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Republican Legislative Agenda, October 1975
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Republican Legislative Agenda, October 1975
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The original documents are located in Box 7, folder "Republican Legislative Agenda, October 1975" 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 Gerald Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections.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 7 of the White House Special Files Unit Files at the Gerald R. Ford Presidential Library THE WHITE HOUSE WASHINGTON October 1, 1975 MEMORANDUM FOR: JIM CONNOR FROM: MAX FRIEDERSDORF m.6. SUBJECT: Republican Legislative Agenda "A Program for Progress" 9/8/75 The Office of Legislative Affairs concurs with subject agenda. 1HL WHITE HOUSE ACTION MEMORANDUM WASHINGION LOC NO.: Date: September 25, 1975 Time: FOR ACTION: Phil Buchen Jack Marsh Jim Cannon Bill Seidman Max Friedersdorf Brent Scowcroft CC (for information): T Kendallok Jim Lynn Frank Zarb FROM THE STAFF SECRETARY DUE: Date: Wednesday, October 1 Time: 12 Noon SUBJECT: Republican Legislative Agenda "A Program for Progress" 9/8/75 ACTION REQUESTED: For Necessary Action X For Your Recommendations Prepare Agenda and Brief Draft Reply X For Your Comments Drait Remarks REMARKS: We have been requested to prepare a report for the President on the Republican Legislative Agenda presented to him by the Republican Leadership. This report should cover: 1) What is being proposed. 2) What are we doing in the areas mentioned in report. 3) What are we not doing that we should be looking into In other words, any initia tives in the report we should consider undertaking? PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED. If you have any questions or if you anticipate a delay in submitting the required moterial, please Jim Connor islenhone the Statfs Secretary immediately. For the President REPUBLICAN LEGISLATIVE AGENDA: A PROGRAM FOR PROGRESS SEPTEMBER 8, 1975 REPUBLICAN LEGISLATIVE AGENDA: A PROGRAM FOR PROGRESS The principal mission of government must be to provide its citizens the freedom to pursue opportunities to create and maintain the type of life each of them desires. We believe that the vast majority of Americans prefer: -- A life in which freedom of thought and action of the individual as a member of society is preserved and protected. Government's duty is to defend its people against aggressors from without and subversive and criminal elements from within. -- A life lived in an economic climate in which truly competitive free enterprise predominates. Government's role is to foster and further free enterprise, while maintaining protection for society and individuals against unfair advantage taken by predatory interests. -- A life in which all people have a full opportunity for success. Society and government have joint responsibility to make programs and facilities available to train individuals in marketable skills, so they may become productive members of the free enterprise system. -- A life that promotes and strengthens individual and family responsibility. Our youth should be given every opportunity to be exposed to the positive values of our American heritage. -- A life in which assistance is available to the needy, disabled, aged and handicapped, but in which able-bodied and able-minded persons are expected to work and produce. -2- Our present society has not yet fully achieved these goals, but Y it has proved that it has the ability to do so -- that it offers the best hope yet devised by man to realize the fulfillment of the American dream. We intend to hasten it toward its goal by prodding it where it needs prodding, by adjusting it where it needs adjusting, but all the while nurturing and protecting it against those who would destroy it. Government will play an important role, but must refrain from competing with and from putting strains and pressures on free enterprise which would damage the entire system and thus lead to eventual failure. The essence of our American system is choice. Our nation grew strong under the concept of freedom of our people to choose the course of government. To choose well, there must be recognizable programs to be weighed in the balance. As a responsible minority, seeking to become a nucleus of a majority, we believe our obligation is to move our government better to serve the people. There are certain principles which guide a Republic year in and year out. The policies any government should follow must be dictated by the particular time in which those guidelines will be operative. We believe that at this time in our history it is essential the role of government be diminished, and emphasis placed on the encouragement 1 of individual enterprise. Congress must come to grips with the realities of federal spending in a peacetime economy and not allow the federal government to be the primary cause of inflation. We believe the Congress through the Budget Committee has the responsibility to curb excessive federal deficit financing, and work with the Executive Branch to establish national priorities consistent with federal revenues. We recognize the fact that the transition from a deficit of $80 billion to a balance between revenue and expenditures in one year, although desirable, is not feasible. We would expect to effect it within three years. During that time, it would be necessary for us. to forego additional programs to be financed through the public sector and concentrate on improving, consolidating and in certain cases eliminating by intensive legislative oversight and amendment existing ineffective or unnecessary programs 2 We believe a commission should be established to study the operations of our government departments and agencies and recommend necessary 3 reforms. In addition, our national transportation system must be reviewed and necessary legislative remedies enacted which will provide a balanced and adequate transportation system for the country. Since its beginning in 1913, the federal income tax system has grown into a hodgepodge of conflicting regulations, inconsistencies, and inequities. Our tax system needs immediate reform, the kind of reform that would require every American to pay a fair share, no more or no less. We must avoid incentive-destroying tax levels which slow 4 the growth of the economy and prevent the creation of new jobs. We stand for full employment and believe every American who is willing and able to work has a right to expect and an obligation to pursue opportunities to earn a living. Because massive federal make-work programs offer no hope to the jobless for long-range future security, we endorse stimulation of free enterprise to generate productive jobs that will last and pay a decent wage. We favor automatically extended unemployment benefits coupled with intensive manpower training to tide workers over periods of unemployment. Much of the added expense for expanded manpower training can be defrayed by purging the bloated welfare -4- rolls of the many ineligibles, by rooting out welfare fraud and by strengthening work requirements. Moreover, to help channel assistance where it is really needed, we favor a drastic revision of the run-away 5 food stamp program. One of the great challenges of our time is our need to become : independent in energy production. We believe that energy independence should be reached mainly through the efforts of private enterprise. Tax incentives will be needed to assist in prodigious capital formation to invest in new and expanded facilities. The direct federal role should be limited to appropriate participation in research and development of 6 new energy sources. We believe older Americans are especially deserving of attention and concern. They are faced with loss of income security from inflation and the spectre of financial disaster from major illnesses. The greatest contribution Congress can make is to assume leadership in an all-out effort to reduce inflation to protect the buying power of retirement dollars. Because of spiraling costs for medical care and health services, we feel a health insurance program offering protection 7 against the financial ravages of catastrophic illnesses is needed. The entire area of health care must be examined in order to establish a national health policy. Federal involvement in health care is extensive, with fragmented, categorical programs and pervasive regulations and guidelines. In order to address the complex questions involved in this issue, we have established a Task Force on Health with the Republican 8 Research Committee. -5- We regard it as imperative to preserve the integrity of the Social Security Trust Fund financed by employee-employer contributions and to adjust benefit payments to sustain purchasing power in constant dollars. We will actively support incentives to expand the individual retirement 9 program of every American. Education of our nation's young people is a state responsibility, 10 a local function and a federal concern. The mentally and physically handicapped must be afforded opportunities 11 that will allow them to function as useful members of our society. It is a major responsibility of government to protect the lives and property of its citizens and insure the domestic tranquility. Justice must be as concerned with protecting the rights of the victim of crime as assuring the rights of the accused. At the same time, we must consider legislation to assure American citizens that they will not be subject to arbitrary or unjustified surveillance by government 12 agents and to protect citizens' rights-to-privacy. An estimated 10 million residents of foreign countries now live illegally in the United States and actively compete with American workers for available jobs. Existing laws which establish a legal yearly entry 13 rate must be strengthened and strictly enforced. In this nuclear age, we live in a still-perilous world. Until disarmament becomes a reality it is necessary that we continue intensive negotiations. There is no acceptable alternative to an American defense 14 second to none. -6- Efficient production of food and fiber is to the credit of the American farmer and must be encouraged to meet domestic and world needs 15 without undue government interference. Democrats have controlled both Houses of Congress for 38 of the past 42 years and must bear the responsibility for failure of the federal government to meet the needs of America. Loosely written legislation by Congress has created a maze of contradictory and duplicative controls. Congress must provide constant oversight of federal operations and regulatory agencies to insure that legislative intent is carried out and to determine the need for corrective legislation. The positions and attitudes reflected here are presented as guidelines, not as a definitive, all-inclusive program for America. In fact, we recognize the omission of many areas of concern, not from a lack of interest, but because our positions have become well-known through our legislative actions or through our party platforms. We attempt to point in the directions in which we would intend to lead our country, were we to become the nucleus of a majority in Congress. We believe it is incumbent upon Congress to respond in these ways to the people who must pay for government, and we believe the people must and will see to it that the Congress does so respond. 1 - Private Enterprise Our two-hundred year old system of private enterprise, working within a free and competitive economy, has produced the highest living standard in the world. This private sector production has been and is the only creator of our national wealth with government merely redistributing wealth it has acquired through taxation of private enterprise and individual citizens. Any broader effort by government to control or direct our huge trillion-and-a-half dollar economic machine could be a disaster. Government should not assume the function of the great tinkerer, but can, and should, help promote prosperity. It can best do this by not GERALD FORD LIBRARY hindering the course of commerce, by minimizing regulation, by allowing the time-tested laws of supply and demand to work with maximum freedom, by encouraging healthy competition and the enforcement of anti-trust laws that protect the consumer and fledgling businesses. We believe that solutions to our dual economic problems of inflation and recession lie in returning decision-making to the people through the forces of supply and demand in the marketplace. People themselves can best decide what to produce, sell, and buy, and at what price levels. No government agency is as capable of making these decisions as are the people through the voluntary exchange of goods and services. There is already ample machinery within the federal government and in the private sector to protect the consumer from exploitation. We applaud the Ford Administration's effort to orient existing regulatory and administrative agencies toward consumer protection. We propose that federal estate and gift tax laws be revised to encourage private ownership of Small Business. 2- Public Debt During the past 40 years excessive appropriations by Democrat controlled Congresses have created massive deficits and forced the federal government to borrow heavily. This competition with the private sector has caused interest rates to rise and as a result funds for private capital investment which are needed to create new jobs have become scarce and expensive. Massive deficits will rekindle double- digit inflation and prevent the expansion of business needed to pull our economy out of the recession. More inflation will further weaken our economic system, and jeopardize the financial security of all Americans. Congress must exercise fiscal restraint, consolidate existing programs, eliminate duplication and waste and thereby reduce the volume and expense of government. The Budget Committees of the Congress, in conjunction with the Executive Branch, must establish spending priorities consistent with federal revenues with a systematic reduction of the public debt. The public debt must be restructured. Trust fund surpluses, which by statute can only be invested in government obligations, tend to distort the real picture and should not be included in considering the overall public debt ceiling. The present system of establishing a debt ceiling has become meaningless. Debt ceiling increases have been manipulated and irresponsibly used as a vehicle for non-fiscal legislation. We propose that the limit of the public debt be set concurrently with the adoption of the Federal Budget. 3- Government Reform In recent years, an entrenched, burgeoning bureaucracy has developed in the federal government. Federal agencies have proliferated and become fragmented, inefficient, duplicative and wasteful. Regulatory agencies have overstepped their authority in the promulgation of rules and regulations. They have usurped authorities which rightfully belong to the States, and ultimately to the people. Return of power, to the States, as well as strict Congressional oversight of agency compliance with the letter and spirit of the law, are urgently needed to preserve personal liberty, improve efficiency, and eliminate waste. We recommend a bipartisan commission be established to review present governmental performance, administrative costs, proliferating federal programs, redefine national goals and recommend legislative revisions to enhance the capability of government to meet the challenges of the coming decade. This recommendation emphasizes the failure of the Democrat Congress to provide effective oversight of federal operations and regulatory agencies to insure that legislative intent is carried out and to determine the need to amend loosely written legislation that has created a maze of contradictory and duplicative controls, rules and regulations which hamper business and harass the citizen. As a majority we would dedicate the next Republican Congress to legislative oversight -- to redirecting the operations of government toward efficiency and economy. 4- Tax Reform The past four decades have seen Democrat Congresses increase the tax burden on the average working American not only through additional taxes but with the approval of built-in inequities and loopholes. The Democrats continue to give lip service to meaningful tax reform but : produce only false promises which deceive the American taxpayer. The only way to cut federal taxes for American wage earners is to reduce total federal expenditures. "Tax gimmicks" are not a solution but only offer benefits to special interest groups. We propose that Congress begin work immediately on revision of federal taxation: -- to simplify tax preparation -- to discourage tax evasion -- to bring equity to the tax system -- to provide incentives for economic growth. 5- Welfare Reform We believe that society has the responsibility to assist those who cannot provide for themselves. The present welfare system falls far short of this goal due to mismanagement and abuses. The $5.2 billion Food Stamp Program has grown 14,203% in the past decade. Recipients : have increased from 500,000 in 1965 to nearly 20 million, and under present regulations an estimated 57 million people are eligible. Present law has established lax eligibility standards allowing persons with adequate incomes to participate in the program. This massive program has bypassed the real intent of Congress to provide help only for the needy. We call. attention to the fact that the bill for welfare is mainly borne by the American worker. To meet its responsibility to the American taxpayer and the truly needy, Congress must take immediate steps to reform the welfare system. We propose Congressional action: -- to provide adequate living standards for the truly needy -- to eliminate ineligible recipients from the welfare rolls -- to establish effective regulations to prevent future welfare fraud -- to strengthen and enforce work requirements -- to provide educational and vocational incentives to allow recipients to become self-supporting -- to increase penalties for welfare fraud to discourage abuses -- to coordinate Federal reforms with state and social welfare agencies -- to strengthen state and local administrative functions -- to transfer administration of the Food Stamp Program from the Department of Agriculture to HEW -- to tighten eligibility requirements for food stamps. 6- Energy The key to future economic security and a high standard of living for all Americans is a comprehensive national policy that will produce an adequate supply of energy for an expanding economy. We believe the current lack of direction by the Democrat majority: in Congress poses grave economic peril for the future. Their single- minded emphasis on unrealistically regulated prices today, fails to lay the groundwork necessary for future expanded energy supplies. Constructive action now by the Congress could help assure our people and our industries an ample supply of reasonably priced energy for the years ahead. -- We propose that all federal regulations, programs and policies that directly affect energy, be reviewed, and ineffective programs be eliminated or replaced. Our energy challenge must essentially be solved by private industry. We believe that unreasonable regulatory and tax policies have hampered development and lessened investment in research, plants and equipment needed for maximum energy production. -- We propose a windfall profits tax program with a plowback provision to encourage reinvestment of energy earnings and eliminate windfall profits. Energy development has been hampered by excessive and often frivolous litigation, endless hearings, studies, commissions and reports. -- We propose that Congress' comprehensive energy package provide strong legal authority to allow development of natural resources with full recognition of the need to provide safeguards for the protection of the environment. During the period of 1970-1974, our yearly imports of foreign oil rose from 483 million barrels to 1.2 billion barrels, while during the same period domestic production fell from 3.5 billion barrels to 3.2 billion barrels per year. Our nation cannot afford continued dependence on foreign oil. -- We propose that Congress provide incentives for exploration and development of more American-owned oil and natural gas. A full scale effort must be made to develop our oil shale resources. Our nation must develop alternative energy sources. Congress should provide incentives and opportunities to accelerate research, discovery and delivery of untapped resources. Immediate emphasis should be given to development of economical solar energy systems for homes and industry. -- We propose that Congress require that new federal structures, where practical, be heated and cooled with solar systems. An essential part of a national energy program must be development of all available forms of energy. -- We propose a stepped-up program for coal gasification, geo-thermal and nuclear power production. -- A strong program of research and development should be continued for the fusion process to unlock the unlimited potential of the Hydrogen atom. Conservation of energy depends on more efficient utilization by industry and individuals. -- We propose that Congress provide practical incentives: 1- for conservation of energy by the public 2- to increase the utilization of waste materials in energy production 3- for production by industry of more energy efficient products. 7- Older Americans Many older Americans live on relatively fixed, limited incomes and inflation has hurt them cruelly. The rapidly rising cost of living is caused in substantial measure by the profligate spending of the federal government. To protect the purchasing power of the income and savings of our older people we must stop inflation. We believe the federal government must meet its commitments to finding solutions and facilities to help meet their needs. Needed is "catastrophic" health insurance that will cover the medical needs of those who experience long, serious illnesses. We support a nutritional supplement system and a comprehensive program of nutrition education for needy older citizens. Inadequate housing and transportation must receive our undivided attention and affirmative action. 8- Health Care There is an urgent need to review Federal involvement in health care. Not only government spending, but regulations and guidelines have had great impact on national health care delivery. : Under our present system, we have one of the best health care delivery programs in the world. There are some gaps that need filling, to assure our people the quality of services nationwide that we are capable of providing. We believe that our nation needs a National Health Policy, which would balance health systems supply and demand with financing. In addition there is a need for emphasis on education, environmental improvement, better housing and nutritional gains, all of which affect the general health of the American public. A National Health Policy would determine broad goals and priorities for medical care, preventive practices, and dispersal of facilities to be within reach of our people. We believe the present combination of private and public health care financing can be extended and improved. The present system suffers from fragmentation, and we believe a National Health Policy should bring together all vital health functions into a practical and workable program to provide better health care for all our citizens. 9- Social Security - Retirement Controlling inflation is the most important way to insure the retirement security earned by American workers. Congress must give top priority to maintaining the integrity of the Social Security Trust Funds and must revise retirement programs to more nearly meet the needs : of older Americans. Adequate funding that will provide benefits in constant value dollars should be assured from a self-adjusting formula of contributions by employees and employers. Unlimited outside earnings should be allowed without benefit penalties. All Americans deserve the opportunity to provide their own additional retirement security. The Individual Retirement Account (IRA) has extended this opportunity to an additional segment of our working force. We propose that Congress expand this Keogh-type supplemental retirement plan to make it available to all workers. Our proposal would provide tax incentives allowing workers to invest voluntarily in a private retirement fund that would supplement both Social Security and company pension plans. In addition to providing greater retirement security this plan will provide investment funds needed to build a stronger American economy and to aid in capital formation. 10- Education We insist that Congress review, evaluate and consolidate the more than 400 federal education programs and assign priorities to those that are effective. Federal support to reduce financial barriers to students in post-secondary education and to encourage vocational education and job training, compensatory education for the disadvantaged, and special education for the physically and mentally handicapped should supplement resources provided by state and local programs. Administration of educational programs is the responsibility of state government and local institutions, and federal intrusion cannot be allowed. We favor the development of quality day care services, locally controlled and administered, with the requirement that the recipients of these services pay their fair share of the costs according to their ability. In the education and training of children there is no substitute for parental discipline. We believe in the parents' right to make fundamental decisions regarding the care, development and education of their children. 11 - -Mentally and Physically Handicapped Those among us who are handicapped face difficult challenges every day while trying to cope with a physical environment designed for the activities of the non-handicapped. We believe that strong efforts should be made to assist the handicapped to function in our society -- to have access to education, medical care, economic security, equal treatment from our institutions, improved transportation and protection from exploitation. Federal programs should be reviewed to ensure that all that can be done is being done to help the handicapped become more fully integrated into our social and economic life. LIALD FORD LIBRARY 12-Crime A fundamental responsibility of government is to protect the lives and property of its citizens. We believe the thrust of justice must be to protect the law-abiding citizen against the criminal. To combat crime: -- We support the continuance of federal grants to States, cities and towns to strengthen local law enforcement. -- We support court system reform to increase efficiency, eliminate excessive case loads, reverse the present practice of "turnstyle justice" and keep the criminal off the streets. -- We support reform of our penal system to correct the failure of our present policies of punishment and rehabilitation. We support redoubled efforts against the hard drug traffic to arrest, prosecute, and convict pushers -- especially those that prey on young boys and girls. -- We propose Congress enact mandatory minimum sentences for persons convicted of federal crimes involving violence, use of firearms, trafficking in hard drugs and habitual offenses. Prevention is the long-term solution to crime. Effective crime prevention depends on strengthening community ties and encouraging individual participation in community decisions establishing moral and ethical standards. We recognize, however, that a healthy fear of swift and sure punishment is not without effectiveness in crime prevention. 13-Illegal Aliens An estimated 10 million citizens of foreign countries now live illegally in the United States and actively compete with American workers for available jobs. Congress must insist on enforcement of existing laws which establish a legal yearly entry rate, increased border control and more effective apprehension and deportation of people living illegally in the United States. Social Security requirements for all workers must be enforced and participation by illegal aliens in federally funded welfare programs must be stopped. 14-Defense The first, and major, responsibility of government is to provide for the common defense. Recent world events have demonstrated that until we can safely disarm, we must continue to improve our military capability to defend the United States and honor our commitments to : Free World Nations. A strong military capability is essential to the balance of power on which our safety rests. To be successful in negotiations with foreign nations we must deal from a position of strength. Preparedness cannot be a sometime policy. Responsibility for the common defense, for maintaining our military capability, our honor and commitments, rests with Congress. We deplore the attitude that the military budget represents a readily available source of federal money which can be diverted to other programs without dangerous consequences. Congress must continue to provide adequate funding to sustain volunteer manpower levels, equip our forces and conduct vital research and development. It is also the imperative responsibility of Congress to eliminate frills and waste, and to ensure a lean, efficient and mobile military to meet the challenges of the 1970's. 15-Agriculture Overregulation by the government must not be allowed to hamper the most vital and efficient segment of our society -- agriculture. Production of food and fiber satisfies not only our domestic needs, but is also the keystone of our export program and our balance of payments. Agriculture policies should be designed to operate within the free market system with full recognition of the unique production and marketing problems faced by farmers and ranchers. In addition, applicable federal estate and gift tax provisions should be reviewed and reformed in order to preserve the ability of families to retain ownership of farm land. OMB didnot coner # 2 Public Debt # 4 Tax Reform # 14 Defense # 15 agriculture FRESIDENT EXECUTIVE OFFICE OF THE PRESIDENT OFFICE UNITED OFFICE OF MANAGEMENT AND BUDGET STATE WASHINGTON, D.C. 20503 OCT 2 1975 MEMORANDUM FOR: JIM CONNOR FROM: JIM JURA give SUBJECT: Republican Legislative Agenda: "A Program for Progress" We have general and specific comments on this subject. Two general suggestions are below and the attached copy contains comments that address specific issues. FORD 1. You might suggest that the legislative program outlined permit greater flexibility to recognize later LIBRARY Administration initiatives. At the top of page three, there is a statement that " it would be necessary for us to forego additional programs " within three years so as to balance the budget. This sentence may be too categorical because the GOP leadership might choose to accept some ideas for initiatives at a later date. Similarly, the statement in the second paragraph on page four indicates a belief "that energy independence should be reached mainly through the efforts of private enter- prise. " This statement appears to conflict with the Administration initiative for an Energy Independence Authority and you might wish to suggest that the statement be dropped. 2. Statements for two of the programs outlined pose a dilemma. The "Tax Reform" program (4) refers to the "the tax burden on the average working American" and proposes tax revision "to bring equity to the tax system." The program outlined for "Social Security - Retirement" (9) urges assurance of "adequate funding that will provide benefits in constant value dollars from a self-adjusting formula of contributions by employees and employers. " Of course, such a "self-adjusting formula" will almost certainly impose higher taxes on the worker. Attachment REPUBLICAN LEGISLATIVE AGENDA: A PROGRAM FOR PROGRESS The principal mission of government must be to provide its citizens the freedom to pursue opportunities to create and maintain the type of life each of them desires. We believe that the vast majority of Americans prefer: -- A life in which freedom of thought and action of the individual as a member of society is preserved and protected. Government's duty is to defend its people against aggressors from without and subversive and criminal elements from within. -- A life lived in an economic climate in which truly competitive free enterprise predominates. Government's role is to foster and further free enterprise, while maintaining protection for society and individuals against unfair advantage taken by predatory monopoly interests. -- A life in which all people have a full opportunity for success. Society and government have joint responsibility to make programs and facilities available to train individuals in marketable skills, so they may become productive members of the free enterprise system. -- A life that promotes and strengthens individual and family responsibility. Our youth should be given every opportunity to be exposed to the positive values of our American heritage. -- A life in which assistance is available to the needy, disabled, aged and handicapped, but in which able-bodied and able-minded persons are expected to work and produce. -2- Our present society has not yet fully achieved these goals, but it has proved that it has the ability to do SO -- that it offers the best hope yet devised by man to realize the fulfillment of the American dream. We intend to hasten it toward its goal by prodding it where it needs prodding, by adjusting it where it needs adjusting, but all the while nurturing and protecting it against those who would destroy it. Government will play an important role, but must refrain from competing with and from putting strains and pressures on free enterprise which would damage. the entire system and thus lead to eventual failure. The essence of our American system is choice. Our nation grew strong under the concept of freedom of our people to choose the course of government. To choose well, there must be recognizable programs to be weighed in the balance. As a responsible minority, seeking to become a nucleus of a majority, we believe our obligation is to move our government better to serve the people. There are certain principles which guide a Republic year in and year out. The policies any government should follow must be dictated by the particular time in which those guidelines will be operative. We believe that at this time in our history it is essential the role of government be diminished, and emphasis placed on the encouragement 1 of individual enterprise. Congress must come to grips with the realities of federal spending in a peacetime economy and not allow the federal government to be the primary cause of inflation. We believe the Congress through the Budget Committee has the responsibility to curb excessive federal deficit financing, and work with the Executive Branch to establish national priorities consistent with federal revenues. -3- We recognize the fact that the transition from a deficit of $80 billion to a balance between revenue and expenditures in one year, although desirable, is not feasible. We would expect to effect it within three years. During that time, it would be necessary for us to forego additional programs to be financed through the public sector and concentrate on improving, consolidating and in certain cases eliminating by intensive legislative oversight and amendment existing ineffective or unnecessary programs. 2 We believe a commission should be established to study the operations ? of our government departments and agencies and recommend necessary 3 reforms. In addition, our national transportation system must be reviewed and necessary legislative remedies enacted which will provide a balanced and adequate transportation system for the country. Since its beginning in 1913, the federal income tax system has grown into a hodgepodge of conflicting regulations, inconsistencies, and inequities. Our tax system needs immediate reform, the kind of reform that would require every American to pay a fair share, no more or no less. We must avoid incentive-destroying tax levels which slow 4 the growth of the economy and prevent the creation of new jobs. We stand for full employment and believe every American who is willing and able to work has a right to expect and an obligation to pursue opportunities to earn a living. Because massive federal make-work programs offer no hope to the jobless for long-range future security, we endorse stimulation of free enterprise to generate productive jobs that will last and pay a decent wage. We favor automatically extended unemployment benefits coupled with intensive manpower training to tide workers over periods of unemployment. Much of the added expense for expanded manpower training can be defrayed by purging the bloated welfare -4- rolls of the many ineligibles, by rooting out welfare fraud and by strengthening work requirements. Moreover, to help channel assistance where it is really needed, we favor a drastic revision of the run-away 5 food stamp program. One of the great challenges of our time is our need to become independent in energy production. We believe that energy independence should be reached mainly through the efforts of private enterprise. Tax incentives will be needed to assist in prodigious capital formation to invest in new and expanded facilities. The direct federal role should be limited to appropriate participation in research and development of 6 new energy sources. We believe older Americans are especially deserving of attention and concern. They are faced with loss of income security from inflation and the spectre of financial disaster from major illnesses. The greatest contribution Congress can make is to assume leadership in an all-out effort to reduce inflation to protect the buying power of retirement dollars. Because of spiraling costs for medical care and health services, we feel a health insurance program offering protection 7 against the financial ravages of catastrophic illnesses is needed. The entire area of health care must be examined in order to establish a national health policy. Federal involvement in health care is extensive, with fragmented, categorical programs and pervasive regulations and guidelines. In order to address the complex questions involved in this issue, we have established a Task Force on Health with the Republican 8 Research Committee. -5- We regard it as imperative to preserve the integrity of the Social Security Trust Fund financed by employee-employer contributions and to adjust benefit payments to sustain purchasing power in constant dollars. We will actively support incentives to expand the individual retirement 9 program of every American. Education of our nation's young people is a state responsibility, 10 a local function and a federal concern. The mentally and physically handicapped must be afforded opportunities 11 that will allow them to function as useful members of our society. It is a major responsibility of government to protect the lives and property of its citizens and insure the domestic tranquility. GERAID FORD (IBRARY Justice must be as concerned with protecting the rights of the victim of crime as assuring the rights of the accused. At the same time, we I thought must consider legislation to assure American citizens that they will we had He law. not be subject to arbitrary or unjustified surveillance by government 12 agents and to protect citizens' rights-to-privacy. An estimated 10 million residents of foreign countries now live illegally in the United States and actively compete with American workers for available jobs. Existing laws which establish a legal yearly entry 13 rate must be strengthened and strictly enforced. In this nuclear age, we live in a still-perilous world. Until disarmament becomes a reality it is necessary that we continue intensive negotiations. There is no acceptable alternative to an American defense 14 second to none. -6- Efficient production of food and fiber is to the credit of the American farmer and must be encouraged to meet domestic and world needs 15 without undue government interference. Democrats have controlled both Houses of Congress for 38 of the past 42 years and must bear the responsibility for failure of the federal government to meet the needs of America. Loosely written legislation by Congress has created a maze of contradictory and duplicative controls. Congress must provide constant oversight of federal operations and regulatory agencies to insure that legislative intent is carried out and to determine the need for corrective legislation. The positions and attitudes reflected here are presented as guidelines, not as a definitive, all-inclusive program for America. In fact, we recognize the omission of many areas of concern, not from a lack of interest, but because our positions have become well-known through our legislative actions or through our party platforms. We attempt to point in the directions in which we would intend to lead our country, were we to become the nucleus of a majority in Congress. We believe it is incumbent upon Congress to respond in these ways to the people who must pay for government, and we believe the people must and will see to it that the Congress does so respond. 1 - Private Enterprise Our two-hundred year old system of private enterprise, working within a free and competitive economy, has produced the highest living standard in the world. This private sector production has been and is the only creator of our national wealth with government merely redistributing wealth it has acquired through taxation of private enterprise and individual citizens. Any broader effort by government to control or direct our huge trillion-and-a-half dollar economic machine could be a disaster. Government should not assume the function of the great tinkerer, but can, and should, help promote prosperity. It can best do this by not hindering the course of commerce, by minimizing regulation, by allowing the time-tested laws of supply and demand to work with maximum freedom, Antitnest by encouraging healthy competition and the enforcement of anti-trust should protut laws that protect the consumer and fledgling businesses. We believe competition that solutions to our dual economic problems of inflation and recession competitors lie in returning decision-making to the people through the forces of supply and demand in the marketplace. People themselves can best decide what to produce, sell, and buy, and at what price levels. No government agency is as capable of making these decisions as are the people through the voluntary exchange of goods and services. There is already ample machinery within the federal government and in the private sector to protect the consumer from exploitation. We applaud the Ford Administration's effort to orient existing regulatory and administrative agencies toward consumer protection. We propose that federal estate and gift tax laws be revised to encourage private ownership of Small Business. I don't think this is a good idea. 3- Government Reform In recent years, an entrenched, burgeoning bureaucracy has developed in the federal government. Federal agencies have proliferated and become fragmented, inefficient, duplicative and wasteful. Regulatory agencies have overstepped their authority in the promulgation of rules and regulations. They have usurped authorities which rightfully belong to the States, and ultimately to the people. Return of power, to the States, as well as strict Congressional oversight of agency compliance with the letter and spirit of the law, are urgently needed to preserve personal liberty, improve efficiency, and eliminate waste. We recommend a bipartisan commission be established to review present governmental performance, administrative costs, proliferating federal programs, redefine national goals and recommend legislative revisions to enhance the capability of government to meet the challenges of the coming decade. This recommendation emphasizes the failure of the Democrat Congress to provide effective oversight of federal operations and regulatory agencies to insure that legislative intent is carried out and to determine the need to amend loosely written legislation that has created a maze of contradictory and duplicative controls, rules and regulations which hamper business and harass the citizen. As a majority we would dedicate the next Republican Congress to legislative oversight -- to redirecting the operations of government toward efficiency and economy. October 1, 1975 Republican Legislative Program # 5 Title Welfare Reform Proposal " Congress must take immediate steps to reform the welfare system. " FORD LIBRAET What we are doing HEW is working closely with the States in its quality control program to improve State and local administration to find, eliminate, and prevent errors in payments and eligibility determination. The recently enacted Title IV-D program under the Social Security Act will aid in obtaining child support from those legally liable for it and thereby reduce welfare costs. In response to the increase in Federal reimbursements for State Administrative costs from 62 1/2 percent of some to 50 percent of all mandated under P.L. 93-347, USDA has recently implemented effectiveness and efficiency regulations which require States to maintain restricted tolerance levels for eligibility errors. We have recommended legislation to amend the Food Stamp Act to provide an enforceable remedy against program violations. The proposed legislation would also require States to correct procedural errors, and, prescribe criminal action in U.S. District court for serious program offenses. USDA has submitted legislation in response to Senate Resolution 58 which, among other things, would tighten State accountability and increase penalties for fraud. October 1, 1975 -2- USDA in response to Senate Resolution 58 has proposed legislation to amend the Food Stamp list to: - clarify that illegal and temporarily present aliens are not eligible for Food Stamp participation; - delete Section 3 (e) and eliminate addicts and alcoholics in the definition of eligibility due to difficulties in administering the Food Stamp program in an institutionalized setting; and, - amend current law to make the tax dependency prohibition currently in appropriations language a permanent part of the Food Stamp Act. Transfer Food Stamps to HEW has been discussed in recent Food Stamp reform proposals (i.e. H.R. 8145, S-1193. While there are apparently some difficulties contemplated in such a transfer, a Domestic Council task force is considering a comprehensive reform of the program. The Administration has proposed legislation to improve the child support provisions of current law and make consistent the AFDC matching rate for all States. The Allied Services bill has also been proposed to enable States to better coordinate and rationalize the delivery of services to their citizens. Republican Legislative Program # 7 - Title: Older Americans Proposal We believe the federal government must meet its commit- ments to finding solutions and facilities to help meet their needs. Needed is "catastrophic" health insurance that will cover the medical needs of those who experience long, serious illnesses. What we are doing The Administration has proposed separate limits of $750 in Medicare's Hospital Insurance and Supplementary Medical Insurance programs, as part of an increased cost-sharing to reduce unnecessary utilization of health services. Items for Consideration as Initiatives -- limit physician fees and reimbursements to hospitals to amounts approved by States, not to exceed 5% of the previous year's level. October 1, 1975 Republican Legislative Program # 7 Title Older Americans Proposal "We support a nutritional supplement system and a comprehen- sive program of nutrition education for needy older citizens." What we are doing At present, the Federal government supports a wide array of programs providing foodstuffs, meals in a congregate setting, "meals on wheels", consumer education, and needed ancillary services to our older citizens. Funds are made available to the States via: Food Stamps and the Surplus Commodities programs of the Department of Agriculture; as well as the Department of Health, Education, and Welfare administered Title XX (Social Security Act), Nutrition Program for the Elderly, Grants for State and Community Programs for the Aging, Model Projects, and other programs provided by the Older Americans Act. Republican Legislative Program # 8 - Title: Health Care Proposal There is an urgent need to review Federal involvement in health care. Not only government spending, but regula- tions and guidelines have had great impact on national health care delivery. Under our present system, we have one of the best health care delivery programs in the world. There are some gaps that need filling, to assure our people the quality of services nationwide that we are capable of providing. We believe that our nation needs a National Health Policy, which would balance health systems supply and demand with financing. In addition there is a need for emphasis on edu-. cation, environmental improvement, better housing and nutritional gains, all of which affect the general health of the American public. A National Health Policy would determine broad goals and priorities for medical care, preventive practices, and dis- persal of facilities to be within reach of our people. We believe the present combination of private and public health care financing can be extended and improved. The present system suffers from fragmentation, and we believe a National Health Policy should bring together all vital health functions into a practical and workable program to provide better health care for all our citizens. What we are doing The Domestic Council is conducting hearings across the Nation on health and social program needs, alternatives, and priorities. In the process of developing the President's 1977 Budget, these program and policy issues will be reviewed. 2 Items for Consideration as Initiatives -- a study by the proposed Task Force of the relationship between traditional health programs and spending on health status; and -- an analysis by the proposed Task Force of the appropriate Federal role in health in terms of financing, program consolidation, resource development, planning, and regu- lations. October 1, 1975 Republican Legislative Program # 9 Title Social Security-Retirement Proposal Social Security: "Congress must give top priority to maintaining the integrity of the Social Security Trust Funds " Retirement Security: The Individual Retirement Account (IRA) has extended this opportunity (additional retirement security) to an additional segment of our working force. What we are doing Social Security: The Domestic Council is leading a compre- hensive study of' Social Security financing, including the tax rate and tax base, as well as structural changes in the program. The Administration does not believe removal of the retirement test, at a multi-billion cost, is wise at this time until the Congress has had a chance to consider the forthcoming Administration proposals on Social Security financing and program changes. Retirement Security: The Pension Benefit Guarantee Corporation (PBGC) under Title IV of the Employee Retirement Income Security Act (ERISA) provides advice and assistance to individuals on the economic desirability of establishing individual retirement accounts. The administration originally proposed the extension of IRA's to all workers. This was rejected by the Congress. A serious concern if this proposal were renewed is the revenue loss. Republican Legislative Program # 10 Title Education Proposal "Congress review, evaluate and consolidate the more than 400 Federal education programs and assign priorities to those that are effective. Federal support to reduce financial barriers to students in postsecondary education and to encourage vocational education and job training, compensatory education for the dis- advantaged and special education for the physically and mentally handicapped should supplement resources provided by State and local programs." What we are doing The Education Amendments of 1974 provided for the consolidation of several categorical grant programs into two broad funding areas with less strings attached to the funds. In addition, the FY 1976 President's Budget requested $1.9 billion for the educa- tion of the disadvantaged; providing an average of nearly $300 per eligible child. Finally, continued emphasis is being placed upon the targeting of student aid to needy students. The Administration's efforts in the area of day care as administered by the Office of Child Development are to assist in the formulation of policies and the development of performance standards and licensing requirement. Further, the office provides technical assistance to States and localities, initiates research and demonstration projects in the area of day care. Items for Consideration as Initiatives The Administration will soon submit a higher education legislative proposal to the Congress that will emphasize the further targeting of aid to needy students. October 1, 1975 Republican Legislative Program # 10 Title Education Proposal "We favor the development of quality day care services " FORD is LIBRARY GERALD What we are doing The recently enacted Title XX social services program under the Social Security Act requires adherence to stringent day care standards as a condition of receiving Federal social services day funding. Under Title XX, HEW pays 75% of the cost of day care services for needy persons. The Administration has recently proposed legislation to amend Title XX of the Social Security Act to encourage the States to improve day care services and which would at the time, prevent the termination of needed services that might result under certain of the more severe punitive provisions existing under Title XX. = October 1, 1975 Republican Legislative Program # 11 Title Mentally and Physically Handicapped Proposal "We believe that strong efforts should be made to assist the handicapped to function in our society--to have access to education, medical care, economic security, equal treatment from our institutions, improved transportation and protection from exploitation." What we are doing 1) President has decided to call a White House Conference on Handicapped Individuals in December 1976 to develop recommendations and stimulate a national assessment of problems and solutions to such problems facing individuals with handicaps. The Congressional Appropriations Committees have recently approved the use of funds to commence planning. 2) The Supplemental Security Income (SSI) program provides an income floor for aged, blind, and disabled individuals with funds made available for vocational rehabilitation via Disability Insurance and SSI set-a-sides. 3) The Urban Institute estimates that $21.5 billion was dedicated to assist the severely disabled in FY 1973. 4) Sections 503 and 504 of the Rehabilitation Act of 1973 (P.L. 93-112) provide for affirmative action in employing the handicapped under Federal contracts, as well as, non-discrimination under Federal grants. 12-Crime A fundamental responsibility of government is to protect the lives and property of its citizens. We believe the thrust of justice must be to protect the law-abiding citizen against the criminal. Need to To combat crime: that Reaffirm this -- We support the continuance of federal grants to States, cities mostly and towns to strengthen local law enforcement. a is state We support court system reform to increase efficiency, eliminate excessive case loads, reverse the present practice of "turnstyle justice" and keep the criminal off the streets. -- We support reform of our penal system to correct the failure of our present policies of punishment and rehabilitation. 2 We support redoubled forts against the hard drug traffic to arrest, prosecute, and convict pushers -- especially those that prey on young boys and girls. -- We propose Congress enact mandatory minimum sentences for persons convicted of federal crimes involving violence, use of firearms, trafficking in hard drugs and habitual offenses. Prevention is the long-term solution to crime. Effective crime prevention depends on strengthening community ties and encouraging individual participation in community decisions establishing moral and ethical standards. We recognize, however, that a healthy fear of swift and sure punishment is not without effectiveness in crime prevention. October 1, 1975 Republican Legislative Program # 13 Title Illegal Aliens Proposal "Social Security requirements for all workers must be enforced and participation by illegal aliens in Federally funded welfare programs must be stopped. What we are doing Social security requirements on workers are being enforced, and the quality control effort in AFDC and the undetermin- ation effort in SSI are designed to weed out all ineligibles, including illegal aliens. The USDA response to Senate Resolution 58 contains administrative recommendations which would clarify that illegal and temporarily present aliens all not eligible for Food Stamp participation. The Administra- tion also supports H.R. 982, which would assess financial penalties on domestic employers who employ illegal aliens. HEW is working closely with the States in its quality control program to detect errors, especially the inclusion of ineligible persons on the rolls so that they may be removed as quickly as possible, and to improve State procedures in order to sift ineligible applicants from being approved for welfare assistance. THE WHITE HOUSE WASHINGTON October 3, 1975 MEMORANDUM FOR: JIM CONNOR THROUGH: PHIL BUCHEN P.W.B. FROM: KEN LAZARUS SUBJECT: Republican Legislative Agenda: "A Program for Progress" We have made a cursory review of the program submitted by the Republican Congressional leadership and do not perceive any substantial initiatives which merit consideration by the President. However, it might be appropriate to request an OMB analysis of the agenda for our further review. FORD LIBRARY THE WHITE HOUSE ACTION MEMORANDUM WASHINGTON LOG NO.: Date: September 25, 1975 Time: FOR ACTION: CC (for information): Phil Buchen Jack Marsh Jim Cannon Bill Seidman Max Friedersdorf Brent Scowcroft Jim Lynn Frank Zarb FROM THE STAFF SECRETARY DUE: Date: Wednesday, October 1 Time: 12 Noon SUBJECT: Republican Legislative Agenda CORD "A Program for Progress" 9/8/75 LIBRARY ACTION REQUESTED: For Necessary Action X For Your Recommendations Prepare Agenda and Brief Draft Reply X For Your Comments Draft Remarks REMARKS: We have been requested to prepare a report for the President on the Republican Legislative Agenda presented to him by the Republican Leadership. This report should cover: 1) What is being proposed. 2) What are we doing in the areas mentioned in report. 3) What are we not doing that we should be looking into In other words, any initia tives in the report we should consider undertaking? PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED. If you have any questions or if you anticipate a delay in submitting the required material, please Jim Connor telephone the Staff Secretary immediately. For the President 6470 MEMORANDUM THE WHITE HOUSE WASHINGTON October 6, 1975 MEMORANDUM FOR: JIM CONNORS FROM: BRENT SCOWCROFT SUBJECT: Republican Legislative Agenda The NSC Staff has reviewed the Republican Legislative Agenda "A Program for Progress. It We are pleased to see the agenda's emphasis on maintaining a strong U.S. defense capability and its deploring of existing attitudes that regard the defense budget as a ready source of funds for domestic programs. This is an important theme, one which the President and Administration spokesmen have reiterated frequently in the past months. While the Agenda refers to disarmament as a vague future hope, it unfortunately does not mention the many constructive Administration arms control initiatives. With the exception of the one section on the Defense budget (14), the Agenda makes no mention of the world leadership role of the United States and the Administration's conduct of a global foreign policy seeking international stability and progress. There is no mention of the Administration's efforts to strengthen our traditional ties and alliances with the industrialized democracies, the Atlantic community and Japan, as well as our new dialogue within the Western Hemisphere, our efforts to reduce tensions with our adversaries, and our work to contain regional conflicts in such critical areas as the Middle East and Korea. The Agenda also contains no description of the substantial initiatives undertaken by this Administration in the international economic, energy, and food areas and such specialized initiatives as our efforts to achieve cooperation in the proliferation of nuclear energy. We believe that the very positive proposals for a constructive -2- relationship between the developed and developing nations contained in Secretary Kissinger's September 1 speech to the UN Special Session warrant an entire section in any future versions of such an Agenda. We would be happy to work with you in developing such material if there is an opportunity to make additions. With regard to the section on illegal aliens (13), which is essentially a domestic law enforcement issue, we would raise a note of caution that implementation of such programs should be handled in a way that avoids an undue adverse impact on our relations with other countries, particularly Mexico. for Staffing B 101 WHITE HOUSE ACTION MEMORANDUM WASHINGTON LOG NO.: NSC #6470 Date: September 25, 1975 Time: FOR ACTION: CC (for information): Phil Buchen Jack Marsh Jim Cannon Bill Seidman Max Friedersdorf Brent Scowcroft Jim Lynn Frank Zarb FROM THE STAFF SECRETARY DUE: Date: Wednesday, October 1 Time: 12 Noon SUBJECT: Republican Legislative Agenda "A Program for Progress" 9/8/75 ACTION REQUESTED: X For Necessary Action For Your Recommendations Prepare Agenda and Brief Draft Reply X For Your Comments Draft Remarks REMARKS: We have been requested to prepare a report for the President on the Republican Legislative Agenda presented to him by the Republican Leadership. This report should cover: 1) What is being proposed. 2) What are we doing in the areas mentioned in report. 3) What are we not doing that we should be looking into In other words, any initia tives in the report we should consider undertaking? PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED. If you have any questions or if you anticipate a Jim Connor delay in submitting the required moterial, please telephone the SeE Secretary immediately. For the President FEDERAL ENERGY FEDERAL ENERGY ADMINISTRATION WASHINGTON, D.C. 20461 ADAM ADMINISTRATION October 10, 1975 OFFICE OF THE ADMINISTRATOR MEMORANDUM FOR JIM CONNOR FROM: FRANK G. ZARB SUBJECT: COMMENTS ON REPUBLICAN LEGISLATIVE AGENDA I have reviewed the Republican Legislative Agenda ("A Program for Progress") and have the following observations related to its energy proposals: A key principle of the agenda is the need to forego additional Federal programs financed through the public sector. Further, it stresses that the direct Federal role in Jun to energy should be limited to research and development. These provisions appear to be in conflict with the proposed Energy Independence Authority. neckurdal be The agenda suggests that a full-scale effort be made to develop oil shale, but does not To getter address how to do this without Federal financial support. nytt aans. FORD THE WHITE HOUSE WASHINGTON TORD October 7, 1975 MEMORANDUM FOR JIM CONNOR FROM: L. WILLIAM SEIDMAN fw3 SUBJECT: Republican Legislative Agenda: A Program for Progress The thrust of the economic proposals outlined in the "Repub- lican Legislative Agenda: A Program for Progress" mirror the Administration's basic economic policies including: -- Reliance on competition in the private sector as the source of dynamic economic growth -- Rejection of appeals for a governmentally controlled or planned economy and attempts to fine tune the economy -- Fiscal restraint while reducing governmental duplication and waste. -- Tax reform which simplifies the tax system while providing equity and incentives for economic growth. The economic portions of the paper are a useful statement of general principles. They do not primarily offer specific programmatic suggestions. However, the paper does propose four economic related initia- tives: (1) Revision of federal estate and gift tax laws to encourage private ownership of small businesses. (2) Establishing the limit of the public debt concurrently with adoption of the Federal Budget. (3) Expansion of the Individual Retirement Account (IRA) plan to make it available to all workers. The IRA was origi- nally a Treasury initiative and its expansion merits care- ful consideration. I am asking the Department of the Treasury to prepare papers on these three issues for consideration by the Economic Policy Board. 2 (4) Creation of a bipartisan Commission to review present governmental performance, administrative costs, pro- liferating federal programs and to redefine national goals. Establishment of such a Commission might be useful in connection with the President's spending restraint ini- tiative. Restructuring government programs and combining them as opposed to merely reducing the size of existing programs is a useful approach to reducing federal expen- ditures and a bipartisan Commission might make a signi- ficant contribution in this effort. 750344 THE WHITE HOUSE WASHINGTON October 29, 1975 MEMORANDUM FOR: JIM CONNOR FROM: SUBJECT: Republican Jun Legislative Agenda JIM CANNON You asked for our comments on the "Program for Progress" suggested in the Congressional Republican's Legislative Agenda. In essence, the program presented encompasses general statements of principles on 15 areas. They are generally positive statements without many specifics. In almost all cases, they reflect Administration policy in a general sense. The issues raised in this paper are under examination and will result in specific recommendations for the President's consideration. As we proceed with each of these issues we will be sure to identify clearly to the President the position or philosophy recommended in the "Program for Progress." THE WHITE HOUSE WASHINGTON November 4, 1975 MEMORANDUM FOR: JIM CANNON FROM: JIM CONNOR SUBJECT: Republican Legislative Agenda The response I received today on the Republican Legislative Agenda is not satisfactory. We are already several weeks late on this item. The extensive comments of OMB, NSC, EPB and ERC, as well as other staff members, have been received but today the only thing we have gotten from Domestic Council are three brief paragraphs that say we will look at it. The President has requested a full review of this document and FORD & LIBRARY I think it is important that Domestic Council contribute to such review. I intend to send the complete package to the President by the end of the week and I hope I can have your full comments by then. THE WHITE HOUSE WASHINGTON November 11, 1975 MEMORANDUM FOR: JIM CONNOR FROM: JIM CANNON SUBJECT: Republican Legislative Agenda You asked for a review of the Republican Legislative Agenda. As I mentioned in my earlier memo of October 29, the agenda encompasses general policy statements without many specifics. These are in general reflective of the Administration's position in regard to each item. Given the fact that you have solicited OMB, EPA, NSC, and ERC comments, you have the fiscal, economic, national security, and energy perspectives on these agenda items. The following, therefore, reflect primarily a "domestic policy" perspective on the items in the agenda. AGENDA ITEM FORD & 076830 LIBRARY 1. Private Enterprise "We believe that at this time in our history it is essential the role of government be diminished and Seedware emphasis placed on encouragement of individual comment enterprise." OMB Comment This is a major and pervasive theme of the President's current policy reflected in almost every policy initiative. These include regulatory reform and the $28 billion budget reduction and tax reform package. 2. Public Debt "We recognize the fact that the transition from a Seedman deficit of $80 billion to a balance between revenue comment -2- and expenditures in one year, although desirable, is not feasible. We would expect to effect it within three years " Comment This is supportive of the President's position. They place emphasis on consolidation, and this is currently a major thrust of the program initiatives being developed by the Domestic Council. We are particularly focusing on approaches which will give greater flexibility to state and local government and reduce federal red tape. 3. Government Reform "We believe a commission should be established to study the operations of our government departments Seedment and agencies and recommend necessary reform. " commen Comment OMB This is an interesting concept which has been considered as a possible element of the State of the Union message. At this point we have held back on it because we believe that "study commissions" can be viewed as a "non-leadership" approach to avoiding issues. A sub-head to this item was a comment on a need for a national transportation policy. This has been the subject of some attention. Secretary Coleman has surfaced one version of such a plan. 4. Tax Reform "We propose that Congress begin work immediately on a revision of federal taxation to simplify tax preparation, to discourage tax evasion, to bring equity to the tax system and to provide incentives FORD for economic growth.' " Comment LIBRARY These principles are solid ones which coincide with the general emphasis of the President's proposal. 5. Welfare Reform The Agenda presents a detailed description of the Food Stamp reform proposal in the Michel-Buckley Bill. comments -3- Comment The President's bill reflects almost entirely the recommendations in this package. 6. Energy "The key to future economic security and a high see standard of living for all Americans is a comprehensive national policy that will produce zarbsmints an adequate supply of energy for an expanding economy. OMB Comment This is reflective in general of the Administration's approach. It does not endorse the Energy Independence Authority nor does it reflect a belief that conservation will require higher prices. 7. Older Americans "To protect the purchasing power of the income savings of our older people, we must stop inflation. OMB We believe the Federal government must meet its comments commitments in finding solutions and facilities to help meet their needs. Needed is catastrophic medical insurance that will cover the medical needs of those who experience long illnesses. We support a nutritional supplement system and a comprehensive program of nutrition education for needy older citizens. Inadequate housing and transportation must receive our undivided attention and affirmative FORD LIBRARY action. Comment The President's economic program is designed to achieve economic recovery without overly stimulating inflation. The Domestic Council is currently working on various health insurance proposals for the President to review later this fall. Additionally, a comprehensive review of the needs of the elderly and of the impact of existing Federal programs on the elderly is underway. -4- 8. Health Care "There is an urgent need to review Federal involvement in health care. Not only government spending but also regulations and guidelines have had great impact on national health care delivery. " comment Comment This is being reviewed in connection with the Domestic Council's work related to next year's State of the Union and legislative program. 9. Social Security--Retirement "Congress must give top priority to maintaining the integrity of Social Security trust funds and must Sudman revise retirement programs to more nearly meet the comments needs of older Americans. We propose that Congress expand Keogh-type supplement retirement plan to make it available to all workers. Our proposal would provide tax incentives to allow workers to invest voluntarily in a private retirement fund that would supplement both Social Security and company pension plans. " Comment At the President's direction, the Domestic Council is studying the short term and long term financing problems of Social Security and is developing various proposals to meet such problems. An initial paper on the short term financing problems was presented to FORD the Economic Policy Board last Thursday. It is anticipated that a paper for the President's review and decision will be ready by mid-December. LIBRARY 10. Education "We insist that Congress review, evaluate and consolidate the more than 400 federal education programs and assign priorities to those that are effective. Federal support to reduce financial comment barriers to students in post-secondary education and to encourage vocational education and job training, compensatory education for the disadvantaged, and special education for the physically and mentally -5- handicapped should supplement resources provided by state and local programs. Administration of educational programs is the responsibility of state government and local institutions, and federal intrusion cannot be allowed. "We favor the development of quality day care services, locally controlled and administered, with the requirement that the recipients of these services pay their fair share of the costs according to their ability. " Comment A Domestic Council review group is currently reviewing all of the federal government education programs with a view toward presenting the President with a series of grant consolidation proposals for his decision by early December. We also believe that quality day-care services are essentially a local responsibility. 11. Mentally and Physically Handicapped "Those among us who are handicapped face difficult challenges every day while trying to cope with a physical environment designed for the activities of the non-handicapped. We believe that strong efforts commet should be made to assist the handicapped to function in our society--to have access to education, medical care, economic security, equal treatment from our institutions, improved transportation and protection from exploitation. " Comment We concur with this assessment. The President will shortly announce his plans to convene a White House Conference on the Handicapped which will review the various programs. 12. Crime "A fundamental responsibility of government is to protect the lives and property of its citizens. We believe the thrust of justice must be to protect the law-abiding citizen against the criminal. To combat Comben crime: -6- "We support the continuance of federal grants to States, cities and towns to strengthen local law enforcement. "We support court system reform to increase efficiency, eliminate excessive case loads, reverse the present practice of 'turnstyle justice,' and keep the criminal off the streets. "We support reform of our penal system to correct the failure of our present policies of punishment and rehabilitation. "We support redoubled efforts against the hard drug traffic to arrest, prosecute and convict pushers-- especially those that prey on young boys and girls. "We propose Congress enact mandatory minimum sentences for persons convicted of federal crimes involving violence, use of firearms, trafficking in hard drugs and habitual offenses." Comment We strongly agree with the crime proposal, which follows almost precisely the President's special message to the Congress on crime, as well as the recommendation of the Domestic Council drug abuse task force that efforts should be redoubled against hard drug traffic. 13. Illegal Aliens "An estimated 10 million citizens of foreign countries now live illegally in the United States and actively compete with American workers for available jobs. Congress must insist on enforcement of existing laws which establish a legal yearly entry rate, increased border control and more effective apprehension and deportation of people living illegally in the United States. " Comment We concur with this recommendation. The President has asked the Domestic Council to review with the Attorney General the illegal aliens problem. A report is currently being developed by the Attorney General and the Secretary of Labor for the President with a series of recommendations. -7- 14. Defense Scowcraft Defer to NSC and OMB. 15. Agriculture "Overregulation by the government must not be allowed to hamper the most vital and efficient segment of our society--agriculture. Production of food and fiber satisfies not only our domestic needs, but is also the keystone of our export program and our balance of payments. Agriculture policies should be designed to operate within the free market system with full recognition of the unique production and marketing problems faced by farmers and ranchers. In addition, applicable federal estate and gift tax provisions should be reviewed and reformed in order to preserve the ability of families to retain ownership of farm land.' " Comment The President's current positions generally support the Program for Progress proposal. THE WHITE HOUSE WASHINGTON November 11, 1975 MEMORANDUM FOR: JIM CONNOR FROM: JIM CANNON SUBJECT: Republican Legislative Agenda You asked for a review of the Republican Legislative Agenda. As I mentioned in my earlier memo of October 29, the agenda encompasses general policy statements without many specifics. These are in general reflective of the Administration's position in regard to each item. Given the fact that you have solicited OMB, EPA, NSC, and ERC comments, you have the fiscal, economic, national security, and energy perspectives on these agenda items. The following, therefore, reflect primarily a "domestic policy" perspective on the items in the agenda. AGENDA ITEM 1. Private Enterprise LIBRARY "We believe that at this time in our history it is essential the role of government be diminished and emphasis placed on encouragement of individual enterprise." Comment This is a major and pervasive theme of the President's current policy reflected in almost every policy initiative. These include regulatory reform and the $28 billion budget reduction and tax reform package. 2. Public Debt "We recognize the fact that the transition from a deficit of $80 billion to a balance between revenue -2- and expenditures in one year, although desirable, is not feasible. We would expect to effect it within three years " Comment This is supportive of the President's position. They place emphasis on consolidation, and this is currently a major thrust of the program initiatives being developed by the Domestic Council. We are particularly focusing on approaches which will give greater flexibility to state and local government and reduce federal red tape. 3. Government Reform "We believe a commission should be established to study the operations of our government departments and agencies and recommend necessary reform." Comment This is an interesting concept which has been considered as a possible element of the State of the Union message. At this point we have held back on it because we believe that "study commissions" can be viewed as a "non-leadership" approach to avoiding issues. A sub-head to this item was a comment on a need for a national transportation policy. This has been the subject of some attention. Secretary Coleman has surfaced one version of such a plan. 4. Tax Reform "We propose that Congress begin work immediately on GERALD FORD LIBRARY a revision of federal taxation to simplify tax preparation, to discourage tax evasion, to bring equity to the tax system and to provide incentives for economic growth. Comment These principles are solid ones which coincide with the general emphasis of the President's proposal. 5. Welfare Reform The Agenda presents a detailed description of the Food Stamp reform proposal in the Michel-Buckley Bill. -3- Comment The President's bill reflects almost entirely the recommendations in this package. 6. Energy "The key to future economic security and a high standard of living for all Americans is a comprehensive national policy that will produce an adequate supply of energy for an expanding economy. Comment This is reflective in general of the Administration's approach. It does not endorse the Energy Independence Authority nor does it reflect a belief that conservation will require higher prices. 7. Older Americans "To protect the purchasing power of the income savings of our older people, we must stop inflation. We believe the Federal government must meet its commitments in finding solutions and facilities to help meet their needs. Needed is catastrophic medical insurance that will cover the medical needs of those who experience long illnesses. We support a nutritional supplement system and a comprehensive FOND VIBRARY program of nutrition education for needy older citizens. Inadequate housing and transportation must receive our undivided attention and affirmative action. Comment The President's economic program is designed to achieve economic recovery without overly stimulating inflation. The Domestic Council is currently working on various health insurance proposals for the President to review later this fall. Additionally, a comprehensive review of the needs of the elderly and of the impact of existing Federal programs on the elderly is underway. -4- - 8. Health Care "There is an urgent need to review Federal involvement in health care. Not only government spending but also regulations and guidelines have had great impact on national health care delivery." Comment This is being reviewed in connection with the Domestic Council's work related to next year's State of the Union and legislative program. 9. Social Security--Retirement "Congress must give top priority to maintaining the integrity of Social Security trust funds and must revise retirement programs to more nearly meet the needs of older Americans. We propose that Congress expand Keogh-type supplement retirement plan to make it available to all workers. Our proposal would provide tax incentives to allow workers to invest voluntarily in a private retirement fund that would supplement both Social Security and company pension plans. " Comment At the President's direction, the Domestic Council is studying the short term and long term financing RALD FORD LIBRARY problems of Social Security and is developing various proposals to meet such problems. An initial paper on the short term financing problems was presented to the Economic Policy Board last Thursday. It is anticipated that a paper for the President's review and decision will be ready by mid-December. 10. Education "We insist that Congress review, evaluate and consolidate the more than 400 federal education programs and assign priorities to those that are effective. Federal support to reduce financial barriers to students in post-secondary education and to encourage vocational education and job training, compensatory education for the disadvantaged, and special education for the physically and mentally -5- handicapped should supplement resources provided by state and local programs. Administration of educational programs is the responsibility of state government and local institutions, and federal intrusion cannot be allowed. "We favor the development of quality day care services, locally controlled and administered, with the requirement that the recipients of these services pay their fair share of the costs according to their ability." Comment A Domestic Council review group is currently reviewing all of the federal government education programs with a view toward presenting the President with a series of grant consolidation proposals for his decision by early December. We also believe that quality day-care services are essentially a local responsibility. 11. Mentally and Physically Handicapped "Those among us who are handicapped face difficult FORD LIBRARY & challenges every day while trying to cope with a physical environment designed for the activities of the non-handicapped. We believe that strong efforts should be made to assist the handicapped to function in our society--to have access to education, medical care, economic security, equal treatment from our institutions, improved transportation and protection from exploitation." Comment We concur with this assessment. The President will shortly announce his plans to convene a White House Conference on the Handicapped which will review the various programs. 12. Crime "A fundamental responsibility of government is to protect the lives and property of its citizens. We believe the thrust of justice must be to protect the law-abiding citizen against the criminal. To combat crime: -6- "We support the continuance of federal grants to States, cities and towns to strengthen local law enforcement. "We support court system reform to increase efficiency, eliminate excessive case loads, reverse the present practice of 'turnstyle justice, I and keep the criminal off the streets. "We support reform of our penal system to correct the failure of our present policies of punishment and rehabilitation. "We support redoubled efforts against the hard drug traffic to arrest, prosecute and convict pushers-- especially those that prey on young boys and girls. "We propose Congress enact mandatory minimum sentences for persons convicted of federal crimes involving violence, use of firearms, trafficking in hard drugs and habitual offenses. " Comment We strongly agree with the crime proposal, which follows almost precisely the President's special message to the Congress on crime, as well as the FORD & LIBRARY GIVURD recommendation of the Domestic Council drug abuse task force that efforts should be redoubled against hard drug traffic. 13. Illegal Aliens "An estimated 10 million citizens of foreign countries now live illegally in the United States and actively compete with American workers for available jobs. Congress must insist on enforcement of existing laws which establish a legal yearly entry rate, increased border control and more effective apprehension and deportation of people living illegally in the United States. " Comment We concur with this recommendation. The President has asked the Domestic Council to review with the Attorney General the illegal aliens problem. A report is currently being developed by the Attorney General and the Secretary of Labor for the President with a series of recommendations. - -7- 14. Defense Defer to NSC and OMB. 15. Agriculture 'Overregulation by the government must not be allowed to hamper the most vital and efficient segment of our society--agriculture. Production of food and fiber satisfies not only our domestic needs, but is also the keystone of our export program and our balance of payments. Agriculture policies should be designed to operate within the free market system with full recognition of the unique production and marketing problems faced by farmers and ranchers. In addition, applicable federal estate and gift tax provisions should be reviewed and reformed in order to preserve the ability of families to retain ownership of farm land." Comment The President's current positions generally support the Program for Progress proposal. BERALD R. LISBARY FORD DOMESTIC COUNCIL CORRESPONDENCE PROFILE DOC RECD LOG NBR MO DA MO DA HR 10 / 10 / 10 7500490 REFERENCE: TO: PRES FROM: CANNON WHSS V.P DUNHAM OTHER CANNON CAVANAUGH DUNHAM WH35 CAVANAUGH OTHER SOURCE/DESCRIPTION EX. SEC OTHER INITIAL ACTION OFFICER Caranaugh SPECIAL CODE SUBJECT: Conneraction memorandum a Program for Prigress LEAD DEPT/AGENCY: INTERNAL ROUTING AND DISTRIBUTION REC ACTION REQUIRED ACTION CY MEMO FOR PRES ( ) ADVANCE CYS TO JMC FOR MEMO FOR JMC ( ) DEPUTY DIR - POLICY AND RG REPLY FOR 1 ) DEPUTY DIR . OPERATIONS APPROPRIATE ACTION STAFF SECRETARY ( ) DISTR/INITIAL ACTION ASSIGNMENT HEALTH. SOC SCTY AND PUB. ASST. ANY ACTION NECESSARY? ( 1 MEMO: FROM TO: ( ) CRIME. JUSTICE. CIVIL RTS. AND COMM. \ JOINT MEMO HOUSING AND COMMT'Y AFFAIRS ( , REFER TO: ( ) ENVIRONMENT FOR: ( 1 AGRIC. ECON DEV AND COMMERCE CONCURRENCE ( , LABOR. EDUC. AND VETERANS ( ) ENERGY AND TRANSPORTATION GENERAL GOVERNMENT INTERGOVERNMENTAL RELATIONS COMMENTS: analysis INCLUDING SPECIAL INSTRUCTIONS) EXECUTIVE SECRETARIAT Damestic Cauncil staff DATES DUE DUE: Oct. 3 3 AM/PM LDA AM/PM DATE FROM TO S SUBSEQUENT ACTION REQUIRED (OR TAKEN). CY TO SUBSEQUENT ROUTING/ACTIONS FORD VIBRARY DISPATCH FILE ROMTS: CY ROMTS: SEE ABOVE PLUS SA WHCF EXEC SEC DISP INSTR NOTIFY AND DATE BY CA DCHS DY SPECIAL DISPOSITION CRT in CROSS REF W.' OPEN SUGRENSE COPY ATTACHED CLOSE AU 5 GOVERNMENT PRINTING OFFICE 1975 -590 -319 III WITH HOUSE MEMORANDEN LOG NO.: 490 September 25, 1975 Time: YOR ACTION: CC (for it formation): Phil Buchen Jack Marsh Jim Cannon Bill Seidman Max Friedersdorf Brent Scowcroft Jim Lynn Frank Zarb PROM THE WAY DUE: Date: Wednesday, October 1 Time: 12 Noon SUBJECT: Republican Legislative Agenda "A Program for Progress" 9/8/75 ACTION REQUESTED: X For Necessary Action For Your Recommendations Prepare Agenda and Brief Drail Reply GLEALOR FORD LIBRARY X For Your Comments Draft Remarks REMARKS: We have been requested to prepare a report for the President on the Republican Legislative Agenda presented to him by the Republican Leadership. This report should cover: 1) What is being proposed. 2) What are we doing in the areas mentioned in report. 3) What are we not doing that we should be looking into In other words, any initia tives in the report we should consider undertaking? PLEASE ATTACH THIS COPY TO MATERIAL SUBMITTED. (! Jim Connor For the President 490 THE WHITE HOUSE WASHINGTON September 30, 1975 MEMORANDUM FOR: MIKE DUVAL JIM FALK TOD HULLIN PAUL LEACH DAVID LISSY DICK PARSONS GLENN SCHLEEDE STEVE McCONAHEY ART QUERN FROM: JIM CAVANAUGH SUBJECT: CONNOR ACTION MEMORANDUM RE. REPUBLICAN LEGISLATIVE AGENDA, "A PROGRAM FOR PROGRESS" The House Republican leadership recently presented the President with the Republican Legislative Agenda (attached) A report on this agenda will be prepared for the President, and we have been asked to contribute our comments and recommendations on their program. Specifically: (1) What is being proposed? (2) What are we doing in the areas mentioned in the report? (3) What are we not doing that we should be looking into? In other words, any initiatives in the report we should consider undertaking. Would you please, in conjunction with your counterpart at OMB, review your areas of responsibility and provide me with an analysis which may be included in the report to the President. I would appreciate having your material by close of business, Friday, October 3, 1975. Thanks. REPUBLICAN LEGISLATIVE AGENDA: A PROGRAM FOR PROGRESS SEPTEMBER 8, 1975 FORD LISKART REPUBLICAN LEGISLATIVE AGENDA: A PROGRAM FOR PROGRESS The principal mission of government must be to provide its citizens the freedom to pursue opportunities to create and maintain the type of life each of them desires. We believe that the vast majority of Americans prefer: -- A life in which freedom of thought and action of the individual as a member of society is preserved and protected. Government's duty is to defend its people against aggressors from without and subversive and criminal elements from within. -- A life lived in an economic climate in which truly competitive free enterprise predominates. Government's role is to foster and further free enterprise, while maintaining protection for society and individuals against unfair advantage taken by predatory interests. -- A life in which all people have a full opportunity for success. Society and government have joint responsibility to make programs and facilities available to train individuals in marketable skills, so they may become productive members of the free enterprise system. -- A life that promotes and strengthens individual and family responsibility. Our youth should be given every opportunity to be exposed to the positive values of our American heritage. -- A life in which assistance is available to the needy, disabled, aged and handicapped, but in which able-bodied and able-minded persons are expected to work and produce. -2- Our present society has not yet fully achieved these goals, but it has proved that it has the ability to do so -- that it offers the best hope yet devised by man to realize the fulfillment of the American dream. We intend to hasten it toward its goal by prodding it where it needs prodding, by adjusting it where it needs adjusting, but all the while nurturing and protecting it against those who would destroy it. Government will play an important role, but must refrain from competing with and from putting strains and pressures on free enterprise which would damage the entire system and thus lead to eventual failure. The essence of our American system is choice. Our nation grew strong under the concept of freedom of our people to choose the course of government. To choose well, there must be recognizable programs to be weighed in the balance. As a responsible minority, seeking to become a nucleus of a majority, we believe our obligation is to move our government better to serve the people. FORD There are certain principles which guide a Republic year in and year out. The policies any government should follow must be dictated by the particular time in which those guidelines will be operative. We believe that at this time in our history it is essential the role of government be diminished, and emphasis placed on the encouragement 1 of individual enterprise. Congress must come to grips with the realities of federal spending in a peacetime economy and not allow the federal government to be the primary cause of inflation. We believe the Congress through the Budget Committee has the responsibility to curb excessive federal deficit financing, and work with the Executive Branch to establish national priorities consistent with federal revenues. -3- We recognize the fact that the transition from a deficit of $80 billion to a balance between revenue and expenditures in one year, although desirable, is not feasible. We would expect to effect it within three years. During that time, it would be necessary for us to forego additional programs to be financed through the public sector and concentrate on improving, consolidating and in certain cases eliminating by intensive legislative oversight and amendment existing ineffective or unnecessary programs. 2 We believe a commission should be established to study the operations of our government departments and agencies and recommend necessary 3 reforms In addition, our national transportation system must be reviewed and necessary legislative remedies enacted which will provide a balanced and adequate transportation system for the country. Since its beginning in 1913, the federal income tax system has grown into a hodgepodge of conflicting regulations, inconsistencies, and inequities. Our tax system needs immediate reform, the kind of reform that would require every American to pay a fair share, no more or no less. We must avoid incentive-destroying tax levels which slow 4 the growth of the economy and prevent the creation of new jobs. We stand for full employment and believe every American who is willing and able to work has a right to expect and an obligation to pursue opportunities to earn a living. Because massive federal make-work programs offer no hope to the jobless for long-range future security, we endorse stimulation of free enterprise to generate productive jobs that will last and pay a decent wage. We favor automatically extended unemployment benefits coupled with intensive manpower training to tide workers over periods of unemployment. Much of the added expense for expanded manpower training can be defrayed by purging the bloated welfare -4- rolls of the many ineligibles, by rooting out welfare fraud and by strengthening work requirements. Moreover, to help channel assistance where it is really needed, we favor a drastic revision of the run-away 5 food stamp program. One of the great challenges of our time is our need to become independent in energy production. We believe that energy independence should be reached mainly through the efforts of private enterprise. Tax incentives will be needed to assist in prodigious capital formation to invest in new and expanded facilities. The direct federal role should be limited to appropriate participation in research and development of 6 new energy sources. We believe older Americans are especially deserving of attention and concern. They are faced with loss of income security from inflation and the spectre of financial disaster from major illnesses. The greatest contribution Congress can make is to assume leadership in an all-out effort to reduce inflation to protect the buying power of retirement dollars. Because of spiraling costs for medical care and health services, we feel a health insurance program offering protection 7 against the financial ravages of catastrophic illnesses is needed. The entire area of health care must be examined in order to establish a national health policy. Federal involvement in health care is extensive, with fragmented, categorical programs and pervasive regulations and guidelines. In order to address the complex questions involved in this issue, we have established a Task Force on Health with the Republican 8 Research Committee. -5- We regard it as imperative to preserve the integrity of the Social Security Trust Fund financed by employee-employer contributions and to adjust benefit payments to sustain purchasing power in constant dollars. We will actively support incentives to expand the individual retirement 9 program of every American. Education of our nation's young people is a state responsibility, 10 a local function and a federal concern. The mentally and physically handicapped must be afforded opportunities 11 that will allow them to function as useful members of our society. It is a major responsibility of government to protect the lives and property of its citizens and insure the domestic tranquility. Justice must be as concerned with protecting the rights of the victim of crime as assuring the rights of the accused. At the same time, we must consider legislation to assure American citizens that they will not be subject to arbitrary or unjustified surveillance by government 12 agents and to protect citizens' rights-to-privacy. An estimated 10 million residents of foreign countries now live illegally in the United States and actively compete with American workers for available jobs. Existing laws which establish a legal yearly entry 13 rate must be strengthened and strictly enforced. In this nuclear age, we live in a still-perilous world. Until disarmament becomes a reality it is necessary that we continue intensive negotiations. There is no acceptable alternative to an American defense 14 second to none. -6- Efficient production of food and fiber is to the credit of the American farmer and must be encouraged to meet domestic and world needs 15 without undue government interference. Democrats have controlled both Houses of Congress for 38 of the past 42 years and must bear the responsibility for failure of the federal government to meet the needs of America. Loosely written legislation by Congress has created a maze of contradictory and duplicative controls. Congress must provide constant oversight of federal operations and regulatory agencies to insure that legislative intent is carried out and to determine the need for corrective legislation. The positions and attitudes reflected here are presented as guidelines, not as a definitive, all-inclusive program for America. In fact, we recognize the omission of many areas of concern, not from a lack of interest, but because our positions have become well-known through our legislative actions or through our party platforms. We attempt to point in the directions in which we would intend to lead our country, were we to become the nucleus of a majority in Congress. We believe it is incumbent upon Congress to respond in these ways to the people who must pay for government, and we believe the people must and will see to it that the Congress does so respond. 1 - Private Enterprise Our two-hundred year old system of private enterprise, working within a free and competitive economy, has produced the highest living standard in the world. This private sector production has been and is the only creator of our national wealth with government merely redistributing wealth it has acquired through taxation of private enterprise and individual citizens. Any broader effort by government to control or direct our huge trillion-and-a-half dollar economic machine could be a disaster. Government should not assume the function of the great tinkerer, but can, and should, help promote prosperity. It can best do this by not hindering the course of commerce, by minimizing regulation, by allowing the time-tested laws of supply and demand to work with maximum freedom, by encouraging healthy competition and the enforcement of anti-trust laws that protect the consumer and fledgling businesses. We believe that solutions to our dual economic problems of inflation and recession lie in returning decision-making to the people through the forces of supply and demand in the marketplace. People themselves can best decide what to produce, sell, and buy, and at what price levels. No government FORD agency is as capable of making these decisions as are the people through the voluntary exchange of goods and services. There is already ample machinery within the federal government and in the private sector to protect the consumer from exploitation. We applaud the Ford Administration's effort to orient existing regulatory and administrative agencies toward consumer protection. We propose that federal estate and gift tax laws be revised to encourage private ownership of Small Business. 2- Public Debt During the past 40 years excessive appropriations by Democrat controlled Congresses have created massive deficits and forced the federal government to borrow heavily. This competition with the private sector has caused interest rates to rise and as a result funds for private capital investment which are needed to create new jobs have become scarce and expensive. Massive deficits will rekindle double- digit inflation and prevent the expansion of business needed to pull our economy out of the recession. More inflation will further weaken our economic system, and jeopardize the financial security of all Americans. Congress must exercise fiscal restraint, consolidate existing programs, eliminate duplication and waste and thereby reduce the volume and expense of government. The Budget Committees of the Congress, in conjunction with the Executive Branch, must establish spending priorities consistent with federal revenues with a systematic reduction of the public debt. The public debt must be restructured. Trust fund surpluses, which by statute can only be invested in government obligations, tend to distort the real picture and should not be included in considering the overall public debt ceiling. The present system of establishing a debt ceiling has become meaningless. Debt ceiling increases have been manipulated and irresponsibly used as a vehicle for non-fiscal legislation. We propose that the limit of the public debt be set concurrently with the adoption of the Federal Budget. 3- Government Reform In recent years, an entrenched, burgeoning bureaucracy has developed in the federal government. Federal agencies have proliferated and become fragmented, inefficient, duplicative and wasteful. Regulatory agencies have overstepped their authority in the promulgation of rules and regulations. They have usurped authorities which rightfully belong to the States, and ultimately to the people. Return of power, to the States, as well as strict Congressional oversight of agency compliance with the letter and spirit of the law, are urgently needed to preserve personal liberty, improve efficiency, and eliminate waste. We recommend a bipartisan commission be established to review present governmental performance, administrative costs, proliferating federal programs, redefine national goals and recommend legislative revisions to enhance the capability of government to meet the challenges of the coming decade. This recommendation emphasizes the failure of the Democrat Congress to provide effective oversight of federal operations and regulatory agencies to insure that legislative intent is carried out and to determine the need to amend loosely written legislation that has created a maze of contradictory and duplicative controls, rules and regulations which hamper business and harass the citizen. As a majority we would dedicate the next Republican Congress to legislative oversight -- to redirecting the operations of government toward efficiency and economy. 4- Tax Reform The past four decades have seen Democrat Congresses increase the tax burden on the average working American not only through additional taxes but with the approval of built-in inequities and loopholes. The Democrats continue to give lip service to meaningful. tax reform but produce only false promises which deceive the American taxpayer. The only way to cut federal taxes for American wage earners is to reduce total federal expenditures. "Tax gimmicks" are not a solution but only offer benefits to special interest groups. We propose that Congress begin work immediately on revision of federal taxation: -- to simplify tax preparation -- to discourage tax evasion -- to bring equity to the tax system -- to provide incentives for economic growth. 5- Welfare Reform We believe that society has the responsibility to assist those who cannot provide for themselves. The present welfare system falls far short of this goal due to mismanagement and abuses. The $5.2 billion Food Stamp Program has grown 14,203% in the past decade. Recipients have increased from 500,000 in 1965 to nearly 20 million, and under present regulations an estimated 57 million people are eligible. Present law has established lax eligibility standards allowing persons with adequate incomes to participate in the program. This massive program has bypassed the real intent of Congress to provide help only for the needy. We call attention to the fact that the bill for welfare is mainly borne by the American worker. To meet its responsibility to the American taxpayer and the truly needy, Congress must take immediate steps to reform the welfare system. We propose Congressional action: -- to provide adequate living standards for the truly needy -- to eliminate ineligible recipients from the welfare rolls -- to establish effective regulations to prevent future welfare fraud -- to strengthen and enforce work requirements -- to provide educational and vocational incentives to allow recipients to become self-supporting -- to increase penalties for welfare fraud to discourage abuses -- to coordinate Federal reforms with state and social welfare agencies -- to strengthen state and local administrative functions -- to transfer administration of the Food Stamp Program from the Department of Agriculture to HEW -- to tighten eligibility requirements for food stamps. 6- Energy The key to future economic security and a high standard of living for all Americans is a comprehensive national policy that will produce an adequate supply of energy for an expanding economy. We believe the current lack of direction by the Democrat majority. in Congress poses grave economic peril for the future. Their single- minded emphasis on unrealistically regulated prices today, fails to lay the groundwork necessary for future expanded energy supplies. Constructive action now by the Congress could help assure our people and our industries an ample supply of reasonably priced energy for the years ahead. -- We propose that all federal regulations, programs and policies that directly affect energy, be reviewed, and ineffective programs be eliminated or replaced. Our energy challenge must essentially be solved by private industry. We believe that unreasonable regulatory and tax policies have hampered development and lessened investment in research, plants and equipment needed for maximum energy production. -- We propose a windfall profits tax program with a plowback provision to encourage reinvestment of energy earnings and eliminate windfall profits. Energy development has been hampered by excessive and often frivolous litigation, endless hearings, studies, commissions and reports. -- We propose that Congress' comprehensive energy package provide strong legal authority to allow development of natural resources with full recognition of the need to provide safeguards for the protection of the environment. During the period of 1970-1974, our yearly imports of foreign oil rose from 483 million barrels to 1.2 billion barrels, while during the same period domestic production fell from 3.5 billion barrels to 3.2 billion barrels per year. Our nation cannot afford continued dependence on foreign oil. -- We propose that Congress provide incentives for exploration and development of more American-owned oil and natural gas. A full scale effort must be made to develop our oil shale resources. Our nation must develop alternative energy sources. Congress should provide incentives and opportunities to accelerate research, discovery and delivery of untapped resources. Immediate emphasis should be given to development of economical solar energy systems for homes and industry. -- We propose that Congress require that new federal structures, where practical, be heated and cooled with solar systems. An essential part of a national energy program must be development of all available forms of energy. -- We propose a stepped-up program for coal gasification, geo-thermal and nuclear power production. -- A strong program of research and development should be continued for the fusion process to unlock the unlimited potential of the Hydrogen atom. Conservation of energy depends on more efficient utilization by industry and individuals. -- We propose that Congress provide practical incentives: 1- for conservation of energy by the public 2- to increase the utilization of waste materials in energy production 3- for production by industry of more energy efficient products. 7- Older Americans Many older Americans live on relatively fixed, limited incomes and inflation has hurt them cruelly. The rapidly rising cost of living is caused in substantial measure by the profligate spending of the federal government. To protect the purchasing power of the income and savings of our older people we must stop inflation. We believe the federal government must meet its commitments to finding solutions and facilities to help meet their needs. Needed is "catastrophic" health insurance that will cover the medical needs of those who experience long, serious illnesses. We support a nutritional supplement system and a comprehensive program of nutrition education for needy older citizens. Inadequate housing and transportation must receive our undivided attention and affirmative action. GENAUE FORD LIBRARY 8- Health Care There is an urgent need to review Federal involvement in health care. Not only government spending, but regulations and guidelines have had great impact on national health care delivery. Under our present system, we have one of the best health care delivery programs in the world. There are some gaps that need filling, to assure our people the quality of services nationwide that we are capable of providing. We believe that our nation needs a National Health Policy, which would balance health systems supply and demand with financing. In addition there is a need for emphasis on education, environmental improvement, better housing and nutritional gains, all of which affect the general health of the American public. A National Health Policy would determine broad goals and priorities for medical care, preventive practices, and dispersal of facilities to be within reach of our people. We believe the present combination of private and public health care financing can be extended and improved. The present system suffers from fragmentation, and we believe a National Health Policy should bring together all vital health functions into a practical and workable program to provide better health care for all our citizens. 9- Social Security - Retirement Controlling inflation is the most important way to insure the retirement security earned by American workers. Congress must give top priority to maintaining the integrity of the Social Security Trust Funds and must revise retirement programs to more nearly meet the needs of older Americans. Adequate funding that will provide benefits in constant value dollars should be assured from a self-adjusting formula of contributions by employees and employers. Unlimited outside earnings should be allowed without benefit penalties. All Americans deserve the opportunity to provide their own additional retirement security. The Individual Retirement Account (IRA) has extended this opportunity to an additional segment of our working force. We propose that Congress expand this Keogh-type supplemental retirement plan to make it available to all workers. Our proposal would provide tax incentives allowing workers to invest voluntarily in a private retirement fund that would supplement both Social Security and company pension plans. In addition to providing greater retirement security this plan will provide investment funds needed to build a stronger American economy and to aid in capital formation. 10- Education We insist that Congress review, evaluate and consolidate the more than 400 federal education programs and assign priorities to those that are effective. Federal support to reduce financial barriers to students in post-secondary education and to encourage vocational education and job training, compensatory education for the disadvantaged, and special education for the physically and mentally handicapped should supplement resources provided by state and local programs. Administration of educational programs is the responsibility of state government and local institutions, and federal intrusion cannot be allowed. We favor the development of quality day care services, locally controlled and administered, with the requirement that the recipients of these services pay their fair share of the costs according to their ability. In the education and training of children there is no substitute for parental discipline. We believe in the parents' right to make fundamental decisions regarding the care, development and education of their children. FORD LIGRARY 11-Mentally and Physically Handicapped Those among us who are handicapped face difficult challenges every day while trying to cope with a physical environment designed for the activities of the non-handicapped. We believe that strong efforts should be made to assist the handicapped to function in our society -- to have access to education, medical care, economic security, equal treatment from our institutions, improved transportation and protection from exploitation. Federal programs should be reviewed to ensure that all that can be done is being done to help the handicapped become more fully integrated into our social and economic life. 12-Crime A fundamental responsibility of government is to protect the lives and property of its citizens. We believe the thrust of justice must be to protect the law-abiding citizen against the criminal. To combat crime: -- We support the continuance of federal grants to States, cities and towns to strengthen local law enforcement. We support court system reform to increase efficiency, eliminate excessive case loads, reverse the present practice of "turnstyle justice" and keep the criminal off the streets. -- We support reform of our penal system to correct the failure of our present policies of punishment and rehabilitation. We support redoubled efforts against the hard drug traffic to arrest, prosecute, and convict pushers -- especially those that prey on young boys and girls. We propose Congress enact mandatory minimum sentences for persons convicted of federal crimes involving violence, use of firearms, trafficking in hard drugs and habitual offenses. Prevention is the long-term solution to crime. Effective crime prevention depends on strengthening community ties and encouraging individual participation in community decisions establishing moral and ethical standards. We recognize, however, that a healthy fear of swift and sure punishment is not without effectiveness in crime prevention. 13-Illegal Aliens An estimated 10 million citizens of foreign countries now live illegally in the United States and actively compete with American workers for available jobs. Congress must insist on enforcement of existing laws which establish a legal yearly entry rate, increased border control and more effective apprehension and deportation of people living illegally in the United States. Social Security requirements for all workers must be enforced and participation by illegal aliens in federally funded welfare programs must be stopped. 14-Defense The first, and major, responsibility of government is to provide for the common defense. Recent world events have demonstrated that until we can safely disarm, we must continue to improve our military capability to defend the United States and honor our commitments to Free World Nations. A strong military capability is essential to the balance of power on which our safety rests. To be successful in negotiations with foreign nations we must deal from a position of strength. Preparedness cannot be a sometime policy. Responsibility for the common defense, for maintaining our military capability, our honor and commitments, rests with Congress. We deplore the attitude that the military budget represents a readily available source of federal money which can be diverted to other programs without dangerous consequences. Congress must continue to provide adequate funding to sustain volunteer manpower levels, equip our forces and conduct vital research and development. It is also the imperative responsibility of Congress to eliminate frills and waste, and to ensure a lean, efficient and mobile military to meet the challenges of the 1970's. 15-Agriculture Overregulation by the government must not be allowed to hamper the most vital and efficient segment of our society -- agriculture. Production of food and fiber satisfies not only our domestic needs, but is also the keystone of our export program and our balance of payments. Agriculture policies should be designed to operate within the free market system with full recognition of the unique production and marketing problems faced by farmers and ranchers. In addition, applicable federal estate and gift tax provisions should be reviewed and reformed in order to preserve the ability of families to retain ownership of farm land. OF THE PRESIDENT EXECUTIVE OFFICE OF THE PRESIDENT OFFICE UNITED OFFICE OF MANAGEMENT AND BUDGET SECURITY STATES WASHINGTON, D.C. 20503 November 19, 1975 MEMORANDUM FOR Wesley K. Sasaki Rodney JIM JURA and Weiher FROM: SUBJECT: Trudy Fry's request regarding: Republican legislative agenda package regarding energy The following is provided per Trudy Fry's request. FORD LIBRARY Comprehensive Energy Package (bottom of first page) The President did have what was labeled a comprehensive energy package early in 1975. With particular reference to developing natural resources, the President made recommendations to the Congress which enacted a strip mine bill unacceptable to the President and it was vetoed earlier this year (H.R. 25). The issue will be raised with the President shortly as to whether he wants to try for another bill in the next session of the Congress considering that States currently have regulatory authority. Suggest, therefore, that we emphasize the broad objectives of the compre- hensive energy package, per the suggested language (attached). Incentives for Oil and Gas Exploration and Development (top of second page) The President's proposal for deregulation of oil and natural gas prices is meant to provide incentives for exploration and development. We be- lieve that any further incentives, especially in the form of subsidies, are unnecessary and should not be provided. The market place should pro- vide adequate incentives in the form of profits. Suggest we use the proposed language (attached). Oil Shale Development (top of second page) We, as a Nation, are probably going as fast as we can on oil shale development. The Interior Department has leased public lands for this purpose on a trial basis and is contemplating further leases. The Administration's synthetic fuels package will provide some financial assistance for demonstration projects. Any further developments should 2 be dependent on the economic competitiveness of oil shale versus other energy resources. Suggest attached language. Economical Solar Energy and Federal Buildings (middle of second page) The Administration has not proposed that new Federal buildings should be heated or cooled with solar systems. Unless they are economically com- petitive with standard heating and cooling systems, except perhaps for a few demonstrations, would the Administration support this? Also, we have a balanced R&D program and solar should not receive immediate emphasis. Geothermal Production and Coal Gasification (middle of second page) Suggest delete reference to coal gasification and substitute "The President has proposed, and is very close to launching, a Synthetic Fuels Commercialization Demonstration program with the objective of producing 350,000 barrels per day by 1985, with the potential in 1978-80 of accelerating the program to achieve 1 million barrels in 1985. Final Congressional authorization is pending." The Federal assistance for coal gasification should not go beyond the demonstration phase included in the Administration's synthetic fuels package. Further, geothermal energy is limited and is not expected to provide a significant portion of future energy demands. Nor can utiliza- tion of waste materials (bottom of second page) provide a significant source of energy. FORD LIBRAXY THE WHITE HOUSE WASHINGTON Jim - Attached are your comments re Energy on the Republican Legislative Agenda package. Would it be possible to put your comments into a paragraph or two - as was done on the other items. What I am doing is combining all the comments under each issue -- I am at a lost to know what to say from OMB on this one, Thanks. Trudy Fry 11/17/75 FORD & LIBRARY 938839 6- Energy The key to future economic security and a high standard of living for all Americans is a comprehensive national policy that will produce an adequate supply of energy for an expanding economy. We believe the current lack of direction by the Democrat majority. in Congress poses grave economic peril for the future. Their single- minded emphasis on unrealistically regulated prices today, fails to lay the groundwork necessary for future expanded energy supplies. Constructive action now by the Congress could help assure our people and our industries an ample supply of reasonably priced energy for the years ahead. FORDO is LIBRARY GERALD -- We propose that all federal regulations, programs and policies that directly affect energy, be reviewed, and ineffective programs be eliminated or replaced. Our energy challenge must essentially be solved by private industry. We believe that unreasonable regulatory and tax policies have hampered development and lessened investment in research, plants and equipment needed for maximum energy production. to accompany oil december -- We propose a windfall profits tax program with a plowback provision to encourage reinvestment of energy earnings and eliminate windfall profits. Energy development has been hampered by excessive'and often frivolous litigation, endless hearings, studies, commissions and reports. The President has sinposed a We propose that Congress comprehensive energy package provide reture our dependence on boreign somes of strong legal authority to al a low deve lopment of natural resources Energy by encreasing domestic cupplies one reducing consumption through the free pinyof with full recognition of the need to provide safeguards for the the mechanism murket protection of the environment. During the period of 1970-1974, our yearly imports of foreign oil rose from 483 million barrels to 1.2 billion barrels, while during the same period domestic production fell from 3.5 billion barrels to 3.2 billion barrels per year. Our nation cannot afford continued excessive dependence on foreign oil. -- We propose that Congress provide incentives for exploration and development of more American domestic owned oil and natural gas by phasing out price counols on all and ending regulation of new natural we a gas. [ full scale effort must be made to develop our oil shale his has taken administrative lactions to assure this through fail resources thust be devlo a do and the President an a Our nation must develop alternative energy sources. Congress should dima. provide incentives and opportunities to accolerate research, discovery Has Conguss alum and delivery of untapped resources. [Immodiate emphasis should be given Govelett to development of economical solar energy systems for homes and industry. the -- He propose that Congress require that new Federal structures, Re solar and an where practical, be heated and cooled with solar systems. Heming persissue the Demo AM nothing An essential part of a national energy program must be development Ady of all available forms of energy. to We propose a stepped up programs for coal gasification, geo-thermal and nuclear power production. in FORD -- A strong program of research and development should be continued GERALD for the fusion process to unlock the unlimited potential of the LIBRARY Hydrogen atom. Conservation of energy depends on more efficient utilization by industry and individuals. -- We propose that Congress provide practical incentives: Shis is not 1- for conservation of energy by the public a mayor neight (en). [2- to increase the utilization of waste materials in energy production levice. Reference it simply increase 3- for production by industry of more energy efficient products. prissure the bund there ] 6- Energy The key to future economic security and a high standard of living for all Americans is a comprehensive national policy that will produce an adequate supply of energy for an expanding economy. We believe the current lack of direction by the Democrat majority. in Congress poses grave economic peril for the future. Their single- minded emphasis on unrealistically regulated prices today, fails to lay the groundwork necessary for future expanded energy supplies. Constructive action now by the Congress could help assure our people and our industries an ample supply of reasonably priced energy for the years ahead. -- We propose that all federal regulations, programs and policjes that directly affect energy, be reviewed, and ineffective yora LIBRANT programs be eliminated or replaced. Our energy challenge must essentially be solved by private industry. We believe that unreasonable regulatory and tax policies have hampered development and lessened investment in research, plants and equipment needed for maximum energy production. to accompany oil december -- We propose a windfall profits tax program with a plowback provision to encourage reinvestment of energy earnings and eliminate windfall profits. Energy development has been hampered by excessive and often frivolous litigation, endless hearings, studies, commissions and reports. > The President has proposed a ? U -- We propose that Congress comprehensive energy package provide [00 Stripming are strong legal authority to allow development of natural resources have a with full recognition of the need to provide safeguards for the proposal? specific protection of the environment. II not, shouldnd air Consuss 601 mens. A During the period of 1970-1974, our yearly imports of foreign oil rose from 483 million barrels to 1.2 billion barrels, while during the same period domestic production fell from 3.5 billion barrels to 3.2 billion barrels per year. Our nation cannot afford continued dependence on foreign oil. -- We propose that Congress provide incentives for exploration and development of more American domestic owned oil and natural gas. [A A full scale effort must be made to develop, our oil shale Sure are going as resources - thust be developed. fast as we cant symfuls Our nation must develop alternative energy sources. Congress should is demo. only.] provide incentives and opportunities to accolerate research, discovery Conguss and delivery of untapped resources. Immediate emphasis should be given Has already Provided more money to development of economical solar energy systems for homes and industry. than can be spent [Dhis is -- We propose that Congress require that new federal structures, on this, Re SOLAR still an open issue where practical, be heated and cooled with solar systems. Hemina, within the Demo Act] A&m. nothing An essential part of a national energy program must be development of 1974 is ReAdy of all available forms of energy. Congress to go to -- We propose a stepped-up program for coal gasification, geo-thermal yet] and nuclear power production. -- A strong program of research and development should be continued for the fusion process to unlock the unlimited potential of the Hydrogen atom. FORD 2 GERALD LIBRARY Conservation of energy depends on more efficient utilization by industry and individuals. We propose that Congress provide practical incentives: 1- for conservation of energy by the public [2his is not La mayor 2- to increase the utilization of waste materials in energy production energy cour. device. Reference to it sim increase 3- for production by industry of more energy efficient products. pressure to bund there ]