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THE WHITE HOUSE PRESIDENT HAS SEEN WASHINGTON THE June 21, 1972 ACTION MEMORANDUM FOR: THE PRESIDENT FROM: JOHN D. EHRLICHMAN SUBJECT: OMB No Objection Letter to Mills Tuition Tax Credit Bill Attached at Tab A is a draft proposed letter to Chair- man Mills from Cap Weinberger supporting the intent of H.R. 13495, the bill introduced by Mills and Jerry Ford to allow an income tax credit for tuition paid to nonpublic elementary and secondary schools. The letter also urges the Committee to consider several modifications in the bill and makes reference to the fact that the Administration is continuing to explore ways of dealing with problems of finance for both public and nonpublic schools. George Shultz and Elliot Richardson would prefer that the tax credit approach not be supported now, but their detailed comments on the letter have been taken into account in the proposed draft at Tab A. Peter Flanigan and Chuck Colson do support the sending of the letter, and their comments also are incorporated. Attached at Tab B is a memorandum from George Shultz which outlines two proposals for aid to nonpublic schools. Treasury supports the second approach which is a Federally collected state income tax which would be rebated in equal per student amounts to both private and public schools. The other proposal discussed is a tax credit. We are staffing out the Treasury memorandum. However, nothing in the proposed OMB letter at Tab A would pre- clude an initiative along the lines recommended by Treasury sometime in the future. Attachments Approve Weinberger letter for immediate transmittal Disapprove