Ford Administration Cabinet Meeting

Cabinet Meeting, October 8th, 1975 The President arrived at 11:45 a.m. The press arrived at 11:46 a.m. The press departed at 11:48 a.m. The President opened the meeting by greeting the Cabi- net. He then stressed the need for continued momentum for the Tax Incentive Package proposed this week. He emphasized the importance of maintaining a posture of vetoing any tax extension if Congress refuses to put a ceiling on spending. The two proposals must be tied hand-in-hand or the President will veto. He praised OMB Director Lynn, Secretary Simon, and the work of the Economic Policy Board in preparing the package on which he addressed the American people. The President believes that every tax payer understands the change in the family tax exemption, as each business- man knows of the corporate tax reduction. These two changes will bring the message home for many people. He urged the Cabinet to study, do their homework, and be prepared for a tough fight on the Hill, one that could drag on for several months. Director Lynn stated that the new ceiling for all depart- ments and agencies will be sent to them in the next few days. He indicated the desire to take care of the new GERALD ceiling within each agency or department. Exactly how R. that is achieved is not nearly as important as the fact that it be done. Therefore, the opportunity to use imagi- FORD nation and creative thought in application of budget ceil- ing is significant. LIBRARY He feels the interest group reaction to the proposal will be very strong. The President clearly understands the role of interest groups and the proposals he is making; so, do not bow to the pressure of those groups, but rather deal with them effectively within your own agencies. There is a gener- al impression that some people think the Congress cannot cope with tax reduction and a spending ceiling. However, the President says it can be done. The President used the 1965 example of a President Johnson proposal where Wilbur Mills, after studying it carefully, conceded the two coupled together could be achieved by the Congress. Director Lynn feels it is irresponsible to continue to address a ceiling on spending without the Congress totaling their budget figures. They continue to approach the budget