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    "title": "Ford Press Releases - Revenue Sharing, 1971-1972",
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    "ocrText": "The original documents are located in Box D9, folder \"Ford Press Releases - Revenue\nSharing, 1971-1972\" of the Ford Congressional Papers: Press Secretary and Speech File at\nthe Gerald R. Ford Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. The Council donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nFull Distribution\nOffice Copy\nCONGRESSMAN\nNEWS\nGERALD R. FORD\nHOUSE REPUBLICAN LEADER\nRELEASE\nFOR IMMEDIATE RELEASE\nFebruary 4, 1971\nRemarks by Rep. Gerald R. Ford on the floor of the House\nMR. SPEAKER: The President has laid before the Congress a compelling case\nfor general revenue sharing with the states and cities. His arguments are most\ncogent.\nWhat the President is proposing is a new approach to government. In a sense\nit is not new. He is asking that we return to the time when the bulk of government\ndecisions in America were made in town meetings across the land. He is, in effect,\nurging that we return to government by the people.\nI realize these are strange words when addressed to the representatives of\nthe people, which is what all members of the U.S. House of Representatives are.\nI am fond of calling this \"the People's House.\" But the fact remains that because\nthe Federal Government is the all-powerful tax collector in this land we have\nstrayed grievously away from the principle that government should be as close as\npossible to the people.\nGeneral revenue sharing affords the Congress an opportunity to come closer\nto the people--to put the money and the responsibility where the problems are.\nI believe that in endorsing general revenue sharing a member of Congress will\nbe reaffirming his faith in the local political process--and that process is the\nfoundation of free government, government by free men.\nThe alternative to general revenue sharing is the grafting of new growth\nonto old Federal programs.\nI urge that we take to new paths--that we cut through the tangled undergrowth\nof the Federal bureaucracy with an approach that will usher in a new era of\nself-government for the American people.\n###\nDigitized from Box D9 of The Ford Congressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential Library\nCONGRESSMAN\nNEWS\nGERALD R. FORD\nHOUSE REPUBLICAN LEADER\nRELEASE\nFOR IMMEDIATE RELEASE-\nFebruary 4, 1971\nRemarks by Rep. Gerald R. Ford on the floor of the House\nMR. SPEAKER: The President has laid before the Congress a compelling case\nfor general revenue sharing with the states and cities. His arguments are most\ncogent.\nWhat the President is proposing is a new approach to government. In a sense\nit is not new. He is asking that we return to the time when the bulk of government\ndecisions in America were made in town meetings across the land. He is, in effect,\nurging that we return to government by the people.\nI realize these are strange words when addressed to the representatives of\nthe people, which is what all members of the U.S. House of Representatives are.\nI am fond of calling this \"the People's House. \" But the fact remains that because\nthe Federal Government is the all-powerful tax collector in this land we have\nstrayed grievously away from the principle that government should be as close as\npossible to the people.\nGeneral revenue sharing affords the Congress an opportunity to come closer\nto the people--to put the money and the responsibility where the problems are.\nI believe that in endorsing general revenue sharing a member of Congress will\nbe reaffirming his faith in the local political process--and that process is the\nfoundation of free government, government by free men.\nThe alternative to general revenue sharing is the grafting of new growth\nonto old Federal programs.\nI urge that we take to new paths--that we cut through the tangled undergrowth\nof the Federal bureaucracy with an approach that will usher in a new era of\nself-government for the American people.\n###\nQ Office Copy\nCONGRESSMAN\nNEWS\nGERALD R. FORD\nHOUSE REPUBLICAN LEADER\nRELEASE\nFOR IMMEDIATE RELEASE--\nMarch 2, 1971\nRemarks by Rep. Gerald R. Ford placed in the Congressional Record of March 2, 1971.\nAs President Nixon clearly spells out in his message received by the\nCongress today, there are vital and distinct ways in which special revenue sharing\ndiffers from block grants.\nSpecial Revenue Sharing differs from block grants in that it would require\nno matching funds, no demonstration of maintenance of effort, and no prior project\napproval.\nSpecial Revenue Sharing proposals are not a threat to the adoption of\nGeneral Revenue Sharing. Special Revenue Sharing fits in with the same philosophy\nin which General Revenue Sharing is rooted--that no program or project strings\nwill govern the use of revenue sharing funds.\nSpecial Revenue Sharing funds would be spent under six broad headings--law\nenforcement, manpower training, urban development, rural development, transportation\nand education. State and local governments would enjoy great freedom and flexibility\nwith the use of funds allocated for those general purposes.\nThe Nation has reached a critical juncture in the development of our\nfederal system.\nRevenue sharing--general and special represents an historic opportunity to\nrestore fiscal balance to the system and to markedly strengthen state and local\ngovernment. It is an act of faith in the local political process. It is sorely\nneeded.\n###\nCONGRESSMAN\nNEWS\nGERALD R. FORD\nHOUSE REPUBLICAN LEADER\nRELEASE\nFOR IMMEDIATE RELEASE--\nMarch 2, 1971\nRemarks by Rep. Gerald R. Ford placed in the Congressional Record of March 2, 1971.\nAs President Nixon clearly spells out in his message received by the\nCongress today, there are vital and distinct ways in which special revenue sharing\ndiffers from block grants.\nSpecial Revenue Sharing differs from block grants in that it would require\nno matching funds, no demonstration of maintenance of effort, and no prior project\napproval.\nSpecial Revenue Sharing proposals are not a threat to the adoption of\nGeneral Revenue Sharing. Special Revenue Sharing fits in with the same philosophy\nin which General Revenue Sharing is rooted--that no program or project strings\nwill govern the use of revenue sharing funds.\nSpecial Revenue Sharing funds would be spent under six broad headings--law\nenforcement, manpower training, urban development, rural development, transportation\nand education. State and local governments would enjoy great freedom and flexibility\nwith the use of funds allocated for those general purposes.\nThe Nation has reached a critical juncture in the development of our\nfederal system.\nRevenue sharing--general and special--represents an historic opportunity to\nrestore fiscal balance to the system and to markedly strengthen state and local\ngovernment. It is an act of faith in the local political process. It is sorely\nneeded.\n###\nOffice Copy\nCONGRESSMAN\nNEWS\nGERALD R. FORD\nHOUSE REPUBLICAN LEADER\nRELEASE\n--FOR IMMEDIATE RELEASE--\nApril 6, 1971\nRemarks by Rep. Gerald R. Ford\nMr. Speaker, no effort is more vital to improving the quality of life in\nAmerica than improving the quality of education in America.\nFor this reason, I look upon Education Revenue Sharing as the most important\nof the Special Revenue Sharing proposals sent to the Congress by the President.\nThe Education Revenue Sharing Message received by the Congress today should\nbe scanned most carefully by every member, since it is aimed at remedying the most\nglaring deficiencies in our present system of Federal aid to schools.\nI see Education Revenue Sharing as the answer to two of the greatest weak-\nnesses in the present system--inability to plan and lack of flexibility.\nLocal school officials presently are at a tremendous disadvantage in budgeting\nfrom one year to the next. They can never be certain how much Federal aid they will\nreceive. They are also handicapped in undertaking innovative programs. Washington\nrequires that they abide by certain rules in order to obtain Federal funds.\nEducation Revenue Sharing would hurdle these barriers to proper local\nadministration of schools.\nThere would be no fragmentation of Federal grants, no rigid assignment of\nfunds. Instead there would be an assured Federal contribution toward the overall\nquality of local education, with flexibility for local planners.\nI had anticipated a formidable obstacle to Education Revenue Sharing in\nconnection with aid to non-public schools. But I find reassurance in the President's\npledge that \"non-public school students would be counted in the reckoning of\npopulation for purposes of allocation, and all forms of educational services would\nbe available to them. Where State law prevents non-public school participation,\nthe Secretary of Health, Education and Welfare \"shall arrange for such children to\nreceive similar services on an equitable basis and shall pay the cost thereof out\nof the State's allotment.\" I find this completely satisfactory.\n###\nCONGRESSMAN\nNEWS\nGERALD R. FORD\nHOUSE REPUBLICAN LEADER\nRELEASE\nFOR IMMEDIATE RELEASE--\nApril 6, 1971\nRemarks by Rep. Gerald R. Ford\nMr. Speaker, no effort is more vital to improving the quality of life in\nAmerica than improving the quality of education in America.\nFor this reason, I look upon Education Revenue Sharing as the most important\nof the Special Revenue Sharing proposals sent to the Congress by the President.\nThe Education Revenue Sharing Message received by the Congress today should\nbe scanned most carefully by every member, since it is aimed at remedying the most\nglaring deficiencies in our present system of Federal aid to schools.\nI see Education Revenue Sharing as the answer to two of the greatest weak-\nnesses in the present system--inability to plan and lack of flexibility.\nLocal school officials presently are at a tremendous disadvantage in budgeting\nfrom one year to the next. They can never be certain how much Federal aid they will\nreceive. They are also handicapped in undertaking innovative programs. Washington\nrequires that they abide by certain rules in order to obtain Federal funds.\nEducation Revenue Sharing would hurdle these barriers to proper local\nadministration of schools.\nThere would be no fragmentation of Federal grants, no rigid assignment of\nfunds. Instead there would be an assured Federal contribution toward the overall\nquality of local education, with flexibility for local planners.\nI had anticipated a formidable obstacle to Education Revenue Sharing in\nconnection with aid to non-public schools. But I find reassurance in the President's\npledge that \"non-public school students would be counted in the reckoning of\npopulation for purposes of allocation, and all forms of educational services would\nbe available to them.\" Where State law prevents non-public school participation,\nthe Secretary of Health, Education and Welfare \"shall arrange for such children to\nreceive similar services on an equitable basis and shall pay the cost thereof out\nof the State's allotment.\" I find this completely satisfactory.\n###\nQ office Copy\nCONGRESSMAN\nNEWS\nGERALD R. FORD\nHOUSE REPUBLICAN LEADER\nRELEASE\nMay 27, 1971\nMemo to Correspondents:\nHouse Minority Leader Gerald R. Ford and other Republican\nsponsors of President Nixon's general revenue sharing bill will hold\na news conference Tuesday, June 1, at 10 a.m. in Room 135, Cannon\nHouse Office Building.\nAmong the 133 Republican cosponsors of the measure in the House\nparticipating in the news conference will be Minority Whip Leslie C.\nArends (Ill.), Conference Chairman John B. Anderson (I11.), Conference\nVice Chairman Robert T. Stafford (Vt.), Conference Secretary Richard H.\nPoff (Va.), Research Committee Chairman Barber B. Conable (N.Y.) and\nRep. Dan Kuykendall (Tenn.), chairman of the Congressional Task Force\non Revenue Sharing.\nAssistant Secretary of the Treasury Murray L. Weidenbaum will\nbe present to provide reporters with facts and figures on the\nAdministration proposal.\nHearings on General Revenue Sharing will begin June 2 before\nthe House Committee on Ways and Means.\nPaul Miltich\nPress Secretary to\nRep. Gerald R. Ford\nNEWS\nCONGRESSMAN\nGERALD R. FORD\nHOUSE REPUBLICAN LEADER\nRELEASE\nFOR RELEASE AT 12 NOON TUESDAY\nJune 15, 1971\n(Note to Editors: A copy of Mr. Ford's letter is attached)\nRep. Gerald R. Ford today released the text of a letter to Grand Rapids\nMayor Robert Boelens and members of the Grand Rapids City Commission urging Federal\nrevenue sharing as an alternative to a local income tax increase.\nFord noted that the City Commission is considering an increase in the local\nincome tax in the event the State Legislature adopts a bill permitting Michigan\ncities to raise municipal income taxes from 1 per cent to a maximum of 2 per cent.\nFord pointed out that the City of Grand Rapids allocation under the Nixon\nAdministration's general revenue sharing plan would be $2,215,551. This, he said,\nwould come close to bridging Grand Rapids' unmet revenue needs for fiscal year 1972.\nSaid Ford: \"While the Grand Rapids revenue sharing allocation would not\ntotally bridge the dollar gap, it would go far toward doing it. It would seem\nentirely possible to effect some economies and thus obviate the need for a municipal\nincome tax increase.\"\nFord said prospects are \"bright\" for a compromise between the Nixon\nAdministration's revenue sharing bill and a proposal by House Ways and Means\nChairman Wilbur Mills, D-Ark. He declared there \"should be an area of reasonable and\nresponsible compromise.\"\nFord urged continued support by the Grand Rapids City Commission for Federal\nrevenue sharing.\n#####\n(The following is the text of the letter from Rep. Ford to Grand Rapids\nMayor Robert Boelens and members of the Grand Rapids City Commission.)\n\"I am deeply concerned about the pressure on state and local officials\nto raise taxes to meet mounting public service needs.\n\"It has come to my attention that the City Commission of Grand Rapids is\nconsidering an increase in the local income tax in the event that the\nState Legislature adopts a bill permitting Michigan cities to raise\nlocal income taxes from 1 per cent to a maximum of 2 per cent.\n\"We are all also aware that Governor Milliken has proposed an increase\nin state income taxes and that the Grand Rapids Press has proposed a\nCounty income tax in view of the property tax bind in which the County\nGovernment finds itself.\n\"This prompts me to point out 'that--in my view--sharing of Federal income\ntax revenue with the states and local units of government is the best\nanswer to the whole problem--the fiscal squeeze on the state and local\ngovernments and the growing tax burden on the local taxpayer.\n\"Federal revenue sharing is very much to be preferred to continued increases\nin state and local taxes. Revenue sharing would ease the pressure on state\nand local officials to constantly raise taxes or, on the other hand, to\ncut back services.\n\"Under the Nixon Administration's current plan to share roughly $5 billion\nin Federal revenue with the states and local units of government, Michigan\nwould get $229 million. Of that sum, the State would keep $128,883,405\nand the rest would go to local governments. Of the local allocations, the\nCity of Grand Rapids would receive $2,215,551, and the Kent County Govern-\nment would get $1,363,217.\n\"I note that City Manager Joseph Grassie has estimated municipal expenditures\nof $26.2 million for fiscal 1972, as against anticipated revenue of $22.5\nmillion. That leaves a gap of $3.7 million.\n\"While the Grand Rapids revenue sharing allocation would not totally bridge\nthe dollar gap, it would go far toward doing it. It would seem entirely\npossible to effect some economies and thus obviate the need for a municipal\nincome tax increase--in the event Federal revenue sharing were enacted by\nthe Congress.\n\"Your continuing support for revenue sharing is needed now more than ever.\nProspects have become bright for a compromise between President Nixon and\nthe Democratic leaders in the Congress. House Ways and Means Chairman\nWilbur Mills, the chief foe of the Administration bill, has come up with\na modified revenue sharing proposal, and Senate Majority Leader Mike\nMansfield has said he would like to see an \"accommodation\" between the\nAdministration and Mills. I share the view of Senator Mansfield that\nthere should be an area of reasonable and responsible compromise.\n\"Federal revenue sharing is the answer to steadily increasing needs for\nadditional state and local revenue. Your support for the Federal legislation\nis vital.\n/s/ Gerald R. Ford, M.C.\"\nCONGRESSMAN\nNEWS\nGERALD R. FORD\nHOUSE REPUBLICAN LEADER\nRELEASE\n--FOR RELEASE AT 12 NOON TUESDAY--\nJune 15, 1971\n(Note to Editors: A copy of Mr. Ford's letter is attached)\nRep. Gerald R. Ford today released the text of a letter to Grand Rapids\nMayor Robert Boelens and members of the Grand Rapids City Commission urging Federal\nrevenue sharing as an alternative to a local income tax increase.\nFord noted that the City Commission is considering an increase in the local\nincome tax in the event the State Legislature adopts a bill permitting Michigan\ncities to raise municipal income taxes from 1 per cent to a maximum of 2 per cent.\nFord pointed out that the City of Grand Rapids allocation under the Nixon\nAdministration's general revenue sharing plan would be $2,215,551. This, he said,\nwould come close to bridging Grand Rapids' unmet revenue needs for fiscal year 1972.\nSaid Ford: \"While the Grand Rapids revenue sharing allocation would not\ntotally bridge the dollar gap, it would go far toward doing it. It would seem\nentirely possible to effect some economies and thus obviate the need for a municipal\nincome tax increase.\"\nFord said prospects are \"bright\" for a compromise between the Nixon\nAdministration's revenue sharing bill and a proposal by House Ways and Means\nChairman Wilbur Mills, D-Ark. He declared there \"should be an area of reasonable and\nresponsible compromise.\"\nFord urged continued support by the Grand Rapids City Commission for Federal\nrevenue sharing.\n#####\n(The following is the text of the letter from Rep. Ford to Grand Rapids\nMayor Robert Boelens and members of the Grand Rapids City Commission.)\n\"I am deeply concerned about the pressure on state and local officials\nto raise taxes to meet mounting public service needs.\n\"It has come to my attention that the City Commission of Grand Rapids is\nconsidering an increase in the local income tax in the event that the\nState Legislature adopts a bill permitting Michigan cities to raise\nlocal income taxes from 1 per cent to a maximum of 2 per cent.\n\"We are all also aware that Governor Milliken has proposed an increase\nin state income taxes and that the Grand Rapids Press has proposed a\nCounty income tax in view of the property tax bind in which the County\nGovernment finds itself.\n\"This prompts me to point out that--in my view--sharing of Federal income\ntax revenue with the states and local units of government is the best\nanswer to the whole problem--the fiscal squeeze on the state and local\ngovernments and the growing tax burden on the local taxpayer.\n\"Federal revenue sharing is very much to be preferred to continued increases\nin state and local taxes. Revenue sharing would ease the pressure on state\nand local officials to constantly raise taxes or, on the other hand, to\ncut back services.\n\"Under the Nixon Administration's current plan to share roughly $5 billion\nin Federal revenue with the states and local units of government, Michigan\nwould get $229 million. Of that sum, the State would keep $128,883,405\nand the rest would go to local governments. Of the local allocations, the\nCity of Grand Rapids would receive $2,215,551, and the Kent County Govern-\nment would get $1,363,217.\n\"I note that City Manager Joseph Grassie has estimated municipal expenditures\nof $26.2 million for fiscal 1972, as against anticipated revenue of $22.5\nmillion. That leaves a gap of $3.7 million.\n\"While the Grand Rapids revenue sharing allocation would not totally bridge\nthe dollar gap, it would go far toward doing it. It would seem entirely\npossible to effect some economies and thus obviate the need for a municipal\nincome tax increase--in the event Federal revenue sharing were enacted by\nthe Congress.\n\"Your continuing support for revenue sharing is needed now more than ever.\nProspects have become bright for a compromise between President Nixon and\nthe Democratic leaders in the Congress. House Ways and Means Chairman\nWilbur Mills, the chief foe of the Administration bill, has come up with\na modified revenue sharing proposal, and Senate Majority Leader Mike\nMansfield has said he would like to see an \"accommodation\" between the\nAdministration and Mills. I share the view of Senator Mansfield that\nthere should be an area of reasonable and responsible compromise.\n\"Federal revenue sharing is the answer to steadily increasing needs for\nadditional state and local revenue. Your support for the Federal legislation\nis vital.\n/s/ Gerald R. Ford, M.C.\"\n11111\nU. S. HOUSE\nOF REPRESENTATIVES\nREPUBLICAN POLICY\nCOMMITTEE\nREP. JOHN J. RHODES, (R.-ARIZ.) CHAIRMAN\n1616 LONGWORTH HOUSE OFFICE BUILDING\nTELEPHONE 225-6168\n10\n92nd Congress\nOctober 5, 1971\nFirst Session\nStatement Number 11\nHOUSE REPUBLICAN POLICY COMMITTEE STATEMENT ON H.R. 10947,\nTHE REVENUE ACT OF 1971\nThe House Republican Policy Committee supports the passage of H.R. 10947,\nthe Revenue Act of 1971.\nOn August 15, President Nixon announced a comprehensive New Economic Policy\nto improve the domestic economy and protect the dollar abroad. Implementation of\nthe policy requires a series of interrelated actions, one of the most critical of\nwhich is Congressional passage of tax adjustments encompassed by H.R. 10947. The\nbill provides a balanced program of tax reductions for individuals and tax\nincentives for business.\nPrincipal provisions of H.R. 10947 are:\n1) The repeal of the manufacturer's excise tax on automobiles and\nsmall trucks;\n2) a 7% job development investment credit for machinery and equipment.\nDuring the period of the temporary import surcharge the credit\nwould be generally inapplicable to foreign produced goods;\n3) acceleration of currently scheduled increases in the personal\nexemption and the standard deduction, elimination of the\nphaseout provisions currently applicable to the low income\nallowance, and an increase in the low income allowance to $1300; and\n4) tax deferral for export income of domestic international sales\ncorporations.\n(over)\n-2-\nThe tax reductions are sufficient to bolster the Nation's economy,\nincrease production and provide additional jobs. The inflationary effect of\nthe tax reductions will be offset, if the other provisions of the President's\nNew Economic Policy are adopted by the Congress. If we are to achieve these\nobjectives, passage of H.R. 10947, the Revenue Act of 1971, is essential.\nThe House Republican Policy Committee wholeheartedly supports\nPresident Nixon's efforts to bring prosperity without war. We urge the passage\nof H.R. 10947.\nU. S. HOUSE\nOF REPRESENTATIVES\nREPUBLICAN POLICY\nCOMMITTEE\n1616 LONGWORTH HOUSE OFFICE BUILDING\nTELEPHONE 225-6168\nREP. JOHN J. RHODES, (R.-ARIZ.) CHAIRMAN\n10\n92nd Congress\nOctober 5, 1971\nFirst Session\nStatement Number 11\nHOUSE REPUBLICAN POLICY COMMITTEE STATEMENT ON H.R. 10947,\nTHE REVENUE ACT OF 1971\nThe House Republican Policy Committee supports the passage of H.R. 10947,\nthe Revenue Act of 1971.\nOn August 15, President Nixon announced a comprehensive New Economic Policy\nto improve the domestic economy and protect the dollar abroad. Implementation of\nthe policy requires a series of interrelated actions, one of the most critical of\nwhich is Congressional passage of tax adjustments encompassed by H.R. 10947. The\nbill provides a balanced program of tax reductions for individuals and tax\nincentives for business.\nPrincipal provisions of H.R. 10947 are:\n1) The repeal of the manufacturer's excise tax on automobiles and\nsmall trucks;\n2) a 7% job development investment credit for machinery and equipment.\nDuring the period of the temporary import surcharge the credit\nwould be generally inapplicable to foreign produced goods;\n3) acceleration of currently scheduled increases in the personal\nexemption and the standard deduction, elimination of the\nphaseout provisions currently applicable to the low income\nallowance, and an increase in the low income allowance to $1300; and\n4) tax deferral for export income of domestic international sales\ncorporations.\n(over)\n-2-\nThe tax reductions are sufficient to bolster the Nation's economy,\nincrease production and provide additional jobs. The inflationary effect of\nthe tax reductions will be offset, if the other provisions of the President's\nNew Economic Policy are adopted by the Congress. If we are to achieve these\nobjectives, passage of H.R. 10947, the Revenue Act of 1971, is essential.\nThe House Republican Policy Committee wholeheartedly supports\nPresident Nixon's efforts to bring prosperity without war. We urge the passage\nof H.R. 10947.\nU. S. HOUSE\nOF REPRESENTATIVES\nREPUBLICAN POLICY COMMITTEE\nREP. JOHN J. RHODES, (R.-ARIZ.) CHAIRMAN\n1616 LONGWORTH HOUSE OFFICE BUILDING\nTELEPHONE 225-6168\n10\n92nd Congress\nMay 2, 1972\nSecond Session\nStatement Number 5\nHOUSE REPUBLICAN POLICY COMMITTEE STATEMENT ON H.R. 14370,\nTHE STATE AND LOCAL FISCAL ASSISTANCE ACT OF 1972\n\"We propose the sharing of federal\nrevenues with state governments.\"\n1968 Republican Platform\nThe House Republican Policy Committee supports the passage of H.R. 14370,\nwhich responds to President Nixon's initiative to revitalize state and local\ngovernment through a program of general revenue sharing.\nOn February 4, 1971, President Nixon, recognizing the critical need to\nrestore fiscal balance to the federal system and to strengthen state and local\ngovernments, proposed that the federal government share a portion of its revenue\nwith states and communities. H.R. 14370, as reported by the House Ways and Means\nCommittee, conforms to the general revenue sharing proposal of the President. It\nprovides for the sharing of federal tax revenues in a way that will mitigate the\nparalyzing fiscal crises of state and local governments and enable citizens to\nhave a more direct control of expenditures.\nH.R. 14370 provides both an authorization and an appropriation for a five-\nyear general revenue sharing program, beginning January 1, 1972, whereby $29.6\nbillion will be allocated among state and local governments. In the first year\nof its operation the states will divide $1.8 billion, the distribution to increase\n(over)\n-2-\nin subsequent years to $3.0 billion in the last year of the program. The local\ngovernments will receive $3.5 billion in 1972 and in each of four succeeding\nyears. The states' share is made available on a \"no strings attached\" basis; the\nlocal governments' share will be allocated for specific high-priority expenditures:\npublic safety, environmental protection and public transportation.\nHalf of the states' share will be distributed on the basis of overall\nrevenue effort (total state and local taxes as a percentage of personal income\nwithin the state) ; the other half of the states' share will be distributed on the\nbasis of their income tax collections is (subject to a floor and a ceiling based on\nfederal income tax collections within the state). One-third of the share for\nlocal governments will be allocated among the states on the basis of population,\none-third on the basis of urbanized population, and one-third on the basis of\nrelative per capita income. The local share will be distributed among localities\nwithin the state initially in accordance with the same criteria, with the states\nhaving latitude to modify the criteria slightly after the first year and one-half.\nProvision is made by H.R. 14370 for the federal collection of state\nindividual income taxes after January 1, 1974, at the election of the state, and\nif at least five states, representing at least five percent of state individual\nincome tax returns, elect such service.\nH.R. 14370 provides the means best calculated to use the efficiency in\ncollecting revenue of the federal government to reinforce the advantages of de-\ncentralized government. Federal revenue sharing provides additional funds so\ndesperately needed by states and local communities; it permits fiscal flexibility\nand encourages policy innovation. The State and Local Fiscal Assistance Act\nof 1972 is landmark legislation and we urge its passage.\n01111\nU. S. HOUSE\nOF REPRESENTATIVES\nREPUBLICAN POLICY\nCOMMITTEE\nREP. JOHN J. RHODES, (R.-ARIZ.) CHAIRMAN\n1616 LONGWORTH HOUSE OFFICE BUILDING\nTELEPHONE 225-6168\n10\n92nd Congress\nMay 2, 1972\nSecond Session\nStatement Number 5\nHOUSE REPUBLICAN POLICY COMMITTEE STATEMENT ON H.R. 14370,\nTHE STATE AND LOCAL FISCAL ASSISTANCE ACT OF 1972\n\"We propose the sharing of federal\nrevenues with state governments.\"\n1968 Republican Platform\nThe House Republican Policy Committee supports the passage of H.R. 14370,\nwhich responds to President Nixon's initiative to revitalize state and local\ngovernment through a program of general revenue sharing.\nOn February 4, 1971, President Nixon, recognizing the critical need to\nrestore fiscal balance to the federal system and to strengthen state and local\ngovernments, proposed that the federal government share a portion of its revenue\nwith states and communities. H.R. 14370, as reported by the House Ways and Means\nCommittee, conforms to the general revenue sharing proposal of the President. It\nprovides for the sharing of federal tax revenues in a way that will mitigate the\nparalyzing fiscal crises of state and local governments and enable citizens to\nhave a more direct control of expenditures.\nH.R. 14370 provides both an authorization and an appropriation for a five-\nyear general revenue sharing program, beginning January 1, 1972, whereby $29.6\nbillion will be allocated among state and local governments. In the first year\nof its operation the states will divide $1.8 billion, the distribution to increase\n(over)\n-2-\nin subsequent years to $3.0 billion in the last year of the program. The local\ngovernments will receive $3.5 billion in 1972 and in each of four succeeding\nyears. The states' share is made available on a \"no strings attached\" basis; the\nlocal governments' share will be allocated for specific high-priority expenditures:\npublic safety, environmental protection and public transportation.\nHalf of the states' share will be distributed on the basis of overall\nrevenue effort (total state and local taxes as a percentage of personal income\nwithin the state); the other half of the states' share will be distributed on the\nbasis of their income tax collections is (subject to a floor and a ceiling based on\nfederal income tax collections within the state). One-third of the share for\nlocal governments will be allocated among the states on the basis of population,\none-third on the basis of urbanized population, and one-third on the basis of\nrelative per capita income. The local share will be distributed among localities\nwithin the state initially in accordance with the same criteria, with the states\nhaving latitude to modify the criteria slightly after the first year and one-half.\nProvision is made by H.R. 14370 for the federal collection of state\nindividual income taxes after January 1, 1974, at the election of the state, and\nif at least five states, representing at least five percent of state individual\nincome tax returns, elect such service.\nH.R. 14370 provides the means best calculated to use the efficiency in\ncollecting revenue of the federal government to reinforce the advantages of de-\ncentralized government. Federal revenue sharing provides additional funds so\ndesperately needed by states and local communities; it permits fiscal flexibility\nand encourages policy innovation. The State and Local Fiscal Assistance Act\nof 1972 is landmark legislation and we urge its passage.\nDistributed to Galleries only\nQ Office Copy\nCONGRESSMAN\nNEWS\nGERALD R. FORD\nHOUSE REPUBLICAN LEADER\nRELEASE\nJune 22, 1972\nRor Release Upon Passage of the Federal Revenue Sharing Act\nIn approving Federal revenue sharing, the House has passed a sorely-needed\nlocal tax relief bill. This is a great day for the American people.\nThis legislation, originally proposed by President Nixon, will materially\nassist our financially hard-pressed states and local units of government. This\nwill relieve the pressure for increases in state and local taxes. The local\ntaxpayer will benefit.\nRevenue sharing is a revolutionary new way to attack the problems of our\ncities. It will provide our cities with a fresh source of broad-purpose funds\nthat can be used to fulfill their most urgent needs.\nIf the Senate does not pass this legislation this year, it will be derelict\nin its duty.\n###\nCONGRESSMAN\nNEWS\nGERALD R. FORD\nHOUSE REPUBLICAN LEADER\nRELEASE\nJune 22, 1972\nRor Release Upon Passage of the Federal Revenue Sharing Act\nIn approving Federal revenue sharing, the House has passed a sorely-needed\nlocal tax relief bill. This is a great day for the American people.\nThis legislation, originally proposed by President Nixon, will materially\nassist our financially hard-pressed states and local units of government. This\nwill relieve the pressure for increases in state and local taxes. The local\ntaxpayer will benefit.\nRevenue sharing is a revolutionary new way to attack the problems of our\ncities. It will provide our cities with a fresh source of broad-purpose funds\nthat can be used to fulfill their most urgent needs.\nIf the Senate does not pass this legislation this year, it will be derelict\nin its duty.\n###"
}