As you might have heard, I've just been out of the country -- which, in some quarters, is considered a good thing. I got back yesterday morning after more than a week overseas, on a trip that took me to several countries. In Japan and Australia I had very good discussions with leaders of two of our great allies -- Prime Minister Abe in Japan, and Prime Minister John Howard in Australia. And on the last part of the trip I visited Pakistan and Afghanistan to review progress in the war on terror with Presidents Musharraf and Karzai.
On the journey I also spent time, as I always try to do, with members of the American Armed Forces -- on the deck of the carrier USS Kitty Hawk in Tokyo Bay, at Andersen Air Force Base on Guam, and at Bagram Air Force Base in Afghanistan. I think it's important to remind the troops that we believe in them, we believe in what they're doing, and we're going to back them one hundred percent.
With a divided government and strong feelings on both sides of the aisle, getting things done is a bit more of a challenge than it was before. But the American people expect results, and the President and I are committed to working with Congress for the good of the country. What we will not do is abandon the conservative principles we ran on in 2000 and 2004. President Bush's policies have revived this nation's economy, improved the quality of the federal courts, and protected the American people from great dangers. None of these outcomes came about by accident. We've worked hard for the prosperity and the security of the American people, and we have no intention of letting it slip away.
As conservatives, we believe, as Ronald Reagan did, that government should "work with us, not over us; to stand by our side, not ride on our back. Government," said President Reagan, "can and must provide opportunity, not smother it; foster productivity, not stifle it." That wisdom is the key to creating a healthy, growing economy -- and by most any measure, that is what we have today. America has now seen five years of uninterrupted economic growth -- in a recovery that has generated nearly 7.5 million new jobs. When people across the world look at America's economy they see low inflation, low unemployment, and the fastest growth of any major industrialized nation. Wages are rising, too -- allowing American families to meet their budgets and build a better future.
We recognize that nobody can sit in an office in Washington, D.C. and decide to make America prosperous. Our job is to preserve the freedoms that gave birth to this nation, to encourage free enterprise, and to give people confidence that their hard work will be rewarded, not punished. And that begins with leaving more money in the hands of those who earn it.
For that reason, at the start of our administration, President Bush asked Congress to pass significant, broad-based tax relief. The House and Senate responded with historic pro-growth legislation. We reduced taxes for every American who pays income taxes. We doubled the child tax credit, reduced the marriage penalty. And in 2003, we accelerated the rate reductions; we created new incentives for small businesses to invest. And in order to lower the cost of capital, and to encourage firms to expand and hire new workers, we reduced the tax rate on capital gains and dividends.
Now the evidence is coming in -- and the Bush tax relief has proven to be exactly the right policy for our country. If you think of all that's happened in the last six years -- the recession we inherited, terrorist attacks, corporate scandals, natural disasters, a tripling in the price of oil -- it's remarkable how resilient this economy has been. In
fact, since 2001, our GDP has grown by 16 percent. Let me just put it in perspective: In only six years' time, the American economy has expanded by an amount greater than the entire economy of Canada.
All told, federal tax receipts have gone up by more than $520 billion in the last two fiscal years. That's the largest two-year increase in history. By now it's time for even the skeptics to admit that a lower federal tax burden is a powerful driver of investment, growth, and new jobs for America's workers. And that increased economic activity, in turn, generates revenue for the federal government.
On the revenue side, we're going to keep working on a low-tax policy that promotes growth and keeps government within its proper limits. Under present law, many of the Bush tax cuts are still set to expire over the next few years. We feel strongly that Congress should make all the tax cuts permanent -- and that includes ending the federal death tax.
I know we've got some Democrats with big ideas for taxes they want to raise. They ought to realize that no nation has ever taxed its way to prosperity. And if they try that, they're going to find out what the rest of America already knows -- that President Bush is a man of principle and a man of his word.
One of the reasons health care is so expensive today is that the tax code penalizes Americans who are not covered at work, and subsidizes people who choose the most expensive plans. So the President is asking Congress to pass tax reform legislation tohelp make private insurance more affordable and accessible. We're proposing a standard deduction for every worker who has private health insurance, no matter where they get it. Under the President's plan, more than 100 million Americans now covered by employer-provided insurance would actually have lower tax bills.
This reform would also level the playing field, so those who buy health insurance on their own get the same tax advantage as those who get health insurance through their jobs. This would be a positive step toward covering millions in our country who aren't covered at work and struggle to afford it on their own. We believe changing the tax code is absolutely necessary to getting private coverage to more Americans, and to getting a handle on the rising costs of health care, without government trying to run the system.
Finally, as someone who has the honor of working beside the President every day at the White House, I can assure you that he will never relent in his number one obligation as President: to protect the freedom and security of the American people.
The fact that we've defeated all attempts to strike the United States again for the last five and a half years does not mean that we won't be hit in the future. But the record is testimony not just to good luck, but rather to urgent, competent action by a lot of very skilled men and women, and a lot of important decisions by the President. We've improved our security arrangements, reorganized our intelligence capabilities, found ways to surveill and to interrogate the enemy, and worked closely with friends and allies across the world.
In Iraq, our goal remains a democratic nation that upholds the rule of law, respects the rights of its people, provides them security, and is an ally in the war on terror. But for this to happen, Baghdad must be secured. To that end, we're pursuing a new strategy that brings in reinforcements to help Iraqi forces secure the capital. As we meet tonight, Iraqi and coalition forces are at work in the nine sectors of Baghdad, carrying out joint operations to track down terrorists, insurgents, criminals, and the roaming death squads that have tormented people in that city. It's a toughenterprise -- and it's absolutely essential to moving that nation forward, turning the political process toward reconciliation, and completing our mission in Iraq.
Recently, the United States Senate, by unanimous vote, confirmed a superb officer to lead the new strategy in Iraq -- Army General David Petraeus. At a hearing of the Armed Services Committee, General Petraeus was asked flat-out if he could do his job without the troop reinforcements that have been requested by the President. He said no. Yet some of the very Senators who voted to send him to the Iraqi theater tried to pass a resolution opposing the reinforcements. And the House of Representatives, of course, did pass such a resolution. The House resolution was nonbinding -- just a statement expressing the views of the members. But the fact is that every statement we make has multiple audiences. The American people listen. Our soldiers, airmen, and Marines listen. The enemy listens, and so do the Iraqi people. Friendly governments pay attention, and hostile governments take note as well. And they all wonder about America's commitment to this cause.
Very soon both Houses of Congress will have to vote on a piece of legislation that is binding -- a bill to provide emergency funding for the troops. And I sincerely hope the discussion this time will be about winning in Iraq, not about posturing on Capitol Hill. Anyone can say they support the troops, and we should take them at their word. But the proof will come when it's time to provide the money and the support. We expect the House and Senate to meet those needs on time, and in full.
Before I leave you, ladies and gentlemen, I want to thank you again for your commitment -- not just to the principles we share, but to the ideal of active citizenship. In the audience tonight we have entrepreneurs, engineers, doctors, writers, and educators. All of you lead busy lives and have many responsibilities of your own. And yet you make the time, here and in your communities, to get involved in the political process and to make your voices heard. Your efforts make a difference. You give strength to our democracy. And the success of CPAC, year after year, is another indicator that conservatism remains the leading intellectual and political movement in the United States. That's something all of us can be proud of, and it's a credit to each and every one of you. I am deeply grateful to you, and it's been an honor to be in your company tonight.Paleocon Strikes!
