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The original documents are located in Box 3, folder "Third Debate: Briefing Cards from
First Debate (1)" of the White House Special Files Unit Files at the Gerald R. Ford
Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 3 of the White House Special Files Unit Files at the Gerald R. Ford Presidential Library
NIXON - FORD (PROGRAMS/POLICIES)
I am here to address six years of leadership -- my record as
President during the past two years and what I will do, if elected, over
the next four years.
I am accountable -- a responsibility I welcome -- for my record,
my policies, my decisions. My predecessor's policies are not my
responsibility.
When I became President, inflation was skyrocketing. Now it is
cut in half.
When I became President, unemployment was increasing. The trend
is now down (4,000,000 new jobs in 17 months)
When I became President, people distrusted the White House. I
restored trust and domestic tranquility.
When I became President, there was open conflict in the world.
Now we are at peace.
For follow-up question:
After becoming President, I sat down to decide which programs and
policies to keep, which to reject and which to change. For example:
--
I chose to keep revenue sharing which I fought for as
Minority Leader of the House.
--
I chose to reject the policy of using wage and price controls.
--
I chose to change our health insurance policy.
-2-
--
I chose to keep strong foreign and national defense
policies and to fight off efforts to undermine both.
--
And, I chose to fight inflation even in the face of an
opposition Congress determined to go the other way.
IMPROVING THE QUALITY OF LIFE
Q. What have you done to improve the quality of
life in America?
A. When I walked into the Oval Office, this country
was in a state of physical and mental pain:
-- The economy was sick.
damaged.
-- Our national pride was completely affected.
-- The people were furious and disgusted, because
their faith in their leaders was gone.
Mr. Carter has very honestly and kindly attested
to the change that has been brought about, and I thank
him for it.
The first and most important quality of a President
is leadership. The most important quality of leadership
is judgment. It was my judgment that the American people
should calmly assess the extent of the damage of what has
celm common
always been a solid structure and begin to rebuild the
damaged areas. There was no room for more hysteria, decep-
tion, or empty promises. Most of all, there was no need
for fast answers and quick fixes.
I believe that there is no magic in the solution. Like
everything else, it's simple, hard work. One step after
another, over the last 25 months, we have made a successful
journey:
-- reducing infation;
-- putting four million people back to work;
-2-
-- and giving the American citizen the knowledge
that his government is solid, and honest.
Now that we have laid a solid foundation, the
country during the next four years has an ideal opport-
unity to move ahead in many areas that have come to be
associated with the quality of life. We can work toward
a day:
-- When every American who wants a job can find
one;
-- When every American who wants a home and is
willing to work for it can afford good housing;
-- When every American who wants to enjoy the
great American outdoors can have access to a national
park; and,
-- When every American can count upon this nation
being at peace.
These are my goals for the next four years.
WHY YOU SHOULD BE ELECTED
Question: Can you give four or five important reasons
why the American people should vote for you on
November 2nd.
Answer:
One: my performance in Office. In the past two
years, inflation has been cut from over 12% to under 6%.
More Americans have gone to work in the last 18 months
than in any similar period in our peacetime history.
America is finally at peace once again, and trust and
faith have been restored to the White House.
Number two: experience. I have had the privilege of
serving the people of Michigan and the people of the
United States for over 27 years. I have dealt first hand
with our national and international challenges. (I might
add that over the past 60 years, the American people have
never elected a President who had virtually no experience
with national and foreign affairs of our nation. I don't
believe that this is the year to break tradition).
Number three: specific, reliable programs for the
future. I have laid out a specific set of policies and
programs to restore full prosperity and keep America at
- 2 -
peace. It's on the record for all to see. (I believe
that the voters deserve more than smiles from a candidate,
more than cleverly chosen words; they need specifics,
and I've got them.)
Number four: candor and trust. In the last two
years, we have tried to make candor and trust the hall-
marks of this Administration. As I said in my inaugural
address, truth is the glue that holds the nation together.
The American people can count on me for reliable, honest
leadership, and I think they know it.
210
FORD - NIXON DIFFERENCES
One reason why this Nation has grown stronger
over the past 200 years is because each successive
Administration builds on the accomplishments of
past Administrations, changes policies and programs
that do not work and reacts to new challenges and
problems.
My Administration is carrying out Truman ini-
tiatives, Eisenhower initiatives, Kennedy initiatives,
Johnson initiatives as well as some Nixon initiatives.
But I have also initiated my own policies and
programs for example:
"28
-- Proposed biggest tax cut in history;
-- First comprehensive energy policy in our
Nation's history (1975 State of the Union);
-- Brought federal budgetary processes under
control;
-- Catastrophic health insurance;
-- Proposed comprehensive reform of all federal
regulations
-- Proposed consolidation of federal programs
such as education, health and child nutrition;
-- Parks program;
-- 1975 Sinai Agreement;
Wage & Price controls.
-2-
-- First comprehensive reorganization of
our foreign intelligence agencies in
30 years;
-- 1974 agreement limiting offensive weapons
with Brezhnev;
-- Economic summits both at home and abroad --
an historical first.
african Policy
Perhaps even more significant than my initiatives
is the manner in which I have tried to govern during
these difficult two years (go to camera) :
*
I have rejected the idea of an Imperial
Presidency; we have seen too much raw power con-
centrated in the Oval Office in the last 15 years.
*
Instead, I have unclogged the lines of communi-
cation and authority to the President.
*
I have taken power away from the White House
staff and restored it to the Cabinet where it belongs.
*
And I have taken the Presidency to the people
with an unprecedented number of regional briefings,
meetings and press conferences.
The changes in the country have been very
noticeable, I believe. It was most apparent in
the way that the Nation celebrated the 4th of July.
But I have also seen it in smaller ways. Last
week when I went back to the University of Michigan
-3-
and met with a number of students, the thing that
struck me was that the students were not overawed
to see their President; they seemed very confortable
and we had a good, open exchange. I can remember
a day not many years ago when a President of the
United States could not go on a college campus;
I'm very happy to see the difference.
Follow-up - What policies of President Nixon
have you rejected?
ANSWER:
For EXAMPLE
I have rejected the Imperial Presidency and
substituted openness and candor.
I
kept Revenue Sharing (which I fought for
as Minority Leader) but I have changed some policies,
for example:
I reject:
-- the use of wage and price controls
-- the assumption that government spending
must continue to grow;
I supported increased assistance for mass transit.
GEORGIA STATE GOVERNMENT UNDER CARTER
BUDGET
FY 1971 $1,862,891
FY 1975 3,036,002
Percent increase: 62.97%
LONG-TERM DEBT
FY 1971 $ 931,125
FY 1975 1,148,785
Percent increase: 23,38%
PUBLIC EMPLOYEES (Full and Part Time)
October 1970 61,142
October 1974 79,100
Percent increase: 29.37%
SOURCE: U.S. Bureau of Census
(see attached tables)
NOTES: Carter was inaugurated in January, 1971 and left
office in January, 1975. The Georgia fiscal year runs
from July 1 through June 30.
THE PRESIDENT HAS SEEN
AGRICULTURE
Flip 1.)
-- "There will be no more grain embargoes
if I'm elected President."
Iowa State Fair
August 25, 1976
Flop
-- Within the hour, he told reporters that,
of course, embargoes would be mandatory
if we lack adequate reserves to meet
our own domestic needs.
Des Moines Register
Flip 2.)
-- To increase farm profits Carter proposed
80% support price for milk as being
adequate.
Capital Times - Wisconsin
March 25, 1976
Flop
-- In response to criticism, Carter said
that he would have signed the 85% parity bill
vetoed by President Ford.
Des Moines Register
April 4, 1976
Flip 3.)
-- In August Carter issued a statement saying
he was taking no position on Proposition
14, a controversial item on this November's
California ballot.
Flop
-- On September 5, however, Carter called a
convention of the United Farm Workers
and said that "I support the objectives
of Proposition 14." The union then
endorsed Carter.
-- On September 7, Congressman Sisk, a Carter
supporter, resigned from the Carter-Mondale
Committee because of Carter's frequent
change of position on the issue.
Los Angeles Times
September 8, 1976
BUSING
Flip 2.)
-- Carter signed a Georgia Senate-House
of Representatives resolution opposing
forced busing to achieve integration in
the nation's classrooms and calling for
a constitutional amendment.
Atlanta Constitution
February 25, 1972
Flop
-- Asked about what seemed to have been a
shift in position, Carter said flatly
that he "never advocated any constitu-
tional amendment to prohibit busing. "
Washington Post
March 7, 1976
-- Jody Powell, Carter's press secretary,
conceded to the Associated Press in
February that Carter had changed his
stand on busing since he was Georgia's
governor in 1972.
Congressional Quarterly
June 24, 1976
CITIES
Flip 1.)
--"I think it would be inappropriate for
the Federal Government to single out
New York City for special favors."
New York Times
March 31, 1976
Flop
" If I am elected President in November,
I would immediately start to work with
the governor, the mayor, and our advisors
to formulate a contract to be signed by
me to resolve New York City's financial
difficulties. "
Business Week
May 3, 1976
FOREIGN TRADE
Flip
-- During the primaries Carter frequently
criticized the loss of U.S. jobs resulting
when American companies locate abroad.
Flop
-- On July 22, Carter said foreign invest-
ment by U.S. companies was "very
healthy."
U.S. Journal
July 23, 1976
HEALTH CARE
Flip
-- "In general, the Kennedy-Corman
Bill suites me but there are a
few facets of it on which I'd
like to reserve judgement.
Philadelphia Inquirer
April 12, 1976
Flop
-- "I have never adopted any sort of
health plan that was equivalent to
the Kennedy-Corman Bill. I think
I am the only Democratic candidate
who did not. "
Boston Advertiser
July 25, 1976
TAX POLICY ON HOUSING
Flip
-- Carter told the Boston Globe on
February 26, 1976, that the income tax
deduction for home mortgage interest
payments "would be among those I would
like to do away with. "
Flop
-- The Wall Street Journal noted on April 26,
1976, that when reminded of his statement
to the Globe he first denied he had said
it. He added that he had said this was
one "incentive I would consider modifying"
and then without elaboration, asserted,
"If I change the deduction it would be
increased, not decreased."
TAX REFORM SPECIFICS
-- Last year Carter promised to reveal specific
tax provision plans by the end of the year.
Earlier this year, he pledged to do the
same during the general election campaign.
Now he insists it won't be possible until
a year after he takes office.
Wall Street Journal
May 13, 1976
WAGE AND PRICE CONTROLS
Flip
-- Carter requested Nixon to reinforce
wage and price controls to slow
"unprecedented inflation. "
Atlanta Journal
April 19, 1976
--
If elected he (Carter) said he would
ask the Congress to restore the power
of wage and price controls to the
Presidency.
Cincinnatti Enquirer
January 10, 1976
Flop
-- Latest Carter view -
"On Wage and Price Controls Carter said
he would use them only as "a last resort"
and that early in his administration he
would not even seek standby authority
to impose them."
Los Angeles Times (Interview)
August 24, 1976
REVENUE SHARING
Flip
-- "I think revenue sharing is a big
hoax and a mistake."
Altanta Constitution
January 12, 1973
Flop
-- "I stand with you in urging Congress
to extend its general revenue sharing
"
program
Speech, Conference of
Mayors - June 29, 1976
Flip
-- Carter does not endorse the "counter-
cyclical" plan to concentrate revenue
money in the areas of highest unemploy-
ment.
Boston Globe
February 16, 1976
Flop
-- "We also need counter-cyclical assistance,
with revenue sharing and other financial
aid designed to meet the special needs
of the most hard pressed urban areas. "
Speech, Conference of
Mayors - June 29, 1976
MEDICAID
NATION'S COMMITTED TO INSURING ACCESS TO HEALTH CARE FOR OUR
LOW INCOME PEOPLE,
THOSE WHO DO NOT HAVE THE MONEY TO GET HEALTH CARE FOR THEM-
SELVES AND ESPECIALLY FOR THEIR CHILDREN, SHOULD RECEIVE OUR HELP.
MEDICAID WAS ENACTED TO HELP WITH THESE CONCERNS, OVER THE LAST
10 YEARS HAS BEEN SUBJECT OF FRAUD AND ABUSE, MANY OF THE PROBLEMS
ARISE BECAUSE THE PROGRAM DESIGN HAS SERIOUS FLAWS. EVEN STATES
THAT HAVE TRIED HARD HAVE HAD PROBLEMS, GOVERNOR BUSBEE, THE
GOVERNOR OF GEORGIA , TESTIFIED BEFORE CONGRESS TWO MONTHS AGO
THAT WHEN HE TOOK OFFICE, THE PROGRAM IN HIS STATE WAS IN A
SHAMBLES. HE SAID IN 18 YEARS IN THE STATE LEGISLATURE, HE
NEVER HAD SEEN SUCH AWFUL FRAUD AND ABUSE,
(OVER)
THE GENERAL ACCOUNTING OFFICE RECENTLY CONDUCTED A STUDY OF
THE PROGRAM AND RECOMMENDED 59 IMPROVEMENTS TO TRY TO CORRECT
THESE PROBLEMS, 55 OF THESE CHANGES ARE BEING IMPLEMENTED.
I AM CONVINCED THAT TINKERING WITH A FLAWED MECHANISM WILL NOT
WORK, THAT IS WHY I RECOMMENDED LAST JANUARY A COMPLETE OVERHAUL
OF MEDICAID AND 15 OTHER PROGRAMS THAT ARE SUPPOSED TO HELP LOW
INCOME PEOPLE WITH THEIR HEALTH CARE.
MY REFORM WOULD SOLVE FRAUD AND ABUSE PROBLEMS AND MAKE SURE
THE TAXPAYERS DOLLARS ACTUALLY HELPED.
Issues
ELECTION
21
POLITICAL FOCUS/ROBERT WALTERS
Mudslinging on Medicaid
This year's presidential campaign, like most of its predecess-
an analysis of medicaid provider payments in order to detect,
ors, confirms the political axiom that the contest for the na-
any potential program abuses
tion's highest elective office may well be the worst possible
"We discovered nursing homes billing the state for a water
vehicle for serious discussion of the crucial issues facing the
ski boat, trips to Hawaii and purchases at a large Atlanta de-
country and its people.
partment store for which there was no accounting. We had
Romantics regularly argue that the presidential race could
dentists who, in recent years, had billed the state more than
and should be the forum for a major national debate on the
$200,000 for work which, upon examination, was simply not
future of our society, but politicians persist in mangling and
found in the mouths of patients."
distorting the issues to meet what they perceive to be their
In addition. a federally commissioned review of Georgia's
personal campaign requirements.
medicaid program found more than $4.6 million in physi-
As a result, the campaign to date-including three hours of
cians' fees erroneously expended during a 15-month period
highly touted, nationally televised, head-to-head "debates"
in 1972-73-i the middle of Carter's governorship.
between the two principal contenders-generally has been de-
Busbee's testimony about "waste, extravagance and out-
void of worthwhile discussion on the issues confronting the
right fraud" is especially significant in light of Carter's re-
country as it proceeds into its third century.
peated boasts of streamlining state government, making it
Example: A representative case involves the federal-state
more efficient and more responsive to the needs of the people.
medicaid program that finances the principal health care
The one agency in which he displays particular pride is the
needs of 24 million poor people at a current annual cost of
Department of Human Resources, which administers scores
approximately $17 billion - $10 billion federal and $7 billion
of social program in Georgia, including medicaid.
state money.
Response: When Carter discovered that President Ford's
That program is consuming both federal and state funds at
campaign organization was planning to use Busbee's testi-
an alarmingly rapid rate, as a report in National Journal
mony for its own partisan purposes, he promptly back-pedal-
(Vol. 7. No. 38, p. 1319) indicated more than a year ago:
ed. In mid-September, Carter offered this admission:
"Though the federal government is by far the nation's larg-
"As governor of Georgia, I saw the system with all of its
est purchaser of personal health services, it has not been
problems first hand. I worked for four years to try to straight-
able to translate this economic leverage into controlling
en it out. I never succeeded. Instead, I passed the problem on
costs.
to my successor, and he hasn't solved it either.
Medicaid expenditures have grown far more rapidly than
"The Ford Administration is, as usual, passing the buck,
Congress originally anticipated because of three factors: in-
blaming the states. But the law is clear. The responsibility of
creases in enrollment, rising medical costs and changes in
the federal government is clear-to keep costs down, to have
service."
a system that works and to eliminate fraud."
In late August of this year. the Senate Special Commit-
But independent authorities unanimously agree that, under
tee on Aging said in a report that one-fourth to one-half of
the law, it is the states that have principal responsibility for
all medicaid funds expended are being lost through fraud,
honest and efficient administration of the medicaid program.
deficient patient care, maladministration and issuance of
Some states, such as Michigan and Texas, have developed
benefits to ineligible recipients.
sound management programs. Others, including New York
Carter: The Democratic presidential nominee, Jimmy Cart-
and Georgia, have poor records.
er, had nothing especially constructive to say about the prob-
Debates: In the first of the televised debates between the two
lem, but he immediately sought to turn the Senate allegations
candidates, Ford raised the issue, attempting to attack Carter
into a partisan campaign issue.
through the use of Busbee's Senate testimony. Said the Presi-
"Special interests in the delivery of health care have gotten
dent: "He (Busbee) testified - and these are his words, the
rich and the people have suffered," said Carter, who then
present governor of Georgia-he says he found the medicaid
added:
program in 'shambles.'
"When the Senate was investigating the management of
In fact, Busbee never used the word, "shambles," in his
medicaid, where was the President, where were the officials
Senate testimony.
of the executive branch who are supposed to administer the
In summary, here is what the Ford-Carter dialogue on the
program? 1 don't know. Sitting in the White House perhaps,
medicaid issue has produced to date:
timid, fearful, afraid to lead, afraid to manage. That's some-
Carter opened the exchange with what can only be des-
thing they're going to have to answer for."
cribed as a "cheap shot" at Ford, then attempted to walk
One month earlier, in late July, Georgia Gov. George Bus-
away from his responsibility for maladministration during his
bee, a Democrat, testified before the Senate Finance Subcom-
tenure as governor.
mittee on Health about the conditions he found in 1974 when
Ford, after telling a television audience of more than 80
he took over from Carter as Georgia's chief executive:
million people that "these are his words," proceeded to mis-
"One of the first acts I took after being elected governor
quote the governor of one of the 50 states.
and prior to taking the oath of office was to request from
And nobody in the presidential contest has offered any
then-Gov. Carter's emergency fund the resources necessary for
thoughtful alternatives to remedy a quite serious problem.
National Journal, 10/16/76
Q.
Mr. President, there is increasing public concern about
the ability of Americans, especially young Americans,
to afford their own home. Is the "American dream" of
homeownership dying, and what can you do about it?
A.
The American dream of homeownership is not dying.
In fact, more and more Americans own their homes
each year. The data make this very clear:
Percent of Americans Who Own Their Own Homes
1950
1960
1970
Today
55%
61%
62%
65%
Percent of Young American Families (Under 35)
Who Own Their Own Homes
1950
1960
1970
Today
38%
48%
49%
56%
And first-time home buyers are becoming younger.
Percent of First-Time Home Buyers Under 35
1950
1960
1970
Today
No Data
49%
54%
62%
GOVERNMENT REORGANIZATION
You don't make the government work better just by moving its
functions or agencies around. How a government agency is set up
depends on what it has to do. Unless you change what it is doing,
reorganization merely changes the letterhead on the stationery.
For example, I have been convinced for a long time that the
government does a poor job of providing medical services through
Medicaid and associated programs. That's why I proposed last January
to reorganize the whole program, consolidating the money normally
allocated to these various programs into one single payment allocated
to individual states.
This would have improved the way medical services reach the
individual and allowed a sharp tightening up of the management of these
programs. It would have cut the bureaucracy and saved money.
The Congress, though, due to special interest pressures, ignored
this and other major reorganizations.
To be honest about it, there's just no short cut to government
efficiency. Simply reshuffling bureaucrats won't do it. We must change
the existing laws.
GRAIN EMBARGO
I will directly answer the question, but first some perspective.
One thing about being President, you have to make decisions.
You just can't straddle and wobble around in the Oval Office. Like
President Truman said, "The buck stops here. "
Sometimes your decision is unpopular -- not because it's
wrong -- but because critics make a big issue out of one aspect of it.
That's the case respecting my decision on the grain embargo, and I
understand how some farmers feel about it. The way I see it, freedom
for the farmer means freedom to look at circumstances of embargo. The
outcome has been grow and sell. If he is asked to achieve full production,
then the government is obliged not to interfere with his ability to sell
what he produces.
Farmers, like other Americans, have the right to have a President
they can trust. I recognize my obligation to them. I recognize their need
for trust.
I foresee no circumstances in which I would impose an embargo on
farm products.
While that answers for the future, your question raises circumstances
of the past.
One can fairly argue that the embargo lasted too long, but it's
important to look back and see why it was imposed at all. Had we not
acted, the maritime unions, or the Congress, would very likely have done
-2-
something far worse to farmers. President Meany of the AFL-CIO and
others were threatening to stop all shipments to the Soviets, including
the 10 million tons already sold. Some 70 Members of Congress were
moving to put all grain export sales under the control of a government
board. Their bill was supported by Mr. Meany and other union leaders,
and by Senator Mondale who called for strict export control licenses.
I rejected such action, having always fought against that kind of
government control, and I will continue to do so. Instead, we negotiated
a long-term grain trade agreement whereby trade with the Soviet Union
will stay in private hands and our farmers will continue to produce for a
market and not a government board.
This agreement has turned an off-and-on foreign buyer into a
long-term stable pur chaser.
The result is the circumstances that led to our problem in 1974
will not happen again because of the actions we have taken.
THE PRESIDENT HAS SEEN
SOCIAL PROGRAMS/GOALS BLOCK
These are my personal goals:
--
I want every American who wants one to have a good job
with a paycheck -- this is the number one cure for our social problems.
--
Every American should feel physically secure, free from
the horror of war and the threat of crime.
--
Every American should have a home in a decent neighborhood with
schools where our children can get a good education.
--
Every American should have the best medical care at costs
which will not wipe out our savings.
--
Every American wants to work and relax in a clean, healthy
environment.
Let me give you an example of how to get them. Good schools require
continued federal aid but less federal interference. The block grant approach
I have proposed has not been acted on by Congress. Until it is, we'll have
federal bureaucrats continuing to reach into local school districts, rather
than letting parents and teachers run the schools. I believe my election
will be seen as a mandate for Congress to act.
INFLATION/VETOES
We've cut inflation in half -- and we're going to keep driving
it down.
Everytime I veto spending bills out of the Congress, I do it in the
name of every American worker who wants his earnings protected; every
senior citizen on a fixed income; every housewife who does the grocery
shopping; and every taxpayer who has had it with bloated government.
And, everytime the Congress sends me a bill that endangers the people's
pocketbook, I'm going to keep right on vetoing it.
It's the only way I know to cut inflation. And it has worked at the
same time we've been creating 4,000,000 new jobs in this country in
the last 17 months alone.
Many of these vetoes have been a clean and hard message to
Congress which said:
--
remember not a few but all of the taxpayers,
--
forget the special interests who live off the federal treasury,
--
don't settle for bills that are partly good but mostly bad.
Congress got the message now and then and sent back better bills
which I then could sign into law.
All in all, my vetoes have saved the taxpayers over 9 billion dollars.
I find it interesting that Senator Mondale, who my opponent says is compatible
on all counts with him, voted to override every one of these tax-saving vetoes.
UNEMPLOYMENT
Let me say first, that in the last 17 months more new jobs have
been created than in any similar period in the history of this country --
4, 000, 000 new jobs in 17 months, and 500, 000 in the last two months.
And, if we stay on the same course, we'll keep making the same progress.
Furthermore, 2 years ago, millions of American workers were
afraid they were about to lose their jobs. I don't think many feel that
worry today. This economy is strong -- and I think the American people
feel that that is true. They can remember how bleak things seemed two
years ago. And we've done it, while cutting inflation in half.
No American President will ever be satisfied while there is one
willing worker who can't find a decent job. But in pursuing jobs, no
American President should make the mistake of backing spending programs
which, through inflation, threaten the earnings of the 88 million Americans
who are working.
Nor can a President allow the economic course he charts to be
erratic by shifting emphasis from one policy to another. Candidates can
live by the press release -- a new proposal for every problem every day.
A President needs to set a stable course and pursue it, day in and day out.
That may not be good politics, but it's what leadership is all about.
DRAFT 9/21
AG/MD
WEB PRESIDENT HAS SEIN.....................
SPENDING AND TAXES
Governor Carter is trying desperately to repeal the laws
of arithmetic. He's trying to find a way to enact the huge
expenditure programs that he supported in the Democratic
platform, balance the budget and not increase taxes where the
vast revenue raising capacity of our tax system is, namely
the middle class.
In the impossible task of trying to have all of these
objectives simultaneously, the Governor has tried out on us
a number of different programs.
He has somehow found $60 billion in excess revenues avail-
able from the growth in the economy (over and above mandated
expenditure increases) by 1980. Unfortunately, over the years
many have believed the prediction that there will be somewhere
down the road a huge surplus. This has turned out to be a mirage.
The closer you get to it the farther it seems to go away, and I
suspect that will be the fate of the $60 billion as has been the
fate of all such previous surpluses. He has implied some vast
potential savings from governmental reorganization. I can assure
you it doesn't exist.
He next sought to find revenues by proposing an unfair tax
on families with above coverage incomes, somehow failing to recog-
nize that even if we were to tax all incomes over $50,000 at 100%
we would raise less than $9 billion which would pay for less than
4% of Mr. Carter's platform.
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It is clear that the Governor does not have a
clear view of how he can possibly support the huge
expenditures in his platform without heavily taxing
the hard working middle class. In fact, the other day,
he as much as indicated that that was his program when
he put forth the general proposition that he would
increase taxes on all income levels above $13,000 or
$14,000 a year. To quote him exactly,
"I would take the mean or median level of
income and anything above this would be
higher, and anything below that would be
lower. "
I find the first part of the sentence incredible, the
second part, that is about lowering taxes unbelievable,
granted his support of his party's expenditure programs.
The Governor is now backing off that proposition
recognizing that he was advocating a major increase in
taxation of middle income groups.
But the Governor has not backed away from the
Democratic platform, and that's where his real trouble
lies. To enact the programs that Mr. Carter has promised
to the American people will cost, in my judgment, an
additional $100 to $200 billion a year. We can only pay
for those programs in two ways: either we borrow the
money and pay through higher inflation or we raise taxes.
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To raise enough taxes to pay for his programs will
cost every man, woman and child in the United States any-
where from $500 to $1000 a year.
There is one other proposal that Mr. Carter has put
forward that has not attracted much attention but will
also hit the pocketbooks of the American people very hard.
That is his proposal, made earlier this year in an
interview with Sylvia Porter, to increase the amount of
income subject to Social Security taxes from approximately
$15,000 to approximately $20-22,000. That's enough to
raise the taxes of the American middle class worker
between $285 and $400 a year (figures must be checked).
In the realm of fiscal affairs which affects the
value of the people's money, I believe a Presidential
candidate must be very specific and direct. I've stated
my position on expenditures and on taxes and I have
presented my proposals in complete detail in my budget
messages. I have not found a way to create something
out of nothing. I suggest that if the American people
are going to take the Governor's spending and tax proposals
seriously, that he spell them out for the American people
in the same detail that I have.
My tax proposals are very simple. I believe that
taxes should be cut for the hard working middle income
wage earner, and I have outlined in great detail how
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that could be done while reaching a balanced budget in
fiscal year 1979. I suggest the Governor do the same.
QUESTION:
THE PRESIDENT HAS Seen
Mr. President, what do you think about the question of victimless crimes
such as prostitution, drug use and homosexuality ?
ANSWER:
I have never been convinced that any crime can accurately be said to
be victimless. It simply is not accurate to describe drug use as
victimless. On the contrary, it is a major contributor to and cause
of the crime problems we face all across the country today. With
respect to prostitution, I think it is clear that such activities provide
a major source of income for organized crime.
Even if it is not possible to identify a specific individual victim, the
fact of the matter is society is a victim of such behavior and as long
as we have made a judgment to outlaw such activities, the law should
be enforced and those convicted of such crimes should be punished.