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OCR Page 1 of 57THE 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
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