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7346038
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Presidential statement on signing the Tax Reform Act of 1976 [Signing Statements and Announcements]
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7346038
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document
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Presidential statement on signing the Tax Reform Act of 1976 [Signing Statements and Announcements]
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White House Press Releases (Ford Administration)
Press Releases
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7346038
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1976-10-04
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1976
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Digitized from Box 32 of the White House Press Releases at the Gerald R. Ford Presidential Library
FOR IMMEDIATE RELEASE
October 4, 1976
Office of the White House Press Secretary
THE WHITE HOUSE
STATEMENT BY THE PRESIDENT
Today I have signed into law the Tax Reform Act of
1976. This action reflects my judgment that, on balance,
the beneficial effects of the good provisions in this
massive piece of legislation substantially outweigh the
detrimental effects of the provisions which I find
ectionable.
I am pleased that in this bill the Congress has raised
the minimum tax and has taken meaningful action to eliminate
the use of so-called tax shelters by individuals with high
incomes. These actions are consistent with my past proposals
and firm support of strong measures designed to close these
loopholes. In doing so, we are moving toward a tax system
under which each taxpayer bears his or her fair share of the
overall tax burden.
I am also gratified that the Congress has adopted the
program of estate tax relief which I proposed at the beginning
of this year. The Act essentially includes my proposals to
increase the basic estate tax exemption from $60,000 to the
equivalent of $175,000, to liberalize the marital deduction
for the transfer of property between spouses, and to provide
special relief to the owners of family farms and businesses so
that their heirs are not forced to liquidate these enterprises
in order to pay estate taxes. The estate tax provisions have
both simplified and made much more equitable our system of
estate taxation.
Despite the contribution many provisions of this tax bill
make to improving our tax system, the bill fails to include
several important and necessary changes in our tax structure.
We must continue to reform our tax system in three important
ways.
First, the best tax reform is tax reduction. Americans
currently pay excessive taxes, particularly middle and low
income Americans. This Act does temporarily continue the
tax reductions enacted last year, but it fails to include
my proposals for permanent deepened tax cuts. In particular,
I am disappointed that the Congress did not reduce individual
income taxes by the additional $10 billion I recommended. If
Congress had adopted this measure together with an equal reduc-
tion in federal spending, the American people, rather than the
Congress, could decide how that extra $10 billion should be
spent. Accordingly, I will again urge Congress next year to
further reduce the tax burden on Americans by increasing per-
manently the personal income tax exemption from $750 to $1,000.
Second, increased investment through appropriate tax
incentives is absolutely essential if we are to succeed in
creating productive jobs for our growing labor force. Such
tax incentives can help focus investment in those areas where
new jobs are needed most. I will again propose that Congress
more
2
grant special tax benefits in the form of accelerated depre-
ciation for new plants and equipment in areas of high unemploy-
ment. I will also strongly recommend enactment of several
other tax measures to aid in capital formation including:
enacting a broadened stock ownership plan to increase the
participation of low and middle income Americans in the
ownership of our free enterprise system; and adopting the
proposal I made over a year ago to integrate the corporate and
personal income taxes thereby eliminating the present burden
of double taxation of dividends which presently inhibits savings
and investment and places our nation at a disadvantage in
competing for world markets with other industrialized countries.
Third, we must move toward a simplified and more equitable
tax code. Last January, I requested the Secretary of the
Treasury to study the potential for restructuring and simplifying
the present tax code. The Treasury study is well under way.
It involves an examination of our present tax code aimed at
making it more simple, more fair, and more economically effi-
cient. The Treasury is scheduled to report to me on the
project in December. I will carefully review this study as
an important part of my Administration's effort to make our
tax system fair and equitable for all Americans.
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