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White House - Congressional Leadership Meeting, 4/22/69 (includes minutes and Ford notes)
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White House - Congressional Leadership Meeting, 4/22/69 (includes minutes and Ford notes)
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Robert T. Hartmann Papers
House of Representatives Subject Files
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Korea (North)
U.S. Postal Service. 7/1/1971-
Common situs picketing
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These documents were scanned from Box 106 of the Robert T. Hartmann Papers at the Gerald R. Ford Presidential Library.
CONGRESSIONAL LEADERSHIP AGENDA
April 22, 1969
8:30 - 8:50 a.m.
I. Situs Picketing Testimony
Walker
8:50 - 9:10 a.m.
II. Tax Reform Message and Legislation
16
9:10 - 9:25 a.m.
month Rw.sh.
III. Elementary and Secondary Education
Act Amendments
TM
9:25 - 9:45 a.m. $600 million
loss of IV. Postal Rates Increase Message
9:45 - 10:00 a.m.
V. Organized Q Crime Message - Widnesday
2
Obsentity Narcotics
1/20 Rachetinary office
3
u) Federaly state
4
Rights facemol c/25
muchet squado,
million
more,
(double any)
d) full franking
8 Low Enfact
")Witness community
f) ands against public
official incurred.
g) Procedure address
LJ ante - trust.
LIBRARY GERALD ? FORD
DIARY OF WHITE HOUSE LEADERSHIP
MEETINGS -- 91st CONGRESS
April 22, 1969
All stood as the President entered at 8:37 a.m. Shultz
was asked to discuss situs picketing testimony scheduled
later this morning. RMN reminded the group that Secretary
Mitchell had supported such legislation and that in 1967,
Ford and Goodell had introduced a bill as an alternative
to the Thompson bill. RMN described his position as
"gingerly." He is committed to legislation but feels
strongly the need for responsible safeguards.
Shultz said that labor is split on the issue. Unions pre-
paring prefab materials are afraid that situs picketing will
exclude prefab materials from work sites. The testimony
will oppose the Thompson bill but will suggest principles
and safeguards which should be written into any legislation
reported by the Committee. He listed 5 such safeguards.
I missed the first. The second was that the federal laws
should not disturb the state law with respect to sub-
contractors. The third was the rise of off-site union
workers should be protected. Ford asked if this was
intended to reverse the Philadelphia case upholding product
boycotts. The fourth authorizes the issuance of injunctions
as well as damages as a remedy when the no-strike claim
in a valid contract has been vaolated. The fifth requires a
7-day notice before picketing and limits picketing to 15 days.
Dirksen, obsiously intensely emotional, described situs
picketing as "immoral." He says legislation cannot be
written which does not penalize independent, innocent
employers. He says that he is against the Thompson bill
and any variation of it.
Ford observed that some answer for the product boycott
problem presented by the Philadelphia case must be found
the housing problem to which Rommay makes reference is
GERALD LIBRUST R. FORD
2
to be solved. RMN said that he regarded Secretary
Shultz's position as a responsible position and said
that it would have his full support. Rhodes recalled
that he introduced this legislation in the Eisenhower
Administration at the request of the Administration.
Since then, he says that the success the building
trades unions have enjoyed is the best evidence that
they did not need the legislation. Shultz said that
the Davis-Bacon (prevailing wage) Law tends to inflate
the wage structure and some consideration should be
given to amending it to make it operative only when
employment rises above 6%.
Arends expressed the hope that we would not have to
deal this year with legislation which will surely divide
the Republicans in the House. Javits said that "we
have promised the building trades unions" Republican
support. Dirksen interrupted angrily, "Who is we"?
Tavits hastened to say that he did not mean that all
Republicans had done so, but he said that an endorse-
ment of common situs picketing is in the Platform. He
said that it is important to persuade some labor unions
to support Republicans if we expect to capture control
of either House of Congress. Ayres, ranking Committee
member, and Quie said that they favored the Mitchell
position and would be obliged to support the Thompson
bill. Allott said that he would like to make 3 points:
1) Republicans as such have not promised this legisla-
tion to anyone; 2) instead of enlarging, we should be
considering restricting the power of the unions; and 3)
no legislation in this field can be written which avoids
a burden upon the innocent, independent employers on
site.
RMN complimented Shultz on the handling of his Job
Corps testimony recently. Dirksen concluded by telling
the President that if he is going to insist upon this legisla-
tion, he should also get us a new Supreme Court. RMN
FORGO i LIBRARY GERALD
3
said, "Give us time." Mrs. Smith announced that she
would make a Floor speech today to the effect that the
objectives of the Job Corps have been good but that
the administration has been "outrageous." For that
reason, she supports the President.
Turning to the next subject, Walker reviewed yesterday's
message on tax reform. Anderson inquired why interest
on tax exempt bonds was not included in the 50% limi-
tation. Walker replied that the fear was that it would
impair federal-state relations. RMN echood that senti-
ment. Cramer asked about capital gains treatment.
Walker said that it was not included in what they call
LTP (limitation of tax preference) but is covered in other
areas of the legislation about whichine will testify later
today. Morton akked if this treatment would not encourage
money to flow into tax free municipals. He expressed
concern about the political consequences. I asked if
the 2 million householders who would be removed from
the tax rolls would first be exempt from withholding.
The answer was affirmative. In reply to a question,
Walker said that every $100 increase in the personal
exemption (an alternative considered before the message
was le livered) would cost $1.5 billion in revenue loss.
Moreower, this approach tends to favor the big taxpayer
more than the little taxpayer. Taft asked if the effective
date of the repeal of the 7% investment tax credit should
not be adjusted in such manner as to give fair treatment
to business concerns which have been contemplating
capital investment. Cramer asked for details on comments
in the message concerning revenue sharing and tax credit
for social program incentives for corporations. The teply
was that details have not been worked out. RMN indicated
that the program would follow the concept of the Prouty
Human Investment Act. Dirksen said that the tax program
was will balanced but that he hated to see the door closed
so suddenly on the 7% investment tax credit. Byrnes said
that he was pleased with the press and public reaction to
GERALD LIBRARY FORD
4
the message but suggested that the Department remain
flexible in order that it might adjust gracefully to demands
as Committee consideration procedes. The suggestion
seemed well taken. Senator Williams said that the overall
package was "good," although he did not agree in every
detail.
Turning to the next subject, Finch sketched the reasons
justifying the Republican amendment cutting the 5-year
extension of ESEA back to 2 years. He also discussed
Republican amendments for consolidation of categorical
programs, the bloc-grant concept and impacted area grants.
He said that Mrs. Green intends to attempt a compromise
at 3 years. This, he said, is as bad as 5. Obviously,
Perkins' purpose is to project the program beyond what he
hopes will be a single-term Republican Administration.
Ford reported a Whip check shows 165 for the Amendment;
a against; 14 undecided and 8 absent. This means that we
will need approximately 35 Democratic votes to win. Tuie
said that Mrs. Green plans to offer an amendment repealing
a clause in the present law which requires that Title I
grants obtain Community Action Program approval.
Ford said that there should be no Party position on impacted
aid. Any effort to make one would splinter the forces on the
other amendments. Prouty and Javits inquired if the Com-
mittee bill contains the amendment authorizing impacted aid
to areas containing public housing. The answer was affirma-
tive.
John Mitchell outlined the message on organized crime
expected tomorrow. At the concluston of his summary, the
President asked me what I felt about it. Isaid, "I have
never heard the Attorney General make any presentation
which I thought anyone could improve upon." McCulloch
said that he thought it was the best program that had been
presented in the crime control field. Hruska agreed and
expressed optimism for the legislative prospects in the
Senate.
GERALD FORD LIBRARY
A
5
We concluded with Nixon's summary on the crime program.
He emphasized that the American people are primarily
interested in three things, viz, stopping crime, stopping
increases in taxes and inflation; and stopping the war.
He asked the leaders to emphasize that the President is
backing the Attorney General; that the Attorney General
has a new team; that the new team has new attitudes and
new determination; that appointments to the Federal Bench
already made and to be made will have the effect of chang-
ing judicial policies in the field of law enforcement (not
hanging judges but strict, fair judges); and that the new
program was being fully funded (the Department of Justice
is the only agency that was not out in the Nixon budget
review, but rather, was increased).
The President introduced Blount to explain the postal rates
increase message. I was obliged to leave at this point to
attend Committee, which has Electoral College reform under
consideration.
RICHARD H. POFF
FOR IMMEDIATE RELEASE
APRIL 22, 1969
OFFICE OF THE WHITE HOUSE PRESS SECRETARY
THE WHITE HOUSE
PRESS CONFERENCE
OF
SENATOR EVERETT MCKINLEY DIRKSEN,
CONGRESSMAN GERALD R. FORD, AND
RON ZIEGLER, PRESS SECRETARY TO THE PRESIDENT
AT 11:03 A.M. EST
MR. ZIFGLER: Ladies and gentlemen, the Leadership
meeting began at about 8:40 and has just concluded. Senator
Dirksen and Congressman Ford are here to give you a report
on that meeting.
Senator?
SENATOR DIRKSEN: It was a long and fruitful meeting.
We talked about situs picketing, about education, about
organized crime, about tax reform, and we had some discussion
of the present status on the Korea matter.
I think with reference to the latter, I need only
observe to you that, number one, our naval vessels are out
there; number two, the reconnaissance flights have been
ordered to continue. Whether they are actually on their
way, I can't say, but they have been ordered to continue.
They will be afforded fighter protection and insofar as
any action on our part is concerned, probably the only
thing that need be said is the traditional one: That
this country only warns once. I don't think I need say
anything more about it.
Jerry, suppose you say something about the crime
proposals.
CONGRESSMAN FORD: The President is sending up
tomorrow a message on organized crime. It will provide
for more money, it will provide for more men, it will
fight against organized crime, it will provide for
some reorganization within the Department to make it
more effective in the battle against organized
crime, and it will be a very, very significent message aimed
at the worst element in crime in America.
Somebody quipped in the meeting that if they had
stock in the Mafia, they would sell it beginning tomorrow.
Therefore, with this message, and with three or four other
messages that will be following shortly on crime, I think
the President's commitments made during 1968 will be fully
carried out and will lead to some substantial progress
LIBERTY
in reducing the crime rate which is of deep interest to
all Americans.
MORE
(OVER)
- 2 -
SENATOR DIRKSEN: I need only add- to what
Congressman Ford has said by stating that there will be
extraordinary emphasis on the fact that the ill-gotten
gambling gains by the racketeers, which are estimated
at as much as $50 billion, and then go into seemingly
legitimate business, will be pursued with great vigor,
for in so doing, you can dry up those revenues and it
should be a tremendous diminution in crime.
Me had a very considerable discussion about
situs picketing. The Secretary of Labor is presently
testifying before the House Committee on Labor. As you
doubtless know, there has always been a difference of
opinion with respect to situs picketing, going back
to the time when the National Labor Pelations Board filed
an action against the Denver Building and Trades Council.
That wasin 1951. That went to the Supreme Court and
obviously the court sustained the position of the Labor Board.
From that day on it has been a matter of controversy,
even in union circles, because the horizontal unions and the
craft unions have not always been able to agree.
It was hoped, of course, that probably something
might be done in this field if you develop certain protective
safeguards. I am not prepared to say what those are. But
I presure that they will be developed in the course of the
Secretary's testimony.
Not the least of the items in this general picture,
of course, is this question of productive boycott. The
notable example, of course, is that Philadelphia Door case.
But that, too, will be ventilated and then I presume we will
have to see where we go from there in the face of this
controversy.
Jerry may want to say something about the educational
picture, because that is very much before the House.
CONGRESSMAN FORD: It certainly is, Senator.
The House will begin today the actual reading
of the bill for amendments in the area of elementary
and secondary education, including the impacted area
BERAID FORD LIBRARY
legislation.
The Republicans in the House, and I think with
substantial Democratic support, will seek to reduce the term
from five to two years. Me believe very strongly that
we shouldn't enact legislation which would pre-empt the new
Administration from making constructive recommendations
for revision of the Elementary and Secondarv Education Act.
If you have it for a five-vear term, as the
Majority Party proposes through their committee action, you
have essentially eliminated the opportunity for this
Administration to make constructive recommendations for changes
in the area of elementary and secondary education.
MORE
- 3 -
We also hope to approve a consolidation of
various education programs, NDEA programs and several
others, in the Elementary and Secondary Education Act,
so that you have a step forward in trying to have block
grants to give to local educators the opportunity to
decide for themselves within these four areas where
they want to put the emphasis with Federal dollars.
I am optimistic that the House will make these
several changes so that the new Administration will have
an opportunity to move forward, I think, constructively.
SENATOR DIPKSEN: Me discussed at some length
the President's Message on Tax Reform. You have heard
it said, I think from time to time, that there is a danger
of a tax rebellion in the country. It won't be necessary,
because the President has already demonstrated now, by
this message, and other reforms to follow, that he is
the leader of the tax crusade in the country so as
to do justice and treat all taxpayers fairly and get rid
of the tragic business of having people pay income taxes
who are in the low poverty brackets.
As you know from his message, it is anticipated
that about two million will be taken from the tax rolls.
Generally speaking, this tax package is in excellent
balance. One item that received a good deal of discussion,
of course, was the seven percent investment credit, and
for a very good reason. There probably are situations
where that seven percent credit was something of a lifesaver.
Now, this is not exactly a case in point because
that was authorized by the Transportation Department to
the Mass Transit Organization in South Chicago for the benefit
of the Illinois Central Railroad, but if it had been a tax-
payer, it would have been a case in point. But there you
had something. Here you do have over more than 200 railroad
cars that are more than 43 years old, that are lobbing
about 30,000 commuter passengers from the outskirts and
the suburbs into Chicago and back.
That involves health and safety and there you
might have a very justifiable case for an investment tax
credit. But we will have to see how this works out. But
in any event, this is a good start in the whole field of
tax reform and I think it is, in the main, a very well
balanced program.
ABVUSIT GERALD ? FORM
So the President deserves credit for becoming
the leader in this tax crusade for equity and fairness
to all classes of taxpayers.
CONGRESSMAN FORD: There was one other matter
that was discussed, and it will be in a message that will
come up either Thursday or Fridav. It is the President's
proposal for an increase in various rates for the Post
Office Department, first class, second class and third class.
MORE
(OVER)
- 4 -
This is pretty technical, but it will be reflected
in a message on either Thursday or Friday.
SENATOR DIRKSEN: Ouestions?
C
Senator Dirksen, you indicated that you think
the tax package is balanced, but you have also indicated some
reservations about the seven: percent investment credit tax.
If you take that out, the package is no longer in balance
is it?
SENATOR DIRKSEN: That doesn't mean that you can't
keep essentially your whole tax package. But the question
is are there some exceptions where special situations are
involved?
I don't believe anybody would want to jeopardize
the lives of a lot of people, as in the case of the
Illinois Central, with these rather archaic railroad cars.
Suppose they don't have any money in the till with which
to get cars, then what? Fortunately, that was worked out
in a different fashion. I haven't seen it mentioned too much,
but you see that loan didn't go to the Illinois Central
Railroad. It went to this Mass Transit Organization in
South Chicago.
Q
Is the Administration prepared, as you
understand it, to make exemptions and exceptions to the seven
percent?
SENATOR DIRKSEN: Definitely not. I am only thinking
in terms always of what can happen in either branch of
Congress, and I don't believe in surprises. No lawyer does.
Therefore, you always anticipate and at least you discuss them.
Q Are you going to propose some exceptions?
SENATOR DIRKSEN: I haven't the slightest idea and
I can't tell you off the top of my head. Maybe ves, maybe no.
2 Senator, do you think Congress this year will
make a start on the President's high priority program you
mentioned of sharing some of the Federal tax revenues with
States and cities?
LISTER GENALD in
SENATOR DIRKSEN: That was discussed very briefly,
because it is still in a fragmentary stage and the Treasury
has not completed its research on it.
Q Senator, what do you mean that we only warn
once?
SENATOR DIRKSEN: Exactly that. The note of protest
has been filed and I think it was crystal clear. I don't
think anybody can misjudge the temper of that note. We
have our vessels out there for whatever purpose they may
have to be there for. We are giving protection to these
reconnaissance flights.
Incidentally, there have been 190 of those flights
since the first of the vear. So there it is.
MORE
- 5 -
0
Senator, are you saying that we are going
to protect those flights which is obvious, from what the
President has said, or are you hinting that there might
be retaliatory strikes against North Korea?
SENATOR DIRKSEN: I didn't say a word about
retaliatory. I only said that the President said, where
all the world could hear, that these reconnaissance
flights would be afforded protection; period.
2
Senator, have the reconnaissance flights,
indeed, resumed?
SENATOR DIRKSEN: I don't know. They have been
ordered resumed.
0
Senator, what would you sav would be the
proper and necessary way in which the North Koreans must
respond to our protests?
SENATOR DIRKSEN: I don't speculate on that for a
moment.
C
What if there is no response?
SENATOR DIRKSEN: I don't quite know the temper
of the North Korean mind.
a
Senator, the President described the resumption
of the flights as an interim response. was there any
discussion this morning of what might be the ultimate response?
SENATOR DIRKSEN: No, sir.
MORE
LIBRARY GERALD FORD
(CVER)
- 6 -
Q
Congressman, could you tell us about the
reaction of the tax reform proposals in the House and whether
you think the Democratic tax reform is going to be
satisfied
or push forward with reforms now?
CONGRESSMAN FORD: Because the President grabbed
the ball and came up with certain specific recommendations --
let me point out again this is the first President in my 20-
plus years who has really advocated specific tax reforms.
I think the public as well as the House will
respond. This doesn't mean that in the area of details that
the Committee and the Congress will be in total agreement.
But the format has been laid out for a well-balanced
tax reform message.
Incidentally, on the investment tax credit,
it was included simply because in the area of investment
for plant and equipment, there has been a tremendous
upsurge of some 14 percent.
If you are going to really carry out a balanced
effort to try and reduce the cost of living, you have to
take some action in this broad area.
We had nearly a 5 percent increase in the cost of
living in 1968. It hasn't slowed down because the momentum
was generated in 1968. There has to be some firm,
effective action in this area, along with other areas, if
we are going to dampen the thirst of inflation and this is a
necessary ingredient in any tax reform message.
Q
Are you prepared to entertain some exceptions
to the 7 percent repeal?
CONGRESSMAN FORD: Speaking for myself, I think
the Pres dent's request, as it came up, for it to be
effective as of yesterday, with no exceptions is the
right approach. But I would not preempt the action of the
Committee on Ways and Means or the House as a whole or
the Senate in this particular area.
I think under the circumstances, the across-the-
board approach was the only equitable way it could be done.
C:
Beyond the Organized Crime and the Postal
Message, what other messages can we anticipate in
the next few days?
LIBERTY GERALD
CONGRESSMAN FORD: I would say in the area of
crime, you are going to have one on obscenity, you are going
to have a message involving the narcotics traffic area, and
you will probably have one on the rights of the accused.
These will be coming along within a relatively
short period of time.
Q
Is that in addition to a general crime message?
CONGRESSMAN FORD: No, the four are the crime
package, but they will come up individually with the Organized
Crime one coming tomorrow.
MORE
- 7 -
Q
There is some indication in the last few days
that if a vote were taken now in the Senate that the ABM
Safeguard proposal would not be approved.
Is that the way your votes count?
SENATOR DIRKSEN: No, sir.
THE PRESS: Thank you.
END
(AT 11:20 A.M. EST)
LIBRARY GERALD R. 1040
1.
HOUSE ACTION
PERIOD April 14 through 21, 1969
Wednesday, April 16, 1969 - Mail Service for Mrs. Eisenhower
The House by voice vote passed H.R. 10158, to provide mail service for the
widow of former President Dwight D. Eisenhower.
Water Pollution Control Act
The House passed by roll call vote of 392 yeas to 1 nay H. R. 4148, amending
the Federal Water Pollution Control Act. The House agreed by voice
vote to three committee amendments.
SUSPENSIONS
Monday, April 21, 1969
The House passed by voice vote under suspension of rules, the following Bills:
1. H. R. 8794, to extend for 1 year the National Council on Marine
Resources and Engineering Development.
2. H. R. 8434, to provide additional free letter mail and air trans-
portation mailing privileges for certain members of the U. S.
Armed Forces.
The House adopted H. Res. 366, the rule providing 4 hours debate under open
rule, H. R. 514, Elementary and Secondary Education Act of 1969. The
rule waived points of order against lines 10 through 15 on page 13, and
lines 6 through 16 on page 20.
Tuesday and Balance of Week
Complete consideration of H. R. 514
FORD
SUGGESTED REMARKS: SENATOR DIRKSEN, CONGRESSMAN FORD
ORGANIZED CRIME
Gentlemen, the last ten years have been the salad
days for organized crime in this country. The "take" from
illegal gambling alone is estimated at something like
$50,000,000,000 a year. Well, if the legislation the
President was talking about passes, the salad days of
organized crime are over. He is proposing the most far-
reaching comprehensive program against organized crime I
have ever seen. It raised the elimination of organized crime
to the level of a national goal. It will give the Justice
Department jurisdiction to strike at every gambling enterprise
of organized crime -- anywhere in the country. The President
is going to ask for new men, new money, new laws and a
new determination on the part of covernment and the American
people to root this poisonous seed out of American society.
After hearing an outline of the President's proposals; if
I had any stock in the Mafia, I'd sell it.
Buchanan
FORD & LIBRARY CERALO
NORTH KOREA
The President has acted as the President of the
World's Greatest Power should act when his nation was
affronted in this manner by the regime currently ruling North
Korea.
First, he has moved to guarantee the security of the
more than 50,000 American troops in Korea by re-instituting
the surveillance flights on which their security depends.
Secondly, he has ordered them protected. Third, he has issued
an unmistakable message to the North Koreans; fourth, he has
spoken softly and moved a big stick into the Sea of Japan.
The crime committed here was nothing short of
deliberate murder by the regime that governs North Korea.
A slow-moving, unarmed and unprotected aircraft was shot down.
There is a temptation to strike back and strike hard at the
North Koreans themselves, but the result of this could well
have been more lost Americans; it could well have been to
give North Korea the excuse it was looking for to broaden
hostilities, and would not likely have injured at all the
handful of outlaws responsible for the crime.
The President has acted with prudence and restraint;
he has also acted to reinforce America's rights in the Sea of
Japan. North Korea and its allies can have no illusions now
as to the implications of any repetition of this outrage.
Buchanan
LIBRARY GERALD R. FORD
TAX REFORM
These historic tax reform proposals place the
President at the forefront of a taxpayers' crusade to make
the Federal tax system fair and responsive to the needs of
the next decade.
Many of the basic changes it suggests will be
controversial; many interest groups will have plenty to say
about it.
But by and large, the American people will applaud
this courageous, long-overdue step toward genuine equity in
our tax system.
Never in the course of recent American history have
so many been getting away with so much ---- now that's going to
end, and the taxpayers who can well afford to bear their
share of the burden will do SO.
At the same time, the hypocrisy of forcing those in
poverty to pay Federal taxes is going to end, too - and its
about time.
Tax policy is essentially a matter of setting
national priorities. The President weighed the investment tax
credit in the balance with the need for general across-the-
board tax relief - and tax relief had the priority.
These proposals, balanced as they are in their revenue
impact, are dramatic proof that the American taxpayer, at
long last, has a friend in the White House.
Safire
LIBRARY GERALD ? FORD
FOR RELEASE ON DELIVERY TO THE SENATE OR THE
APRIL 21, 1969
HOUSE OF REPRESENTATIVES AT 12 NOON EST
Office of the White House Press Secretary
THE WHITE HOUSE
TO THE CONGRESS OF THE UNITED STATES:
Reform of our Federal income tax system is long overdue. Special
preferences in the law permit far too many Americans to pay less than their
fair share of taxes. Too many other Americans bear too much of the tax
burden.
This Administration, working with the Congress, is determined to
bring equity to the Federal tax system. Our goal is to take important first
steps in tax reform legislation during this session of the Congress.
The economic overheating which has brought inflation into its fourth year
keeps us from moving immediately to reduce Federal tax revenues at this time.
Inflation is itself a tax a cruel and unjust tax that hits hardest those who
can least afford it. In order to "repeal" the tax of inflation, we are cutting
budget spending and have requested an extension of the income tax surcharge.
Although we must maintain total Federal revenues, there is no reason
why we cannot lighten the burden on those who pay too much, and increase the
taxes of those who pay too little. Treasury officials will present the Adminis-
tration's initial group of tax reform proposals to the Congress this week.
Additional recommendations will be made later in this session. The overall
program will be equitable and essentially neutral in its revenue impact. There
will be no substantial gain or loss in Federal revenue, but the American taxpayer
who carries more than his shareof the burden will gain some relief.
Much concern has been expressed because some citizens with incomes
of more than $200, 000 pay no Federal income taxes. These people are
neither tax dodgers nor tax cheats. Many of them pay no taxes because they
make large donations to worthy causes, donations which every taxpayer is
authorized by existing law to deduct from his income in figuring his tax bill.
But where we can prevent it by law, we must not permit our wealthiest
citizens to be 100% successful at tax avoidance. Nor should the Government
limit its tax reform only to apply to these relatively few extreme cases.
Preferences built into the law in the past some of which have either outlived
their usefulness or were never appropriate -- permit many thousands of
individuals and corporate taxpayers to avoid their fair share of Federal taxation.
A number of present tax preferences will be scaled down in the Admin-
istration's proposals to be submitted this week. Utilizing the revenue gained
from our present proposals, we suggest tax reductions for lower-income
taxpayers. Further study will be necessary before we can propose changes in
other preferences and as these are developed we will recommend them to the
Congress.
&
FORD
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Specifically, the Administration will recommend:
Enactment of what is in effect a "minimum income tax"
for citizens with substantial incomes by setting a 50%
limitation on the use of the principal tax preferences
which are subject to change by law.
This limit on tax preferences would be a major step
toward assuring that all Americans bear their fair
share of the Federal tax burden.
-- Enactment of a "low income allowance, " which will
remove more than 2, 000, 000 of our low income
families from the Federal tax rolls and assure that
persons or families in poverty pay no Federal income
taxes.
This provision will also benefit students and other young
people. For example, the person who works in the
summer or throughout the year and earns $1, 700 in
taxable income and now pays $117 in Federal income
taxes -- would pay nothing.
The married couple -- college students or otherwise --
with an income of $2, 300 and current taxes of $100 would
pay nothing.
A family of four would pay no tax on income below $3, 500 --
the cut-off now is $3,000.
The "low income allowance, if enacted by the Congress, will offer
genuine tax relief to the young, the elderly, the disadvantaged and the
handicapped.
Other tax reform proposals would also help workers who change
jobs by liberalizing deductions for moving expenses and would reduce
specific preferences in a number of areas:
taxpayers who have certain nontaxable income or other
preferences would have their non-business deductions
reduced proportionately.
certain mineral transactions (so-called "carved out"
mineral production payments and "ABC" transactions)
would be treated in a way that would stop artificial
creation of net operating losses in these industries.
-- exempt organizations, including private foundations,
would come under much stricter surveillance.
-- the rules affecting charitable deductions would be
tightened -- but only to screen out the unreasonable
and not stop those which help legitimate charities
and therefore the nation.
the practice of using multiple subsidiaries and
affiliated corporations to take undue advantage of
the lower tax rate on the first $25,000 of corporate
FORD is DERATO LIBRARY
income would be curbed.
farm losses, to be included in the "limitation on tax
preferences, " would be subject to certain other
restrictions in-order to curb abuses in this area,
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I also recommend that the Congress repeal the 7% investment tax
credit effective today.
This subsidy to business investment no longer has priority over other
pressing national needs.
In the early 60's, America's productive capacity needed prompt
modernization to enable it to compete with industry abroad. Accordingly,
Government gave high priority to providing tax incentives for this moderni-
zation.
Since that time, American business has invested close to $400 billion
in new plant and equipment, bringing the American economy to new levels of
productivity and efficiency. While a vigorous pace of capital formation will
certainly continue to be needed, national priorities now require that we give
attention to the need for general tax relief.
Repeal of the investment tax credit will permit relief to every taxpayer
through relaxation of the surcharge earlier than I had contemplated.
The revenue effect of the repeal of the investment tax credit will begin
to be significant during calendar year 1970. Therefore, I recommend that
investment tax credit repeal be accompanied by extension of the full surcharge
only to January 1, 1970, with a reduction to 5% on January 1. This is a
reappraisal of my earlier recommendation for continuance of the surcharge until June
30, 1970 at a 10% rate. If economic and fiscal conditions permit, we can look
forward to elimination of the remaining surtax on June 30, 1970.
I am convinced, however, that reduction of the surtax without repeal of
the investment tax credit would be imprudent.
The gradual increase in Federal revenues resulting from repeal of the
investment tax credit and the growth of the economy will also facilitate a start
during fiscal 1971 in fuding two high-priority programs to which this Admin-
istration is committed:
R.
Revenue sharing with State and local governments.
GERALD
GROA
Tax credits to encourage investment in poverty areas
and hiring and training of the hard-core unemployed.
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These proposals, now in preparation, will be transmitted to the Congress
in the near future.
The tax reform measures outlined earlier in this message will be
recommended to the House Ways and Means Committee by Treasury officials
this week. This is a broad and necessary program for tax reform. I urge
its prompt enactment.
But these measures, sweeping as they are, will not by themselves
transform the U.S. tax system into one adequate to the long-range future. Much
of the current tax system was devised in depression and shaped further in war.
Fairness calls for tax reform now; beyond that, the American people need
and deserve a simplified Federal tax system, and one that is attuned to the
1970's.
We must reform our tax structure to make it more equitable and efficient;
we must redirect our tax policy to make it more conducive to stable economic
growth and responsive to urgent social needs.
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That is a large order. Therefore, I am directing the Secretary
of the Treasury to thoroughly review the entire Federal tax system and
present to me recommendations for basic changes, along with a full
analysis of the impact of those changes, no later than November 30, 1969.
Since taxation affects so many wallets and pocketbooks, reform
proposals are bound to be controversial. In the debate to come on reform,
and in the even greater debate on redirection, the nation would best be
served by an avoidance of stereotyped reactions. One man's "loophole"
is another man's "incentive." Tax policy should not seek to "soak" any
group or give a "break" to any other -- it should aim to serve the nation
as a whole.
Tax dollars the Government deliberately waives should be viewed
as a form of expenditure, and weighed against the priority of other
expenditures. When the preference device provides more social benefit
than Government collection and spending, that "incentive" should be
expanded; when the preference is inefficient or subject to abuse, it
should be ended.
Taxes, often bewailed as inevitable as death, actually give life to
the people's purpose in having a Government: to provide protection,
service and stimulus to progress.
We shall never make taxation popular, but we can make taxation fair.
RICHARD NIXON
THE WHITE HOUSE,
April 21, 1969.
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FORD R. GERALO LIBRARY
FOR RELEASE AT 12 NOON, EST
April 23, 1969
Office of the White House Press Secretary
THE WHITE HOUSE
TO THE CONGRESS OF THE UNITED STATES:
Today, organized crime has deeply penetrated broad segments of
American life. In our great cities, it is operating prosperous criminal
cartels. In our suburban areas and smaller cities, it is expanding its
corrosive influence. Its economic base is principally derived from its
virtual monopoly of illegal gambling, the numbers racket, and the
importation of narcotics. To a large degree, it underwrites the loan
sharking business in the United States and actively participates in
fraudulent bankruptcies. It encourages street crime by inducing nar-
cotic addicts to mug and rob. It encourages housebreaking and burglary
by providing efficient disposal methods for stolen goods. It quietly
continues to infiltrate and corrupt organized labor. It is increasing its
enormous holdings and influence in the world of legitimate business.
To achieve his end, the organized criminal relies on physical terror
and psychological intimidation, on economic retaliation and political
bribery, on citizen indifference and governmental acquiescence. He
corrupts our governing institutions and subverts our democratic
processes. For him, the moral and legal subversion of our society is
a life-long and lucrative profession.
Many decent Americans contribute regularly, voluntarily and
unwittingly to the coffers of organized crime -- the suburban house-
wife and the city slum dweller who place a twenty-five cent numbers
bet; the bricklayer and college student who buy a football card; the
businessman and the secretary who bet illegally on a horse.
Estimates of the "take" from illegal gambling alone in the United
States run anywhere from $20 billion, which is over 2% of the nation's gross
national product, to $50 billion, a figure larger than the entire federal
administrative budget for fiscal year 1951. This wealth is but one yardstick
of the economic and political power held by the leaders of organized crime
who operate with little limitation or restriction within our society.
Organized crime's victims range all across the social spectrum --
the middle-class businessman enticed into paying usurious loan rates;
the small merchant required to pay protection money; the white suburbanite
and the black city dweller destroying themselves with drugs; the elderly
pensioner and the young married couple forced to pay higher prices for
goods. The most tragic victims, of course, are the poor whose lack of
financial resources, education and acceptable living standards frequently
breed the kind of resentment and hopelessness that make illegal gambling
and drugs an attractive escape from the bleakness of ghetto life.
R.
BACKGROUND
GERALD
LISRARY
For two decades now, since the Attorney General's Conference on
Organized Crime in 1950, the Federal effort has slowly increased. Many
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of the nation's most notorious racketeers have been imprisoned or
deported and many local organized crime business operations have been
eliminated, But these successes have not substantially impeded the
growth and power of organized criminal syndicates. Not a single
one of the 24 Cosa Nostra families has been destroyed. They are more
firmly entrenched and more secure than ever before.
It is vitally important that Americans see this alien organization
for what it really is a totalitarian and closed society operating within
an open and democratic one. It has succeeded so far because an
apathetic public is not aware of the threat it poses to American life.
This public apathy has permitted most organized criminals to escape
prosecution by corrupting officials, by intimidating witnesses and by
terrorizing victims into silence.
As a matter of national "public policy, " I must warn our citizens that
the threat of organized crime cannot be ignored or tolerated any longer.
It will not be eliminated by loud voices and good intentions. It will be
eliminated by carefully conceived, well-funded and well-executed
action plans. Furthermore, our action plans against organized crime
must be established on a long-term basis in order to relentlessly
pursue the criminal syndicate. This goal will not be easily attained.
Over many decades, organized crime has extended its roots deep into
American society and they will not be easily extracted. Our success will
first depend on the support of our citizens who must be informed of the
dangers that organized crime poses. Success also will require the
help of Congress and of the State and local governments.
This Administration is urgently aware of the need for extraordinary
action and I have already taken several significant steps aimed at com-
bating organized crime. I have pledged an unstinting commitment, with
an unprecedented amount of money, manpower and other resources to
back up my promise to attack organized crime. For example -- I have
authorized the Attorney General to engage in wiretapping of organized
racketeers. I have authorized the Attorney General to establish 20 Federal
racketeering field offices all across the nation. I have authorized the
Attorney General to establish a unique Federal-State Racket Squad in
New York City. I have asked all Federal agencies to cooperate with the
Department of Justice in this effort and to give priority to the organized
crime drive. I have asked the Congress to increase the fiscal 1970
budget by $25 million, which will roughly double present expenditures
for the organized crime effort.
In addition, I have asked the Congress to approve a $300 million
appropriation in the 1970 budget for the Law Enforcement Assistance
Administration. Most of these funds will go in block grants to help State
and local law enforcement programs and a substantial portion of this
assistance money will be utilized to fight organized crime. I have had
discussions with the State Attorneys General and I have authorized the
Attorney General to cooperate fully with the States and local communities
in this national effort, and to extend help to them with every means at his
disposal. Finally, I have directed the Attorney General to mount our
Federal anti-organized crime offensive and to coordinate the Federal
effort with State and local efforts where possible.
GERAL R. FORD ARTICLES
ASSISTANCE TO STATES AND LOCAL GOVERNMENTS
Through the Law Enforcement Assistance Administration, and other
units of the Department of Justice, the Attorney General has already
taken some initial steps:
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1) A program is being established so that State and local law
enforcement people can exchange recent knowledge on the most effective
tactics to use against organized crime at the local level.
2) The Justice Department is furnishing technical assistance and
financial help in the training of investigators, prosecutors, intelligence
analysts, accountants, statisticians the professional people needed to
combat a spphisticated form of criminal activity.
3) The Justice Department is encouraging municipalities and States
to reexamine their own laws in the organized crime area. We are also
encouraging and assisting in the formation of State-wide organized crime
investigating and prosecuting units.
4) A computerized organized crime intelligence system is being
developed to house detailed information on the personalities and activities
of organized crime nationally. This system will also serve as a model
for State computer intelligence systems which will be partially funded by
the Federal Government.
5) We are fostering cooperation and coordination between States and
between communities to avoid a costly duplication of effort and expense.
6) We are providing Federal aid for both State and local public
information programs designed to alert the people to the nature and
scope of organized crime activity in their communities.
These actions are being taken now. But the current level of Federal
activity must be dramatically increased, if we expect progress. More
men and money, new administrative actions, and new legal authority
are needed.
EXPANDED BUDGET
There is no old law or new law that will be useful without the
necessary manpower for enforcement. I am therefore, as stated,
asking Congress to increase the Fiscal Year 1970 budget for dealing
with organized crime by $25 million. This will roughly double the
amount spent in the fight against organized crime during Fiscal Year
1969, and will bring the total Federal expenditures for the campaign
against organized crime to the unprecedented total of $61 million. I
urge Congress to approve our request for these vital funds.
REORGANIZATION OF THE CRIME EFFORT
I have directed the newly appointed Advisory Council on Executive
Organization to examine the effectiveness of the Executive Branch in
combating crime -- in particular organized crime.
Because many departments and agencies of the Executive Branch
are involved in the organized crime effort, I believe we can make
lasting improvement only if we view this matter in the full context of
executive operations.
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FEDERAL RACKETEERING FIELD OFFICES
The focal center of the Federal effort against organized crime is the
Department of Justice, It coordinates the efforts of all of the Federal
agencies. To combine in one cohesive unit a cadre of experienced
Federal investigators and prosecutors, to maintain a Federal presence
in organized crime problem areas throughout the nation on a continuing
basis, and to institutionalize and utilize the valuable experience that
has been gained by the "Strike Forces" under the direction of the Department
of Justice, the Attorney General has now established Federal Racketeering
Field Offices in Boston, Brooklyn, Buffalo, Chicago, Detroit, Miami,
Newark, and Philadelphia. These offices bring together, in cohesive
single units, experienced prosecutors from the Justice Department, Special
Agents of the FBI, investigators of the Bureau of Narcotics and Dangerous
Drugs, the finest staff personnel from the Bureau of Customs, the
Securities and Exchange Commission, the Internal Revenue Service, the
Post Office, the Secret Service and other Federal offices with expertise
in diverse areas of organized crime.
The Racketeering Field Offices will be able to throw a tight net of
Federal law around an organized crime concentration and through large
scale target investigations, we believe we can obtain the prosecutions
that will imprison the leaders, paralyze the administrators, frighten
the street workers and, eventually, paralyze the whole organized
crime syndicate in any one particular city. The Attorney General plans
to set up at least a dozen additional field offices within the next two years.
FEDERAL-STATE RACKET SQUAD
Investigations of the national crime syndicate, La Cosa Nostra,
show its membership at some 5, 000, divided into 24 "families" around
the nation. In most cities organized crime activity is dominated by a
single "family"; in New York City, however, the lucrative franchise is
divided among five such "families.'
To deal with this heavy concentration of criminal elements in the
nation's largest city, a new Federal-State Racket Squad is being established
in the Southern District of New York. It will include attorneys and investi-
gators from the Justice Department as well as from New York State and city.
This squad will be directed by the Department of Justice, in conjunction with
a supervisory council of officials from State and local participating agencies,
who will formulate policy, devise strategy and oversee tactical operations.
Building on the experience of this special Federal-State Racket Squad,
the Attorney General will be working with State and local authorities
in other major problem areas to determine whether this concept of
governmental partnership should be expanded to those areas through the
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formation of additional squads.
OFFICE
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NEW LEGISLATION
From his studies in recent weeks, the Attorney General has concluded
that new weapons and tools are needed to enable the Federal government to
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strike both at the Cosa Nostra hierarchy and the sources of revenue that
feed the coffers of organized crime. Accordingly the Attorney General
will ask Congress for new laws, and I urge Congress to act swiftly and
favorably on the Attorney General's request.
Witness Immunity
First, we need a new broad general witness immunity law to cover
all cases involving the violation of a Federal statute. I commend to the
Congress for its consideration the recommendations of the National
Commission on Reform of Federal Criminal Laws. Under the Commission's
proposal, a witness could not be prosecuted on the basis of anything he said
while testifying, but he would not be immune from prosecution based on
other evidence of his offense. Furthermore, once the government has
granted the witness such immunity, a refusal then to testify would bring
a prison sentence for contempt. With this new law, government should be
better able to gather evidence to strike at the leadership of organized
crime and not just the rank and file. The Attorney General has also advised
me that the Federal Government will make special provisions for protecting
witnesses who fear to testify due to intimidation.
Wagering Tax Amendments
We shall ask for swift enactment of S. 1624 or its companion bill
H.R. 322, sponsored by Senator Roman Hruska of Nebraska and
Congressman Richard Poff of Virginia respectively. These measures
would amend the wagering tax laws and enable the Internal Revenue
Service to play a more active and effective role in collecting the revenues
owed on wagers; the bills would also increase the Federal operator's tax
on gamblers from $50 annually to $1000.
Corruption
For most large scale illegal gambling enterprises to continue
operations over any extended period of time, the cooperation of
corrupt police or local officials is necessary. This bribery and
corruption of government closest to the people is a deprival of one of
a citizen's most basic rights. We shall seek legislation to make this
form of systematic corruption of community political leadership and law
enforcement a federal crime, This law would enable the Federal
Government to prosecute both the corruptor and the corrupted.
R.
GERATO
FORD
Illegal Gambling Businesses
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We also shall request new legislation making it a Federal crime to
engage in an illicit gambling operation, from which five or more persons
derive income, which has been in operation more than thirty days, or
from which the daily "take" exceeds $2000. The purpose of this legisla-
tion is to bring under Federal jurisdiction all large-scale illegal
gambling operations which involve or affect inter-state commerce. The
effect of the law will be to give the Attorney General broad latitude to
assist local and state government in cracking down on illegal gambling,
the wellspring of organized crime's financial reservoir.
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This Administration has concluded that the major thrust of its
concerted anti-organized crime effort should be directed against gambling
activities. While gambling may seem to most Americans to be the least
reprehensible of all the activities of organized crime, it is gambling
which provides the bulk of the revenues that eventually go into usurious
loans, bribes of police and local officials, "campaign contributions" to
politicians, the wholesale narcotics traffic, the infiltration of legitimate
businesses, and to pay for the large stables of lawyers and accountants
and assorted professional men who are in the hire of organized crime.
Gambling income is the life line of organized crime. If we can cut
it or constrict it, we will be striking close to its heart.
Procedural Laws
With regard to improving the procedural aspects of the criminal
law as it relates to the prosecution of organized crime, the Attorney
General has been working with the Senate Subcommittee on Criminal Laws
and Procedures to develop and perfect S. 30, the "Organized Crime Control
Act of 1969. " As Attorney General Mitchell indicated in his testimony
on that bill, we support its objectives. It is designed to improve the
investigation and prosecution of organized crime cases, and to provide
appropriate sentencing for convicted offenders. I feel confident that it
will be a useful new tool.
Development of New Laws
Finally, I want to mention an area where we are examining the need
for new laws: the infiltration of organized crime into fields of legitimate
business. The syndicate-owned business, financed by illegal revenues
and operated outside the rules of fair competition of the American market-
place, cannot be tolerated in a system of free enterprise. Accordingly,
the Attorney General is examining the potential application of the theories
underlying our anti-trust laws as a potential new weapon.
The injunction with its powers of contempt and seizure, monetary
fines and treble damage actions, and the powers of a forfeiture proceeding,
suggest a new panoply of weapons to attack the property of organized
crime - -- rather than the unimportant persons (the fronts) who technically
head up syndicate-controlled businesses. The arrest, conviction and
imprisonment of a Mafia lieutenant can curtail operations, but does not
put the syndicate out of business. As long as the property of organized
crime remains, new leaders will step forward to take the place of those
we jail. However, if we can levy fines on their real estate corporations,
if we can seek treble damages against their trucking firms and banks,
if we can seize the liquor in their warehouses, I think we can strike a
critical blow at the organized crime conspiracy.
Clearly, the success or failure of any ambitious program such as
I have outlined in this Message depends on many factors. I am confident
the Congress will supply the funds and the requested legislation, the States
and communities across the country will take advantage of the Federal
capability and desire to assist and participate with them, and the Federal
personnel responsible for programs and actions will vigorously carry
out their mission.
RICHARD NIXON
THE WHITE HOUSE,
April 23, 1969
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FOR RELEASE AT 12 NOON, EST
April 24, 1969
Office of the White House Press Secretary
THE WHITE HOUSE
TO THE CONGRESS OF THE UNITED STATES:
SERALD
FORD
The Post Office Department faces a record deficit in Fiscal Years
1970, one which will reach nearly $1.2 billion. This unhappy fact compels
me to recommend to the Congress that it increase postal rates for first,
second, and third class mail.
The increases that I am proposing will reduce the postal deficit in
Fiscal Year 1970 by over $600 million. If rates were not raised, that
sum would have to be added to the already considerable burdens of our
taxpayers. But if these recommendations are adopted, the costs of
postal service will be borne more adequately by those who use the
service most.
That is the way it should be if the Post Office is to become an
example of sound business practices. That is also what the law requires.
The Postal Policy Act stipulates that postal rates should produce revenue
which is approximately equal to the cost of operating the postal establish-
ment after the costs of such special public services as the Congress
may designate are deducted. It is in accordance with both general
principle and specific law, then, that I make the following recommendations:
1. First class mail I propose that the rates for letters and
postcards be increased one cent, to seven and six cents respectively,
on July 1, 1969. Air mail postage rates would remain unchanged.
2. Second class mail The rates for newspapers and magazines
which circulate outside the county in which they are published would go up
by 12 percent on July 1, 1970. This increase would constitute an addition
to the 8 percent increase for second class mail which is already scheduled
to take effect on January 1 of next year.
3. Third class mail Bulk rates are already scheduled for increase
on July 1, 1969. I suggest that there be a further increase on January 1,
1970, so that the overall level at that time would be some 16 percent above
present levels. Further, I recommend that the minimum single piece
third class rate be increased by one cent on July 1, 1969.
I regret the need to raise postal rates. I can suggest, however, that
these increases can help our country achieve two important goals. First,
the proposal can help in our efforts to control inflation by bringing federal
revenues and expenditures into better balance. Secondly, rate increases
will make it easier for the Postmaster General and his associates to
provide better postal service. After carefully reviewing the fiscal 1970
Post Office budget submitted by the previous administration, we have been
able to achieve reductions of net outlays equal to $140 million. A com-
prehensive review of all postal operations is now underway; modern
management techniques are being introduced and efficiency is being in-
creased.
Further improvements will take time -- and during that time it is
essential that financial pressures should not impair or reduce available
services.
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I would add one further comment: this Administration is deter-
mined that the cycle of greater and greater postal deficits and more and
more rate increases will be broken. The only way to break that cycle
is through effective, long-range reforms in the way the postal system
operates. Some of these reforms can be implemented by the Postmaster
General; others will require Congressional action. We will be submitting
specific proposals for such reform to the Congress within the next
forty-five days.
Postal reform will not be achieved easily; there are always many
obstacles to even the most necessary change. But we remain confident
that we can, with your cooperation, move boldly toward our three
goals: better postal service, improved working conditions for all
employees, and a reduction of the recent pressure for frequent increases
in postal rates.
Proposed legislation to effect the revenue increases which I have
recommended here will be sent to the Congress shortly.
RICHARD NIXON
THE WHITE HOUSE,
April 24, 1969.
# # # #
BERALD
10RD
CONGRESSMAN
NEWS
GERALD R. FORD
HOUSE REPUBLICAN LEADER
RELEASE
--FOR RELEASE AT 12 NOON MONDAY--
April 21, 1969
A statement by Rep. Gerald R. Ford, R-Mich., Republican Leader, U.S. House of Reps.
President Nixon is proposing bold steps in response to urgent needs -- the
need to give the American people income tax relief at the earliest possible moment
consonant with sound policy and to eliminate the 7 per cent investment tax credit
as a fuel currently too rich for the American economic engine.
The President's proposal to extend the surtax at 10 per cent only until
Jan. 1, 1970, and then to reduce it to 5 per cent is clear recognition that income
taxes are too high. We all recognize that. We know the burden should be reduced
as soon as circumstances permit.
The proposal to reduce the surtax to 5 per cent as of Jan. 1, 1970, is --
as the President stated -- tied tightly to the proposal to eliminate the 7 per cent
investment tax credit.
The revenue loss from the surtax reduction must be largely offset by
revenue gain from elimination of the tax credit.
GELD
FÜRD
Elimination of the normal 7 per cent investment tax credit will serve
LIBRARY
several purposes.
It will tend to slow down the overheated American economy and thus help
curb inflation.
It will bring an estimated $3 billion additional revenue into the U.S.
Treasury.
It will create conditions under which business and industry will have
greater incentive to use the special tax credits Mr. Nixon is proposing for
investment in poverty areas in fiscal 1971.
The need for elimination of the normal 7 per cent investment tax credit
became apparent when all of the other fiscal and monetary tightening actions taken
by the Nixon Administration and the Federal Reserve Board failed to slow down the
economy sufficiently to assure success in the fight against inflation.
The "big news" in the President's tax reform message should not obscure
other highly meaningful proposals -- elimination of income taxes for Americans at
poverty level, the imposition of what in effect is a minimum income tax for a
small group of high-income individuals, and the closing of a number of income tax
loopholes.
The President's proposals will move America toward a common sense and fair
tax structure.
# # #
CONGRESSMAN
NEWS
GERALD R. FORD
HOUSE REPUBLICAN LEADER
RELEASE
--FOR RELEASE ON RECEIPT--
April 24, 1969
Remarks by Rep. Gerald R. Ford, R-Mich., Republican Leader, U.S. House of Reps.,
Placed in the Body of the Congressional Record of Thursday, April 24, 1969.
Mr. Speaker, I ask unanimous consent to proceed for one minute and to
revise and extend my remarks.
Mr. Speaker, on April 21 the President of the United States sent the
Congress a message urging repeal of the 7 per cent investment tax credit effective
as of that date.
On that same day I endorsed President Nixon's call for repeal of the
investment tax credit for several reasons but primarily because I believe such
action is necessary to curb inflation and thus shield the American people from
the repeated blows of price escalation.
Yesterday I was shocked to learn that the cost of living had jumped
eight-tenths of one per cent during March, a rate of price rise which runs to
nearly 10 per cent on an annual basis.
Mr. Speaker, as the proverb in the greatest book ever written so wisely
warned: "As ye sow, so shall ye reap." We are today continuing to suffer from
the inflationary policies of the past three years and the failure of the Johnson
Administration to take timely action against inflationary pressures that surfaced
as early as late 1965. Now the battle against inflation is infinitely more
difficult to win.
Mr. Speaker, the sharp cost of living jump in March strengthens my earlier
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judgment that the Congress should respond as quickly as possible to President
FORD
Nixon's call for repeal of the investment tax credit.
Although it is possible to read too much into one month's cost-of-living
LIDERAY
index figures, the warning signal in the March data is unmistakable.
To me it says that the fiscal and monetary measures already taken by the
Administration and by the Federal Reserve Board to slow down the economy and bring
inflation under control are inadequate for the task.
There is always risk involved in actions taken to dampen down the economy.
But we must take such risks, carefully and judiciously, if we are to bring
inflation under control.
The impact of investment tax credit repeal will not be felt in the economy
immediately. When it does register, cutting the income tax surcharge in half next
Jan. 1 as proposed by President Nixon will probably be needed as a stimulus to the
economy.
We must win the fight against inflation, for it weighs most heavily upon
the poor. And runaway inflation would inevitably be followed by a deep recession
and heavy unemployment.
I hope the members of this House will support the President in his efforts
to repeal the investment tax credit.
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