today, militants have released two Turkish citizens who have been held hostage. They were released after their employer agreed to stop doing business with the United States. S. Troops in Iraq We have just learned that a Pakistani hostage is still released today. Jordan\'s King Abdullah has said he is willing to send troops to Iraq. The king told the BBC that it would be difficult for Iraqis to refuse if they asked for help. Yemen says it will also send troops under the leadership of the United States. N. mandate. The report by CNN\'s senior international correspondent in Baghdad, Brent Sadler, details the latest developments in Iraq. (Start Video) Brent Sadler, cnn senior international correspondent: the attempt to launch a rocket at a target in central Baghdad was partially successful because the launch mechanism apparently failed. The insurgents manipulated a small bus with nine launch tubes and drove it to the famous landmark, Firdos Square. S. - Led Invasion last April. The launch platform caught fire after the launch of two rockets. Seven other missiles hit concrete innocently. But a bullet hit the 10 th floor of the Sheraton Hotel and caused damage, but was not injured. Sheraton is home to many international news agencies and Western businesses. The second rocket strayed out of orbit and burst into the parking lot of the Baghdad hotel, injuring two Iraqis and burning a car. The attack took place the day after ousted dictator Saddam Hussein was summoned by an Iraqi judge. Iraqis are still mastering the images they see on television, which are linked with the previous The rulers appeared after their arrest in last December, broken and confused. Instead of showing a failure, they saw Saddam challenging the jurisdiction of the judge, refusing to sign court documents and insulting the Kuwaitis. This scene has sparked widespread debate here about whether the judicial process is sensible, which allows the ousted president so much freedom to express his ideas. Brent Sadler from CNN in Baghdad(END VIDEOTAPE) NGUYEN: a group of specially appointed journalists were allowed to call Saddam Hussein and 11 others in court. John Burns, a New York Times reporter, said Saddam was the least convinced. ( Start Video Editing) John Byrne, the New York Times: Of the 12 defendants that appeared yesterday, only one did not understand that the game was over and that was Saddam Hussein. Saddam Hussein believes that he can show himself, like the president of Iraq, to attack the coalition and its status here at the weakest time. There is no doubt that this is very effective. There are a lot of Iraqis who like to do this, including Iraqis, and by the way, I spoke to them yesterday, their families, in some cases, themselves wounded by Saddam. Psychology difficult to understand But he knew he had an audience playing there and he would-- You can be sure that he will make the most of it. (END VIDEO CLIP) NGUYEN: for those who survived his brutal regime, Saddam\'s TV appearance was a long-awaited moment. ITV reporter Harry Smith reports from London. (Start Video) Woman: Look! Oh, Saddam, oh! Harry Smith, ITV journalistvoice-over) He was tortured by Saddam\'s secret police. More than 70 of his family were slaughtered. When he looked at his torturers to face justice, Sahib al-Harkin could not hide the hatred. Sahib alhakim from FRM Iraqi prisoner: Oh! Saddam, criminal. You should die. You should die. You don\'t deserve life. Smith: years of pain have returned after anger. ALHAKIM: I remember the people who were buried in the collective graves. I took part in the activities of digging the mass graves. I \'ve seen bodies without heads. I know the dictator\'s son Udai has beheaded a lot of women because they are not loyal to the regime. So when I saw these buried bodies, I thought they were innocent because they opened their mouths to the regime. SMITH: Dr. Harkin fled Iraq 22 years ago. As long as Saddam is in power, he has been living under the threat of assassins. His family paid a terrible price against the dictator. ALHAKIM: all of this is my family, alHakim, who has been arrested and killed by the Saddam regime. This is my brother, Sir. Jaber Harkin killed by Saddam Hussein They were poisoned with thalium. This is my cousin,UNINTELLIGIBLE)Hakim. He was killed in the explosion in the holy city of Najaf. For Sahib alHakim, this is a day full of mixed emotions. From the pain of the past to the hope of seeing justice in the future. Harry Smith, ITV News(END VIDEOTAPE) NGUYEN: you can log in to cnn. Any time you want an update on Iraq. You can also see Saddam\'s photo gallery in court. We do have some new pictures of him in handcuffs and I think it will be there soon. You can read the proceedings on this website and check the files of the main prisoners in Iraq. President Bush is touting wage growth in June, the slowest pace of job growth since February, and the unemployment rate remains unchanged. Of course we are waiting for the president to speak. He will speak in the East Hall of the White House this morning. Discuss data on the economy and the latest employment report. The Labor Department said today that it created 112,000 jobs last month, well below Wall Street\'s expected 250,000. In fact, this is less than half the expected 250,000. However, as mentioned earlier, the unemployment rate has not changed at 5. 6 percent. However, June remained the 10 consecutive months of employment growth, an increase of about one month. Wages of 5 million workers. Will this slowdown be a tough fight for the president? Let\'s see what he says about it. He is now meeting with the leaders of small businesses. After the meeting, he will be speaking from this rostrum on economic issues. We know that this should happen in a minute from now on, and it will happen soon. To give you some economic facts, the economy is $11 trillion. We have a deficit of $521 billion. As mentioned earlier, the unemployment rate is 5. 6 percent. And 1. 5 million new jobs have been added in the past 10 months. But we also understand that with all these new numbers, these 8 numbers will appear. 2 million of Americans still can\'t find a job, at least last month. As you can see, the president took to the podium. Let\'s listen. GEORGE W. US President George w. Bush US President Bush: Hui Kang. Thank you for coming. (LAUGHTER) I\'m glad you came. What we are talking about here today is the economic security of our fellow citizens. One of my most important jobs is to help create an environment where the startup spirit is booming, because I believe that America is a paradise for entrepreneurs, and that is one of the real advantages of our country. I know, when entrepreneurs feel confident, when small- Business owners invest and people are more likely to find jobs. I am interested in people who work. I want people to be able to go to work, go home and say, \"it\'s my responsibility as a parent to put food on the table. \"Or,\" I had the opportunity to try to set aside -- I made money for my child\'s education. \"That\'s what I\'m interested in. One way to do this is to make sure it\'s small- The business part of our economy is dynamic, strong, dynamic and confident. I think so. (APPLAUSE) The economy of the United States has experienced a lot. If you really think about it, it\'s great to be able to stand up and say to you that our economy is getting stronger and stronger; We have witnessed steady and sustained growth. After all, we have experienced a recession, a national emergency, a war and a corporate scandal. Bush: Our economy is changing. It\'s -- The nature of the work base is changing. All of this means it\'s a tough time. But we are strong. We are stronger and stronger. We have witnessed steady growth. - This is important. We don\'t need prosperity-or-bust-type growth. We want steady, sustained growth so that our fellow citizens can find jobs, so small- The business department will be confident in expansion. I\'m glad to see that consumer confidence has doubled. year high. This shows that the economy is strong and getting better and better. When people are confident, they tend to be part of decision-making -- Millions of policy makers believe the future will be better. I just met little-Business owners. I will introduce it here later. They are confident. The first thing I hear is do they have confidence in their voice? Are they saying to me \"Oh my God, I\'m confident enough to invest? If you are someone who is trying to report the nature of our economy to the country, that is what you are listening. For a person, for a business, they say, \"you bet. I am confident in the future of this country. So I\'m going to invest more, \"I\'m going to talk about it here for a second. Real after- December 20 year 00 of tax income up to 11%. This is an important statistic for me. Real after-tax incomes. This means that there is more and more money in someone\'s wallet. That\'s what we want to hear, isn\'t it, especially if you\'re a person with a wallet? (LAUGHTER) It\'s a good sign when people work and keep more of their own money. That\'s what we want. (APPLAUSE) The housing ownership rate is a whole. time high. This is an important statistic, especially if you believe that the more people have something, the better our society will be. That\'s what I think. We want more people to have their own small businesses. We want more people to have their own houses. When someone owns their own house, they say, \"This is my property. Welcome to my house. \"They won\'t say,\" Welcome to the home of the government. They say, \"Welcome to my home,\" which is an important part of what you know, not only the confidence of consumers, but also an important part of ensuring that people are interested in the future of our country. If you have something, you want to make sure the government makes the right decision so that you can continue to have it. And our housing ownership rate is-time high. A particularly important part of this statistic is the housing ownership rate of ethnic minoritiestime high. You see, not only do we want. . . (APPLAUSE) When I\'m talking about ownership, I\'m talking about ownership for all, you know, not just for some type of person. We want ownership to be part of every community. It is happening in the United States. This is really the reason why this country is so beautiful, isn\'t it? People from all walks of life can say this: \"I have my own things. \"This government will continue to ensure that the ability of the ownership society or people to own their own businesses or families remains strong and dynamic. Manufacturers have reported more activity in 20 years than ever. We have been worried at home about whether the manufacturing industry will remain dynamic and strong, and the report says the activity is as good as it has been in the past 20 years. It\'s a good sign, isn\'t it? I was told today. - Today, the purchasing manager index has exceeded 60 for the eighth consecutive month. Bush: It doesn\'t mean anything unless you\'re a person who focuses on all the data in Washington. But what it means is that it confirms the concept that manufacturing activity is as good as it has been in 20 years. This is very positive. Today, we have released a new employment report. The job increase in June was 112,000, which means we added 1 in total. There have been 5 million new jobs since last August. (APPLAUSE) This shows steady growth for me. You know, it\'s one thing to report a rise in GDP numbers. It\'s another thing to be able to say that more Americans are working. That\'s what we want. We want people to work. We want people to be able to go home and say, \"How\'s work, kid? \"Great. I like to work. \"I met two good workers here today from North Carolina. I want to introduce the boss of their company. But here they are. \"We are working hard and we feel good,\" they said. This is good news for our economy. Thank you for coming. I appreciate -- I can see a lot of my government members here. I do not want to try the full inspection except minister of commerce Evans. He did a great job managing a very important Cabinet Office in my government. Thank you for coming, though. See a lot of familiar faces. I see a lot of entrepreneurs. I see a lot of people in Washington who represent entrepreneurs. You did a great job of helping Congress understand that the right role of the government is to encourage investment and business formation. BUSH: That\'s why the tax cuts we have passed are so important, especially in the midst of a recession and an emergency. It came at the right time. I would like to thank the people who joined us in persuading Congress to trust the people with their own money. This is the subject of the debate, isn\'t it? Who do you want to spend your money on? It is clear that the government needs to spend some money to make sure that we have the army and that we perform certain functions. But at this point in our economic history, it makes sense to have your own money to spend so that the economy grows. We made a lot of decisions. Know if you have more money in your pocket, if you have more money Additional goods and services are required. When you do this in a market economy, someone will produce goods or services if it works properly. When this happens, it will stabilize the working base and then eventually allow more people to return to work. That\'s what we see. That\'s what we see. The main goal of job growth is small businesses because we know that 70% of new jobs are created by small businesses. We know that. So when we go to Congress, we say, \"When you reduce the tax burden on the American people, make sure you understand the impact of tax cuts on decision-making -- A manufacturer that employs most new people. That\'s your little-business owner. \"Bush: an important part of our package is to encourage small- The business department of our country. It pays off. Look, when it\'s small- Business owners in the United States feel confident and comfortable investing in factories and equipment or new services, which stimulates a vibrant part of our economy. This is what happened. If we know the truth, the cornerstone of our policy is to trust individuals with our own money and encourage small- The business department will grow in order for people to find jobs. (APPLAUSE) We did this in two specific ways. One is to allow accelerated depreciation and encourage investment. If you buy a factory or equipment, or, you know, a new computer program, because you can deduct it from your income more quickly, so it will really cost you less. This is an important part of encouraging people to make investment decisions. The other thing is that we reduce all taxes. Our theory is that you should get tax breaks if you pay taxes. If you are in a certain range, you will get tax breaks, and if you want to get tax breaks, the best, the most fair way to get tax breaks is to say that everyone gets tax breaks, not just a few. That\'s what we do. In Washington, you know, there are often class wars. It says, you know, only certain people get tax breaks, or you don\'t get tax breaks if you\'re labeled \"rich. Our point is that all tax breaks are the most fair way. All tax breaks- The theory of tax cuts for everyone who pays taxes is small- Because most small businesses pay taxes at individual income tax rates. You see, most small businesses structure their companies into what they call subsidiaries. You work in a subsidiary. Or sole proprietorship. So when you lower your personal income tax, you are also lowering your income tax for small businesses. The more money small businesses have, the more likely they are to expand and hire --- Let\'s say they have a good product. (LAUGHTER) Now the government can\'t let you have good products. (LAUGHTER) BUSH: We can\'t say to you, \"My God, we\'ll help you coordinate your supply and demand. \"You have to figure it out yourself. (LAUGHTER) This is not the responsibility of the government. (APPLAUSE) But once you understand, once you understand how to meet the needs of the market, we can provide incentives to encourage you to expand. That\'s what we do. That is why the economy is stable and strong. I tell you, people go back to work because The business sector in the United States is strong, dynamic and confident. (APPLAUSE) Ed Cotenski (ph)is with us. There he is. Ed, stand up and be recognized. Thank you. (APPLAUSE) He\'s from Jacksonville, Florida. He\'s from Jacksonville, Florida. I said -- By the way, he has a business called National equipment. I said, \"did you start a business? He said, \"Yes, at my table. \"It sounds American to me, doesn\'t it? (LAUGHTER) Do you know how many small businesses are starting in their kitchen table or garage? Thousands. By the way, people from all walks of life are the same. Ed did it. He has an S Company, an S Company, which means that when he sees all the tax rates go down, he\'s really saying, \"Congress has wisely lowered the tax on my business. \"This is an important part of encouraging Ed to move forward. By the way, he said that the tax relief we passed in 01 helped him to continue his business. And he is -- Not only is he doing business, he is adding more staff this year. He added 14 more this year. He will recruit six more by the end of the year. (APPLAUSE) He\'s excited about his business. If you don\'t believe him, just ask him after the meeting. (LAUGHTER) He\'s moving the used Caterpillar overseas. He bought them, renovated them, found a market and sold them, which means we \'d better not have trade barriers. I mean, think about Ed when you hear people talking about open trade, fair trade and free trade. He can sell machines. They need it. Although he is small, he can compete globally. business owner. Many small businesses benefit because our government has decided to open the market, not the closed one. By the way, this is an important part of ensuring that the United States is a good place to do business, is to be confident in our ability to compete, as long as the competitive environment around the world is fair, we will make them fair. It\'s part of my job. Ed\'s job is to meet the needs My job is to make sure he has the ability to do so with fair and free trade. He will invest $300,000 this year. This is a big sum of money for a small business. One of the reasons he said he would do so is that the tax savings on the investment would be about $50,000. Look, this is-- When you hear me talking about incentives, that\'s what the tax relief program does. Bush: it says, \"Ed, invest $300,000 and you\'ll save $50,000 from what you usually have. \"This is called motivation. Our American citizens must understand the link between investment and employment. When Ed invested $300,000 to build a warehouse and a painting facility, someone had to come and build the warehouse. Someone is going to make materials for the warehouse. Someone will provide new painting equipment for painting facilities. Investment equals employment. When someone invests like Ed, someone must provide the goods he needs. When someone provides the item he needs, someone is trying to provide the item he needs. This is how the economy works. He said, \"with the money I don\'t send back to the IRS, I can expand here. \"That\'s what he said. (APPLAUSE) Ed is talking about what many people across the country have told me, \"I can spend more wisely than the federal government. \"I appreciate the spirit and attitude. That\'s why it\'s so important that we pass tax breaks. Joan and Owen Maxwell are here. You both know each other. They\'re their boss. (APPLAUSE) No, those are not Maxwells. All of Maxwells\'s are here. There they are. Thank you for coming. They\'re from Edenton, North Carolina. They have their own ship manufacturing company. I asked him how he was fishing off the coast of North Carolina. They make a central console ship. It\'s a very neat little business, isn\'t it? They said their business was good. In fact, they are clearly trying to sell their inventory in advance. So this is a smart idea. I suspect that the demand for their ship has increased as they produce a high quality ship at a reasonable price. If you make a ship of poor quality at a high price, no one will buy it. (LAUGHTER) So they are good businessmen. Over the past six months, they have added 20 workers. They are expanding their business. (APPLAUSE) They will invest $750,000 for their ship this year. Establish business. Someone needs to make a mold. The mold they bought was made by workers. The tax relief program we passed will save them $100,000 in investment. You see, there\'s a link between good tax policy and decision making. making. When they realize that doing so can save $750,000, they are more likely to buy a mold worth $100,000. That is why it is important for our citizens to be able to establish a link between tax relief and decision-making -- This will bring more jobs. One interesting thing Maxwells did --- I really appreciate it. - Do they work with local community colleges to set up a course to train people entering their industry-ship manufacturing. This is a wise and wise use of a very important community asset-Community College. Now, I have met some people in North Carolina who have had to move from textile to healthcare due to financial difficulties. In North Carolina, many people who used to work for textiles are looking for new jobs. By the way, the health care industry wisely uses the community university system to provide training that really works. Now this person will have to be trained. But courses must be offered by community universities and local businesses. By the way, in many cases, the government helps pay wages. It is wise to use taxpayers\' money. It is wise to use the money of local taxpayers to provide training for people so that they can find jobs. As our economy changes and continues to grow, we will face a real bottleneck in the United States, whether the workers have the skills they need to fill the 21 st century jobs. Making sure America is the best place to do business in the world so that people can continue to find jobs is one of the real challenges to make sure our education system works well. Bush: one way to make it work well is for the federal government to work with community colleges and local businesses to design courses that provide people with work training that actually exists. I would like to thank Maxwells for being part of this practical action of national education. \"There are a lot of opportunities for people to use these skills,\" says Joan. We are building our workforce for the future here. \"That\'s what we think in government. We are thinking about the future. We are considering how we can ensure that the momentum we develop in the economy is not only strong in recent years, but also in 10 years? So we have to start planning the future. We have to understand that the decisions we make today will make small- The American entrepreneur spirit, the business sector, will still be very strong tomorrow. Part of this is to make sure that the education system not only teaches our young people how to read, write and add and subtract before it\'s too late, but it\'s also to make sure that our community colleges are able to develop courses, provide jobs for people. So I want to thank Maxwells for coming. I appreciate your spirit and thank you very much for hiring. We\'ve got. . . (APPLAUSE) John Biagus (ph)is with us. Thank you for coming, John. Newport News in Virginia(APPLAUSE) Newport News in Virginia John bought his business in 1997. He gambled and said, \"I\'m going to buy this business from my former boss. \"I think he said they could have sold $1 million in 1997. More than $14 million now. This is very good growth in five years, isn\'t it? A year. The entrepreneur bought a company with a very good sales base, but he expanded it 15 times in five years. John, I can\'t wait to see what you look like in five years. (LAUGHTER) By the way, it wouldn\'t be great if they raised taxes on you. One of the things, you see, is that John is thinking about what his business will look like in five years. Bush: I can predict to him that if we raise taxes on subsidiaries by raising the highest tax rate, his business will not be as good as when we keep our taxes low. John is an S Company. In other words, you know, all the discussions about raising the highest interest rate will affect his business. When you hear them say \"we will raise the top tax rate\" in Washington, remember that this is a tax on small businesses. You don\'t want to tax small businesses because they create the necessary economic momentum for us. There have been 5 million jobs since August. We hope to continue to create jobs. Raising taxes will make it more likely that people will not be able to find jobs. You know why? Because it affects businesses like John. That\'s why. When you start taking money from John\'s vault, it means he is unlikely to expand. He is a full- Service electrical and general contractors. That\'s his job. He has hired eight people in the past two months. He wants to hire eight or ten more this year. This is positive. (APPLAUSE) I think we\'re starting to see a trend. (LAUGHTER) Small business recruitment: 8 people here, 10 people there. But overall, there are millions of small businesses around the United States. Small businesses are the cornerstone of America\'s great corporate system. Not only that, but it\'s also the cornerstone of a country full of hope, isn\'t it? John is one of 14 people, the kind of country that grew up in Lake Charles, Luis Anna. - I might add that the smallest of 14- You can go to the family party. I suspect it is very big. . . (LAUGHTER). . . \"By the way, my business is doing very well. \" (LAUGHTER) This is a great American story. -isn\'t it? -- People who have dreams are willing to work hard to realize their dreams. Our job is to make sure these dreams come true. - Dreams still exist. BUSH: This year he will save $60,000 in taxes on $350,000 in new truck investments. It\'s exciting when you hear the investment figures for small businesses, because I repeat that when people invest, they create jobs. This is the way jobs are created. John said: \"The cash we can keep in the business is very helpful. It helps us look forward to the future. \"That\'s what he said. This is what you want to hear. You want to hear the CEO of one of your small businesses say, \"It helps me look forward to the future. \"You don\'t want people to say,\" Oh my God, life will be miserable because we \'ve had a hard time. \"You want them to say,\" I look forward to it. \"Washington\'s good policies always look forward, not backward. As John and others have expected, I would like to talk about what we can do to ensure that the environment is encouraging and conducive to economic investment. I just told you one thing, that is, to ensure the normal operation of the education system. If you are a person who is trying to hire employees and you see that the education system is working well, you can look forward with confidence because you know that you can meet the needs of the workers. If you\'re worried about finding someone to meet the skills you need, you can\'t look forward. Joan Thompson is with us. She\'s talking about the level of workers. - The skill level of the worker she needs. She\'s the boss-- Thank you, Joan. - She is the boss and the boss. . . (APPLAUSE). . . Part owner of Minnesota wire and cable company in Saint Paul of Minnesota I\'m talking about the part owner. She has nine other family members who own the business. Thompson: nine childrenOFF-MIKE) Yes, 11 people. (LAUGHTER) Eleven owners. (APPLAUSE)Family-owned business. There\'s a beautiful ring, isn\'t there? It has an American ring. There\'s a lot of family- We have enterprises in our country. One of the real difficulties of the family -- The fact of state-owned enterprises is that because of the death tax, we tax the assets of a family twice. Bush: It is important for Congress to understand the impact of death tax on capital formation and on small- The business sector of investment. I said you had to tax twice. When the Minnesota wire and cable company makes a profit, it will be taxed. I suspect you also pay property taxes and state taxes at the local level. Then, as mom and dad move on, assets will be taxed again in many cases. Therefore, some people have to sell their business if assets lack liquidity; You can\'t pass. I believe you should be able to hand over your business to anyone of your choice, while the federal government is not between you and the person you designate to own the company. (APPLAUSE) By the way, Congress needs to hear little- Business owners, farmers and ranchers, and tell Congress to complete the tasks we started. We imposed a death tax on the road to extinction. Unfortunately I think it is 2011 and it pops up again. This will make 2010 a year of interest to real estate planners. (LAUGHTER) \"What do you want to do with this? \" you know. (LAUGHTER) \"I think I will continue to live. \" (LAUGHTER) They only need to make the abolition of the death penalty a permanent part of the tax law. This is also a major part of the simplification of tax laws. As far as I can tell, it accounts for about 30% of the tax law, which is a very thick book. It\'s just not-- It\'s bad policy for me and bad policy for the Thompson family and many other small companies Business owners across the United States. Joan\'s business is to design a custom wire and cable assembly business. They have clients of defense contractors, especially health care. She likes to say, \"We are part of a team of therapists across the country. We\'re helping people save lives. \"It\'s a neat way to build your business, isn\'t it? Everything went well. BUSH: They added 14 workers this year. It saved $80,000 in taxes on $600,000 worth of investments. I said, \"What are you going to invest in? She said, \"robots. \"It\'s very interesting to hear a small business say robots. I don\'t know if small businesses say they invested in robotics 20 years ago, but I bet they will invest in the next 20 years if incentives are structured properly. If small businesses are encouraged to invest, if the tax structure makes it easier for them to survive, make sure the government doesn\'t take too much of their money. She also invested in CNC machine tools. Everyone knows what they are. (LAUGHTER) Someone is doing it. This is part of the manufacturing process of making CNC machines. In other words, there is a CNC machine manufacturer that employs employees. (LAUGHTER) That\'s how it works. This is how the economy works. I asked these four little ones- The boss came to see us because I wanted to share something with you. Let me tell you what she said. She said, \"The savings on taxation give us the confidence to build another department in our small business. \"We are talking about investment in the United States. Investment equals work People are now confident to invest because of good tax policies. The role of government is to create a confidence by doing something smart. In other words, the more money people have, the more confident they are, especially when the economy is picking up. These are great stories and I appreciate that you guys can come and let\'s talk about your stories. This is a story unique to America. (APPLAUSE) As we look to the future with confidence, we want to make sure that the right decisions are made. We need to make a few good decisions. A bad decision is to raise taxes for the American people. Some tax breaks will expire. Bush: If Congress doesn\'t make it permanent, it\'s called a tax increase. They will be labeled as tax increases for the American people. They should not raise taxes. We need a good and consistent tax policy. If you\'re a little- Business owner, you want to have a constant life in planning. There\'s so much to worry about: the market, your customer base. You need to have certainty in the tax code. Congress needs to know that. Raising taxes will bring uncertainty to small businesses. Business owners planning and investing. Second, health care costs are rising. This makes it difficult for employers and employees to accept. We cannot allow the federal government to run our health care system in the United States. What we have to do is make good policies and plans to connect patients Doctor relationships, giving people choices and decisions Create power in the market That\'s why I\'m a strong supporter of the health savings account. These can be tailored for small businesses. I would like to urge every small business in the US to check out the health savings account. This is a great way to help control costs and a great way to provide benefits to your employees. We need an association health program that is allowed. . . (APPLAUSE) Small businesses, you know, will be able to share the risks. Big companies are able to get good purchases in healthcare because they have a lot of employees. They can spread the risk to a large number of employees. Unless governments allow small businesses to share risks across jurisdictions, they do not have the same capabilities. That\'s what the association\'s health plan does. America needs infringement reform. Small businesses are threatened. . . (APPLAUSE) You ask people what affects their confidence in the future and they will tell you that when they see a garbage legal action or a garbage legal action against them, you know, it threatens them Bush: It makes it difficult for people to plan with confidence. Let\'s face it. our society likes litigation too much. There are too many lawsuits, many of which are trivial garbage lawsuits. The federal government also has a role in this regard. We need collective action reform. We need asbestos reform. Congress needs to get these bills through my desk. We also need health care responsibility reform at the federal level. You see, garbage and trivial lawsuits can lead to the use of defensive drugs by doctors. Defensive drugs basically mean that I will open more procedures than I need so that when I enter the court I can defend myself. This increases medical costs, hurts patients, and hurts the federal government because the federal government pays a lot of medical expenses in health insurance, Medicaid, and veterans benefits. Our budget is affected by Petty and junk lawsuits at the federal level. So I think it\'s the federal issue that needs a federal solution. We have proposed such a solution. The House passed the resolution. Because the trial lawyer is strong in the Senate, it is stuck in the Senate. That\'s why. For small In order to have a good economy in the future, we need to convince the US Senate to pass meaningful, real infringement reforms. This is an important part. (APPLAUSE) And finally, if you\'re a little- Business owners, you need to know that you will have reliable and affordable energy. There are a lot of concerns about manufacturing in the United States, and there should be. But if energy supplies are disrupted, energy prices are soaring, and there is no reliable electricity, the manufacturing industry will face real problems. So my government recognized this very early on. We know that if we rely on foreign energy, it will not only create economic security risks, but also national security risks. We therefore propose ways to strengthen protection. The new technologies we promote will play a role in the future. This will reduce our dependence on foreign energy. We recognize that we can explore energy in an eco-friendly way that we couldn\'t do 20 years ago. We have introduced new standards for power reliability. We have done a lot of things. We have put forward this proposal to the US Congress, which, of course, is persistent. They are playing politics with national energy policies. But if we are interested in making sure people find jobs in the US, if we want to be the best place to do business, if we want to maintain a strong entrepreneur spirit, we have to develop an energy policy, reduce dependence on foreign energy. (APPLAUSE) I told you Ed\'s on trade. He is shipping used cats, used John Deere, used boxes overseas. \"But when you look at it, you can\'t see it being used,\" he said, because he has such a good worker. They take an old device, redo it, make it look like a new one, make it run like a new one, and sell it like an old one. (LAUGHTER) As he said, \"I\'m a little- Businessmen who use free trade. \"If we are to be a confident, growing country, the United States must reject economic isolation. Look, we did a good job. Look, old Ed, what is he capable. All he needed was a chance to sell it. You know, if we get into a trade war because of politics, we\'re going to hurt American entrepreneurs. We are very good at growing things. Our farmers should sell soybeans around the world, which is why we are trying to make sure that other countries hear the idea of this government: \"We are opening up our market; open up yours. \"That\'s what we told them. (APPLAUSE) You see, we know it\'s good for consumers when people have more choices. If you are a consumer in the US and you have more items to choose from, you will get better quality at a better price. That\'s how it works. So we said-- Not only have I said that, but other presidents have said that my previous president has said, \"for the benefit of American consumers, sell us your goods and services in the United States. BUSH: Now you have a government saying, \"since we have done this for you, you have opened up your market . \" \"I told Evans and Zoellick,\" we get tough when we need to be tough on foreign countries that keep us out. \"Because we are only interested in a fair competitive environment; That\'s what we want. We want our people to be treated fairly. (APPLAUSE) You\'ll hear people say, well, you know, \"Well, the best way to fix this is to find the way to deal unfairly, is to isolate us. \"It\'s terrible for small businesses. Therefore, this government is full of confidence in the United States, because we are full of confidence in the United States. We know we\'re really good. We are very good at building, planting and selling. For the benefit of American workers, I intend to make sure that they have a good opportunity to do so. Our economy is stable and strong. - It is stable and powerful. It is stable and powerful, which means people have to go back to work: 1. 5 million jobs since last August; This is a steady growth. (APPLAUSE) Because American entrepreneurs are strong, capable and willing to take risks. Entrepreneurs hire more people. Entrepreneurs are investing. The role of the government is to promote good policies that encourage American entrepreneurs. Another thing that is so wonderful for our country to start a business is whether you are the fourth generation with your business or the first generation is not important In any case, you have a chance to say, \"This is my business. I own it. I want to cultivate it and grow it to help others find jobs. \"This is the cornerstone of Bush\'s economic policy and it is working. I\'m glad you\'re all here. May God bless your efforts. May God continue to bless our country. (APPLAUSE) NGUYEN: OK. We have encountered more technical difficulties in speaking to you from the East Hall of the White House. Today, he is talking about the economy, given the employment report issued by the Department of Labor today; Created 112,000 jobs last month. But beyond that, the figure is still well below analysts\' expectations. They always hope to find 250,000 jobs. The president is talking about some issues. In his words, he said that the economy is stable and is growing continuously. He also said China\'s economy is strengthening. He also cited some statistics saying that the consumer confidence index has doubled. year high. He also said housing ownership was the highest. time high. So today the President talked a lot about the economy. We will follow up, of course. To order a video of this transcript, please call 800-CNN- News or use our secure online order at www. fdch.