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National Grocers Convention 2/4/92 [OA 7567]
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National Grocers Convention 2/4/92 [OA 7567]
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Records of the White House Office of Speechwriting (George H. W. Bush Administration)
Speech Backup Chronological Files
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This is not a textual record. This is used as an
administrative marker by the George Bush Presidential
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Record Group/Collection:
George H.W. Bush Presidential Records
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Speechwriting, White House Office of
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Speech File Backup Files
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Chron File, 1989-1993
OA/ID Number:
13796
Folder ID Number:
13796-011
Folder Title:
National Grocers Convention 2/4/92 [OA 7567]
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26
22
2
7
Photo Copy Preservation
703-437-5300
Tom Wenning
ton Zaucha
8922-124-E0L
Patty Ottenstein
January 31, 1992
MEMORANDUM FOR THE PRESIDENT
THROUGH:
DAVID DEMAREST
TONY SNOW
FROM:
JOSEPH P. DUGGAN
SUBJECT:
NATIONAL GROCERS CONVENTION
I. SUMMARY
On Tuesday, February 4, at 11:00 a.m., you will address
4,000 members of the National Grocers Association in
Orlando, Florida. The members are mostly family-owned
independent supermarket owners.
II. DISCUSSION
The remarks (14 minutes, on teleprompter) repeat
highlights from the State of the Union.
Regarding the opening jokes: These are inside jokes
which all the conventioneers will get. The previous night's
banquet really is called the "Asparagus Club." Also, the
finals of the grocery bagging contest occur just after your
speech. The question refers to how check-out clerks now ask
customers what kind of bags they want: "Paper or plastic?"
(Duggan/Simon)
January 31, 1992
Draft Five
PRESIDENTIAL REMARKS:
NATIONAL GROCERS ASSOCIATION
ORLANDO, FLORIDA
TUESDAY, FEBRUARY 4, 1992
11:00 a.m.
Thank you also, Bill
Confer,
Thank you, Tom [Zaucha, NGA's president], ^ It's a great
your
pleasure to be here. ( (I originally had planned to be at your chairmen
dinner last night, but when I found out it was called the
"Asparagus Club Banquet," \ I thought I better not take a
chance. That comes dangerously close to being broccoli. III ))
((You all know of my love for sports, and this being an
election year, my competitive juices are flowing more than ever.
So today, I'm making an announcement that many of you have been
expecting for a long time. \ I'm officially declaring my entry
\\ into your "Best Bagger" contest. 1111 Just one question:
paper or plastic? ) )
I'll always remember the warm reception the NGA gave me when
I addressed your 1985 convention in New Orleans. You gave me a
good education about your industry then, and I remember it still.
A typical NGA member is a family-run business. \ Many of you
carry on legacies built through the vision and sacrifice of a
grandmother or grandfather, perhaps an immigrant to this country.
You work on the thinnest of profit margins. You challenge one
another with bracing competition that benefits our consumers like
no others in the world. And today as always, your success as
community grocers depends not just on the bottom line but on the
old-fashioned virtues of being a good neighbor.
2
Since I met you last in 1985, the world has changed. \
We
won the Cold War. \ We led a coalition in the Gulf to crush
Saddam Hussein's aggression in Kuwait. We've created a world
with the prospects of unprecedented prosperity and peace.
\
But we've also run into some hard times. Our economy has
slowed down, and we must get it fired up again. \ The
professional pessimists tell us America has become weak and
disabled -- that our economy has fallen and it can't get up.
\
Well, that's just plain bunk. \ Day by day and step by
step, we'll get ourselves moving -- and we'll do it as Americans
always have: We'll combine our common sense, our work ethic, and
our determination with pro-growth policies. With these, we'll
carry the entire world into the Next American Century.
You don't have to be a rocket scientist to understand how.
You just stick with the basics. \ I proposed a common-sense
action plan last week in my State of the Union address. It gets
investment going, because you can't build new businesses and
create jobs without new investment. It strengthens the
industries that historically have led us into recoveries --
especially real-estate.
It hacks away obstacles to growth -- burdensome regulations,
high taxes, nuisance lawsuits. It cuts the federal deficit by
holding back spending. You and I know that government is far too
big and spends too much. 11 How free are we, really, when the
federal government gobbles up 25 percent of our GNP? \ I'm
demanding that Congress get serious about this. \ I've listed
3
246 wasteful programs that I want cut this year -- and I want the
line-item veto so I can enforce real spending discipline. 11
We've got to get Washington back to common sense. \ To do
that, I need your help -- and I know you can deliver. You know
your neighbors, and they know you. 11 I've asked Congress to
enact some laws that will create jobs by getting our economy
growing again -- and I've given Congress a deadline: March 20.
Circle that Friday on your calendar. 11 I have. 11 Remember
this deadline. Congress needs to take a few simple steps to
create good American jobs -- now.
Here's what I want by the deadline: \ First, incentives to
make productive investments: These involve a 15-percent
investment tax allowance; needed changes to the alternative
minimum tax; and a permanent research and development tax credit.
These will encourage business to invest in equipment and become
more productive.
Second, incentives to build and buy real-estate: A change in
passive-loss rules for active real-estate developers; penalty-
free withdrawals from IRAs for first-time homebuyers, and a
$5,000 tax credit for the purchase of that first home.
Third, incentives to succeed: Cut the capital gains tax.
This tax hurts anyone who has made a sensible investment -- in a
home, a business, or a farm. None of our key economic
competitors taxes gains at high rates -- Japan's effective rate
comes to about 1 percent; Germany doesn't tax long-term capital
gains at all. Let's stop penalizing savings and investment.
4
Let's stop punishing excellence. Lower capital gains taxes mean
more investment -- and more investment means more jobs. So let's
cut the capital gains tax -- now.
Three measures, three pieces of common sense; three things
Congress should do by March 20. \ I'm counting on your help.
In the meantime, I've initiated some reforms that will get
the economy moving -- without having to wait for Congress to act.
I've imposed a 90-day freeze on federal regulations that could
hinder economic growth. During that period, all departments and
agencies will review regulations, old and new -- to stop the ones
that will hurt growth and speed up those that will help growth.
I see from your convention schedule that you have a workshop
entitled: "The Regulators Are Back." \ No wonder: You can't
get through a day without having to worry about what some
regulator is going to do to you through some thoughtless
regulation. Regulations may have stated aims as wholesome as Mom
and apple pie. \ But you know better than anyone that when
regulators carry regulation too far, there won't be any apple pie
for Mom to buy.
I ran a council on deregulation for eight years, as vice
president. And I'm here to assure you: We have not lost the
spirit of deregulation. \\ I want you to be able to spend your
time working on what you can do for your customers -- rather than
fretting about what some regulator might do to you. I'm also
fighting hard against this epidemic of lawsuits. If we were as
good at rewarding success as we are at suing each other, we'd be
5
a century ahead of the rest of the world. America's love affair
with the lawsuit must stop.
The greatest lesson of our times is this: Government
micromanagement doesn't work. \ After seventy years of tragic
failure, the leaders in Moscow finally recognize that total
government regulation produces only one thing: total failure.
Now, Russians want to try something different -- like grocery
stores with groceries on the shelves.
I find it a bitter irony that some in Congress still favor
government coercion and control over freedom and competition.
It's as though we'd entered a time warp. \ When I hear the
shrill sounds of "soak the rich" demagoguery -- when I hear
politicians demand more taxes, regulations, government coercion
and control, I wonder: Where have these people been?
Isn't it ironic -- at the exact moment the world is turning
to our values of more economic freedom and competition -- some in
Congress want to go the opposite way. Here's an example of the
trouble brewing in Congress: the so-called FDA enforcement bill.
I'm sure those of you who sell your own private-label groceries
aren't exactly thrilled by the prospect of more legal and
accounting and paperwork burdens. But that's just what some in
Congress want to do. Well, let me tell you in no uncertain
terms: The time for this type of over-regulation is over.
And from now on, if Congress passes a mandate for state and
local governments, it shouldn't pass the buck. Congress should
pay for the mandates it imposes, without heaping on new taxes.
6
Again, Congress can help get the economy moving if it will
just do the right thing. Congresswoman Schroeder of Colorado
said last week that maybe Congress should just pass my plan "as
it is, and put it on [my] desk." And I agree exactly. If anyone
thinks my program is controversial, let me take the heat. I know
my program will get the economy moving again.
March 20 is not a moment too soon to enact my short-term
program. But we also need to look to longer horizons. I
proposed a long-term plan in my State of the Union address. Let
me give you some highlights:
First, let's create more American jobs by opening up and
expanding markets all over the world. A new GATT agreement will
make the world trading system come to grips with the damaging
tariffs and export subsidies in agriculture. And by tearing down
economic barriers with Mexico and Canada, a new North American
Free Trade Agreement can lift us to new heights of prosperity.
Second, let free choice and free markets reform our health
care system. This week I'll ask for a new credit to help those
without health insurance to buy such coverage. My plan will
assure that American workers will have access to basic health
insurance even if they change jobs or develop serious health
problems. We can't improve health care by threatening the health
of job-intensive businesses. The last thing we want is for
companies to cut health costs by cutting workers. I'm
wholeheartedly opposed -- as I know you are -- to schemes that
costs jobs by mandating benefits an employer must pay.
7
Third, let's strengthen the family --- the cornerstone of the
American dream. Let's ease the burden of child-rearing. The
personal tax exemption has not kept up with inflation. I'm
asking Congress immediately to increase the exemption for each
child by $500. It's a significant move in the right direction -
- and for our kids' sake, we mustn't do less.
Look at my economic proposals and you will find simple,
plain solutions to our problems. Some may complain that they
lack the flash of an expensive new program. But I'm not seeking
spending for spending's sake. I want results. My plan is
sound and it will work.
If you hear people in Congress gripe that they can't get the
job done by March 20, remind them: We won the Gulf War in 44
days. Surely Congress can pass my urgent domestic program in
52 days. Remember, Congress can act with lightning speed when it
wants to. So: Accept no excuses. Accept no delays. And accept
no substitutes.
You've already taken the first step by voting to endorsemmy plan.
I appreciate
But, Please don't leave this message behind when you leave this
confidence. your note of
convention hall. Take it home to your families. Take it home
to your customers -- to your neighbors. From February 8 till
February 17, your congressmen will be home for the President's
Day recess. That's a great time for you to go to their hometown
offices and tell them to meet the deadline and pass my plan.
With effort like this, I know we'll get their attention --
and we'll get America moving again. Thank you. May God
bless you and the United States of America.
"[There's] a temptation to just report it [the President's
plan] as it is, put it on his desk, look at our clocks, and say,
'OK, the recovery clock is running. Let's let you have it your
way. "
Congresswoman Pat Schroeder
Fox Morning News
January 30, 1992
SENT BY:Office of Admin.
; 2- 3-92 :12:39PM :
OA Publishing-
2024562820:# 9
TAB H
ORLANDO, FLORIDA
Orange County/Civic Center
Address National Grocers Association
Dais Diagram
Tuesday, February 4, 1992
123
4
5678
Podium
Teleprompter
Audience
1, Robert Hand, Vice Chairman - NGA
2. Tom Zaucha, President - NGA
3. THE PRESIDENT
4. William Confer, Chairman of the Board of Directors - NGA
5. Kennech Techau, Immediate Past Chairman - NGA
6. Patrick Quinn, Executive Committee - NGA
7. Jerome Yaguda, Secretary/Treasurer NGA
8. Lee Schear, Executive Committee - NGA
KEY:
THE PRESIDENT
DAY, JANUARY 30, 1992
The Washington Times
MONEY
INESS
NDUP
Economy's fligh
noke get in their ads?
to freedom?
that accept cigarette advertisements
articles about the hazards of smoking, a
Plan wins
eaks, market responds
- Wall Street investors, uninspired by
economic package and worried that
praise - as
rest-rate cuts are in the offing, sent stocks
yesterday. The Dow Jones industrial aver-
47.18 points at 3,224.96, its biggest fall
120.31 points on Nov. 15. The blue chip in-
a first step
a record 3,272.14 on Tuesday. Losers out-
1,043 to 647 on active volume of 249 mil-
the New York Stock Exchange.
By Anne Veigle
THE WASHINGTON TIMES
headway
President Bush's rousing call to "set
- R.H. Macy & Co. Inc. yesterday got
the economy free" likely to help con-
$60 million in emergency financing to let
sumers feel better about their economic
retailer maintain normal operations dur-
future, but most business groups said the
court proceedings. Suppliers said yes-
president's new growth plan is a good
will resume shipping merchandise now that
first step.
can pay them.
The growth package, which was pre-
sented to Congress yesterday, contained
Steel to cut 6,500 jobs
a mix of both new and old proposals
aimed at giving a short-term boost to the
Steel Corp. yesterday reported losses
economy and preserving growth over the
voted to omit its 10-cent quarterly divi-
long term.
plans to cut 6,500 jobs by closing plants,
Business groups generally praised the
Sparrows Point plant in Baltimore.
assortment of tax cuts and spending re-
ductions because they are not expected
formula omits profits
to increase the federal deficit. In addi-
tion, some of the short-term proposals
GTON, Del. - Du Pont Co. reported a $240
could put more money into consumers'
h-quarter loss yesterday, saying it was
pockets in the next year.
red by the cost of a corporate re-
The president's growth package also
structuring and a prod-
won some faint praise from Federal Re-
PONT
uct recall. Du Pont, the
serve Chairman Alan Greenspan, who
nation's largest chem-
appeared yesterday before the Senate
ical concern, said the
Banking Committee. The committee is
loss compared with net
considering Mr. Greenspan's nomination
million a year earlier. For the year, Du
for another four-year appointment and is
$1.4 billion, down almost 40 percent from
likely to approve it.
Mr. Greenspan said he did not think a
fiscal stimulus package was necessary,
on approach
but the president's plan would not cause
any harm. He said the president's pro-
plan to save his privately held Trans
posal was not "major," and would not cre-
by filing a "pre-packaged" Chapter 11
ate long-term problems in the economy.
could come as early as today, sources said.
The economy will pick up on its own
announced last year, TWA creditors
"independently of what other fiscal pol-
a stake in a debt-free company.
icy moves the Congress chooses to make,"
Mr. Greenspan said.
counterattacks
"My only concern about fiscal policy
Source Perrier SA yesterday launched a
moves is that it is very easy to overdo
them, and I think we have sufficient ex-
against Nestle SA's $2.5 billion hostile
accusing the Swiss food giant of conspir-
perience of overloading the system,
which suggests to me|that we have to be
of business. The world's largest
quite careful," he said.
company asked French antitrust reg-
Some economists were disappointed
Photo by Stepher
the offer made Jan. 20 by Nestle and
with the president's plan, saying it fell far
Federal Reserve Chairman Alan Greenspan says the Bush plan
conglomerate Cie de Suez.
short of the long-awaited economic lead-
ership Mr. Bush had been promising in
HAVE TONIC
wing at Boeing
the weeks leading up to the State of the
Some of President Bush's proposals to speed an economic re
- The Boeing Co. yesterday reported a
Union speech. Some economists were
lower the amount of money the government receives in taxes
increase in fourth-quarter earnings, which
particularly critical of the growth plan's
some of the economic proposals the president made and thei
by strong commercial jet sales and a
limited assistance for middle-income
on the 1993 federal budget. In billions of dollars.
taxpayers.
profit in its defense business. For the quar-
Proposal
'92
record profits of $403 million on sales
"There's a huge gap between public
'9
confidence and economic reality," said
Adopt a new equipment investment tax allowance
6.1
Raymond A. Worseck, chief economist
Repeal the luxury tax on airplanes and boats
with A.G. Edwards & Sons Inc. in St.
and eliminate the diesel fuel exemption
cause dividend cut
Louis. "From my vantage point the whole
Permit deduction of interest on college student loans
0.1
- Westinghouse Electric Corp. cut
point is how to get people to be more
Establish flexible individual retirement accounts
0.1
lividend almost in half yesterday from 35
confident. When you examine the propos-
als, they are very anemic."
Walve penalty for withdrawals from IRAs
and announced plans to sell $500 million
for education and medical, expenses
preferred stock.
see IMPACT. page C10
Provide a tax credit to first-time homebuyers
0.2
Seoul
36/20sh
38/22pc
40/22sn
Stockholm
44/30c
40/32c
43/28c
5.07
Sydney
84/70pc
northern
Minnesota,
4
3.76
84/70pc
84/68pc
3.5
44 western New York and 55 in southern
Forecast for
2.03
2.78
Taipei
64/52pc
62/52pc
64/52pc
Today
bring
1.44
2.03
will
2
1.27
Tokyo
47/36pc
45/30c
a
45/27s
Maryland. Light snow is likely in Maine tonight;
Noon today
0.74
mixture of clouds and sunshine with a very
Toronto
37/28sf
32/19sf
23/16pc
otherwise, tonight will be partly cloudy. Lows 5
0
mild afternoon in the western Dakotas and
in northern Maine to 37 in southern Maryland.
M
J.
J
A
S
0
N
D
J
Vienna
35/20pc
35/22c
37/24pc
Warsaw
36/18c
32/16c
34/22pc
IMPACT
chases.
"This is the shot in the arm the
economy needs to get back on its
A MATTER OF ASSUMPTIONS
KOONS
From page C1
feet," said Robert "Jay" Buchert, the
The administration is more optimistic about the economy and a declining budget deficit provided President
"What we really need to do to get
newly elected president of the Na-
Bush's proposals are adopted than the Congressional Budget Office. The CBO foresees a lower gross
From page C1
the economy going is to drastically
tional Association of Home
domestic product and higher budget deficit.
owed $998,000, and Dominion Bank,
shake up public confidence," he said.
Builders.
GDP
The State of the Union speech failed
The president's plan includes a
4.0%
Federal budget deficit
which is owed $729,000, also joined
Annual percentage change
$400
to do that, he said.
$5,000 tax credit for first-time home
in billions of dollars
in the bankruptcy petition.
Others unhappy with the Bush
buyers and also would permit the
Administration
3.6
Administration
Dominion was named in a lawsuit
growth plan included defense con-
use of funds from a new type of
Congressional
3.5
$352
Congressional
filed last month that accused Mr.
flexible individual retirement ac-
Budget Office
350
Budget Office
Koons of siphoning funds from trust
tractors and businesses dependent
count. The plan also would make it
$327
on the military. Defense spending is
accounts to prop up his struggling
scheduled to be cut by $50 billion
easier to issue mortgage revenue
3.0
3.0
3.0
2.9
auto empire.
bonds so more money would be
3.0
300
over the next five years.
In that action, Ford Motor Co. said
available to first-time home buyers.
2.8
One of the firms hit hardest by
2.6
$268
$260
it wanted Mr. Koons to repay $1.5
those cuts is Falls Church-based
"Assuming the tax stimulus pro-
gram is enacted by March 20 as the
2.5
2.7
2.6
million that was missing from trust
General Dynamics Corp., whose
250
accounts holding insurance funds.
president proposed, housing starts
2.5
2.2
$227
Seawolf submarine program was
$226
The carmaker accused Dominion
limited to the one ship it is currently
in 1992 will total 1.4 million, up 18
and another bank of allowing Mr.
building. The company's Electric
percent from the 1.185 million pro-
2.0
$199
200
$190
Koons to take funds out of the trust
Boat Division said in a statement
jected by NAHB without the tax
$212
accounts, even though the banks' of-
credit incentive," Mr. Buchert said.
$194
yesterday. that it is "disappointed
He expected the proposals to gener-
1.6
$178
ficials knew they had been set up to
and very concerned" with the pro-
1.5
benefit Ford.
bosed defense cuts, though the com-
ate more than $20 billion in addi-
'92
'93
'94
150
'95
'96
'97
'92
'93
'94
'95
'96
'97
The dealerships Mr. Koons put in
any knew the cuts were expected.
tional economic activity."
The one bell-ringer proposal that
Chart by Greg Groesch The Washington Times
bankruptcy were: JKJ Chevrolet
Martin Marietta Corp. officials
Sterling; Saturn of Sterling Inc.;
won universal acclaim from busi-
aid they are ready for the defense
search with the Hudson Institute in
month moratorium on new reg-
U.S. Chamber of Commerce. "He's
Koons Chrysler-Plymouth; JKJ
nesses was the president's call for a
a spokesman for the Bethesda
Indianapolis. "It's stronger than any-
ulations- the U.S. Chamber of Com-
taking a sensible approach."
Buick; Brandnewco. Inc.; JKJ
capital gains tax reduction. The
said yesterday. Martin Marietta
thing he's proposed before."
rates would be 15 percent for asssets
merce especially has been calling
The administration's proposals
Chrsyler Plymouth; and JKJ Glebe
about 75 percent of its business
"The message Bush gave was cut
held one year, 30 percent on assets
for a halt in new regulations for
aimed at the middle-income tax-
Inc.
the military.
taxes, freeze regulations and freeze
held two to three years and 45 per-
more than a year.
payer include an increase in the per-
Stephen Goldstein contributed
On the other hand, real estate in-
the budget," said Lawrence A. Kud-
cent on assets held three or more
"It may not be bold enough or
sonal exemption of $500 per child,
to this report.
stry officials were enthusiastic
low, chief economist with Bear
strong enough for many people, but
years.
tax deductibility of student loans,
the president's plan, which
Stearns Co. Inc., an investment
"I think that's the most significant
I think most businesspeople under-
more flexible rules on individual re-
tains a number of measures
banking house in New York.
piece in the package," said Alan
stand the president's approach is in
tirement accounts, and a health care
at stimulating house pur-
Business groups also welcomed
Reynolds, director of economic re-
the right direction," said William
reform package that the president
Take stock
UNITE
the administration's call for a three-
STATES
MacReynolds, economist with the
will unveil next month.
in America.
SONIALS
BUNDS
DP
of recent recoveries.
helped boost third-quarter GDP by a
The economy sank into recession
1.8 percent annual rate.
ADVERTISEMENT
in July 1990 and, after declining at a
page C1
"There is no sign that consumers
3.9 percent annual rate in the fourth
are ready to forge ahead," observed
quarter and 2.5 percent in the first
Kermit Baker of Cahners Econom-
hspan told Congress yesterday
three months of 1991, showed signs
ics in Newton, Mass. He cited the
entral bank is beginning to see
Experts reveal why local homeowners
of a weak revival.
very subtle signs that the ero-
latest survey by the widely re-
But it stalled again in late sum-
the economy is beginning to
spected Conference Board, a busi-
mer, prompting concerns it might be
ze."
ness research group, showing con-
should fix "problem basements" now
headed for the fifth double-dip re-
also suggested that "this econ-
sumer confidence continuing to
cession since World War II.
erode in January.
Thanks to the unusually dry win-
According to Mr. Wilson, the
boost profits by overpricing their job
move out of this extreme
In early December, the GDP re-
with monetary policy
Exports soared at a 15.4 percent
ter in the Washington Area, water-
smartest homeowners are seizing the
or cutting corners in the work.
placed the gross national product as
rate in the October-December quar-
proofing contractors-even the very
opportunity and having their base-
Mr
and without the huge tax cuts
the nation's broadest measure of
ter, but many economists expressed
best- remain more flexible in their
Bush and many congress-
economic health. The difference is
proposing.
concern this source of strength
prices than
that the GDP measures output
would dissipate as
with the growth package
within the United States
impact of lower interest
of a visit to the United States, Yelt-
sin said Russia is striving for "min-
imum sufficiency" in nuclear and
conventional weapons. He wel-
Skeptical of
comed arms control proposals made
by President Bush in his State of
the Union address just hours earlier
Bush Plan
and suggested that Moscow could
join Washington in creating and
jointly operating a global defense
Some Industries
system against nuclear attack in
place of the Strategic Defense Ini-
Welcome Incentives
tiative.
Soviet political commentators
1-29-92
said Yeltsin's proposals appeared
By Jerry Knight and Kirstin Downey
designed in part to project a states-
Washington Post Staff Writers
manlike image prior to a two-day
trip to the United States, during
President Bush has promised that
which he will address the U.N. Se-
the initiatives he detailed in his
curity Council. Yeltsin went out of
budget this week will "lift this nation
his way to depict Russia, the largest
out of hard times inch by inch," but
and most powerful member of the
economists interviewed yesterday
new Commonwealth of Independent
said that with the economy advanc-
States, as the rightful successor to
ing just one inch at a time, there will
the defunct Soviet Union in the mil-
be no quick return to prosperity.
itary field.
The White House plan is to steadi-
The Russian leader said he would
ly dribble sand on the scales until the
propose deep reductions in strate-
economy returns to balance rather
gic offensive weapons when he
than to toss out weighty new pro-
meets with Bush at Camp David on
grams that might risk tilting the sys-
Budget Director Richard G. Darman explains spending plan at new
Saturday. Under his proposal, each
tem.
side would be left with only 2,000
That approach satisfies many
to, 2,500 strategic nuclear weap-
economists who believe the nation is
ons-roughly 20 percent of the
gradually growing out of the reces-
present Soviet strategic arsenal.
sion and who fear that new efforts to
Like Bush, the 60-year-old Rus-
give the system a bigger jolt might
Speech Praised for S
sian leader stressed that his arms
reignite inflation.
control initiatives could produce
The president has proposed "a
Democrats Who Voted for Bush in 19
tangible material benefits for a pop-
nice mix of sound policies," said
ulation preoccupied with domestic
economist Jerry Jasinowski, presi-
economic troubles. He said re-
dent of the National Association of
now
sources saved from cutting arma-
Manufacturers. But the limited
By David S. Broder
for
Washington Post Staff Writer
ments would be channeled to "ci-
scope of the programs makes it clear
abo
vilian needs" and to easing the tran-
that the administration's main strat-
TIMONIUM, Md.-Before President Bush be-
me
sition to a market economy from
egy for economic revival is a contin-
gan his State of the Union address Tuesday night,
Uni
the communist system of central
ued reliance on lower interest rates
the 11 men and women gathered here-all of them
him
planning.
engineered by the Federal Reserve,
Democrats who had backed Bush in 1988-said in
H
he added.
See YELTSIN, A18, Col. 3
urgent tones that they hoped he would speak to
wo
"He has avoided the problem of
their concerns about the recession and unemploy-
of
Bush and Yeltsin add impetus
going forward with extreme pro-
ment, imports, education, health care and homeless-
tho
to nuclear cutbacks.
Page A18
grams that would raise long-term in-
ness.
the
terest rates," Jasinowski said. "Ex-
When he had finished, most of them said he
two
treme" in this sense would be a
hadn't really done that-or done it as well as they
tha
much bigger package of tax cuts that
had hoped. But they liked the speech and the man
aff
could give a big boost to consumer
who gave it because he was "real positive," "confi-
spending, but also send prices sharp-
dent," "very strong."
for
ly upward.
They accepted and endorsed his view that he was
no
But the benefits of each one of the
trying to do his part in meeting domestic needs and
dozens of tax, spending and econom-
ic policy changes proposed by the
White House are so difficult to meas-
ure that even those who support the
president's approach worry that
they may not add up to enough to
ADDITIONAL BUDGE
achieve either the political or eco-
nomic goals that are desired.
Bush administration officials
The White House
"If it doesn't work economically,
yesterday outlined their vision
again recommended in
it's not going to work politically,"
of a new, post-Cold War mil-
in the budget for the
warned Fabian Linden, chief econo-
itary. The administration pro-
Endowment for the
mist for the Conference Board, a
gram would include sharply
icized in past years f
business organization that regularly
reduced purchases of advanced
port of controversia
monitors consumer confidence. The
weapons, but there would be
while increasing b
board's latest survey, released the
no personnel cuts beyond the
quests for other arts
day of the president's speech,
previously announced plans to
including the Smiths
BORIS YELTSIN
showed consumer confidence at its
shrink the armed forces by 25
tution and National E
600 missiles taken off alert
See ECONOMISTS, A6, Col. 1
percent.
Page A10
for the Humanities.
Md.'s Doomsday Option
INSIDE
Bearing
It's New Taxes or Schaefer's Worst-Case Cuts
Israeli Elections
Accuser From
Israel's two major parties
agreed tentatively to hold
By Richard Tapscott
tinue severely abbreviated functions
parliamentary elections June
Washington Post Staff Writer
with federal funds and fees.
23 to resolve a crisis caused
By Marc Fisl
Schaefer's self-proclaimed dooms-
by the withdrawal of two
Washington Post Foreig
ANNAPOLIS, Jan. 29-Mary-
day option appears certain to add to
small parties from Prime
STUTTGART, Ge
land Gov. William Donald Schaefer
the pressure in an already tense at-
Minister Shamir's coalition.
29-They stood four
has drafted a budget that eliminates
mosphere at the Statehouse, where
WORLD, Page A16
separated now only
state-funded public assistance and
leaders have been unable to fashion a
two men stiffened by a
many housing programs and ends
consensus for either tax increases or
Missiles to Sausages
a horseshoe of white H
all state tax contributions to the
major budget cuts.
A Ukrainian factory that
turned to Germany af
1.8 percent and 1.4 percent rates in
drop
-4
1991
1992
1993
the two previous quarters.
in A
1989
1990
1991
that
Gross domestic product
0.2%
2.2%
3.0%
The impact of the recession was
seen more clearly in the fact that
4th Qtr.-1991
cent
Consumer inflation
3.0%
3.1%
3.3%
GDP for last year was down 0.7 per-
Consumer spending
-1.1%
tee t
6.9%
6.8%
6.4%
cent from the 1990 level. It was the
Durable goods spending
-5.8%
lows
Unemployment
first annual decline since a 2.2 per-
Nondurable goods spending
-4.9%
from
Services spending
+2.3%
NOTE: 1991 figures are actual. Unemployment figures are fourth quarter rates.
cent drop in 1982.
up fr
SOURCES: Commerce Department; KRT Graphics
TI
Most forecasters expect another
THE WASHINGTON POST
four
weak showing in the current Janu-
ary-March period, followed by at
spen
annu
Many Economists Skeptical
of the Federal Reserve, said he also
least a modest acceleration in eco-
expects a rebound later this year
build
nomic growth. The Bush administra-
even without further cuts in interest
tion, for example, yesterday said it
rates, tax cuts or spending increases
Of Bush Plan for Recovery
expects real GDP to grow 2.2 per-
cent over the course of 1992, up
by the government.
from the scant 0.2 percent increase
Greenspan cautioned, however,
last year.
that some of the factors, such as high
ECONOMISTS, From A1
shot won't be anywhere close to big
Michael J. Boskin, chairman of the
debt burdens of businesses and house-
enough to make the payments on a
lowest level in a decade, and this pes-
Council of Economic Advisers, said
holds, that caused the economic re-
new car. A trip to McDonald's is what
the "very flat, sluggish position the
covery to falter last fall have no pre-
simism has been a heavy drag on the
most families can expect from the cut
economy, offsetting thus far the lower
economy's been in since the late
cedent in recent U.S. economic
interest rates offered by the Fed.
in federal income tax withholding or-
summer
will continue
in the
history and make predictions highly
dered by Treasury Secretary Nicholas
early part of 1992." If President
uncertain.
Linden, generally supportive of the
F. Brady.
administration plan, said, "The in-
Bush's various new proposals to
"I would expect the economy to
stincts are perfectly fine: to get more
A typical family of four with one
stimulate the economy are quickly
quicken its pace," the Fed chairman
bucks into the hands of the guy who is
wage-earner bringing in $700 a week
adopted, "people will notice a de-
said, "but I am spending a lot more
going to run down to his local retailer
will find an extra $6.60 a week in the
monstrably higher rate of growth"
time watching [the economy] than
and buy something." But the impact of
paycheck as a result of the withholding
by the middle of the year, he said.
forecasting."
many of the president's proposals will
change, and a single person making
Alan Greenspan, testifying at a
Many private economists think
be so minimal "that you'll need a mag-
$25,000 a year would get an extra
Senate Banking Committee confir-
the economy could do better this
nifying glass to find it," he said.
$15 a month, administration officials
mation hearing on his nomination to
year than the administration fore-
Linden noted that even the adminis-
calculated.
a second four-year term as chairman
cast. One, William Melton, chief
tration's biggest economic incentive
Added together nationwide, howev-
for consumers-a proposed $5,000
er, these small amount total $25 bil-
tax credit for first-time home buy-
lion a year in additional cash and most
ers-"as a contribution to buying a
of it will flow directly into the econo-
house is a less than imposing sum."
my. "If people get an extra $5 in their
The one big fix in the administration
pocket, they'll spend it," said former
package is aimed at the housing indus-
Internal Revenue Service director
try, which last year saw construction
Sheldon Cohen, now a Washington tax
of new homes and apartments fall to
lawyer.
the lowest level since 1946. Kent Col-
That extra spending money is not
ton, executive vice president of the
the result of a tax cut, but simply of re-
National Association of Home Build-
ducing withholding rates to put into
ers, predicted the package will result
people's paychecks today the refund
in 250,000 additional housing starts,
they would ordinarily receive next
415,000 more jobs and $20 billion in
spring.
additional economic benefits when
Lots of people would rather not
buyers go shopping for furniture,
have that happen, Cohen warned.
paint, lawn mowers and everything
"Most people still want to be over
else a new house needs.
withheld," even if it means a little less
The home builders presented Bush
money to spend today.
with a wish list of incentives and got
virtually every one of them-the first-
"If they succeed [in stimulating the
time buyers tax credit, penalty-free
economy by reducing withholding]
withdrawals from individual retire-
they will have lots of unhappy Ameri-
ment accounts for first-time home
cans on their hands," he predicted, be-
cause the reduction in withholding will
inevitably mean some people will not
"If it doesn work
have enough money taken out of their
checks to cover the taxes due.
economically, it
Some experts are skeptical that
some of the proposed tax law changes
not going to work
meant to stimulate the economy will
work at all or that they will work as
politically."
well as predicted.
"It's quite possible they will have
- Fabian Linden, economist
some effect. The real question is
what's the magnitude," said Randall
Weiss, director of tax economics for
buyers, restoration of special invest-
Deloitte & Touche, another big ac-
ment loss deductions for real estate in-
counting firm. "Compared to lower in-
dustry professionals, tax deductions
terest rates, these things are relative-
for losses on sales of homes and an ex-
ly small."
tension of low-income housing credits.
Because of the inch-by-inch ap-
Those incentives will encourage po-
proach the White House is pursuing,
tential home buyers to buy now rather
the individual impact of any one of the
than wait, said Steve Montgomery, na-
proposed tax law changes will be very
tional director of real estate tax servic-
minor, said Eugene Steurele, a former
es for accounting firm Ernst & Young.
Treasury Department tax expert now
"It will stimulate an earlier purchase
at the Urban Institute in Washington.
decision than would otherwise have
Many of the changes represent a re-
occurred," he said.
treat from the tax reforms of 1986,
The administration plan was also
which lowered overall income tax
welcomed by another hard-hit indus-
rates by doing away with hundreds of
try: the Detroit automakers. "People
specific tax advantages for certain in-
have been scared. They've put off buy-
vestments. But the tax write-offs are
ing high-ticket items like cars and
so small, they barely matter, Steurele
homes that mean jobs," said Chrysler
said. "Even the investment credit-
Corp. Chairman Lee A. lacocca. "The
which I happen to believe is a bad
president's proposal may be just the
idea-is a pretty trivial credit," he
shot in the arm this economy needs."
said. "It's a movement backward, but
Orig.
SALE
For most families, however, the
without a lot of meat there."
Brightener-added blue fox jackets
Fu
with dyed shadow fox trim
$1400
$599
m
fo
Data Show U.S. Approved
Dyed ranch mink jackets
$2000
$799
Fu
$60 Million in Sales to Iran
Full-length, brightener-added
blue fox coats
$2100
$899
D
Associated Press
The procedure calls for the Com-
Full-length, natural or
na
The Bush administration approved
merce Department to evaluate ex-
$60 million in high tech sales to Iran
port applications by getting expert
dyed mink coats
$3000
$1249
Special Section on Redskins' Super Bowl
Weather
Today: Mostly sunny, mild.
High 50. Low 34. Wind 6-12 mph.
Thursday: Partly sunny, mild.
High 54. Wind 8-16 mph.
Yesterday: Temp. range: 32-48.
AQI: 50. Details on Page D2.
The Washingto
15TH YEAR
No. 55
WEDNESDAY, JANUARY 29, 1992
Bush Tells Nation Recession
Tax Plan Calls for Rebate
This Year, Array of Cuts
By Steven Mufson and Eric Pianin
By the administration's own esti-
Washington Post Staff Writers
mates, those proposals would cost
the government an additional $24.6
The Bush administration is plan-
billion over five years, an amount
ning to give Americans their 1993
that would be covered by other un-
tax rebates in 1992 by changing the
Internal Revenue Service withhold-
specified savings. Under current
law, the proposed tax benefits will
ing tables and taking less out of the
require at least $5.2 billion of offset-
average weekly paycheck.
ting spending cuts in the current
The centerpiece of the president's
election year package, announced in
year if enacted by Congress, and us-
his State of the Union address last
ing revenue estimates of congres-
night, gives the average taxpayer
sional economists even bigger off-
sets would be needed.
about an extra dollar a day this year,
a measure the administration hopes
But the president said little about
will stimulate the sluggish economy.
specific spending cuts except to pro-
But it will reduce next year's tax re-
pose a freeze in government hiring
funds by an average of $345 for ev-
that administration officials said
ery taxpayer, administration officials
would slice the number of govern-
estimated.
ment employees by 4 percent.
BY RAY LUSTIG-THE WASHIN
In addition, the administration is
See ECONOMY, A12, Col. 1
In third State of Union address, Bush says, "We can defeat hard times tog
proposing a host of tax cuts reported
earlier aimed at quickly putting mon-
ey in the hands of Americans, spur-
ring corporate investment and re-
suscitating the moribund real estate
A Declaration of Political War on th
business.
The measures include a $500-per-
child increase in the personal ex-
By Ann Devroy
construct a case for political war on the Dem
A:
emption, expanded tax-free savings
Washington Post Staff Writer
ocrats.
is by
plans, additional tax incentives for
corporations to increase invest-
A year after he summoned the nation to
In using the most memorable phrase of the
addr
battle in the Persian Gulf War, President Bush
Bush presidency-his This will not stand"
notw
ments, a variety of tax breaks to re-
vive the ailing real estate industry
tried for a comeback last night. In the name of
NEWS
threat to Saddam-the president
Bush
and a cut in the maximum tax rate
the capital gains tax cut, alternative minimum
ANALYSIS
put himself on a war footing and
thor
on capital gains to 15.6 percent for
tax depreciation and modifying the "passive
implied that anyone who wasn't
acce
assets held three years or more.
loss" rules, the president borrowed the soar-
with him was somehow unpatriotic. Democrats,
Roge
he said, will surely not turn their backs on the
ing language, the deadlines and the steely
it is
Navy subs, largest Army pro-
threats to Iraqi President Saddam Hussein to
nation in this time of peril because "you're pa-
issue
grams face budget ax. Page A12
triots, and you want the best for your country."
In Fairfax, Pay Bias Suit
RALLY FOR CHAMPION REDSKINS
Exacts a Personal Price
Woman Fired After Filing Gains Settlement
By Sandra Sugawara
A Fairfax County Human Rights
Washington Post Staff Writer
Commission official assured her that
Irene Lugenbeel stared at the sal-
her job was safe because it's illegal
ary data on the computer screen.
to fire people in retaliation for filing
discrimination claims.
She had her proof. Two of her col-
leagues who did the same work as
So she filed a complaint against a
she did at their Northern Virginia
Corn. subsidiary of Iverson Technology
of
McI
a whiligness to convert
with Moscow, Bush IS also trying to
Russian
of its modern force of SS-18 and
tiative largely involves the long-
a "substantial portion of our stra-
take the initiative away from Dem-
"has been ven
other missiles.
range nuclear weapons linked
tegic bombers primarily to conven-
ocratic legislators and presidential
U.S. official.
Experts consider the MX missile
most directly to the nation's secu-
tional use" without seeking a sim-
candidates who have called for a sub-
of anonymity
warhead, which carries a force
rity and image.
ilar commitment from Moscow.
stantial "peace dividend." Chairman
to present
equal to 300,000 tons of TNT, the
By focusing on eliminating those
Each of these is a major conces-
Joseph R. Biden Jr. (D-Del.) of the
a planned
most accurate and destructive
missiles armed with multiple war-
sion by the Defense Department,
Senate Foreign Relations subcom-
Camp David
THE ECONOMY
DEFENS
Bush Offers
Navy
Proposals to
Prog
Break Slump
By John
and Bart
ECONOMY, From A1
Washington
Most of the president's economic
The $50 billi
package faces a tough election-year
ings outlined in
battle in the Democratic Congress,
State of the Uni
but the change in payroll deductions
would include
does not require legislation. The IRS
lion-per-copy
will send out changes in withholding
and indefinitely
tables today, and most firms will re-
next-generation
duce the amount of money taken out
RH-66 Comanch
of workers' paychecks by the end of
the largest wea
February, the administration said.
the Army's buc
In his address, Bush made only
lawmakers brief
fleeting reference to the federal defi-
dent's plan.
cit. But his measure on withholding
Defense Secr
would drive up that deficit by $25
Cheney told ke
billion over a period of 12 months-
closed-door brief
adding $19 billion in the current fis-
last night that fu
cal year, which ends Oct. 1, and
ets will reflect
bringing the 1992 total up to $399
At president's speech, in front row from left, Vice President Quayle's wife Marilyn; daughter-in-law Margaret Bush; the
developing weap
billion, the Office of Management
Rev. Billy Graham; Barbara Bush; daughter Dorothy Bush LeBlond; Fred McClure, White House congressional lobbyist.
will stop short
and Budget estimated.
many cases. The
The administration asserted that
the administration to claim that low-
The president wants to grant subsi-
also call for shar
the change-the single biggest item
chrast said he believed the housing-'
er- and middle-income earners will
in the economic package-would not
dies to first-time home buyers. Under
related proposals could increase the
missile programs
benefit most and blunt Democratic
break the budget agreement and did
his plan, a first-time buyer who buys a
duction of the B-
number of housing units built in the
criticism of proposals that benefit
home after Feb. 1 would get a tax
:not need to be offset by other tax in-
United States in 1992 by 150,000 to
at 20 planes, fiv
the wealthy.
credit of up to $2,500 and an addition-
175,000 units above the 1.15 million
gress has author
creases or spending cuts, adding
Bush himself raised the issue of
al credit of the same amount next
than the 75 calle
that it falls within the scope of exec-
housing units built in the country in
pitting one class against another, ac-
utive action permissible under the
year. A tax credit, unlike a deduction,
ous Air Force pla
1991. Administration officials claimed
cusing Congress of making the cut in
budget agreement.
reduces taxes dollar for dollar, SO this
But Chenev als
that the tax credit for first-time home
capital gains taxes a class issue.
The administration said that es-
plan would reduce the buyer's taxes
buyers alone would add a quarter of a
the proposed bud
"You kind of remind me of the old
by $5,000 over two years.
tain additional cut
sentially the government is return-
definition of the Puritan who
million home buyers beyond what
In addition, first-time buyers would
yond the 25 per
ing money that it is borrowing from
would otherwise be expected.
couldn't sleep at night worrying that
'taxpayers at no interest. But the re-
be allowed to make a penalty-free
cluded in the Pen
somehow, someone, somewhere was
Bush also proposed to make the in-
withdrawal from their individual re-
plans and would
duction in payroll deductions would
out having a good time." Bush said.
terest deductible on student loans for
tirement accounts (IRAs) if the mon-
of costly proces
mean that the government would
He added that
post-secondary education.
those
who
ve
ey were used for the down payment
nearing the prodi
have to borrow at regular rates in
authored various so-called soak-the-
Taxpayers would also be able to
on their home.
as the Air Force
credit markets the $25 billion it is
rich bills that are floating around this
open new "flexible" individual retire-
returning to taxpayers during the
And finally, homeowners who sell
F-22 fighter and
chamber should be reminded of
ment accounts that would allow them
their houses at a loss would be al-
Similarly, Chem
next year. Taxpayers will bear the
something: When they aim at the big
to withdraw money for any reason,
lowed to deduct those losses-some-
that the budget
cost of that borrowing.
guy, they usually hit the little guy.
such as home down payments, medi-
thing they are not now allowed to do.
completing nuclea
Administration officials said that
Democrats took up the gauntlet.
cal costs or tuition. Contributions to
too much money is withheld from
Bush would also aid the real es-
aircraft carrier E
"Given the emphasis on capital gains
the accounts would be taxed, but
port News and
the average American's paycheck
tate industry further by easing re-
and the paltry effort to help middle-
earnings could be withdrawn tax-free
strictions on tax deductions for loss-
new carrier beg
and that the average rebate has
class people, you're going to have a
after seven years.
grown from $800 to more than
es in the industry and by
Cheney briefed
battle now," said Rep. Thomas J.
Bush's proposal on capital gains
encouraging pension funds to invest
the Pentagon's
$1,000. Over 85 percent of Ameri-
Downey (D-N.Y.), a senior member
would cut the tax rate the longer in-
cans would still get refunds every
more money in real estate.
for fiscal 1993.
of the Ways and Means Committee.
vestments are held. Bush would ex-
spring, administration officials said,
Real estate industry executives
veiling today. and
"Once you see the distributional ta-
and spokesmen were jubilant about
clude 45 percent of capital gains on
details on the pre
but the refunds would be smaller.
bles on his proposal, it will be SO
the recommendations. "I'm excited
assets held longer than three years,
to save $50 billion
The average taxpayer-and there
weighted in favor of the rich that it
resulting in a top maximum rate of
about the [housing] provisions," said
over five years.
are about 90 million taxpayers-
will fall of its own weight."
15.6 percent for those assets. Assets
would receive money in 1992 that
Hal Ellis, chairman and chief execu-
The proposals.
Bush accused Democrats of being
held less than one year would still be
tive of San Francisco-based Grubb &
far deeper cuts tl
he or she would otherwise not get
"demagogues" by attacking a cut in
Ellis Real Estate. "If Congress em-
fully taxed at rates of up to 28 per-
thought possible a
until 1993. For single individuals the
the capital gains tax as a benefit for
cent.
still are not likely
amount could be as low as $175 and
braces them and passes them quickly,
the rich, claiming that 60 percent of
then it could have a very stimulative
Other tax cuts would benefit busi-
ous members of
for two-income families the amount
the people who would benefit have
could come to more than $600, ad-
effect on our economy. And when you
nesses. Corporations could deduct an
lawmakers have
incomes under $50,000. But Bush
additional 15 percent of the cost of a
stimulate our housing industry, it im-
the defense budget
ministration officials said.
neglected to say that the size of
pacts a whole range of other indus-
piece of equipment purchased after
cent in recent
The changes in the withholding
their benefits from cuts in capital
tries that supply materials for hous-
Feb. 1. Varying depreciation rates
the full benefits
schedules would be phased out be-
gains taxes are paltry compared with
ing."
currently allow companies to deduct
savings would not
tween $70,000 and $90,000 of in-
the benefits received by wealthy
come for individuals, because most
Administration officials claimed
anywhere from 10 percent to 50 per-
decade, because
Americans.
that their entire economic package
cent of the cost of equipment.
budget authority,
upper-income earners do not with-
The administration's economic
would stimulate the creation of half a
tual outlays.
hold extra money, officials said. The
package also takes special aim at re-
Staff writers Kirstin Downey and
phasing out of changes also enables
million new jobs.
The result, accor
viving the real estate sector.
Albert B. Crenshaw contributed to
would be a far sm
Housing economist Michael Sumi-
this report.
idend" than might
JOBS AT RISK
In California, Anger and Resignation on the B-2
By Steven Pearlstein
"It is unwise how much we have dropped
portraying the B-2 as a gold-plated fiasco
Washington Post Staff Writer
our guard," said Largent.
Yesterday, planes No. 5 through
rather than the engineering marvel that in-
PALMDALE, Calif., Jan. 28-In this high
Yet for all their disappointment and even
in various stages of assembly and. sh
spires their pride.
desert home of the B-2 "stealth" bomber, a
anger with the decision to cap the B-2 pro-
gress approve, a production run of
More than 15,000 Californians are working
gram at 20 airplanes, Northrop employees in-
keep the lights on through 1998.
handful of people who build it gathered tonight
directly on the B-2 program, most of them for
terviewed tonight in this Republican enclave
Even before the president's spee
to hear President Bush declare victory in the
Northrop and Hughes Aircraft Co. in the Los
Cold War, but left feeling like its casualties.
were divided over whether they would hold
workers seemed resigned to a sm
Bush responsible at the polls in November.
Angeles area. Northrop alone has 13,000 em-
gram and grateful that, with a clear
"The timing couldn't have been worse,"
ployees working on the plane, and a company
"He betrayed us," said Visokey's husband
of the B-2's fate after years of politic
said Carol Visokey, a manufacturing planner
spokesman said last night that as many as
for Northrop Corp., the B-2's builder. "First
Bill, who makes tooling for the B-2. "I proba-
gling, they could get on with plann
bly could never vote for him now.
1,500 workers would probably be laid off by
lives.
you had your auto workers, then construction
year-end, most of them at the company's en-
"If it comes to feeding a family, I'd cross
Many B-2 workers are veteran
workers and now aerospace. Hey, we're the
gineering and design facility in Pico Rivera.
middle class. We are the ones who are sup-
party lines," warned C.J. Butler, a B-2 me-
aerospace industry, which has domin
chanic and mother of five.
Nationally, 40,000 jobs are tied directly to
area's economy for 30 years. They
posed to pay the bills."
the program, at major subcontractors such as
But any number of B-2 employees agreed
den the fortunes of the industry up
Engineer Jorg Largent, who began work on
Boeing Co. in Seattle, LTV Corp. in Dallas
with 18-year Northrop employee Leon Robin-
first with the Lockheed L-1011 con
the B-2 nearly a decade ago when he couldn't
and engine-maker General Electric Co. in Cin-
son when he said the alternative to Bush may
jetliner, then later with Rockwell
even tell his wife about the super-secret pro-
cinnati.
be no better for the industry
bomber, both of which were
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39TH STORY of Level 1 printed in FULL format.
Copyright 1992 Investor's Business Daily, Inc.
Investor's Business Daily
January 30, 1992
SECTION: Bush's Budget Proposal; Pg. 7
LENGTH: 1157 words
HEADLINE: Bush Plan To Aid Home Builders Could Hurt If Congress Delays It
BYLINE: By Robert Corrigan, Investor's Daily
President Bush had plenty of good news for home builders and the real estate
industry Tuesday night. But some observers said yesterday that in the short
term, the president's proposal could hinder home sales until Congress acts on
it.
''There's no question that a 5,000 tax credit and the ability to pull money
out of IRAs without penalties for first-time home buyers will have a very
positive effect on the industry,' said Bruce Karatz, president and chief
executive of Kaufman & Broad Homes Corp., the giant Los Angeles-based builder.
''But Congress has got to act on it in a speedy fashion to keep the momentum
going,' he added.
In his State of the Union address, Bush included five proposals to help
real estate:
* A $ 5,000 tax credit for first-time home buyers.
Potential buyers who have not owned a home in the last three years would be
eligible. The program would apply retroactively to either new or existing houses
bought between Feb. 1, 1991, and Jan. 1, 1993. Half of the credit would be taken
off 1992 taxes and half off 1993 taxes.
Contrary to some predictions, Bush mentioned no income limit.
*
Permission to withdraw up to $ 10,000 from an Individual Retirement Account
without penalty when it would be used to help purchase a new home.
Under existing law, any withdrawals from an IRA before the age of 59 1/2 are
subject to taxes immediately and are penalized by a 10% fee.
*
Deductions on losses from the sale of a principal residence.
If a homeowner sold his home at a loss after Feb. 1, he could deduct the
amount that exceeded 10% of his income.
*
Incentives to encourage real estate purchases by pension funds.
Pension funds presently are restricted by ''prudent investment'' rules that
confine them mostly to low-risk investments in securities.
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Investor's Business Daily, January 30, 1992
* Reinstatement of ''passive loss'' tax breaks that were outlawed by the 1986
Tax Reform Act.
Real estate developers would be able to apply their losses on real estate
investments against their taxes on profits from other businesses.
For most housing analysts, the first proposal - the tax credit for first-
time home buyers - is the most significant one for the home building industry,
home buyers and the economy as a whole.
The National Association of Home Builders told Investor's Business
Dailyyesterday that if passed by Congress, the tax credit could sharply increase
housing starts this year.
Before Tuesday, the NAHB had forecast that 1.185 million units would be built
in 1992, the first increase in six years but still near last year's post-World
War II low of 1.02 million units.
In the wake of Bush's proposal, the NAHB sharply changed its forecast
yesterday to 1.4 million starts for the year.
David Seiders, chief economist at the NAHB, said the single-family home
market will be positively affected, while the apartment market - already
devastated by a credit crunch and other problems - will be hurt further.
Under rgw NAHB's original 1.19-million-unit estimate, 200,000 units were to
be in multifamily starts and 985,000 units in single-family construction. Though
the new estimate accelerates the total to 1.4 million units, only 170,000
multifamily starts were predicted, while single-family construction was raised
to 1.23 million units.
'There will clearly be some negative impact on multifamily housing because
you're taking people who are or would be renters and moving them into
homeownership,'' Seiders said.
The NAHB estimates that about two million American households now renting are
likely to be considering buying a house, based on Commerce Department
statistics. Bush's tax credit incentive is aimed at that group.
The tax credit would encourage about 300,000 of that number to buy a home, on
top of those who were planning to buy anyway, said the NAHB.
Of the nation's 95 million households, 34 million presently are renters,
according to the government.
Seiders added that while the tax credit would be good for the purchase of an
existing home as well as a new home, the transaction would force the
construction of a new home at some point down the road.
Sales of existing homes typically account for 80% of all home sales, while
new-home sales make up the balance.
Home builder Karatz noted that a similar tax credit was attempted in 1975,
with positive results.
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Investor's Business Daily, January 30, 1992
He said that 1975's desultory 1.16 million starts figure jumped to 1.54
million units the following year with the help of a $ 2,000 tax credit for
first-time buyers.
Bush's $ 5,000 tax credit proposal also promises to put many unemployed
builders back to work. The NAHB estimates that 415,000 construction jobs are
likely to be created from the surge in purchases.
Bush stated in his speech that he would like Congress to act on his package
of proposals by March 20. But some housing analysts said the process could take
months longer, raising fears that potential first-time home buyers attracted by
the proposed tax credit will delay their purchases until Congress acts.
The result could be a further delay in the rebound of the housing market,
which has shown signs of life in the past few months. Bush said in his speech
that he is counting on the housing industry to lead the country into recovery,
as it has after every recession since the end of World War II.
''I'm very concerned about what could happen short-term. Sales could shut
down for months,' said Todd Zimmerman of Zimmerman Associates, a Clinton,
N.J.-based housing research firm.
Seiders agreed that any dallying by Congress could hurt home builders' sales.
''If you were going to buy a house anyway, there is no reason why this delay
should hold you up. If you are contemplating buying because of the tax credit,
you certainly won't until it's a sure thing,'' he said.
But Karatz said weakened home prices and record-low mortgage rates are likely
to encourage a healthy amount of buying even if Congress doesn't act until
summer.
Bush's other real-estate-related proposals met with mixed reviews. Karatz
said the IRA withdrawal plan could help thousands afford down payments on new
homes.
But Angelo Mozilo, president of the Mortgage Bankers Association, said in a
statement yesterday that 'recent data indicate that only 10% of American
renters, typically those in higher-income brackets, have IRA accounts. Help is
desperately needed at the lower end.''
Housing analysts said the deductions for losses on the sale of principal
residences are likely to help only a limited number of home buyers in areas
where prices have declined significantly, such as the Northeast.
The proposals concerning passive losses and incentives for pension funds will
be welcomed by commercial real estate developers, but are unlikely to affect
home builders, analysts said.
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64TH STORY of Level 1 printed in FULL format.
Copyright 1992 The Chronicle Publishing Co.
The San Francisco Chronicle
JANUARY 30, 1992, THURSDAY, FINAL EDITION
SECTION: NEWS; Pg. A8
LENGTH: 962 words
HEADLINE: Bush's Economic Plan Wins Praise From Experts
Analysts say proposals provide near-term relief, 1
BYLINE: Jonathan Marshall, Chronicle Economics Editor
BODY:
In the wake of Tuesday's State of the Union address, economists and
budget analysts generally praised the emphasis of President Bush's latest
proposals to limit election-year damage to the economy while stimulating
long-term growth.
Bush advanced an eclectic mix of measures to lift the gloom of recession from
the economy and speed its future expansion. They include lowering the
withholding on paychecks, slashing capital gains taxes, tax relief for
middle-income families with children, tax credits to first-time homebuyers, more
incentives for corporate research, development and investment and a
re-examination of federal regulations that burden business.
' 'The grand design was pretty well put together,' said Christopher Varvares,
a senior economist at Laurence H. Meyer & Associates, a consulting firm based
in St. Louis. ''In the short term, his approach was to stimulate spending to
lift demand. In the longer term, his proposals work to improve productivity
through research-and-development tax credits, cutting the capital gains tax and
reforming education.''
Rudolph Penner, an analyst at the Urban Institute in Washington and former
director of the Congressional Budget Office, also detected a ' ' coherent
philosophy'' of fiscal moderation underlying Bush's message.
'There was much more emphasis on constraining spending, more substantial
cuts in defense than I expected,' Penner said. ''It's a traditional Republican
approach to deficit reduction.
Even with all the tax cuts, parallel cuts in spending, from farm subsidies to
Medicare, would leave the deficit only a few billion dollars higher this fiscal
year and decrease it slightly thereafter.
'VERY MODEST IN TOTAL'
Despite the sheer number of proposals, Penner said, ''they are very modest in
total. I personally think that's a very good thing, since most measures will hit
at the wrong time, after the recovery comes.
Penner added that Bush ' had no choice whatsoever politically'' but to back
middle-class tax cuts in a difficult election year. ''This was a definite
exercise in damage limitation, Penner said. ''The real danger is that this
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will become the first bid in a bidding war that leaves us much worse off.
Whoever wins the war, almost no one expects Bush's program to emerge intact.
In a response to the State of the Union address, House Speaker Thomas Foley, a
Washington Democrat, railed against the proposed cut in the capital gains tax as
another handout to the rich.
Most economists agree that wealthy Americans, who have more money to
invest, would benefit the most. Many economists also maintain, however, that
such a tax cut would indirectly benefit average Americans by stimulating new
investment. Varvares said he forecasts that a capital gains cut would add about
0.3 percent to the nation's annual output of goods and services.
POLITICAL LINES
The capital gains debate should help draw some clear political lines in 1992,
said John Cogan, a senior fellow at the Hoover Institution and former deputy
director of the White House budget office.
''Foley's whole speech was on redistributing the pie,'' Cogan said. ''Bush's
whole emphasis was on increasing the size of the pie. People talk about the lack
of choices in politics, but here is a wonderfully clear distinction on what
government policy should emphasize.
In another move to pick up the economy in the long term, Bush proposed
revamping the alternative minimum tax on corporations, which now penalizes those
taking large deductions for investment. Mark Bloomfield, president of the
American Council on Capital Formation, said, ''We give him a B+ for addressing
this hit on investment.''
In contrast, several of the president's short-term measures will have little
effect on the economy, several experts said. Cutting taxes for the middle class,
at the expense of inflating the budget deficit, ''doesn't really help since the
middle class carries the burden of public debt,' said Murray Weidenbaum, head
of the Center for the Study of American Business at Washington University in St.
Louis.
Similarly, said Cogan, ''if the cut in withholding has any effect, it will be
very trivial'' because few people will ignore their tax obligations and go on a
buying binge.
INVESTMENT TAX ALLOWANCE
The one-year investment tax allowance, which allows business a faster
write-off on new equipment, may do more than any other proposal to fuel the
recovery by reviving sluggish business spending this year, said Weidenbaum.
But he and other supporters of investment incentives were more dubious about
Bush's proposals to revive the real estate industry with more favorable tax
laws. With the tremendous oversupply of commercial office buildings nationwide,
''you sure don't want to encourage any new building,'' Weidenbaum said.
In the long run, the most significant element of Bush's package may be
signaled by his 90-day moratorium on new federal regulations. Existing
environmental laws alone cost the country $ 110 billion a year, according to
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the Environmental Protection Agency, and the new Clean Air Act will add $ 25
billion or more, said Weidenbaum.
''In In and of itself, the moratorium shouldn't have much effect,' said Cogan.
But if it signals a change in the administration's basic approach to
regulation, then over a long period of time, I would expect it to have a large
effect on the economy's performance.'
Any such fundamental change, however, would have to overcome intense
congressional opposition. Foley, arguing that regulations protect people from
pollution, deceptive advertising and unsafe food and medicine, said, ''This is
not the way to create jobs or make American business prosperous.''
TYPE: RELATED STORY
SUBJECT:
US; PRESIDENT; FEDERAL BUDGET; PLANNING; REACTION; ECONOMY
NAME:
George Bush
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1ST STORY of Level 1 printed in 100 VAR KWIC format.
Copyright (c) 1992 Educational Broadcasting and GWETA;
The MacNeil/Lehrer NewsHour
January 30, 1992, Thursday Transcript #4259
LENGTH: 9174 words
HEADLINE: Recession Buster?;
Welfare at Issue;
Search & Recover
BYLINE: In New York: ROBERT MAC NEIL; In Washington: JAMES LEHRER; GUESTS:
MARTIN FELDSTEIN, Reagan Economic Adviser; ROBERT HEILBRONER, Economist;
LAWRENCE KUDLOW, Reagan Economic Adviser; CHARLES SCHULTZE, Carter Economic
Adviser; CORRESPONDENTS: PETER GRAUMANN; ELIZABETH FARNSWORTH
BODY:
somebody who now doesn't have a job. And what we're trying to do is the
same thing you're trying to do, not just get cash in people's pockets through
gifts, but get them jobs that are secure jobs for the long-term so they have not
the small amount of money you referred to, but a respectable income that is
secure.
MR. MAC NEIL: Now, to evaluate the President's economic plan, we get the
views of four economists. Martin Feldstein was President Reagan's leading
economic adviser from 1982 to '84. He's currently a professor at Harvard and
head of the National Bureau of Economic Research in Cambridge. He joins us from
public station WGBH in Boston. Charles Schultze is director of economic studies
at the Brookings Institution in Washington. He was President Carter's chief
economic adviser and President Johnson's budget director. Lawrence Kudlow was
associate director for economics and planning in Reagan's first term. He's now
senior managing director and chief economist at Bear Stearns and Company, a New
York investment banking firm. And Robert Heilbroner is an author and professor
of economics at the New School for Social Research in New York City. Martin
Feldstein, starting with you, let's take it as President Bush did, the measures
for the short-term first, and then we'll move on to the long-term in a moment.
Has he done enough to get the economy -- enough in the short-term to get this
economy out of the recession?
MR. FELDSTEIN: I think, first of all, that the Federal Reserve's cut in
interest rates in December are going to give a big boost to the economy, not
this quarter, but as we get into the spring and early
one does to promote spending right now helps. I mean, when you are in a
bad way, and we are in a bad way, every penny is better than no penny. I only
take a negative point of view because I think the situation is more serious than
President Bush does. Let me say one word. President Bush is making a bet, and
the bet is that there's enough momentum in the economy, enough vigor there, so
that by feeding it, bandaiding it, patting it on the back, 50 to speak, the
economy will get moving again. And my bet is, or rather my prediction is, my
feeling is that there is not enough vigor there, that the bandaids and the
patting on the back will help some, certainly better than nothing, but that you
have to do something much more drastic.
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MR. MAC NEIL: Which bet is right, do you think, Larry Kudlow?
MR. KUDLOW: Well, I think President Bush has pretty much got the story
right. I mean, he's sending a very expansionary message for the first time in
his Presidency. He's saying we're going to cut taxes rather than raise them,
we're going to reduce regulations, rather than increase regulatory cost. And
this whole emphasis was on growth. Prior State of the Unions, prior budgets from
the Bush Administration, have been very austere and very restrictive. And I
believe sent a punitive message which has really damaged public confidence. And,
of course, in specific terms it's hurt business. Now, in terms of Bush's
specific proposals, the two that stand out in my mind, No. 1, I think he's
proposed a very sizeable reduction in the capital gains tax. It's a 45 percent
drop from 28 percent to 15 percent. And I think this is going to have, if it
gets through Congress, this is going to have a very stimulative impact. It's
going to unlock a lot of new capital, which will be rechanneled into new
investment. It will provide the kind of liquidity that small businesses and new
businesses desperately need in this period of a banker's credit crunch in the
absence of any credit out there whatsoever, and I think it's going to create a
resurgence in new business start-ups, which is really a big job creator in the
United States. And the other thing that stands out is the accelerated
depreciation, which is also a capital cost reduction. I wish it had been
permanent, rather than temporary.
MR. MAC NEIL: Which means that businesses can in a fewer number of years
write off a new piece of equipment?
MR. KUDLOW: Well, that's right. In particular, they're going to get a 15
percent break for equipment that they purchased this coming year. And I might
add, in the capital gains tax proposal, I noticed it's effective February 1st,
and there's a window of opportunity, if you do it, if you take capital gains in
the 11 months of 1992, you'll get the full exclusion and get your 15 percent
rate. So these are good things. And I agree also that lower interest rates and
lower inflation rates have set the stage for economic recovery. So with these
added capital incentives, we have a decent chance of getting a respectable
recovery, although there are parts of this bill that I do not like.
MR. MAC NEIL: Charlie Schultze, how do you see this? Has the President done
enough in the short-term to dig us out of the recession?
much in the short run package, because if we do, there's a danger that
the economy will be overheated, that we'll see inflation going back up, and
we'll force the Federal Reserve into a position where it's got to raise interest
rates, and that's certainly not what anybody wants to see happen. So I think
that it's a good thing that this is only a modest package for the short run to
reinforce what the Fed has done.
MR. MAC NEIL: Why is it a bad thing that it's such a modest package, in your
view, a bandaid?
MR. HEILBRONER: Because we're so far from overheating that if we don't do
something at least as vigorous, if you call it vigorous, as the President has
administered, we're going to be in the soup. We need to take this recession
seriously in terms of its human misery and its political cost and then move on
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beyond.
MR. KUDLOW: I think Bob Heilbroner has got this story much closer right. I
mean, look, the notion of fears of inflation doesn't strike me as at all
realistic. Commodity prices have been steady to declining. We are at the lowest
inflation rate in about 25 years. And I applaud that. In fact, I think monetary
policy has been on the correct path, but we need fiscal expansionism here. We
not only need to send a policy message, but we also need to create as many
incentives to work, produce and invest as possible. Now, I've argued for the
capital gains tax as a good capital formation incentive. I happen to agree with
a lot of the Democratic proposals. I think we need some permanent tax rate
reduction for middle income people. For example, Sen. Moynihan, Sen. Kasten and
others have proposed a rollback in the payroll tax rate. That strikes me as very
sensible. Others have talked about lowering the 15 percent bracket a couple of
points. That strikes me as very sensible. We have been in a period of economic
austerity and stagnation for several years. The problem is not inflation. The
problem is to get the country moving again we should be setting growth targets
of 4 percent real GDP for the next several years.
MR. MAC NEIL: Let me go back to Charlie Schultze here a moment. Mr. Schultze,
the growth rate that the administration, the most optimistic one that it's
predicting, with its, these stimuli, are in the order I think of 2.2 percent for
next year. If it's only that, shouldn't, as Larry Kudlow says, a lot more
stimulus be injected right now, threats of inflation or not?
MR. SCHULTZE: No, I don't think so. You know, this country's capacity to
produce is only growing a little over 2 percent a year. I don't mind some - let
me say it another way --- 10, 15, 20 years ago, yeah, maybe. You're in a
recession, it's a mild recession by most standards, yeah, put more stimulus in,
I don't worry too much about the inflationary impact right now. The problem is
we're going into all of this [a] with deficits right now well over $300 billion,
and even that wouldn't bother me so much, but looking down the road, according
to the Congressional Budget Office, the deficit's going to level
other country, with Japan, with Germany, with France, with Europe, in
general, WE have a decrepit, a rotting infrastructure going across the
Queensboro Bridge is a living example of what it is, except there are fictions
in Queensboro Bridge but there are not fictions in national infrastructure.
MR. MAC NEIL: Mr. Feldstein, how do you respond to that?
MR. FELDSTEIN: The budget deficit really is a very serious problem and Bob
Heilbroner is just minimizing it. Sure, we ought to be spending more on certain
aspects of the infrastructure, but there's no reason to add to an already
gargantuan budget deficit in order to do that.
MR. MAC NEIL: You're saying the infrastructure problem or the future growth
problem is not urgent enough or serious enough to increase the deficit further?
MR. FELDSTEIN: We don't have to increase the deficit to do it. We certainly
shouldn't be in a mode where we are, as Larry Kudlow seems to suggest, cutting
taxes further, adding to the budget deficit. What we need to do is to get more
investment in plant and equipment, more investment in R&D. The only way we can
do that is to increase our national saving rate. And the budget deficit, as
Charlie Schultze said, is borrowing back, to use Bob Heilbroner's words, is
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borrowing back the savings that American households and businesses are
providing. And so we just don't have the investment in plant and equipment. We
don't have the investment in R&D that we need to get this economy growing like
the economies of Europe and Japan. And that should be the No. 1 long-term
priority.
MR. MAC NEIL: Let me ask Mr. Kudlow what he things about that.
MR. KUDLOW: I'm just afraid I don't agree. I think the principal long-term
goal is not terribly different from the short run goal. We should try to create
sufficient rewards and incentives so that the private sector can flourish, be
creative, be innovative, and be inventive and grow this economy. For 45 years
after World War II, the average growth rate in real GDP terms was 3 percent a
year. If we continue on the course now, even with the President's assumptions on
the economy, we're going to have a growth gap which is going to grow larger and
larger in the next decade. Now, my view is where President Bush missed his
opportunity is he should have a long run plan to put more resources in private
hands. We're taking the defense budget down and I reckon we can take it down
even more. But I'd like to see a tax reduction that will help saving and
investment.
MR. FELDSTEIN: You don't care about the budget deficit at all anymore, Larry?
MR. KUDLOW: I care about the budget deficit, but I recognize, Marty, that
the only way we're going to deal with the budget deficit in the long run is to
get this economy back to its proper long run growth trajectory and at the same
time to keep interest rates as low as possible by a zero inflation policy. We
are not going to do it by raising taxes. We're not going to do it by artificial
saving. We're only going to do it by growing, investing and creating new jobs in
the private sector.
MR. MAC NEIL: Charlie Schultze, what's your view of this long- term situation
and whether the President's done enough?
MR. SCHULTZE: First, you've got to distinguish between the next year or two
when additional amounts on the deficit wouldn't kill us from the long-term when
it hurts. It doesn't hurt because deficits in sum, there's that bogey word -
when you borrow money, the government gets resources from somewhere. It's taking
money. We don't save very much in this country. And the federal government, when
it borrows, takes saving that could have been used to invest in the nation's
future. So far from needing a tax cut, in the long run, we need more taxes. This
country needs it's the lowest tax country in the world - -- just about -- in
any big country.
MR. KUDLOW: -- a balanced budget --
MR. SCHULTZE: We need to put more resources into investing in our future
privately and publicly to cut the budget deficit down 50 there's more available
for private investment, but also to use some of this higher taxes and defense
cuts for public investment like Heilbroner wants.
MR. MAC NEIL: Okay. Well, gentlemen, we could go on and on, but I can't, and
I have to thank you all very much and pass it on to Jim. Jim.
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1992 NGA CONVENTION
14073459623
P.01
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1992 NGA CONVENTION
14073459623
P.02
Board Resolution
Whereas, President George Bush has presented to the nation a
comprehensive action plan for revitalizing the nation's economy while
maintaining budget discipline;
Whereas, the President has proposed immediate action to increase job
creating investments, encourage business investment in equipment, and
spur home sales;
Whereas, the President has established a long term agenda, including the
expansion of investment in the future, reformation of the health care
system, deficit control, and reformation of banking, tort and civil justice
systems; and
Whereas, President George Bush during his first term in office has exhibited
outstanding leadership and courage.
Therefore, Be It Resolved: That the National Grocers Association does
hereby endorse and pledge its support for President Bush's Growth
Agenda. Furthermore, the National Grocers Association commends his
vision and leadership as President and hereby endorses his reelection.
6-B2
THE WHITE HOUSE
Office of the Press Secretary
(Philadelphia, Pennsylvania)
For Immediate Release
January 30, 1992
REMARKS BY THE PRESIDENT
TO GREATER PHILADELPHIA CHAMBER OF COMMERCE
Philadelphia Chamber of Commerce
Philadelphia, Pennsylvania
12:11 P.M. EST
THE PRESIDENT: Thank you all very, very much for that
welcome back. (Applause:) Please be seated, and thank you. Please
be seated. I don't want to keep Boris Yeltsin waiting later on.
(Laughter.)
Thank you, Joe. Senator Specter and Joan, laboring in
the vineyards of the City Council here, we're delighted to be with
you. And coming up with us from Washington were two of our great
congressmen from this area, Larry Coughlin end Kurt Weldon over here.
And may I, too, salute the Mayor. I asked Joe earlier
on how was it going, realizing that, as in Washington, things have
been tough. But I think -- and across the country in many ways. But
I said, knowing a little bit about history in Philadelphia, I asked
this question, how's the Mayor doing. And Joe and everybody else
I've spoken to has said he's really hit the ground in a wonderful
way, going forward, bringing out the best in this city. So I want to
salute Ed Rendell and his wife, Midge. (Applause.)
Joe Paquette, who introduced me, is the Chairman of the
creater Philadelphia Chamber. That was a very enthusiastic
presentation he made about how things were going -- so much 80 that
maybe he can make a little loan to those of us in Washington, D.C.,
who cannot have quite that optimistic a report. (Laughter.) But I
like that can-do spirit of this Chamber, and I'm grateful to Charlie
-- to Charlie Pizzi, and to Joe and all the rest of you that have put
together this opportunity for me -- all of you at the Chamber.
And 'so, thank you very such. I am happy to be here in
Philadelphia. As you can imagine, these last few weeks in Washington
have been pretty high pressure -- high pressure time for me -- what
with all the experts and the instant analysis and the columnists
giving unsolicited advice. Thank goodness the Super Bowl is over.
(Laughter.)
I am very pleased to be here, particularly pleased to be
here today, because American businesses -- as represented by this
group gathered here -- have a unique perspective on the tough times
we've been going through recently. As businessmen and businesswomen,
you can separate the sensational from the sensible, the sweet-
sounding quick-fixes from real solutions. when it comes to America's
economy, we can't accept empty symbols and slogans. we need to work
together -- that's what I like what Joe was saying about the way the
Mayor and you all are approaching it in this city -- we've got to
work together nationally and turn this economy around.
Tuesday night, I came before the American people to
outline a program for doing just that And we all know this is an
election year. The air back in Washington has been thick with feel-
good gimmicks that have nothing to do with true prosperity and
everything to do with politics. We need to get down to business --
MORE
literally. In the critical weeks ahead, common sense must replace
partisanship. And I came here to ask for your help.
The plan that I put before Congress and the American
people contained several action steps, and one of the most critical
was this: to free up American businesses by clearing away the
cbstacles to growth -- high taxes, overregulation, and government
deficits. And I've offered the only comprehensive plan that doesn't
raise tax rates, doesn't throw away the spending discipline now in
place on the Congress, these spending caps, and doesn't cut defense
beyond what's necessary for this country's security. But let me tell
you the three words that really separate my plan from what I think of
the rest of them: It will work. Those three, it will work.
Each of us has a role to play, so I am moving forward
with steps I can take right now. You may remember I divided that
state of the Union message into steps I can take, short-term areas
where we need legislation; and then a longer-term program. Right
now, I have instructed every cabinet department to speed up progrowth
expenditures -- and we estimate that will be as much as $10 billion
worth in the next six months. Don't have to go to Congress to get
them to do that, we just accelerate the spending plans to try to give
this economy an extra kick.
I directed the Secretary of the Treasury to change the
federal tax tables so that millions of Americans can choose to have
the government withhold less from their paychecks. Now, that's a
large number. That could pump as much as $25 billion into the
economy this year alone. That is money in the pockets of working men
and women to help pay for clothing, or to help save for college, or
to help buy a new car. And after all, it is their money. And there
has been this schedule where really there has been overwithholding.
And this, I think, will give -- for those who elect to do it -- if
everyone elected to do it, it would be $25 billion, and I think that
will give the economy a jolt.
I have asked cabinet departments and federal agencies to
institute a 90-day moratorium on new federal regulations that could
hinder growth. We'll undertake a top-to-bottom review in the fields
of energy, the environment, transportation, exports, financial
services, and communications, among others. Here's the test: We
will accelerate any regulations that encourage growth and the
creation of jobs. And whenever possible, we will scrap those that
tie the hands of business and impede growth. I know I. have
regulatory responsibilities affecting safety in the workplace, for
example; health; environmental protection. And I will not neglect
those responsibilities.
But you know as well as anyone how government --
sometimes with the best of intentions -- can hobble innovation and
risk-taking, the life-blood of a successful business. Government
naturally tends to expand ever outward, its red tape oblivious to
anything standing in its path. It touches everyone. Every
regulation that reduces efficiency slaps a hidden tax on the consumer
as well. From the tab on a bag of groceries at the checkout line to
the sticker price on the showroom floor -- every American takes a hit
when the government over-regulates.
American businessmen and -women need this freedom to
experiment, to compete without looking over their shoulders for
Washington's approval. Small businesses and those just starting up
feel the sting of overregulation most of all. Yet these businesses
drive America forward. They create most of our new jobs. They
reinvigorate our communities. They embody the power of the American
dream. I make this pledge: We will set America's dreamers and doers
free and put an end to regulatory overkill. (Applause.)
In some of this area I will need the help of the
Congress, and I promise I will take the message as strongly as I can
MORE
to the Congress in this regard. Even now, an untold number of hard-
working, responsible men and women go without needed bank loans for
starting up a new business, or for investing more in an existing one.
We've got to ease the credit crunch and give these people a chance.
That's why we've given the bank regulators more than 30 policy
changes and clarifications to restore common sense and balance to the
regulatory system.
I've mentioned this before, but in regulation, again, we
have a responsibility. We don't want to go back to what is known as
forbearance, where we neglect the soundness that is required. But
there is regulatory overkill; the people are afraid, I think, in some
instances in the financial community because of the excesses of
regulation. And we're going to try very hard to achieve a better
balance.
Now, I've mentioned some of the things that I can do - -
and there's a few more. But Tuesday night I told Congress, directly
challenged it, told it directly what it must do. And I started with
the obvious: NO investment, no new jobs. Congress must reward
investment and stop punishing success. For three years now, I have
asked the Congress to lower the capital gains tax. And for three
years, that essential growth measure has been pilloried and parodied
as a windfall for the rich. Now, you and I know that claim for what
it is: it's nonsense, sixty percent -- sixty percent of the people
who benefit from lower capital gains have incomes under $50,000.
A windfall for the rich? BY freeing up investment, a
cut in the capital gains tax creates new jobs for those looking for
work and better jobs for those who want to move up. A lower capital
gains tax helps anyone who owns a small business or a farm -- anyone
who owns a home, anyone who has a single investment. We're talking
about helping every working man and woman and every retired person in
this country.
We don't have time for any more of this demagoguery on
this question. Let me remind you, in Japan, the effective capital
gains tax rate comes to about one percent; Germany doesn't tax long-
term capital gains at all: TO create jobs, to restore a vibrant
economy for all Americans, Congress must lower the capital gains tax.
And it must lower the capital gains tax now -- 15.4 percent.
(Applause.)
With a few simple steps, taken right now, Congress can
help get the housing industry - builders, investors, buyers and
sellers -- back on its feet. To those young families who want to buy
their first home but can't quite afford it, I say this: We can help
put your dream within reach. And we will. I have offered a plan to
allow first-time homebuyers to withdraw savings from IRAS without
penalty, and to provide a $5,000 tax credit for the first purchase of
a home.
I might say parenthetically that Senator Specter, your
Senator, has been in the forefront of fighting for the change on how
IRAs are treated. He understands what this can mean in terms of
stimulating the economy nad helping the homeowner. And I have asked
Congress to mark the calendar: They must put my recovery plan in
place by March 20.
Yesterday, right after -- the State of the Union was the
night before -- and yesterday morning, I went up to the Congress and
I met with the leaders of both the House and the Senate up on Capitol
Hill. And I urged them to meet this timetable. I set the deadline
because of & simple fact: The American people want action. They
deserve action. our states are working overtime -- so are thousands
of communities across the country. They're tightening their belts,
aggressively facing the future. And every day, individual Americans
are working hard to get this economy back on its feet, and it's time
MORE
for Congress to do the same thing. (Applause.) It can be done in
that time frame.
What troubles me is if we let it drag on, it's going to
get really caught up in the rough and tumble of 1992 national
politics. People ate crying out for help now, and the Congress can
move. We've seen them do it on a wide array of legislative
initiatives, and they can do it on these stimulative tax changes. So
I ask every member of Congress -- and please tell them the same thing
-- to set aside now partisanship for just 51 days and give this plan
a chance. Get the plan, put, it to work.
Immediate growth, as I mentioned at the outset, is just
one part of the picture, one part of our program. We've got to look
even further ahead -- to ensure that when the American economy
regains its strength -- and inevitably it will -- it stays strong.
We start by opening markets to American goods. In our
trade negotiations, we will continue to push for open trade, pulling
down the barriers that stand in the way of international competition.
To guarantee that American goods and services are the
world's finest, we must guarantee America's preeminence in another
field -- in the field of education. our America 2000 strategy will
revolutionize education in this country, will create New American
Schools, places where our kids will learn the lessons they need for a
new century. And it will allow parents to choose their children's
schools. Choice means competition, and you understand as well as
anyone what comes from competition. Competition inspires innovation
and creativity. It inspires excellence. And that's why we are going
to push for our program; we're going to push for school choice.
As I look at education and the fact that we are not
where we should be in world standing, it isn't a question of a change
here and there. It isn't a question of adding to programs that have
failed, programs mandated in Washington. It 1s a question,
literally, of revolutionizing. And that's what we tried to do when
we set the education goals, working with Republican and Democrat
governors: that's what we're trying to do with Lamar Alexander in the
lead for us, our Secretary of Education, as we take this America 2000
program all across the country. We need your help. It is the best
possible investment for the future of this country.
Now, we need a healthy America -- and that means
reforming health care. I think everyone would agree we cannot afford
our present system. But we've reached a fork in the road. We can
either go the way of greater government mandates, leading inevitably
to a state system of nationalized care, with the long lines and
indifferent service that such a system creates. or we can reform our
private system, preserving the greatest possible patient choice,
maintaining the quality of care -- which, for all its faults, is
still the best in the world. That's the approach I outlined in a
rather broad detail Tuesday night, and that's the approach that I
will take when we announce the full detail of our plan next week.
We've proposed another raform, one that is crucial to
creating jobs. America has become the most litigious society on
Earth. Frivolous lawsuits are exhausting our ability to compete. If
we were as good at rewarding success as we are at suing each other,
we would be a century aheed of the rest of the world. (Applause.)
Lawsuit madness gums everything up. Needed new products
never reach the marketplace because of concerns over liability. In
many areas, businesses are forced either to drive prices into the
stratosphere -- or literally close shop.
My Competitiveness Council that's chaired by the Vice
President, vice President Quayle, has offered 50 concrete
recommendations to restore sanity to our civil justice system. I've
MORE
enacted some of these recommendations by Exec utive Order. others,
however, require Congress to act. And with all respect, there are 62
lawyers in the United states senate, a lot of lawyers up there on
Capitol Hill. I realize that might present a problem, but it also
presents an opportunity. And I'd like to see them move forward now
with these changes to cap some of these outra Jeous areas of unlimited
liability. It's driving our small businesses right flat into the
ground, and costing American workers jobs.
And, finally, I can use Congress's help in another all+
important area. We must get the federal deficit under control. Now,
let's face the facts: The government in Washington is too big and it
spends too much. I have proposed a freeze on all domestic
discretionary budget authority as well as a freeze on federal
domestic government employment. And I have asked Congress to get rid
of 246 federally-funded programs. Now, some of them have very noble
titles. But in these times, none of them is indispensable. And I'm
going to call on Congress to get rid of them. I think we're talking
about something like $4 billion in this regard. the list.
For too long, Congress has been violating an important
principle of good government: Do no harm. It's been imposing its own
habits on state and local governments -- and the taxpayer ends up, as
you may all know, by footing the bill. These unfinanced federal
government mandates, as they're called, require the cities, require
the states to provide new services or institute new programs -- but
the Congress doesn't provide the money to pay for them. That means
the local governments must pass along Congress's wish list to the
taxpayer in the form of higher taxes at the local level. Now, the
National Governor's Association -- made up, obviously, of Republicans
and Democrats -- continually urge the Congress to stop these
mandates, which are killing innovation, killing savings at the state
and local level.
From now on, if Congress passes a mandate, it shouldn't
pass the buck. Congress must pay for the mandates it imposes,
without heaping on new taxes. (Applause.) I've spared you some of
the detail. But taken together, these and other steps that I've
outlined will, in my view, reinvigorate our economy -- give it the
boost that it needs now, and ensure that it continues to provide
opportunity and create jobs for all who want to partake. That is the
promise America makes to her citizens. They have a right to expect
no less.
Almost two centuries ago, Philadelphia's merchants
gathered together at the City Tavern to form this Chamber of
Commerce. They looked out on a nation almost limitless in
possibility. A special kind of faith brought them here -- that if
they worked hard, and worked together, their young country would
allow them to fulfill their dreams. America has changed dramatically
in those 200 years. And yet, the essentials remain. The pessimists
are wrong; the pessimists are wrong. We are going to pull out of
these tough times. Inflation is down; inventories are down. The
market has been expressing optimism in the future. Interest rates
are down.
This is no time for gloom and doom. It is time for
action in Washington to restore confidence and get this economy
moving again. (Applause.) And here's where you come in. We need
your help. You can effect the way Congress approaches this program
that I have outlined in some detail. We need your help. And with
your help, we'll get that action, and we will reaffirm our country's
rightful place as the world's leader, for this decade and for the
next century.
Thank you all very, very much for this opportunity.
Thank you. (Applause.)
END
12:37 P.M. EST
To BOB
Date Jan 31/92 Time 1:25p
WHILE YOU WERE OUT
M Tom Zaucha
of wat. Groars Assoc.
Phone (407) 352-4000
Area Code
Number
Extension 2642
TELEPHONED
PLEASE CALL
CALLED TO SEE YOU
WILL CALL AGAIN
WANTS TO SEE YOU
URGENT
RETURNED YOUR CALL
Message
Operator De
AMPAD
EFFICIENCY®
23-021 CARBONLESS
staffed
(Duggan/Simon)
January 29, 1992
Draft Three
Grocers
PRESIDENTIAL REMARKS:
NATIONAL GROCERS ASSOCIATION
ORLANDO, FLORIDA
TUESDAY, FEBRUARY 4, 1992
[time]
[Acknowledgments, humor]
It's a pleasure to be with you. I'll always remember the
warm reception the National Grocers Association gave me when I
7-31-85
addressed your 1985 convention in New Orleans. You gave me a
good education about your business then, and I remember it still.
Of course, our world has changed dramatically since 1985.
We won the Cold War. We led a coalition in the Gulf to crush
Saddam Hussein's aggression in Kuwait. We have created a world
with the prospects of unprecedented prosperity and peace.
But we've also run into hard times. Our economy has slowed
down, and we must get it fired up again. The professional
pessimists tell us America has become weak and disabled -- that
our economy has fallen and it can't get up.
Well, that's just plain bunk. We'll get up and running in
no time -- and we'll do it the old-fashioned way: We'll use our
common sense, our work ethic, our determination, and we'll carry
the entire world into the Next American Century.
You don't have to be a rocket scientist to understand how.
You just stick with the basics. I proposed a common-sense action
plan last week in my State of the Union address. It gets
investment going, because you can't build new businesses without
2
new investment. It strengthens the industries that historically
have led us into recoveries -- especially real-estate. It hacks
away obstacles to growth -- regulations, high taxes, nuisance
lawsuits. It cuts the federal deficit by cutting spending. And
it builds on our strengths. It lets American workers and
businesses show the world what they can do.
All over this country, families, businesses and even local
governments have grasped a simple fact: The world has changed.
The old ways won't do. If we want to remain the world's economic
dynamo, we've got to get leaner and tougher. We've got to change
with the times, and abandon old ways from the old days.
More to the point, we've got to get Washington moving toward
the 21st Century. To do that, I need your help. I've asked
Congress to enact some laws that will get our economy moving and
growing again -- and I've given Congress a deadline: March 20.
Circle that Friday on your calendar. I have. Call it J-Day: The
day by which Congress needs to take a few simple steps to create
good American jobs -- now.
Here's what I want by J-Day. First, incentives to invest:
an amended alternative minimum tax and a 15-percent investment
FY 93
Budyet
tax allowance.
P. 8
Second, incentives to build and buy real-estate: A change in
passive-loss rules for active real-estate investors; penalty-
free withdrawals from IRAs for first-time homebuyers, and a
$5,000 tax credit for the first purchase of that first home.
3
Third, incentives to succeed: Cut the capital gains tax.
This tax hurts anyone who has made a sensible investment -- in a
home, a business, a farm, even a pension plan. None of our key
economic competitors taxes gains at high rates -- Japan's
effective rate comes to about 1 percent; Germany doesn't tax
long-term capital gains at all. The world's fastest growing
economies let people collect their capital gains tax-free. Let's
stop penalizing excellence. Cut the capital gains tax -- now.
Three measures, three pieces of common sense; three things
Congress should do by March 20. I'm counting on your help.
In the meantime, I've initiated some reforms that will get
the economy moving -- without having to wait for Congress to act.
Here's one you'll like: I've imposed a 90-day freeze on federal
regulations that could hinder economic growth. During that
period, all departments and agencies will review regulations, old
and new -- to stop the ones that will hurt growth and speed up
those that will help growth.
I see from your convention schedule that you have a workshop
brochise
see
entitled: "The Regulators Are Back." No wonder: You can't get
through a day without having to worry about workplace safety
regulations, food safety regulations, environmental regulations.
Now, no one objects to the stated aims of these regulations:
Health and safety and respect for the environment are classic,
Mom-and-apple pie social values. But you know better than anyone
that when regulators carry regulation too far, there won't be any
apple pie for Mom to buy.
4
I ran a council on deregulation for eight years, as vice
president. And I'm here to assure you: The spirit of
deregulation is back. I want you to be able to spend your time
worrying about what you can do for your customers -- rather than
fretting about what some regulator might do to you.
The greatest lesson of this century is: Government
micromanagement doesn't work. After seventy years of tragic
failure, the leaders in Moscow finally recognize that total
government regulation produces only one thing: total failure.
Now, Russians want to try something different -- like grocery
stores with groceries on the shelves.
I find it a bitter irony that some in Congress still favor
government coercion and control over freedom and competition.
It's as though we'd entered a time warp. When I hear the shrill
sounds of "soak the rich" demagoguery -- when I hear politicians
demand more taxes, regulations, government coercion and control,
I wonder: Where have these people been for the past three years?
Let me make you a promise: If Congress sends me any new
legislation to make economic regulation more intrusive, more
burdensome, more unreasonable, I'll veto it. Here's an example:
Margaret
The so-called FDA enforcement bill. I'm sure those of you who
Por 301-
4370
sell your own private-label groceries aren't exactly thrilled by
44
in
the prospect of regulatory G Men prowling around America's food
factories and piling on new record-keeping burdens. But that's
just what some in Congress want to do. Well, let me tell you in
5
no uncertain terms: That bill, and coercive bills like it, are
big fat targets for my veto pen.
And if Congress sends unfunded mandates down to state and
local governments, I'll tell it to make a choice: Pay for the
mandates without raising taxes, or get ready for a veto. The
federal government spends too much money as it is. It has no
right to force state and local governments to accept new burdens.
Again, Congress can help get the economy moving if it will
stop demagoging and do the right thing. Remember: March 20.
SOTU
But we also need to look beyond the J-Day agenda.
I
1-28-92
nine
proposed an eight-point long-term plan in my State of the Union
address. I want to highlight three of those measures today.
First, let's open up and expand markets all over the world.
A revolutionary new GATT agreement will make the world trading
system come to grips with the damaging tariffs and subsidies in
agriculture. And by tearing down economic barriers with Mexico
and Canada, a new North American Free Trade Agreement will lift
us to new heights of prosperity. It will create new American jobs.
Second, let free choice and free markets reform our health
SOTU
care system. I've proposed a health insurance tax credit of up
1-28-92
to $3,750 for each low-income family. My plan also assures that
Americans will have access to basic health insurance even if they
change jobs or develop serious health problems. We can't improve
health care by jeopardizing the financial health of labor-
intensive businesses. That's why I'll never sign my name to any
6
scheme that mandates benefits an employer should pay.
Third, let's strengthen the family -- the cornerstone of the
American dream. Let's ease the burden of child-rearing. The
tax
personal tax exemption has not kept up with inflation. In 1948
from tables Glenn (?), the personal exemption was set at $600 In 1992 dollars,
566-2563 Hu bbard
that exemption would be worth $ 3400 But over the years, we've
2150
only increased the exemption to I'm asking Congress
immediately to increase the exemption for each child by $500. We
can afford this move in the right direction.
Look at my economic proposals and you will find simple,
plain solutions to our problems. Some may complain that they
lack the flash of an expensive new program. But I'm not seeking
spending for spending's sake. I want results. My plan is sound
and it will work.
If you hear people in Congress gripe that they can't get the
job done by March 20, remind them: We won the Gulf War in 45
44
1-16-91
to
days. Surely Congress can pass my urgent domestic initiatives in
2-28-91
52
53 days. Remember, Congress can act with lightning speed when it
wants to. It took the House of Representatives just one day to
CQ
10-5-91sh shut down its bank and thereby stop its little problem with
p.2845
check-bouncing.
So: Accept no excuses. Accept no delays. And accept no
substitutes.
With your help -- we'll get America moving again soon.
Thank you. May God bless you and the United States of America.
#
#
#
2
16:58
001
OF THE
COPY FUR YOUR
INFORMATION
THE TREASURY
1789
DEPARTMENT OF THE TREASURY
OFFICE OF TAX POLICY
FACSIMILE COVER SHEET
1500 PENNSYLVANIA AVENUE, NW
WASHINGTON, DC 20220
Fax Message Number:
Date: January 30, 1992
Number of Pages to Follow:
3
To: Bob Simon
White House
Addressee's Fax Number:
456-6218
Addressee's Confirmation Number:
456-7750
From:
R. Glenn Hubbard
Deputy Assistant Secretary (Tax Analysis)
Sender's Fax Number: (202) 786-8440
Sender's Confirmation Number: (202) 566-2563
Comments/special Instructions:
UNCLASSIFIED
TABLE 1.-HISTORY OF FEDERAL INDIVIDUAL INCOME TAX EXEMPTIONS AND FIRST AND TOP BRACKET RATES
In dollars unless otherwise specified]
01/30/92
Personal exemptions
I
Tax rates
Year
First bracket
Top bracket
Single persons
Married
couples
Dependents
Nale (percent)
Taxable income
Rate (percent)
Texable Income
up lo
over
16:59
1913-15
3,000
4,000
!
20,000
1
500,000
1916
3,000
4,000
2
20,000
15
2,000,000
1917
1,000
2,000
200
2
2,000
67
2,000,000
1918
1,000
2,000
200
6
4,000
11
1,000,000
1919-20
1,000
2,000
200
4
4,000
73
1,000,000
1921
1,000
3 2,500
400
4
4,000
73
1,000,000
1922
81
1,000
# 2,500
400
4
4,000
56
200,000
1923
1,000
3 2,500
400
3
4,000
56
200,000
1924
1,000
2,500
400
4 1,6
4,000
46
500,000
1925-28
1,500
3,500
400
4 1½
4,000
25
100,000
1929
1,500
3,500
400
4 %
4,000
24
100,000
1930-31
1,500
3,500
400
4
1½
4,000
25
100,000
1932-33
1,000
2,500
400
4
4,000
63
1,000,000
1934-35
1,000
2,500
400
5 4
4,000
63
1,000,000
1936-39
1,000
2,500
400
5 4
4,000
79
5,000,000
1940
800
2,000
400
6 14
4,000
81.1
5,000,000
1941
750
1,500
400
6 10
2,000
81
5,000,000
1942-43 0
500
1,200
350
6 19
2,000
88
200,000
1944-45 T
500
1,000
500
23
2,000
B 94
200,000
1946-47
500
1,000
500
19
2,000
8 86.45
200,000
1948-49
600
1,200
600
16.6
4,000
8 82.13
400,000
1950
600
1,200
600
17.4
4,000
B 91
400,000
TABLE 1.-HISTORY OF FEDERAL INDIVIDUAL INCOME TAX EXEMPTIONS AND FIRST AND TOP BRACKET RATES-Continued
in dollars unloss otherwise specified]
Personal exemptions 1
Tax rates a
First bracket
Top bracket
Year
Married
Singlo persons
couples
Dependents
Taxable income
Taxable Income
Rafe (percont)
up to
Rate (percent)
over
1951
600
1,200
600
20.4
4,000
0 91
400,000
1952-53
600
1,200
600
22.2
4,000
e 92
400,000
1954-63
600
1,200
600
20
4,000
# 91
400,000
1964
600
1,200
600
16
1,000
77
400,000
1965-67
600
1,200
600
14
1,000
70
200,000
1968
600
1,200
600
11
1,000
0 75.25
200,000
56
1969
600
1,200
600
14
1,000
0 77
200,000
1970
625
1,250
625
14
1,000
0 10 71.75
200,000
1971
675
1,350
675
14
1,000
10 11 70
200,000
1972-78
12 750
12 1,500
12 750
10 14
1,000
10 11 70
200,000
1979-80
1,000
2,000
1,000
18 14
2,100
10 11 70
212,000
1981
1,000
2,000
1,000
11 14 13.825
2,100
10 11 14 69,125
212,000
1982
1,000
2,000
1,000
18 12
2,100
10 50
106,000
1983
1,000
2,000
1,000
10 11
2,100
10 50
106,000
1984
1,000
2,000
1,000
10 11
2,100
10 50
159,000
1985
1,040
2,080
1,040
18 11
2,180
10 50
165,480
1986
1,080
2,160
1,080
10 11
2,270
10 50
171,580
1987
1,900
3,800
1,900
18 11
3,000
10 38.5
90,000
1988
18 1,950
15 3,900
16 1,950
10 10 15
29,750
10 17 28
29,750
1989-90
15 18 2,000
16 18 4,000
15 18 2,000
13 18 15
(18)
10 17 28
(10)
1991 and after
15 18 2,150
15 10 4,300
15 18 2,150
20 15
(18)
10 31
(19)
003
Frie MAPIR allowed additional exemptions,
lilino intel returns beginning In 1948. For the relationship of other
I From 1948 through 1986 taxpayers who were blind or over sixty-five were allowed additional exemptions
# Taxable income excludes zero-beacke1 amount from 1977 through 1086. Rates shown apply only lo married persons filing joint returns beginning in 1948 for the relationship of other
rates to these rates. From 1922 through 1986 lower rates applied 10 Bong-term capital gains.
39-716
5 If net Income exceeded $5,000, a married person's exemption was $2,000.
01/30/92
1 Alter earned-income credit equal to 25 percent of tax on earned income.
B Before eamed-income deduction equal to 10 percent of earned nel Income.
0
0 Exclusive of Victory Fax.
I
T Exemptions shown were for surtax only. Normal tax exemption was $500 per tax return plus earned Income of wife up lo $500 on Joint returns.
a
Subject to the following maximum effective rate 1lmitations [year, and maximum effective rate (In percent):
91
1944-45-90; 1046-47-85.5; 1948-49-77.0; 1950-87.0; 1951-87.2; 1952-53-88.0; and 1954-63-87.0.
17:00
-
0 Includes surcharge of 7.5 percent In 1968, 10 percent in 1969, and 2.5 percent In 1970.
3
10 Does not Include add on minimum tax on proference Items or altornative nainimum tax.
11 Earned Incomo was subject to makimum marginal rates of 60 percent In 1971 and 50 percent from 1972 through 1981.
18 In addition to the pursonal exemptions, a por capila tax credit of $30 was allowed for 1975, and $35 por capita of 2 percent of the first $9,000 of taxable Income, whichever was
largor, for 1076-78.
IS Beginning In 1975, B refundable Barned-Income credit is allowed for low-Income individuals.
14 After BOX credit of 1.25 percent against regular tax.
16 The personal exemption is phased out for higher lamable Incomes.
16 The Tale applied 10 the first $29,750 of taxable Income Is gradually Increased to the top-brachet rato between laxable Incomes of $71,900 and $149,250 in 1988. The phaseout
range Is adjusted for Inliation beginning In 1989.
57
11 Excludes the effects of The phaseout of the 16 parcent bracket and the personal examptions. See footnoles IS and 16.
10 The exemption Is adjusted for Infiation beginning In 1990.
19 The bracket limits are adjusted for Inflation beginning in 1989.
30 The phaseout of the 16-percent rato, effective in 1988-90, kg repoated for yoars beginning Biller December 31, 1990.
Sources: Rolovani public laws and summaries prepared by the Joint Committee on Taxation. Much of the material is reprinted, with permission, from 1. Pechman, "Fedoral Tax Policy,"
pp. 313, 314, Brookings Instituto, Washington, D.C. (5th ed. 1987).
004
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416/7
THE SECRETARY OF HEALTH AND HUMAN SERVICES
WASHINGTON, O.C. Seses
8 1991
The Honorable Henry A. Waxman
Chairman, Subcommittee on Health
and the Environment
Committee on Energy and Commerce
House 08 Representatives
Washington, DC 20515
Dear Mr. Chairman:
We understand that your Subcommittee will soon consider an
amendment in the nature of a substitute to H.R. 2597, the "Food,
Drug, Cosmetic, and Device Enforcement Amendments of 1991".
This bill would amend the Federal Food, Drug, and Cosmetic Act
(the Act) to give significant new authorities to the Food and
Drug Administration (FDA) such as recall authority, embargo
authority, subpeess authority, civil money penalties, expanded
authority to inspect and document company records during facility
inspections, and new authorities with respect to violative
imported products.
If the bill were presented to the President in its current form.
I would recommend that it be vetood.
Based on our reading of the Committee Discussion Draft, dated
September 26, 1991, it is evident that changes have been made to
the bill as introduced to narrow some authorities and guard
against abuse or unauthorised use of these authorities.
We have very strong reservations about the broad scope of the
bill and feel that it proposes extending enforcement authorities
further than necessary. Beyond this, we have some specific
concerns about several provisions. We would like to provide
several examples.
First, we are strongly oppesed to the bill's requirement for
mandatory new record-keeping and reporting requirements, and we
are concerned that the bill fails to describe the kinds of
records that would be subject to inspection.
The bill proposes civil money penalties for specified violative
acts. However, we believe these authorities should be restricted
to significant or repeated violations of the Act. Also, we
oppose the unnecesserily high monetary limits established in the
bill for civil money penalties. Further, the bill proposes
subpoena authority. We do not believe this new authority is
necessary.
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Page 2 - The Honorable Henry A. Waxman
We object to the provision of the bill concerning administrative
recall authority. Currently and historically, when FDA
determines that a product should be recalled from the market
because of violations of the Act, we are able to achieve more
then DO percent of such recalls through veluntary compliance.
For the reasons stated and because of the unnecessarily broad
scepe of the proposed substitute to H.R. 2597, we recommend that
16 not be favorably considered.
We are advised by the Office of Management and Budget that there
18 no objection to the presentation of this report and that the
enactment of H.R. 2597 in its ourrent form would not be in accord
with the program of the President.
Sincerely,
Lane
Louis W. Sullivan, M.D.
THE WHITE HOUSE
WASHINGTON
SCHEDULE PROPOSAL
DECEMBER 18, 1991
TO:
KATHY SUPER, DEPUTY ASSISTANT TO THE PRESIDENT FOR
APPOINTMENTS AND SCHEDULING
THROUGH:
DAVID DEMAREST, ASSISTANT TO THE PRESIDENT FOR
COMMUNICATIONS
FROM:
BOBBIE KILBERG' RK DEPUTY ASSISTANT TO THE PRESIDENT
FOR PUBLIC LIAISON
MOLLY OSBORNE, ASSISTANT DIRECTOR, OFFICE OF PUBLIC
LIAISON
REQUEST:
That the President address the National Grocers
Association (NGA) at its annual 10th anniversary
convention in Orlando, FL (February 2-5).
PURPOSE:
To discuss Administration economic and health care
policy initiatives immediately after the State of
the Union to a supportive audience of small
businessmen.
BACKGROUND:
The National Grocers Association is comprised of
independent family-owned grocery companies and
wholesalers who service them. These family-owned
grocers are active politically and committed to
community service. There will be approximately
2,000 individuals present at NGA's general business
sessions held on February 2-5, 1992. The audience
will be comprised of retail grocers, major
wholesalers and manufacturers from all 50 states.
According to Tom Zaucha, President & CEO of NGA, NGA
will endorse the President's reelection at its
Board of Directors meeting on February 1, 1992.
DATE AND TIME:
February 2-5, 1992.
DURATION:
30 minutes.
LOCATION:
Orange County Convention Center, Orlando, FL
PARTICIPANTS:
The President
In audience: membership of NGA (approximately 2,000)
SEQUENCE OF
EVENTS:
TBD.
REMARKS REQUIRED: Yes.
MEDIA COVERAGE: Open Press.
PROGRAM UPDATE
Partners in Performance
RETAILERS
WHOLESALERS
MANUFACTURERS
Introducing
1992 N.G.A. Convention & Buying/Merchandising Expo
Orlando, Florida
February 2-5, 1992
GREAT BUSINESS
PERFORMANCES
at the 1992 N.G.A. Convention
February 2, 1992
Early Bird Session-EXCELLENCE IN MERCHANDISING"
Kick off the convention with the 1992 "Excellence in Merchandising" competition presen-
tations, the culmination of the past year's best in merchandising in 13 different categories. See
and learn about 39 proven display merchandising successes that you can use for your business
today.
This year's Early Bird Session promises to provide a creative array of excellent merchandising
ideas. The winners alone account for combined bottom line increases of 3,588% ! Come find out
how they did it -- apply these proven techniques to increase your profits, customers, and employee
pride.
General Session - "OUR NATION'S BUSINESS TODAY"
The week before convention, President Bush will give the State of the Union Address unveiling his
economic plans. Meryl Comer, the Emmy Award-winning anchor of television's "Nation's
Business Today" and "It's Your Business," will conduct a pointed critique and moderate a
thought-provoking discussion on the political and economic trends impacting the nation. Joining
Ms. Comer will be Dr. c. Jackson Grayson, Jr., founder of the American Productivity and
Quality Center, and N.G.A. political analyst, Dr. James Unger, as well as political leaders from
the Democratic and Republican parties.
February 3, 1992
General Session - — "THE GROCERY INDUSTRY -- ISSUES AND ANSWERS"
Following a presentation on the issues and challenges facing the industry today G-Trends by
N.G.A. President and CEO Thomas K. Zaucha, probe the critical forces of change impacting
the food industry in 1992 with a blue-ribbon panel of industry leaders, including Everett
Dingwell, president and CEO, Certified Grocers of California; Ron D. Pedersen, Chairman of
Marketing Specialists Corporation, and 1992 Chairman of the National Food Brokers Association;
Michael A. Cianciarulo, president of Gooding's Supermarkets; moderator J. Byron Felter,
founder, J.B. Felter Affiliates, and noted industry analyst and recipient of the 1991 N.G.A. Industry
Service Award; Mike Wright, chairman, CEO, and president, Super Valu Stores, Inc.; and H.
John Greeniaus, president and CEO, Nabisco Brands, Inc.
SPECIAL BRIEFING SESSION - PART 1:
"Responding to the New Competitors"
Join a panel of senior marketing and purchasing executives from leading wholesalers and retailers
to discuss the critical trade issues and new marketing strategies that have arisen in response to
the buying and selling practices of the wholesale clubs and mass merchandisers.
February 4, 1992
General Session - "QUALITY PLUS SERVICE EQUALS PERFORMANCE"
Two-time Olympic gold medalist and member of the Olympic Hall of Fame, Donna de Varona, will introduce
the subject of teamwork and excellence.
THE RITZ-CARLTON EXPERIENCE
Horst H. Shulze, president and CEO of The Ritz-Carlton Hotel Company, shows how a philosophy to instill
quality and service can produce the highest level of professionalism. The Ritz-Carlton is "Ladies and Gentlemen
serving Ladies and Gentlemen."
SERVICE, DISNEY STYLE
Disney is a recognized leader in quality and service. Frankie Turner, manager, Operations and Marketing,
Walt Disney World Productions will demonstrate how excellence is achieved through planning, facilities, proper
supportive training, and management of your people.
SPECIAL BRIEFING SESSION - PART 2:
"How Retailers Can Compete Against the Deep Discount Store,
Wholesale Club and Discounters"
Dr. Kenneth Stone, professor of economics and extension economist at lowa State University, and Dan
Boone, director of trade marketing for the business development group of Noble & Associates, will probe the
impact of Wal-Mart, K-Mart, and other discount mass merchandisers and clubs on supermarket sales by
department. Share the results of their research on grocery sales before and after the impact of new food
competitors. Learn how to strategically compete with a special focus on a sample analysis of how mass
merchandisers and wholesale clubs are impacting the Florida market.
Women Grocers of America Luncheon
"LIFE ON THE HOME FRONT: The Family Partnership"
Mrs. Brenda Schwarzkopf tells her experiences of an American family in time of war. Only Mrs.
Schwarzkopf, as the spouse of General H. Norman Schwarzkopf, can share the mixed emotions of anxiety and
great pride for their extended family of thousands of American men and women.
February 5, 1992
Closing Brunch. — "ETHICS AND VALUES IN AMERICA"
F. Lee Bailey, renowned defense lawyer, author, and legal scholar, presents his views on ethics and values
and their relationship to an individual's performance. Mr. Bailey will share his views regarding the merits and
implications of the Thomas confirmation hearings and the William Kennedy Smith trial.
Partners in Performance
1992 N.G.A. Convention &
RETAILERS WHOLESALERS MANUFACTURERS
Buying/Merchandising Expo
February 2-5, 1992
Orlando, Florida
"10th Anniversary Celebration!
December 13, 1991
Ms. Bobbie Kilberg
Deputy Assistant to the President
for Public Liaison
128 Old Executive Office Building
Washington, DC 20500
Dear Bobbie:
The National Grocers Association (N.G.A.) is eager to support
President Bush's reelection campaign in 1992. To that end, and
as part of his overall strategy, N.G.A. would like to help
communicate the President's economic growth proposal to the
grocery industry and to the communities our members serve.
N.G.A. will hold its 10th Anniversary convention February 2-5, at
the Orange County Convention Center in Orlando, Florida. Given
the fact that this major national meeting of the grocery industry
follows closely the President's State of the Union address on
January 28, we feel that it would be a timely opportunity to
reinforce the Administration's economic record and growth plan to
a valuable political/business constituency.
As you know, N.G.A.'s membership is comprised of independent
family-owned grocery companies and the wholesalers who service
them. Traditionally, family-owned grocers are the keystones of
their communities and are active politically and committed to
community service. The independent grocer symbolizes small
business entrepreneurism. In 1985, then Vice President Bush
addressed this audience in New Orleans on tax reform.
Five thousand people attend the convention, and approximately
2,000 people are present at our general business sessions held on
February 2nd, 3rd, 4th, and 5th. The audience will be comprised
of retail grocers, major wholesalers, and manufacturers from all
50 states. I've enclosed a copy of the convention program
agenda. You will note that the convention begins with a session
entitled "Our Nation's Business," moderated by Meryl Comer.
If the timing and location are compatible with the President's
schedule, we would be honored by his appearance any time during
the convention.
National Grocers Association
1825 Samuel Morse Drive, Reston, Virginia 22090-5317
(703) 437-5300
FAX (703) 437-7768
Page Two
December 13, 1991
On the other hand, if the President's schedule precludes a visit
to Orlando in this time frame, we would suggest, as an
alternative, a live satellite address to the convention on Sunday
morning, February 2, or a video message.
Bobbie, as was true in 1985, I'm confident that our convention
represents the ideal small business audience to receive a major
economic policy message from the Administration, and the timing
is perfect. We will formally endorse the President's State of
the Union message and his candidacy for reelection at our Board
of Directors meeting on February 1.
In summary, if you feel this project has merit, please let me
know what further information I can provide.
N.G.A. compliments the work of your office and the professional-
ism of your staff. You have developed an environment for open
communication from a broad cross section of public
constituencies. N.G.A. appreciates being a part of that system
and having an opportunity to provide input to the administration
through your office. We look forward to four more years of
working with you.
With best regards to you and your family for a happy holiday
season.
I am sincerely,
Jm Sauchn Thomas K. Zaucha
President and CEO
TKZ/psr
CC:
Molly Osborne
Lorena Jaeb
(Duggan/Simon)
January 29, 1992
Draft Two
food costs
Grocers
PRESIDENTIAL REMARKS:
NATIONAL GROCERS ASSOCIATION
ORLANDO, FLORIDA
TUESDAY, FEBRUARY 4, 1992
[time]
[Acknowledgments, humor]
It's a pleasure to be with you. I'll always remember the
warm reception the National Grocers Association gave me when I
addressed your 1985 convention in New Orleans. You gave me a
good education about your business then, and I remember it still.
Of course, our world has changed dramatically since 1985.
We have won the Cold War. We have led a coalition in the Gulf to
crush Saddam Hussein's aggression in Kuwait. We have created a
world with the prospects of unprecedented prosperity and peace.
But we've also run into hard times. Our economy has slowed
down, and we must get it fired up again. Some declinists like to
argue that the economy has become a victim of infirmity and age:
It's fallen and it can't get up.
Well, that's just plain bunk. We'll get up and running in
no time -- and we'll do it the old-fashioned way: We'll use our
common sense, our work ethic, our determination, and we'll carry
the entire world into the Next American Century.
You don't have to be a rocket scientist to understand how.
You just stick with the basics. I proposed a common-sense action
plan last week in my State of the Union address. It gets
investment going, because you can't build new businesses without
2
new investment. It strengthens the industries that historically
have led us into recoveries -- especially the real-estate
industry. It hacks away obstacles to growth -- regulations, high
taxes, nuisance lawsuits. It cuts the federal deficit by cutting
spending. And it builds on our strengths. It lets American
workers and businesses show the world what they can do.
All over this country, families, businesses and even local
governments have grasped a simple fact: The world has changed.
The old ways won't do. If we want to remain the world's economic
dynamo, we've got to get leaner and tougher. We've got to change
with the times, and abandon old ways from the old days.
More to the point, we've got to get Washington moving toward
the 21st Century. To do that, I need your help. I've asked
Congress to enact some laws that will get our economy moving and
growing again -- and I've given Congress a deadline: March 20.
Circle that Friday on your calendar. I have. Call it J-Day: The
day by which Congress should have taken a few simple steps to
create good American jobs -- now.
Here's what I want by J-Day: First, incentives to invest: an
amended alternative minimum tax and a 15-percent investment tax
allowance.
Second, incentives to build and buy real-estate: A change in
passive-loss rules for active real-estate investors; penalty-
free withdrawals from IRAs for first-time homebuyers, and a
$5,000 federal income tax credit for the first purchase of that
first home.
3
Third, incentives to succeed: Cut the capital gains tax.
This tax hurts anyone who has made a sensible investment -- in a
home, a business, a farm, even a pension plan. None of our key
economic competitors taxes it at a high rate -- Japan's effective
rate comes to about 1 percent; Germany doesn't tax long-term
capital gains at all, and the world's fastest growing economies
all let people collect their capital gains -- tax-free. Let's
stop criminalizing excellence. Cut the capital gains tax -- now.
Three measures, three pieces of common sense; three little
big
things that Congress should do by March 20. I'm counting on your
help.
In the meantime, I've initiated some reforms that will get
the economy moving -- without having to wait for Congress to act.
Here's one you'll like: I've imposed a 90-day freeze on federal
regulations that could hinder economic growth. During that
period, all departments and agencies will review regulations, old
and new -- to stop the ones that will hurt growth and speed up
those that will help growth.
I see from your convention schedule that you have devoted a
workshop to the topic: "The Regulators Are Back.' " No wonder:
You can't get through a day without having to worry about
environmental regulations, food safety regulations, workplace
safety regulations. No one objects to the stated aims of these
regulations: Health and safety and respect for the environment
are classic, Mom-and-apple pie social values. But you know
better than anyone that when regulators carry regulation to
4
unreasonable extremes, there won't be any apple pie for Mom to
buy.
I ran a council on deregulation for eight years, as vice
president. And I'm here to assure you: The spirit of
deregulation is back. I want you to be able to spend your time
worrying about what you can do for your customers -- rather than
fretting about what some regulator might do to you.
The greatest lesson of this century is: Government
micromanagement doesn't work. After seventy years of tragic
failure, the leaders in Moscow at last have come around to
recognizing that total government regulation produces only one
thing: total government power. Now, Russians want to try
something different -- like grocery stores with something to
sell.
I find it a bitter irony that some of the powers that be on
Capitol Hill still favor government coercion and control over
freedom and competition. I feel as if I had entered a time warp.
When I hear people demanding taxes, regulations, government
coercion and control, I wonder: Have these people been in
hibernation for the past three years?
Let me make you a promise: If Congress sends me any new
legislation to make economic regulation more intrusive, more
burdensome, more unreasonable, I'll send it back with my veto.
[Specific bills might be cited here, for instance there is a
Waxman FDA enforcement bill that already has been issued a veto
threat. ]
5
And if Congress sends unfunded mandates down to state local
governments, I'll tell it to make a choice: Pay for the mandates
without raising taxes, or get ready for a veto. The federal
government spends too much money as it is: It has no right to
force state and local governments to accept new burdens.
Again, Congress can help get the economy moving if it will
stop demagoging and do the right thing. Remember: March 20.
But we also need to look beyond the J-Day agenda. I
proposed an eight-point long-term plan in my State of the Union
address. I want to highlight three of those measures today.
First, break open markets all over the world; promote free
and open trade. We must continue open and expand international
markets. I'm working in the GATT talks to conclude a
revolutionary new global trade agreement -- to make the world
trading system come to grips with the damaging tariffs and
subsidies in agriculture. And I'm convinced that by tearing down
economic barriers with Mexico and Canada, a new North American
Free Trade Agreement will lift us to new heights of prosperity.
Second, create the best schools in the world. In the
information age, ideas count -- education counts. And let's face
it, our schools aren't as good as they should be. We need
competition to revolutionize our schools. By the year 2000, I
want all American parents -- including poor parents -- to have
the freedom to choose where their children attend school. I want
us to fulfill our long national commitment to equal opportunity.
I want Congress to approve my America 2000 Education strategy.
6
Third, strengthen the family -- the cornerstone of the
American dream. Let's ease the burden of child-rearing. The
personal tax exemption has not kept up with inflation. In 1948
(?), the personal exemption was set at $---.
In 1992 dollars,
that exemption would be worth $---. But over the years, we've
only increased the exemption to
$----.
I'm asking Congress
immediately to increase the exemption for each child by $500. We
can afford this move in the right direction.
Look at my economic proposals and you will find simple,
plain solutions to our problems. Some people may complain that
they lack the flash of an expensive new program, but I'll accept
that hit. I don't care about expense. I care about results.
Help me help American workers -- not with vast new programs
that promise results tomorrow in exchange for your wages today,
but with common-sense measures that will get the job done.
If you hear someone in Congress complain that they can't get
the job done by March 20, remind them: We won the Gulf War in 45
days. Surely Congress can pass three little initiatives in 53
days. Besides, you know and I know: If we linked Congressional
pay to getting these measures passed -- they'd be law next week.
So: Accept no excuses. Accept no delays. And accept no
substitutes.
With your help -- we'll get America moving again soon.
Thank you. May God bless you and the United States of
America.
#
#
#
(Duggan/Simon)
January 28, 1992
Draft One
Grocers
PRESIDENTIAL REMARKS:
NATIONAL GROCERS ASSOCIATION
ORLANDO, FLORIDA
TUESDAY, FEBRUARY 4, 1992
[time]
[Acknowledgments, humor]
It's a pleasure to be with you. I'll always remember the
warm reception the National Grocers Association gave me when I
addressed your 1985 convention in New Orleans. You gave me a
good education about your business then, and I remember it still.
Your members are independent local and regional supermarkets
and small supermarket chains. Typically, your firms are still
owned and managed by your founding families. Together with our
larger, national supermarket chains and the old-fashioned corner
stores that still flourish in many communities, you proudly fill
the retail end of the most efficient distribution system in the
world. 11
If you're looking for evidence that this is the greatest
country on earth, there's no better place to start than with
American food and agriculture. From our farmers, through our
food processors and wholesalers, to our grocers, our system gives
Americans a bounty of nutritious and appetizing food at ever more
affordable prices and in ever more convenient varieties and
packages. [Fill in statistical data to demonstrate ever more
affordable prices]
2
Other nations may boast economic achievements that earn our
admiration, but no one matches our food distribution system -- it
is, quite simply, the envy of the world. During the Cold War
era, whenever we had influential visitors from the Communist
bloc, as often as possible we would take them to see American
supermarkets. You may remember that on Mikhail Gorbachev's first
trip to the United States, President Reagan arranged for him to
visit a Safeway store. Visits like these gave leading communists
from Gorbachev on down a glimpse into the secret to your success
-- the secret to America's success. And that secret is what I'm
fighting to renew for all Americans in all the industries and
sectors of our economy: freedom, opportunity and competition.
Family-run grocery stores are living, working parables about
the American dream. Your own business may have started with the
savings and sacrifice and stubborn will of a grandmother or
grandfather, perhaps an immigrant to this country. For a start-
up grocer from Poland or Germany or Italy, the first step in
becoming competitive may have been to learn English as a second
language. For everyone in the grocery business -- then and now -
- the foundation of marketing is being a good neighbor.
Dealing in perishables in an age before refrigeration, your
grandparents didn't need computers or MBAs to master the skills
of just-in-time delivery and inventory management. Now that
advanced education and technologies are commonplace in the
grocery business, you're serving American consumers better than
ever. And like your forebears, you're working wonders on the
3
thinnest of profit margins and in the face of bracing
competition.
Woman for woman and man for man, you're the best marketers
in the world. And I hope you're prepared to put your talent to
work for a very special assignment.
You see, I need your help. I need you to apply your very
best motivational skills to getting Congress to do its job. I've
asked Congress to enact some laws that will get our economy
moving and growing again. You're the kind of people who can
motivate Congress to get its job done urgently -- and to get it
done right.
I've given Congress a deadline for action. The deadline is
March 15 -- that's less only than six weeks away.
I've asked Congress to enact some proven remedies for the
economic slowdown. They're proven by long years of experience
showing that heavy taxes and government regulation can kill the
dreams of families and enterprises. They're confirmed in the
age-old wisdom that sound economic policy makes good social
policy. In other words, what's good for our families and
neighborhoods is what's best for the nation.
First, therefore, I'm seeking greater economic freedom and
relief from high taxes -- so that young families can fulfill
their dream of buying a first home. I hope you will join me in
demanding that Congress enact my plan to allow first-time home
buyers to withdraw savings from IRAs without penalty -- and to
take a $5,000 tax credit on the purchase of a first home. Real
4
estate has led our economy out of almost every recession we've
ever had. And I think it's simple common sense to see how the
multiplication of jobs and the settlement and growth of families
in your neighborhoods would be a boon to your retail businesses.
Next, we must cut the capital gains tax. This tax penalty
against homeowners, against farmers, against business owners and
investors large and small is cripplingly steep. Our high capital
gains taxes are wildly out of line with those in some of the most
successful economies of the world. In Japan, when a business
founder builds an enterprise for years and then sells it, he pays
an effective capital gains tax rate of only 1 percent. Germany
imposes no tax on capital gains. Singapore, the economic miracle
in Southeast Asia where I visited last month, has no tax on
capital gains.
I'm asking you to pour extra energy into the drive for
cutting our capital gains taxes to reasonable levels. There's a
bedrock of support for this. Just a couple of years ago, we came
within an eyelash of winning a healthy cut in capital gains
taxes. We had bipartisan majorities lined up in both houses of
Congress. But our effort ran up against a roadblock -- by a
legislative maneuver that thwarted the will of the majority. I
won't mince words. Our earlier drive to cut the capital gains
tax was stopped by the pure partisan pettiness of the Senate
Democratic leader.
Lower capital gains taxes should be a permanent feature of
our system. But with the economy in recession, we need these tax
5
cuts more urgently than ever. This year, we need a bipartisan
coalition in the Congress that no one would dare to stop. With
your wholehearted support -- with your fullest efforts to get
this message to your community and to your members of Congress -
- this year, we'll win.
I'm also asking Congress create a new 15 percent investment
tax allowance, and to change the alternative minimum tax. This
will encourage businesses to accelerate investment and bring
people back to work.
Those are the short-term measures I've asked Congress to
enact. For the longer term, I outlined eight proposals last week
in my State of the Union Address. I'd like to highlight three of
these for you:
We must continue open and expand international markets. I'm
working in the GATT talks to conclude a revolutionary new global
trade agreement -- to make the world trading system finally come
to grips with the damaging tariffs and subsidies in agriculture.
And I'm convinced that by tearing down economic barriers with
Mexico and Canada, a new North American Free Trade Agreement will
lift us to new heights of prosperity.
Education is crucial to our long-term economic and social
well-being -- and we all know our schools aren't what they should
be. Just as competition makes our businesses serve the public,
we need competition to revolutionize our schools. By the year
2000, I want all American parents to have real financial freedom
to choose where their children attend school.
6
The other long-term focus I want to mention concerns our
families. We must ease the burden of child-rearing. The
personal tax exemption has not kept up with inflation. In 1948
(?), the personal exemption was set at $---. In 1992 dollars,
that exemption would be worth $---. But over the years, we've
only increased the exemption to
$----.
I'm asking Congress
immediately to increase the exemption for each child by $500. We
can afford this, and it's a meaningful move in the right
direction.
While you're lighting a fire under Congress to get them to
meet my six-week deadline, I'll be busy carrying out some reforms
that don't require congressional action. As announced in the
State of the Union speech, I've imposed a 90-day freeze on
federal regulations that could hinder economic growth. During
that freeze period, all departments and agencies will conduct a
crash review of all regulations, old and new -- to stop the ones
that will hurt growth and speed up those that will help growth.
I know how much this concerns you. The schedule of events
at this convention tells the story: One of your executive
workshops is entitled: "The Regulators Are Back." You're
beleaguered by environmental regulations, by food safety
regulations, by workplace safety regulations. No one objects to
the stated aims of these regulations: Health and safety and
respect for the environment are classic, Mom-and-apple pie social
values. But you know better than anyone that if regulation is
7
carried to unreasonable extremes, there won't be any apple pie
for Mom to buy.
I'm here to assure you: The spirit of deregulation is
back. Some regulation will always be necessary, but as long as I
am President, we'll approach regulation from the understanding
that free markets are a fundamental force for good.
After seventy years of tragic failure, the leaders in Moscow
at last have come around to recognizing this truth about markets.
After seven decades of trying to create a utopia through total
government regulation of the economy, the Russians are now
embracing freedom, opportunity and competition.
I find it a bitter irony that some of the powers that be on
Capitol Hill still favor government coercion and control over
freedom and competition. When I hear the shrill voices of those
liberal subcommittee chairmen on Capitol Hill, I do a double
take. I wonder what country I'm in, or what year this is.
Let me make you a promise: If Congress sends me any new
legislation to make economic regulation more intrusive, more
burdensome, more unreasonable, I'll send it back with my veto.
[Specific bills might be cited here, for instance there is a
Waxman FDA enforcement bill that already has been issued a veto
threat. ]
You can count on me to stop legislation that will set back
growth. Meanwhile, I'm counting on you help get my pro-growth
programs through Congress. We have less than six weeks to do the
job.
8
Free markets work and command economies fail: That's the
major lesson of our lifetime. That's the truth that your
grandparents understood when they came to our shores to seek a
better life. That's the truth that guides our crusade to restore
vitality to America's families and neighborhoods and business
enterprises. That is the basis on which future generations will
carry America to new heights of greatness.
#
#
#
copy for
Talking Points
Speechwriters researchers &
THE STATE OF THE UNION:
The President hit a home run tonight. He was Presidential,
composed, and decisive.
He - looked and sounded like the leader of the free world:
"The cold war didn't end, it was won."
The President separated himself from the pack of pretenders
with his vision for the new world order:
-
"Strength in the pursuit of peace is no. vice;
isolationism in the pursuit of security is no virtue.
The President demonstrated the same resolve on the economy
as he did on the liberation of Kuwait:
-
"This will not stand."
The President's plan had all the elements:
-
A response to the changing world ($50 billion defense
cut);
-
Help for homebuyers and real estate ($5,000 tax credit,
penalty-free withdrawal, deduction for loss on
residence) i
-
Incentives for investment to create jobs (cap gains,
investment tax allowance, AMT reform, enterprise
zones) i
-
Tax relief for families (increase in personal
exemption, deductability of student loans, flexible
IRA, penalty free IRA for medical & education) i
-
-
Investments in the future (R&D, Education, Head Start)
Help for those in need (UI benefit extension) ;
-
Controlling the size of government (Regulatory review,
budget freeze, personnel freeze) i
-
Opening foreign markets (GATT, NAFTA, Enterprise for
Americas) ;
-
-
Attacking crime (Crime bill, funds for crimefighting)
Dynamic reform proposals (Health care, America 2000,
HOPE, tort reform, banking reform, the National
Energy Strategy, welfare reform).
responsible: Unlike the Democrats' proposals, the President's Plan is
-
It doesn't violate the budget agreement;
-
It doesn't raise taxes;
-
It doesn't cut defense beyond what is reasonable.
The - President set a firm deadline for action from Congress:
After March 20, "if it must be, the battle is joined."
The - President sounded the right confident and hopeful note:
"We are still and ever the freest nation on earth, the
kindest earth." nation on earth, the strongest nation on
Talking Points:
THE PRESIDENT'S GROWTH AGENDA: EFFECTS ON THE ECONOMY
Economic Growth:
*
The President's plan will add hundreds of billions of
dollars of goods and services to the nation's output over
the next five years.1
Jobs:
By the end of this year alone, the President's Plan will
create 500,000 more jobs than would otherwise be created --
and many more in the years following that.
Home Sales:
*
The President's proposed tax credit of up to $5,000 for
first-time homebuyers is itself is projected to enable
up to a quarter of a million additional Americans to buy
their first home in 1992.
Asset Values:
Enactment of the President's Plan will increase the value of
assets held by Americans, including real estate, by hundreds
of billions of dollars.
1
Note: Enactment of the President's Plan would increase the economy's
growth rate by 25 percent over the next five years -- adding an average
of almost 1/2 of a percentage point per year to the real growth rate of
the economy relative to the "business as usual" baseline, which includes
the Administration's spending acceleration proposal, reduced income tax
witholding proposal, and other administratively discretionary actions.
PRESS RELEASE
f.V.P.Burh
Spuches
THE VICE PRESIDENT
OFFICE OF THE PRESS SECRETARY
FOR RELEASE UPON DELIVERY
CONTACT: 202/456-6772
(Expected to be 11:00 a.m. CDT)
Wednesday, July 31, 1985
EXCERPTS FROM REMARKS BY
VICE PRESIDENT GEORGE BUSH
TO THE 1985 ANNUAL CONVENTION OF THE
NATIONAL GROCERS ASSOCIATION
NEW ORLEANS, LOUISIANA
WEDNESDAY, JULY 31, 1985
It's a pleasure to be here today.
Since its founding just three years ago, the National
Grocers Association has become a strong force for free enterprise,
for the agenda of hope and opportunity in America and for all
that's best in American life.
One of the great things about our country is that when
there's a need, Americans don't just sit around and wait for
government to take care of it. Americans roll up their sleeves
and go at it themeselves.
Well, the NGA has shown that it's part of that great
American tradition of neighbor helping neighbor. The NGA has been
a significant contributor to national food banking, one of
America's great examples both of public-private partnership and of
private sector initiative. You, the members of the NGA, have been
good neighbors for those in need. And I know how much both the
President and I respect you for it.
We also think you're just the kinds of friends we want to
have when the chips are down. Now, Tom, I'm going to say a few
words about tax reform today, and I'd say I was asking for the
NGA's support, but I know we already have it. For the NGA, you
have already appeared before the Ways and Means Committee to
endorse our tax plan. And you've also endorsed another of our
important initiatives, the Youth Opportunity Wage.
In standing for these, the NGA has, as I said, stood up for
growth, for hope and opportunity in America. And so, yes, I'm
going to ask you to keep it up, but, for both the President and
myself I also want to say to the NGA "thanks." Thanks for
standing up with us for America and for the American Dream.
-2-
The American Dream -- some people used to put it down, say
it was an outmoded idea. Well, maybe they'd never stopped to
think how remarkable the American Dream is. Sometimes it takes a
contrast to get things into perspective.
For example, there's a story I've been told has been going
around, sort of underground, in the Soviet Union. It has to do
with a collective farm. The commissar was visiting, and he
grabbed the first fellow who came by and demanded, "How are the
crops? How are the potatoes?" "Oh, Sir," the peasant answered,
"never better. If the potatoes were put in one pile, they would
reach the foot of God." And the commissar said, "Just a minute.
This is the Soviet Union. There is no God." And the worker said,
"That's all right. This is the Soviet Union. There're no
potatoes, either."
The American Dream -- taking an idea, making a business out
of it, making the business grow, always working to make it a
little better, always working in new ideas -- that's what's made
America great. That's why America has grown so strong and so
productive. That's why there are potatoes in America and not in
the Soviet Union.
And as for the people who dismiss the American Dream --
well, I just wish they could come here and meet you and see what
the American Dream 1S all about.
I wish they could see your energy. I wish they could see
your determination. Then I bet they'd say the American Dream
isn't outmoded. It's alive and well right here in this hall
and we plan to keep it that way.
We know that in recent years you and small business people
like you have created the overwhelming proportion of new jobs in
America
by some counts in last three years all of the net new
jobs. Small business is the engine of growth and creativity in
the U.S. economy. It's where the jobs are coming from. It's
where many of the new services and new technologies are coming
from. It's giving the retail sector new vitality. The
entrepreneur, the small business man or woman -- these are the
heroes of the new American Renaissance.
But an American Renaissance is what we're having. In the
last two years the United States has created more new businesses
than Europe and Japan combined. And that's why in the last two
years the U.S. has also created more new jobs than Europe and
Japan combined.
America is filled with energy and hope and pride today like
no other else place on earth. You can see it everywhere.
-3-
Remember the Olympics last year? Remember before the
Olympics when the torch was carried through the country, and
entire towns turned out, lined the way, watched it pass and sang
"America the Beautiful" as it went by? You could see it there.
You can see it in Hispanic families and Asian families that
came to this country with nothing and have shown once more that
with hard work and strong values, America is still what it's
always been, the land of opportunity.
And you can hear it when you talk to young people, in high
schools or colleges. They tell you about their dreams of starting
a career, starting a family, maybe one day taking a chance,
striking out on their own and starting a business.
Those young people, those Asian and Hispanic families, those
towns all across America -- those are just some of the faces and
voices of the American Dream.
President Reagan and I are determined to be true to that
dream.
That's why when we came into office our first priority was
to cut taxes, to cut needless regulations, to cut the growth of
government spending, and to get government off of the backs of the
American people. Not more government, more freedom -- that was
our answer.
We had heard those who said that America was in decline.
But we said that America had not lost its spirit. America was
still good and free and proud and brave. All America needed was
leaders who put less trust in government and more trust in the
American people.
And you know, it's as the President says: we knew our
policies were working when they stopped calling them Reaganomics.
And now we're saying Reaganomics all over again.
That's a big part of what the President's tax simplification
program is about.
We want to lower the top marginal rate again and lower
capital gains. These are the two taxes most important to the
small businessman, the entrepreneur. We want to do this because
the tax code is still like one of those branches that floats down
the Mississippi and catches riverboats. It's a drag on all
progress.
-4-
Well, it's time to streamline this great big American boat,
to cut that tax debris loose, to start steaming full speed ahead,
full speed to more jobs, more new businesses, more hope and more
opportunity for all Americans.
It's also time to start cutting the deficit out of the
Federal budget, and not by raising taxes but by cutting spending.
Right now it appears Congress is deadlocked on how to cut
spending. Well, I'm sorry to see it.
But if Congress can't get the job done, then I'd say it's
time to give the President a line-item veto and a balanced budget
amendment and let him give Congress a lesson in the courage it
takes to cut spending.
And, you know, if Ronald Reagan has shown us anything these
last few weeks, he's shown us what courage is all about.
I want to just say I'm proud to serve with a man like that.
I'm proud to serve with a President who stands up for
America's values and the American Dream. And while we're at it,
let me add, when I go on my trips abroad -- I've been to 64
countries since becoming Vice President -- I can't help thinking
I'm proud to serve with a President who doesn't go around
apologizing for America.
And whenever I come home to America, I always look around
and think, "This is the freest country on earth. This is where
people come from every corner of the earth to realize dreams for
themselves and their families." Whenever I come home, I can't
help thinking, "God bless America."
####
National
Grocers
List of Companies
Association
Main Office
THOMAS K. ZAUCHA
Key Contacts
President and CEO
Ukrops
1825 Samuel Morse Drive
Jim Ukrop
Reston, Virginia 22090
600 South Lake Blvd.
(703) 437-5300
Richmond, VA 23236
(804) 379-7300
Butsons
Churck Butson
15 N. Court Street
P.O. Box 111
Woodsville, NH 03785
(603) 747-2822
Dierbergs Markets
Roger Dierberg
P.O. Bo 1070
Chesterfield, MO 63006
(314) 532-8884
Pay Less Super Markets
Larry Contos
P.O. Box 639
33 W. 10th Street
Anderson, IN 46015
(317) 649-3526
Bel Air Markets
George Wong
P.o. Box 13778
1901 Royal Oaks Drive
Sacramento, CA 95813
(916) 929-6342
D'Agostino's
Nick d'Agostino
2525 Palmer Avenue
New Rochelle, NY 10801
(914) 576-1820
Goodings Supermarkets
Jim Gooding
483 Montgomery Road
Altamonte Springs, FL 32714
(407) 869-8300
Sedano's Super Markets
Manuel Herran
9688 S.W. 24th Street
Miami, FL 33165
(305) 221-8351
Coborns
Dan Coburn
P.o. Box 6146
1445 E. HW 23
St. Cloud, MN 56302
(612) 252-4222
Felpausch Foods
Don Lawrence
127 S. Michigan Avenue
Hastings, MI 49058
(616) 945-33485
Easter Enterprises
Dennis Easter
P.O. box 1351
Des Moines, IA 50305
(515) 265-1116
Ray's Sentry Markets
Ray Nidiffer
P.O. Box 730
615 5th Street
Brookings, OH 97415
(503) 469-3113
Dahl's Foods/Foods, Inc.
Bob Hand
4343 Merle Hay Road
Des Moines, IA 50310-1411
(515) 278-1657
Randalls Food Markets
P.O. Box 4506
3663 Briarpark
Houston, TX 77210
Randall Onstead
(703) 268-3500
Rouse Supermarkets, Inc.
Don Rouse
P.O. Box 5358
107 Camelia Drive
Thibodaux, LA 70302
(504) 447-5998
10th Anniversary Celebration!
Partners in Performance
RETAILERS WHOLESALERS MANUFACTURERS
10
1992 N.G.A. Convention & Buying/Merchandising Expo
Orlando, Florida
February 2-5, 1992
NATIONAL
GROCERS
ASSOCIATION
CELEBRATE N.G.A.'S 10TH ANNIVERSARY!
ATTEND THE ONLY NATIONAL CONVENTION/EXHIBITION FOR RETAILERS AND THEIR
WHOLESALE PARTNERS
VISIT MORE THAN 450 COMPANIES EXHIBITING IN OVER 100 PRODUCT AND SERVICE
PROGRAM AT A GLANCE
CATEGORIES
LEARN MORE FROM FOUR DAYS OF EDUCATIONAL PROGRAMMING, 42 WORKSHOPS,
AND SPECIAL EVENTS
ENJOY EXCITING, BALMY ORLANDO!
SUNDAY
MONDAY
TUESDAY
SATURDAY
FEBRUARY 2
FEBRUARY 3
FEBRUARY 4
EDNESDAY
FEBRUARY 1
FEBRUARY 5
7:00
7:15-8:15
7:15-8:15
7:15-8:00
"Breakfast Club"
"Breakfast Club"
Continental Breakfast
Workshops
Workshops
8:00
8:00-9:30
8:00-9:15
Early Bird Session
Workshop Series C
"Excellence in
8:30-10:00
8:30-10:00
9:00
Merchandising"
Workshop Series A
Workshop Series B
9:00-Closing
Preconvention
9:30-11:00
10:00
Discount
Closing
10:00-11:30
Admissions
Convention
to
Opening General
Brunch
10:15-11:30
Session
Disney
10:00-2:00
11:00
General Session
World's
Exhibit Hall Open
Magic
11:30-12:30
Lunch on Exhibit
11:00-Closing
Kingdom,
11:30-1:00
12:00
Opening Brunch
Floor
Postconvention
EPCOT,
Grocers-PEC
Discount
MGM,
Luncheon
Admission
Pleasure
to
1:00
Island,
Disney
and
World's
Sea
12:45-4:00
Magic
2:00
World.
Exhibit Hall Grand
1:00-4:30
Kingdom,
Opening
Exhibit Hall Open
EPCOT,
2:15-3:45
MGM,
3:00
General Session
Pleasure
Island,
and
4:00-5:00
4:00-5:00
4:00-4:30
4:00
Sea
Best Bagger
Best Bagger
Best Bagger Finals
World.
Prelim I
Prelim II
5:00
4:30-6:30
4:00-7:00
Hospitality Suites
Hospitality Suites
6:00
6:30-7:30
5:00-9:00
6:30-7:30
Asparagus Club
Hospitality Suites
Chairmans's
7:00
Reception
Reception
8:00
7:30-10:00
7:30-10:00
Chairman's "10th
Asparagus Club
Anniversary Gala"
Banquet
9:00
9:00-12:00
10:00
Dessert Party
11:00
RETAILERS WHOLESALERS MANUFACTURERS
Welcome, Partners, to N.G.A.'s
10th Anniversary Celebration!
700
1992 N.G.A. Convention & Buying/Merchandising Expo
Orlando, Florida
February 2-5, 1992
Historically, the N.G.A. annual convention has been the industry's only showcase of the partnership
between the retailer and wholesaler in conjunction with their manufacturer/suppliers.
With the very survival of the industry today dependent upon increasing retail and wholesale
operational and marketing performance and manufacturer support, strengthening that partnership is
essential.
The "Partners in Performance" program at the N.G.A. 1992 Convention and 10th Anniversary
Celebration will address the major forces of change - in industry operations, governmental relations,
and economic trends - - that are having a critical impact on the independent sector of the industry.
Your 1992 N.G.A. convention will address these critical issues:
The New Competitors: The wholesale clubs, Walmart and K- Mart. Controlling their
bite.
Class of Trade, Deals and Allowances, Coupon Chargebacks: Achieving industry
compliance and parity.
The Competitive Team of the '90s: Building wholesale/retail relationships.
Will the merger/acquisition trend continue? What are the implications?
William Confer
Taking full advantage of new product introductions and emerging new departments
Vice President, Wholesale
and profit centers.
Roundy's, Inc.
Applying New Technology: A competitive edge--interdependent use of electronic
President
marketing.
Scot Lad Foods, Inc.
Will the European invasion continue?
Milwaukee, WI
N.G.A. Board Chairman
Integrated Merchandising: The key to optimizing performance.
Flat Sales in a Flat Economy: When will the recession end?
Will investment capital become more readily available?
What changes can we expect in government tax policy to generate growth?
Implications of the '92 Elections: More demands for mandated benefits, or real
change?
Stemming the tide of unbridled union picketing power.
Your N.G.A. convention will address these issues through three power-packed general sessions, 42
hands-on workshops, a major exhibition by 450 leading companies covering 100 products and service
categories, and by special events such as G-Trends, "Excellence in Merchandising," "Green Street,"
"New Product Panorama," store tours, and much more.
But the N.G.A. convention is more than an educational experience. It will be held in an exciting
convention location in Orlando, Florida, recognized as the nation's number one resort city.
The convention will provide an excellent setting in first-class hotels for socializing, networking,
meeting old friends and making new friends, fun, and relaxation.
At the convention, you will be exposed to an around-the-clock schedule of exciting, world-class
Thomas K. Zaucha
entertainment and banquet experiences
plus an exciting pre/postconvention vacation program.
N.G.A. President and CEO
By joining N.G.A. in Orlando, you'll also be joining thousands of your fellow retailers, wholesalers,
and manufacturers/suppliers as N.G.A. assembles an unforgettable combination of programming,
people, products, and luxurious convention locale.
Come celebrate N.G.A.'s 10th Anniversary in Orlando, partners!
Bill Confer
Jon zaucha
GENERAL SESSIONS - The "Big Picture" of the forces of change impacting
the grocery industry and your business unfolds in three power-packed
N.G.A.'s Star
General Session experiences. Industry operations (Competing against the
Performers
clubs and mass merchandisers), government (The '92 elections), and
CONVENTION HIGHLIGHTS
economic trends (Is real recovery in sight?), what they mean to you, and
how you can respond to build sales, profits, and efficiency.
WORKSHOPS - Next, zero in from the "Big Picture" to 42 hands-on
workshops offering operational information, ideas, and innovations on the
hottest topics. See complete listing for further information.
EXHIBIT - Then, experience the N.G.A. Buying/Merchandising Expo, the
latest innovations and greatest products, promotions, and services in over
100 product, equipment, and service categories by visiting 450 leading
exhibiting companies.
10TH ANNIVERSARY GALA - Join N.G.A. in celebration of our exciting 10th
Anniversary. Enjoy the "Chairman's Gala Banquet," four-star entertainment,
and other celebration surprises.
Ray Charles
ASPARAGUS CLUB RECEPTION AND BANQUET - Enjoy a magical
evening with legendary song stylist Tony Bennett and ever popular
comedian Norm Crosby.
DESSERT PARTY - Kick off your shoes for another N.G.A. tradition music
by the Stingrays, dancing to Rockin' Robin's band, and the sweetest
treats and the fun and entertainment of the ever popular Bowzer's Rock 'N'
Roll Party.
"EXCELLENCE IN MERCHANDISING" PROGRAM - Kick off the convention
with the 1992 "Excellence in Merchandising" competition presentations, the
culmination of the past year's best in merchandising in 13 different categories.
See and learn about 39 proven display merchandising successes that you
can use for your business today.
Tony Bennett
G-TRENDS - The grocery industry, up close and statistical. This will be a
comprehensive analysis of the most critical economic, operational, and
demographic trends impacting the independent sector.
NEW PRODUCT PANORAMA - More than 10,000 new items hit the street
last year. Who are the winners and losers? What new categories and
departments hold a key to your future bottom line?
"GREEN STREET" - Stroll through an indoor park-like setting in the main
exhibit hall that enhances the latest environmental/health products and
services and the best retail "green" ads and promotions.
BREAKFAST CLUBS - Informative, involving breakfast workshops offer the
chance to start your day with an expert presenter on topics of interest to you
Norm Crosby
and your business.
STORE TOURS - Visit the best of the "Sunshine State's" high-performance
retail formats.
BEST BAGGER CONTEST - The "Super Bowl" of Bagging. This dynamic
national annual competition crowns a winning state representative as "Best
Bagger." The national finals pit state winners in competition for the national
championship.
"THE ORLANDO EXPERIENCE" - Take advantage of special N.G.A. pre/
and postconvention discount programs and experience the Orlando area's
topnotch theme parks, entertainment, and vacation facilities.
RESORT HOTELS - Accommodations at four first-class hotels are available
in the heart of Orlando's resort area.
Bowzer's Rock 'N' Roll
Dessert Party
DISCOUNT AIRFARES and CAR RENTALS - Get additional savings for
airfares and car rentals.
Workshop Schedule
CODING KEY
Always comprehensive. Always concrete.
Operations = = O
Always operational. This is the 1992 N.G.A.
Human Resources/Management Development = = H
Customer Relations/Service = C
Convention Workshop Series - a practical
Advertising/Merchandising = A
"hands-on" educational experience designed for
Executive Management/Financial = E
literally every player on the food industry team.
Technology = = T
Retailer
Wholesaler
C-Store Operator
Manufacturer
SERIES A: 8:30am-10:00am, Monday, February 3, 1992
CODE
E Introduction to Entrepreneurial Institute (Restricted to Retailers)
H Motivating Employees in Tough Economic Times
>
>
C Knowing Your Customer: New Approaches to a Timeless Need
-
-
H The Union Picket: A Power Tool Against Grocers
-
E/C The Plastic Card in the Supermarket: A Service Whose Time Has Come
-
E/C Creating An Environmentally Friendly Image
-
-
>
E/A Integrated Marketing: Achieving Maximum Access to Promotions and Allowances
-
-
>
O A Level Playing Field at the Gas Pump
-
E Competing Against Price Competition: Strategies for Differentiation
-
A Excellence in Merchandising: Meet the Winners
'
1
<
E New Store Development and Remodels in Recessionary Times
-
T Integrating Electronic Transactions into Your Front-end Operations
T/O SHRINK TRAX: Front-End Shrink Control Program that Guarantees Results
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O Candy: The Sales and Profit Accelerator
-
O Environmental Challenges at the Warehouse and Transportation Level
O Beef Profitability: A New Computer Program
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'
E Competing with the Clubs and Mass Merchandisers
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ERIES B: 8:30am-10:00am, Tuesday, February 4, 1992
O Prepared Foods: Creating a Restaurant Image in a Supermarket Environment
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-
E Entrepreneurial Institute Alumni: Post Graduate Support
H Quality Employees: The Ultimate Competitive Advantage
H Health Care Costs: An Exclusive Cost Containment
>
T/C The Frequent Shopper: Defining and Keeping the Customer
-
O Produce: High Image, High Traffic, and High Profit
O Seafood: The Outlook, Trends, and Concerns for the '90s
O Non-Foods: Responding to New Competitors
O Bakery: Creating the Excitement and Enthusiasm for Great Sales and Profits
O Deli: Eight New Tested Ideas to Build Sales
E Competing with the Clubs: A Winning Proposition
E Public Responses to Sensitive Issues
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O Orienting Part-Timers: A New N.G.A./Cornell Training Tool
H Staffing the Meat Department of the '90s
'
H Employee Theft Control: Managing Involuntary Employee Salary Supplements
>
E Wholesale Margins: The Economic Reality
>
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-
<
E Changing Formats: A Competitive Tool
1
SERIES C: 8:00am-9:15am, Wednesday, February 5, 1992
E Introduction to Entrepreneurial Institute (Restricted to Wholesalers)
'
E OSHA Inspectors: The Regulators Are Back
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'
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<
T Developing and Refining Your Retail Automation Plan
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<
<
H Hiring the Handicapped: A Realistic Approach to the Shrinking Labor Market
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-
1
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E The Overstored Market: Too Many Pieces of the Pie
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'
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O Red Meat in the '90s: How Do We Compete?
-
E How to Finance When the Bank Forgets Your Name
>
-
-
T The UPC Symbol: Improving the Integrity
>
Please check the program on site. Changes may occur.
More than 450 companies will display their latest
products and services in over 100 categories
PRODUCT CATEGORIES
EXHIBITS
100
Accounting Services
Equipment: Food Service
YOU
Advertising Services
Equipment: Ice Makers/
ORLANDO
Automotive Supplies
Machines
Baby Care Products
Equipment: Label &
Bags: Paper/Plastic/Canvas
Packaging
Bakery Goods
Equipment: Leasing
Banking Services-
Equipment: Lighting
Consumer
Equipment: Material
Baseball/Trading Cards
Handling
Baskets
Equipment: Meat Dept.
Batteries
Equipment: Miscellaneous
Beer & Ale
Equipment: Ovens
Beverages
Equipment: Racks
Books & Printed Material
Equipment: Recycling
Bottled Water
Equipment: Refrigeration
Bulk Foods
Equipment: Sanitation
Candy & Nuts
Equipment: Scales
Cards: Greeting/Holiday
Equipment: Shelving
Cereals
Equipment: Signs
Check Cashing Systems
Equipment: Tanks
Cheese
Equipment: Warehousing
Coffee/Cocoa/Tea
Flowers & Supplies
Ice Cream & Frozen
Pest Control Products
Security: Locks & Safes
Communication Systems
Food Banks
Desserts
Pet Food & Supplies
Shipping Services
Computer Software/
Food Protection Services
Infant Food
Pharmaceuticals
Shopping Carts
Distributors
Foods: Canned
Insurance
Photo
Snack Foods
Computer Software/Retail
Foods: Cookies & Crackers
Inventory Systems
Pizza Products
Soft Drinks
Condiments
Foods: Health
Jewelry
Plastics
Spirits
Consultants: Analysis &
Foods: Kosher
Lawn & Garden
Point-of-Sale Systems
Temporary Services
Research
Foods: Microwaveable
Light Bulbs
Poultry
Tobacco Products
Consultants: Advertising/
Foods: Specialty
Meat: Fresh and
Private Label/Generics
Toys & Games
Merchandising
Frozen Food
Prepared
Produce: Fruit &
Trade Publications
Consultants: Design/
Fruit Juices
Milk
Vegetable
Transportation: Vehicles
Engineering
Glassware
Mineral Waters
Promotional Packaging
Uniforms
Consultants: Management/
Gourmet Specialty Foods
Nonfoods
Promotions: Incentives
Video: Rentals & Services
Training
Government Agencies
Over-the-Counter
Rice
Vitamins
Health & Beauty Aids
Medicine
Salads: Prepared
Wine & Wine Coolers
Coupon Redemption
Credit Cards/Check Credit
Hosiery
Paper Products
Seafood
Yogurts
Dairy Products
Housewares
Personnel/Executive
Seasonal/Holiday Items
Deli Products
Search
Designers: Store Interiors/
Exteriors
Dinnerware
Disposable Items: Cutlery
Dry Grocery
EDI: Network Services
EDI: Software
Educational Programs/
Materials
Electronic Funds Transfer
Employee Testing
Programs
Equipment: Bakery
Equipment: Beverage
Equipment: Broilers
Equipment: Cabinets
Equipment: Cash Registers
Equipment: Climate Control
Equipment: Computer
Equipment: Deli/Fast Food
Equipment: Display Cases
Equipment: Distribution
Equipment: Doors
Equipment: Fixtures
The Orange County Convention/Civic Center will display 150,000 gross square feet of exhibit space for the N.G.A. Buying/
Equipment: Flooring/Care
Merchandising Expo.
ORLANDO
Goforthe Nagie
Vineland Rd.
Major Blvd
Universal Studios
EXIT 30B
N
EXIT 30A
American Way
Kirkman Road
4
Wet 'n
Wild
Carrier Drive
HOTELS
Canada Ave
EXIT 29
1992 CONVENTION HOTELS
2
528 Sand Lake Road
Visitor Information
Center/Mercado
Please use the enclosed reservation
breakfast, lunch, or dinner; and The
Jamaican Court
form to register at these hotels or call
Marmalade Tree, a snack and ice
International Drive
N.G.A. at 703-437-5300 for more
cream shop located at the east pool.
information.
3 Clarion Plaza Hotel
Turkey Lake Road
Republic Drive
1 The Peabody Orlando
9700 International Drive
1
(N.G.A. Convention Headquarters)
Orlando, FL 32819-8114
3
Hawaiian Court
9801 International Drive
Orange County
Room Rate:
Convention/Civic Center
Orlando, FL 32819
Single $79
Double $79
EXIT 28 Beeline Expressway
Room Rate:
The Clarion Plaza is Orlando's
Single $151 Double $151
To Airport
newest convention hotel and is
EXIT
Hwy. 528
The Peabody Orlando is across the
dedicated to offering Orlando's best
27A
4
street from the 430,000-square-foot
convention value.
Sea World
Orlando/Orange County Convention
The Clarion Plaza is next to the
Walt Disney
World' Resort
Westwood Blvd
EXIT
Center, only 15 minutes away from
Orlando/Orange County Convention
27A
Walt Disney World's Magic Kingdom
Center, two miles from Sea World, six
and EPCOT Center, and just five
miles from Walt Disney World and
minutes from Sea World.
EPCOT Center, and 15 miles (30
The Peabody is 15 miles (30 minutes)
Minutes) from Orlando International
from the Orlando International Airport.
Airport.
For dining and entertainment at the
For dining and entertainment the
AIRLINE AND CAR RENTAL
Peabody Orlando, Dux offers
Clarion Plaza has five restaurants
DISCOUNTS
American cuisine in an intimate
and lounges which range from
setting, Capriccio specializes in
elaborate buffets to casual take-out
Northern Italian food, Bee Line Diner
and live entertainment in the
is an authentic fifties-style eatery and
Backstage Lounge.
Delta and United Airlines, in
Frequent flyers receive full credit.
deli carry-out.
arrangement with the National
Remember, some fares have
4 Stouffer Orlando Resort
Grocers Association, offer a minimum
restrictions and seats may be limited,
2 Orlando Marriott
6677 Sea Harbour Drive
of 40% OFF regular coach fares or
so call early for your reservations.
8001 International Drive
Orlando, FL 32821-8092
5% OFF any published promotional
Orlando, FL 32819-9312
fare. Certain restrictions may apply.
CAR RENTAL DISCOUNT
Room Rate:
Room Rate:
Single $145 Double $145
To make reservations for any
Avis is offering special discounted
Single $99 Double $115
discounted fares, call the airlines
rates on rental cars for the 1992
A luxurious resort with a unique 10-
Triple $125 Quad $135
TOLL FREE at the phone numbers
N.G.A. Convention & Buying/
story atrium lobby, the Stouffer
Hospitality Suite $250
listed below and be sure to give them
Merchandising Expo. To receive the
Orlando Resort is a relaxing retreat
1-BD Exec. Suite $350
the corresponding file/I.D. number:
special rate, simply call Avis at 1-800-
situated on 23 lush acres in the heart
2-BD Exec. Suite $450
331-1600. Be sure to mention the
of Orlando.
DELTA AIRLINES
special Avis Worldwide Discount
The Orlando Marriott is a 48-acre
The Stouffer Orlando Resort is only
1-800-241-6760
(AWD) No. W022301.
landscaped property with three
one mile from the Orlando/Orange
8 a.m. to 11 p.m. EST, Daily
tropical swimming pools, four lighted
The discount rates are as follows:
County Convention Center, 15 miles
File No.: PO227
tennis courts, tree-lined jogging trails,
(30 minutes) from the Orlando
CAR GROUPS DAILY WEEKLY
and a new health club.
International Airport, adjacent to Sea
UNITED AIRLINES
Subcompact, 2-dr.
$22.90
$ 89
The Orlando Marriott is just down the
World, and minutes to Walt Disney
1-800-521-4041
Subcompact, 4-dr.
$23.90
$ 95
road from the Orlando/Orange
World and EPCOT Center.
7 a.m. to 1 a.m. EST, Daily
Compact, 2-dr.
$24.90
$ 99
County Convention Center (only 1 1/2
For dining and entertainment, Trade
I.D. No.: 515FJ
Compact, 4-dr.
$25.90
$109
miles) and only 15 miles to the
Intermediate
$29.90
$129
Winds is a perfect spot for all-day
Orlando International Airport, Walt
Both airlines can arrange to mail
Full Size, 2-dr.
$31.90
$139
family dining, Haifeng offers authentic
Disney World, and EPCOT Center.
tickets to your home or office. You or
Full Size, 4-dr.
$31.90
$149
Chinese cuisine in a traditional
your travel agent may make your
The Marriott's dining and
oriental restaurant, and Atlantis is
reservations directly with the airline
Unlimited free mileage is included
entertainment includes The Grove
known for contemporary favorites
but you must call the special toll free
in these rates. There is no drop
Restaurant, which offers elegant
served with vintage wines.
number above and indicate the
charge at Avis in Florida. Rates are
candlelight dinners; the Chelsea
appropriate file/I.D. number.
good one week before to one week
Cafe, a casual dining experience for
after the convention.
(Free shuttle bus service to Convention Center.)
QUICK REFERENCE GUIDE
To register or request more information, please contact the
National Grocers Association, 1825 Samuel Morse Drive,
Reston, Virginia 22090-5317
Ph: (703) 437-5300
FAX (703) 437-7768
Hotel Reservations Deadline:
January 8, 1992
Airline Discounts
Delta Airlines:
(800) 241-6760 File #PO227
United Airlines:
(800) 521-4041 I.D. #515FJ
Car Rental Discount
Avis:
(800) 331-1600
AWD #W022301
N.G.A. Future Convention Dates
Mark Your Calendar Now!
February 7-10, 1993
San Francisco, CA
February 14-17, 1994
Atlanta, GA
February 5-8, 1995
San Diego, CA
MEMORANDUM
TO:
Speechwriters and Researchers
From:
Fay Hung, Research Intern
Date:
3 February 1992
RE:
Bush plan to create new jobs.
Information which may be helpful for future speeches:
The National Association of Home Builders (NAHB) is very pleased with
President Bush's economic proposal. The NAHB predicts that if the bill is passed, it
will lead to the creation of 415,000 construction industry jobs as well as $20 billion in
new economic activity associated with home building according to Kent Colton, the
executive vice president.
At the Las Vegas, Nevada, convention for the NAHB this past weekend, 63%
said they expected housing starts to improve this year. They also rated the nation's
economic prospects for this year at 3.4 on a scale of 5, with 5 being excellent. A year
ago they graded its prospects at 2.8. Furthermore, after the State of the Union
Speech, the NAHB changed its forecast for 1992 home construction to 1.4 million
units from about 1.2 units.
Although things are looking up for home builders, banks will also have to
loosen up lending to builders or else a shortage of new homes could send prices on a
rapid, steep climb.
For more details, please refer to the attached article.
The Washington Post
SATURDAY. FEBRUARY 1. 1992
Brighter Outlook
Seen for Housing
Bush's Plan Buoys Builders, Economists
convention poll, 63 percent said they
it's picking up-the number is going
He added that some buyers may
By William F. Powers
Washington Post Staff Writer
expected housing starts to improve
to dwindle quickly."
wait until Congress passes the tax
this year, compared with just 17 per-
If banks don't loosen up lending to credit before moving to purchase a
Economists and home building ex-
cent in a January 1991 poll. And
builders, a shortage of new homes first home. This may cause what one
perts predict the rest of the year will
they rated the nation's economic
could send prices on a rapid, steep economist called an "air pocket" in
bring improved home sales, moder-
prospects for this year at 3.4 on a
climb, lending industry officials said. the market during the next month
or
ately rising prices and steady mort-
scale of 5. with 5 being excellent. A
Without an easing of the credit two.
gage rates in the wake of President
year ago they graded its prospects
Bush's sweeping proposals to revive
at 2.8.
crunch allowing builders to acceler-
But Lasko suggested that the gap
the nation's dormant housing mar-
After the president's State of the
ate
land
acquisition
and
develop-
might
later
be
offset
by
buyers
mov-
ket.
Union speech Tuesday, the NAHB
ment, "we could very easily see new ing planned 1993 purchases into this
There are a few wild cards that
changed its forecast for 1992 home
home prices rising at a double-digit year to take advantage of the tax
could alter this scenario, but for the
construction to 1.4 million units
[percentage] pace," Berson said, credit. As proposed, the credit
moment the prognosticators are up-
from about 1.2 million units,
adding, however, that Fannie Mae's would cover only first-time pur-
beat, saying it will be an improved
predictions assume more liberal chases made during 1992.
year for a variety of people-build-
lending this year.
Another problem is that unless an
ers, real estate brokers and buyers
"If you look at this
Mortgage rates, the other key arrangement is found for first-time
alike-as the market slowly wakes
factor in consumer decisions on home buyers to obtain their tax-
up from its long, troubled sleep.
as a window of
home-buying, will hold basically
credit money, or its equivalent, at
The Bush proposals are premised
on an idea that was the mantra of
last weekend's convention of the
opportunity for
steady this year, according to econo-
the time they are likely to need it
mists and mortgage lenders.
most-when they actually buy a
National Association of Home Build-
Robert Van Order, chief econo-
house-the credit could prove less
ers (NAHB) in Las Vegas: residen-
home affordability,
mist for the Federal Home Loan
stimulative to the market than the
tial construction has lifted the Unit-
it's not closing
Mortgage Corp. (Freddie Mac), said
administration might like.
ed States out of economic slumps
the average national rate for 30-year
The MBA's Peach said sellers and
before, and it will do so again.
rapidly."
fixed-rate mortgages will probably
builders might consider working out
The president said it-"I believe
not exceed 9 percent this year.
a second mortgage for the $5,000,
that housing, home-building, will
- David Berson,
Others agreed with Van Order,
to be paid back in two installments
lead the recovery"-in a live video
Fannie Mae chief economist
but Richard W. Peach, deputy chief
when the tax credits come in, but
chat with the leaders of the trade
group, who echoed those sentiments
according to Kent Colton, the associ-
economist for the Mortgage Bankers
only if Fannie Mae and Freddie Mac
Association of America (MBA), said
change their rules to allow this.
themselves over and over.
ation's executive vice president. The
Then in his State of the Union ad-
NAHB also predicted that the Bush
"it's quite possible" rates could rise
The NAHB's Colton said "the
dress Tuesday, Bush bet money on
plan, if passed, will lead to the cre-
to more than 9 percent if the eco-
market will figure out a way, at least
the idea, with his proposals for a
ation of 415,000 construction indus-
nomic recovery is strong in the sec-
for the first $2,500 of that, to cash
$5,000 tax credit, stretched out
try jobs, and $20 billion in new eco-
ond half of the year.
that through.
Builders will cer-
over two years, for Americans buy-
nomic activity associated with home
Did the rates hit bottom in early
tainly work with [buyers] creative-
ing their first home in 1992; penalty-
building.
January, when the national average
ly."
free withdrawals from individual re-
So things are looking up for home
tirement accounts for first-time buy-
builders. For consumers, the ques-
for 30-year fixed-rate loans was at
The MBA's Mozilo said in a state-
ers; and a tax law change that appar-
tion is what will happen to home
8.25 percent?
ment this week: "A tax credit, while
prices and mortgage rates for the
The chief executive of one of the
valuable, will take time to implement
ently would allow homeowners who
and a method will need to be devel-
sell their houses at a loss to take a
rest of the year.
nation's largest mortgage lenders,
deduction on it according to a com-
Here again, the analysts offered
Angelo R. Mozilo of California-based
oped to turn the credit into upfront
plex formula.
good news. "If you look at this as a
Countrywide Funding Corp., thinks
money that cash-poor families need."
Bush's proposals, which still have
window of opportunity for home af-
so. Mozilo, who also heads the MBA,
to be approved by Congress, are just
fordability, it's not closing rapidly,"
said at the Las Vegas builders' con-
the kind of help the building industry
said David Berson, chief economist
has been lobbying for in recent
for the Federal National Mortgage
clave that rates will not go down to
months.
Association (Fannie Mae).
that level again in this cycle.
When about 60,000 builders con-
Prices for new and existing homes
"I think that will probably prove to
vened in Nevada last week, they had
are likely to rise this year, but prob-
be the bottom," said Fannie Mae's
reason to feel gloomy, having just
ably not precipitously, according to
Berson. He and other economists
come off their worst year since
industry officials. Seventy percent of
said there might be another dip, but
1946. For four days, they gathered
those surveyed in the Las Vegas poll
not to less than 8.25 percent.
in standing-room-only crowds for
said the new houses they build will
Perhaps the key factor in the di-
seminars on the economic outlook
increase in price, with an average
rection of the housing market for the
and how to survive the current scar-
expected increase of 6.5 percent.
city of bank loans for construction.
Berson this week predicted 1992
rest of this year is whether the Bush
"It's a real hard, cold world," one
price jumps of about 4 percent for
proposals will have their intended ef-
builder told a panel of economists
existing homes and about 6 percent
fect.
discussing the credit crunch.
for new homes.
"I think the president's proposals
But the economists said the indus-
The new home prices are likely to
will have a modest stimulative effect
try had nowhere to go but up-
go up more, Berson said, because
on home purchases over the next
"1992 almost has to be a better
the inventory of new unsold homes
few months," said Warren Lasko,
year," one told them-and Bush
is very small, "and once demand
MBA executive vice president.
promised he would help.
starts picking up-and it looks like
The builders were cheered. In a
See HOUSING, E11, Col. 1