Of course, economic growth is affected not only by the levels of taxes and spending, but also by their composition and structure.
I hope that, in addressing our long-term fiscal challenges, the Congress will seek reforms to the government’s tax policies and spending priorities that serve not only to reduce the deficit but also to enhance the long-term growth potential of our economy – for example, by encouraging investment in physical and human capital, by promoting research and development, by providing necessary public infrastructure, and by reducing disincentives to work and to save.