Fact Sheet: A Clear Agenda for Overcoming Economic Challenges

Making Tax Relief Permanent is at the Forefront of President
Bush's Plan for Continued Prosperity
WASHINGTON--(Business Wire)--
Today, the Bureau of Labor Statistics released new jobs figures
for May. Nonfarm payroll employment decreased by 49,000 jobs in May,
and the unemployment rate rose to 5.5 percent. Although the
unemployment rate remains below the averages for the past three
decades, these numbers are disappointing. Other May data has appeared
more positive than the first quarter.

-- In February, President Bush signed into law the economic
growth package, which is putting over $150 billion back into
the hands of America's workers and businesses this year. The
economic growth package is expected to help create more than
half a million jobs by the end of 2008. So far, the Treasury
Department has sent out more than 66 million rebate checks
totaling almost $57 billion.

To Avoid The Largest Tax Increase In History, Congress Should Make
The President's Tax Relief Permanent

President Bush's 2001 and 2003 tax relief fueled economic growth
and reduced the burden on everyone who pays income taxes. Had it not
been for the President's tax relief, Americans would have paid an
additional $1.3 trillion in taxes by the end of 2007. If the
President's tax relief is allowed to expire at the end of 2010,
Americans will pay about $280 billion more in taxes each year.

-- Every income taxpayer will see a tax hike if the tax relief
expires. Taxes will increase for 116 million households, which
will see their taxes go up by an average of $1,800. It will
force many families to accept a nearly 200 percent tax
increase. Higher taxes on new investment means less new
investment and slower growth.

The Administration Has Taken And Continues To Take Aggressive
Actions To Help Americans Keep Their Homes

The President launched FHASecure, which has helped more than
225,000 families avoid foreclosure by refinancing into safe Federal
Housing Administration (FHA)-insured mortgages. FHA also recently
announced a plan to expand the program to help even more families
refinance their mortgages. In total, FHA expects to help about half a
million families refinance by the end of the year.

The President and his Administration also helped facilitate the
formation of the private-sector HOPE NOW Alliance, which has developed
multiple strategies to help distressed homeowners. By working
together, participants in the mortgage industry have helped more than
one and a half million families stay in their homes.

Congress should quickly pass responsible legislation modernizing
the Federal Housing Administration. A modernized FHA that is granted
appropriate pricing flexibility could help thousands of additional
homeowners by the end of this year. In April of 2006 President Bush
first sent Congress an FHA Modernization bill, and more than two years
later, Congress has still not passed it.

Congress should also pass GSE reform to strengthen the regulation
of Freddie Mac and Fannie Mae. A good GSE reform bill would ensure
they are adequately capitalized and focused on their statutory housing
mission. A strong regulator can also make sure that these enterprises
do not take actions that place taxpayers or the financial system at
increased risk. GSE reform and FHA modernization represent the
appropriate next steps to address the housing downturn.

President Bush Calls On Congress To Pass An Energy Bill That Is
Both Environmentally And Economically Sound

President Bush calls on Congress to expand domestic oil production
to address rising energy prices. Congress should allow
environmentally-safe exploration in Northern Alaska. The Department of
Energy estimates that the Arctic National Wildlife Refuge could allow
America to produce about 800,000 additional barrels of oil each day -
a more than 15 percent increase of crude oil production over today's
production level.

There is a right way and a wrong way to approach reducing
greenhouse gas emissions. As Congress begins the debate on climate
change, its members must recognize that bad legislation would raise
fuel prices and raise taxes on Americans without accomplishing the
important goals the Administration shares.

The Warner-Lieberman bill being debated on the floor this week
will damage the economy and drive jobs overseas. The Environmental
Protection Agency estimated in March that the bill, as reported, could
reduce U.S. Gross Domestic Product by as much as seven percent - more
than $2.8 trillion - in 2050. The Energy Information Administration
estimated the bill could reduce U.S. manufacturing output by almost 10
percent in 2030 - before even half of the bill's required reductions
have taken effect. The impact on consumers from the combination of the
high compliance costs and the new tax-and-spend programs in the bill
would be enormous.

Congress Must Support America's Economy And Workers By Approving
Pending Free Trade Agreements

The U.S.-Colombia free trade agreement will level the playing
field for U.S. companies that export to Colombia. Unfortunately, House
Speaker Nancy Pelosi has blocked a vote on the U.S.-Colombia free
trade agreement. If this decision stands, it will kill the agreement
and hurt American business and workers. By obstructing this agreement,
Congress is signaling to countries in our hemisphere and around the
world that the United States cannot be trusted to support its allies.
Congress is likewise showing that it is not interested expanding job
opportunities for Americans here at home.

Approving the free trade agreements with Colombia, Panama, and
South Korea will expand access to key export markets with three
democratic allies. Exports now account for a larger share of our GDP
than at any other time in history, and jobs supported by goods exports
pay wages 13 to 18 percent higher than the national average. Real
exports grew by 9 percent over the four quarters ended in the first
quarter.

The Bush Administration is committed to continue working with
Congress to reauthorize and improve Trade Adjustment Assistance, so we
can help American workers remain competitive in the global economy.

White House Press Office
1-202-456-2580

Copyright Business Wire 2008