For Immediate Release
Office of the Press Secretary
January 11, 2003
President's Budget Calls for Major Increases to Fight Corporate Fraud
Radio Address of the President to the Nation
Fact Sheet
THE PRESIDENT: Good morning. As a new Congress convenes, we must
take steps to speed up the economic recovery and to strengthen public
confidence in the integrity of American corporations. This week in
Chicago, I announced my growth and jobs plan, specific proposals to
help workers, employers and investors across America.
For unemployed Americans whose benefits expired on December 28th, I
asked Congress to act to extend those benefits. Congress did so
quickly, and I signed the extension of unemployment benefits into law
this week.
For Americans who face the greatest difficulty finding work, I
propose special re-employment accounts. These accounts will provide up
to $3,000 to help pay for training, moving expenses, or other costs of
finding a job.
For all income taxpayers, I propose speeding up the tax cuts
already approved by Congress, because Americans need that relief
today. Instead of gradually reducing the marriage penalty between now
and 2009, we should do it now. Instead of waiting until 2008 to move
more taxpayers from the 15 percent bracket to the 10 percent bracket,
we should make that change now. Instead of slowly raising the child
credit to $1,000 by 2010, we should raise it now. When these changes
are made, 92 million Americans will keep an average of $1,083 more of
their own money.
And for America's 84 million investors, and those who will become
investors, I propose eliminating the double taxation on stock
dividends. Double taxation is unfair and bad for our economy. It
falls especially hard on seniors, many of whom rely on dividends for a
steady source of income in their retirement.
Abolishing double taxation of dividends will leave nearly 35
million Americans with more of their own money to spend and invest,
which will promote savings and return as much as $20 billion this year
to the private economy.
Overall, my tax cut proposals will add nearly $59 billion to the
economy in 2003 alone.
Our government is also acting to restore investor confidence in the
integrity and honesty of corporate America. In response to the abuses
of some corporations, we passed serious reforms, and we will vigorously
enforce them. Our Corporate Fraud Task Force has obtained convictions
or guilty pleas in over 50 cases. More than 160 defendants have been
charged with criminal or civil wrongdoing. And 130 new corporate fraud
investigations have been launched.
In my budget for the coming year, I will also propose major
increases in funding for the prosecutors of corporate crime. My 2004
budget funding for the Securities and Exchange Commission will be 73
percent higher than 2002 levels. This will allow the agency to hire
hundreds of new accountants, lawyers and examiners.
I'm also requesting an extra $25 million for the Department of
Justice to expand corporate fraud investigations. This will allow the
department to create 118 new positions in the FBI, including 56
agents. In addition, 94 new people will be hired to serve in the U.S.
attorneys' offices and legal divisions across the nation.
The SEC and Justice Department are the referees of corporate
conduct. Under my budget, they will have every resource they need to
enforce the laws that punish fraud and protect investors.
I ask the Congress to support these enforcement measures, and to
pass my growth and jobs plan as soon as possible. Our country has made
great progress in restoring investor confidence, and putting the
recession behind us. We cannot be satisfied, however, until every
corporate wrongdoer is held to account, and every part of our economy
is strong, and every person who wants to work can find a job.
Thanks for listening.
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