We all know from recent experience what runaway inflation does to ruin every other worthy purpose.  We are slowing it.  We must stop it cold.

For many Americans, the way to a healthy, noninflationary economy has become increasingly apparent.  The Government must stop spending so much and stop borrowing so much of our money.  More money must remain in private hands where it will do the most good.  To hold down the cost of living, we must hold down the cost of government.

In the past decade, the Federal budget has been growing at an average rate of over 10 percent a year.  The budget I am submitting Wednesday cuts this rate of growth in half.  I have kept my promise to submit a budget for the next fiscal year of $395 billion.  In fact, it is $394.2 billion.

By holding down the growth of Federal spending, we can afford additional tax cuts and return to the people who pay taxes more decisionmaking power over their own lives.

Last month I signed legislation to extend the 1975 tax reductions for the first 6 months of this year.  I now propose that effective July 1, 1976, we give our taxpayers a tax cut of approximately $10 billion more than Congress agreed to in December.

My broader tax reduction would mean that for a family of four making $15,000 a year, there will be $227 more in take-home pay annually.  Hardworking Americans caught in the middle can really use that kind of extra cash.

My recommendations for a firm restraint on the growth of Federal spending and for greater tax reduction are simple and straightforward.  For every dollar saved in cutting the growth in the Federal budget, we can have an added dollar of Federal tax reduction.

We can achieve a balanced budget by 1979 if we have the courage and the wisdom to continue to reduce the growth of Federal spending.

One test of a healthy economy is a job for every American who wants to work.  Government—­our kind of government—­cannot create that many jobs.  But the Federal Government can create conditions and incentives for private business and industry to make more and more jobs.

Five out of six jobs in this country are in private business and in industry.  Common sense tells us this is the place to look for more jobs and to find them faster.  I mean real, rewarding, permanent jobs.

To achieve this we must offer the American people greater incentives to invest in the future.  My tax proposals are a major step in that direction.  To supplement these proposals, I ask that Congress enact changes in Federal tax laws that will speed up plant expansion and the purchase of new equipment.  My recommendations will concentrate this job-creation tax incentive in areas where the unemployment rate now runs over 7 percent.  Legislation to get this started must be approved at the earliest possible date.

Within the strict budget total that I will recommend for the coming year, I will ask for additional housing assistance for 500,000 families.  These programs will expand housing opportunities, spur construction, and help to house moderate- and low-income families.