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Correspondence – February 1983 (3)
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66327966
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Correspondence – February 1983 (3)
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Records of the White House Office of the Deputy Chief of Staff (Reagan Administration)
Michael K. Deaver's Correspondence Files
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WITHDRAWAL SHEET Ronald Reagan Library Collection Name DEAVER, MICHAEL: FILES Withdrawer KDB 1/16/2007 File Folder CORRESPONDENCE - FEBRUARY 1983 (3) FOIA F03-0017/01 Box Number 7620 THOMAS, M 17 DOC Doc Type Document Description No of Doc Date Restrictions NO Pages 1 NOTE DEAVER TO THOMAS MACBRIDE 1 2/4/1983 B6 2 LETTER MACBRIDE TO DEAVER RE CANDIDATE 1 1/31/1983 B6 FOR CHIEF HOSTESS OF BLAIR HOUSE Freedom of Information Act - [5 U.S.C. 552(b)] B-1 National security classified information [(b)(1) of the FOIA] B-2 Release would disclose internal personnel rules and practices of an agency [(b)(2) of the FOIA] B-3 Release would violate a Federal statute [(b)(3) of the FOIA] B-4 Release would disclose trade secrets or confidential or financial information [(b)(4) of the FOIA] B-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] B-7 Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] B-8 Release would disclose information concerning the regulation of financial institutions [(b)(8) of the FOIA] B-9 Release would disclose geological or geophysical information concerning wells [(b)(9) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of gift. WITHDRAWAL SHEET Ronald Reagan Library Collection Name Withdrawer DEAVER, MICHAEL: FILES KDB 1/16/2007 File Folder FOIA CORRESPONDENCE - FEBRUARY 1983 (3) F03-0017/01 THOMAS, M Box Number 7620 17 DOC Document Type No of Doc Date Restric- NO Document Description pages tions 1 NOTE 1 2/4/1983 B6 DEAVER TO THOMAS MACBRIDE Freedom of Information Act - [5 U.S.C. 552(b)] B-1 National security classified information [(b)(1) of the FOIA] B-2 Release would disclose internal personnel rules and practices of an agency [(b)(2) of the FOIA] B-3 Release would violate a Federal statute [(b)(3) of the FOIA] B-4 Release would disclose trade secrets or confidential or financial information [(b)(4) of the FOIA] B-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] B-7 Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] B-8 Release would disclose information concerning the regulation of financial institutions [(b)(8) of the FOIA] B-9 Release would disclose geological or geophysical information concerning wells [(b)(9) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of gift. WITHDRAWAL SHEET Ronald Reagan Library Collection Name Withdrawer DEAVER, MICHAEL: FILES KDB 1/16/2007 File Folder FOIA CORRESPONDENCE - FEBRUARY 1983 (3) F03-0017/01 THOMAS, M Box Number 7620 17 DOC Document Type No of Doc Date Restric- NO Document Description pages tions 2 LETTER 1 1/31/1983 B6 MACBRIDE TO DEAVER RE CANDIDATE FOR CHIEF HOSTESS OF BLAIR HOUSE Freedom of Information Act - [5 U.S.C. 552(b)] B-1 National security classified information [(b)(1) of the FOIA] B-2 Release would disclose internal personnel rules and practices of an agency [(b)(2) of the FOIA] B-3 Release would violate a Federal statute [(b)(3) of the FOIA] B-4 Release would disclose trade secrets or confidential or financial information [(b)(4) of the FOIA] B-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] B-7 Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] B-8 Release would disclose information concerning the regulation of financial institutions [(b)(8) of the FOIA] B-9 Release would disclose geological or geophysical information concerning wells [(b)(9) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of gift. MICHAEL K. DEAVER but 2 too am sorry we missed Sething together when you were in town. him sure there will he other insits. But of luck in your new job. cheers. mike THE WHITE HOUSE WASHINGTON Mr. Ed Reinecke California Republican Party 1228 N Street, Suite 14 Sacramento, CA 95814 2-4 - California Republican Party 1228 N Street, Suite 14 - Sacramento, California 95814 . (916) 443-0967 February 2, 1983 Tirso del Junco, M.D. Chairman Ed Reinecke State Vice Chairman Ingrid Azvedo Regional Vice Chairman North Clara Rutherford Regional Vice Chairman Central Mr. Michael K. Deaver Charlotte Mousel Assistant to the President and Regional Vice Chairman South Deputy Chief of Staff The White House Office William Dohr 1600 Pennsylvania Avenue, N.W. Secretary Washington, D.C. 20500 Gerti B. Thomas First Assistant Secretary Dear Assiko like: Eleanor Ashmore Second Assistant Secretary I'm sorry I didn't get a chance to say hello when I Michael C. Donaldson was in Washington recently. You will be interested to Treasurer know we will be organizing immediately for a strong Scott Edward Darling Party for 1984. Assistant Treasurer Jack L. Courtemanche Please let us know how we can help, because our first National Committeeman priority will be the reelection of the President. Trudy McDonald National Committeewoman With best wishes, Nick Muskey Sergeant-at-arms Sincerely, Liz Simms President, County Chairmen's Association Ed Ed Reinecke Chairman MICHAEL K. DEAVER Juseph thunks smirch for your good note. In Trying to to find some reason to get your pust of the world. Churs. mike THE WHITE HOUSE WASHINGTON The Honorable Joseph Verner Reed American Embassy Rabat, Morocco 2 4 note VILLA AMERICA I-31-83 RABAT RESIDENCE OF THE AMBASSADOR MKD. Don't 1zt that suavely lizartless harpoon thrown get you down! Safiris manifistetions are so much trash! IS you and e. want to free yourselves for some sem and sanity you both will be wilcome in the Vingdam. qusted of endining < and Unowing you, you will Es so with class!) bracs of blood squeezed through an eye deopper come to Villa Amrica for R&R where warm hospitality awaite you! Aloha! Josgh p.s. 4 look forward to buying the book THE WHITE HOUSE WASHINGTON February 8, 1983 Dear Mr. Rhoads: Thank you for your letter of January 25, 1983, co-signed by your partner Mr. Swain, expressing the interest of the Wash- ington Speakers Bureau, Inc. in working with me in the future in arranging possible speaking engagements. While I appreciate your interest, I will not be in a position to consider or discuss any arrangements of this sort with the Bureau or any other organization while I remain in Government service. Thank you again for writing. Sincerely, MICHAEL K. DEAVER ASSISTANT TO THE PRESIDENT DEPUTY CHIEF OF STAFF Mr. Harry Rhoads, Jr. Washington Speakers Bureau, Inc. Suite 11 201 North Fairfax Street Old Town Alexandria, Virginia 22314 bcc: Fred F. Fielding THE WHITE HOUSE WASHINGTON February 8, 1983 MEMORANDUM FOR MICHAEL K. DEAVER ASSISTANT TO THE PRESIDENT DEPUTY CHIEF OF STAFF FROM: FRED F. FIELDING M COUNSEL TO THE PRESIDENT SUBJECT: Letter from Washington Speakers Bureau Thank you for forwarding the above-referenced letter for my review. Obviously, no arrangements could be made with this Bureau (or any similar entity) while you are in Government service, both because applicable standards of conduct regulations preclude acceptance of honoraria for appearances that are at all related to your official duties, and because any such arrange- ment would raise substantial appearance problems in any event. The same appearance problems (though to a somewhat lesser degree) could well arise should you commence discussions now about an arrangement "in the future," which may be the purpose of the Bureau letter. Accordingly, I recommend a polite, non-committal response advising that you will be unable to consider or discuss any arrangement with the Bureau or similar organizations while you remain on the White House staff. Such a response is attached for your review and signature. Attachment Washington 201 N. Fairfax Street, Suite 11 Speakers Old Town Alexandria, VA 22314 Bureau, Inc. (703) 684-0555 If 22042 w January 25, 1983 The Honorable Michael K. Deaver Assistant to the President and Deputy Chief of Staff The White House Washington, D.C. 20500 Dear Mr. Deaver, The purpose of this letter is to introduce you to the Washington Speakers Bureau and to express our interest in working with you in the future. Although we are writing to you now in the middle of the administration's first term, we thought it was necessary at this point in time to express our interest in you. In addition, we believe it is important that you know of the work we are doing. In the two years that we have operated, the Washington Speakers Bureau has become one of the most well-respected bureaus in the country. Our ability to provide the best opportunities to speak for those we represent, as well as our innovative and dynamic marketing strategies (enclosed find a FIRST TUESDAY invitation for Washington and our new brochure) have given rise to such references as "the fastest growing Speakers Bureau in the nation by United Press International. " Our success however, is simply a result of the honesty, hard work and imagination of several relatively young and bright people. The most recent example of our efforts would be that on behalf of Mrs Lyn Nofziger. Since Lyn left the administration in late January, -we have provided him with over $300,000 in choice speaking engagements before major corporations and associations. He serves as a good example of our care and effort. At this time we want to confirm that when you decide to leave the administration we hope that you will allow the Washington Speakers Bureau to represent you We strongly believe that a relationship between those of us at the Washington Speakers Bureau and you would be most compatible and that you would be pleased with the care we take in working with you. Recipient of the 1982 ASAE Management Showcase Award and the 1982 MPI, Potomac Chapter, Special Recognition Award Honorable Michael K. Deaver Page Two January 25, 1983 We are sure that there are other areas of discussion. Nonethe- less, this letter shall serve as a beginning. For now we ask that you contact any of the following at your discretion for a reference: 1. Mr. Franklyn C. Nofziger, Partner, Nofziger and Bragg Communications, 332-4030. 2. Mr. Conrad Hausman, Former Associate Director, Presidential Personnel Operations, 684-7570. 3. Mr. Charles T. Hagel, Former Deputy Administrator, The Veterans Administration, 971-1703. 4. Mr. James J. Kilpatrick, syndicated columnist, 703-987-8289. Mr. Deaver, thank you for your time. We look forward to talking with you in the future. Sincerely, HARRY RHOADS/R. Harry Rhoads, Jr. Partner BERNARD L. SWAIN Bernard L. Swain Partner HR/rse THE WHITE HOUSE WASHINGTON February 9, 1983 Dear Ed: Thanks for the very interesting Detroit Free Press article. Seems the press is one of the things that never change. I appreciate your personnel suggestions. We can always use input. Thanks again for your help. Sincerely, MICHAEL K. DEAVER Assistant to the President Deputy Chief of Staff Mr. Ed Fredricks 23rd District State Capitol Lansing, Michigan 48909 THE SENATE ED FREDRICKS LANSING, CHIGAN COMMITTEES ON: 23RD DISTRICT STATE AND VETERANS' AFFAIRS STATE CAPITOL HEALTH AND SOCIAL SERVICES LANSING, MICHIGAN 48909 UPPER PENINSULA INDUSTRIAL 517-373-6920 AND ECONOMIC AFFAIRS, 616-392-8418 VICE-CHAIRMAN 616-399-2810 844 Millbridge, PV Holland, Michigan 49423 February 3, 1983 Mr. Michael K. Deaver much Assistant to the President Deputy Chief of Staff The White House Washington, D.C. 20500 Dear Mike: You may be interested in the enclosed editorial from the Detroit Free Press of 20 years ago and the U.S. News & World Report articles of 1964 and 1966 from which the President could draw. The President is already familiar with and has used the 1966 article, but notice how similar the treatment of Kennedy in 1962 is to the treatment of the President today. Notice how the Free Press ridiculed Kennedy's proposed tax cuts in the face of huge deficits. (In 1962 we were at a point in the economic cycle comparable to now, while 1984/1985 will probably resemble 1964, which will mean the next two years will be more receptive to the tax cuts than the past year, and should be good for the President). Then compare the 1964 and 1966 articles to the dire predictions of the Free Press. They said the same things of Kennedy in the editorial that they do of Reagan today, and the conditions they describe are familiar. Yet camelot is recalled with nostalgia by almost all, and the tax cuts of Kennedy have been hailed by Republicans, Democrats, liberals and conservatives alike. Just one suggestion in another area. If James Baker is planning to leave, I would assume Clark would replace him. Since the NSC job is largely one of minimizing interdepartmental differences, Schultz would be good for that. Jeane Kirkpatrick could go to State, a move which conservatives would like and would mean three women in full-fledged cabinet positions. James Buckley would make an ideal person for the U.N., although he has just started with Radio Free Europe/Radio Liberty. Thank you kindly for your attention. Warm personal regards. Sincerely, Ed Ed Fredricks NOT PRINTED AT TAXPAYERS' EXPENSE 1 The Detroit Tree Press AN INDEPENDENT NEWSPAPER JOHN S. KNIGHT. PRESIDENT AND PUBLISHER LEE HILLS. VICE PRESIDENT AND EXECUTIVE EDITOR HENRY C. WEIDLER, BUSINESS MANAGER Published every morning by Knight Newspapers, Inc., 321 W. Lafayatte Ave., Detroit 31, Michigan 8:A THURSDAY, NOVEMBER 15. 1962 AS WE SEE IT A $7.8 Billion Deficit Smacks Rosy Prophecy ALL THE NIGHTMARES that econ- understands budgets, said he'd eat his omists predicted last January have be- hat if the President were correct. come realities. The Budget Bureau itself Byrd predicted a deficit of between says that, with luck, the Federal deficit $5 billion and $10 billion, and you can't for the current fiscal year will be $7.8 get much closer than he has. billion. In addition, the President predicted This would be the second largest defi- that spending would stop at $92.5 billion. cit in peacetime history, exceeded only It hasn't, and neither Cuba nor Berlin by fiscal 1959, when we had a recession. nor any other military commitment is What went wrong? What happened to to blame. President Kennedy's rosy prospect in The Budget Bureau says spending will this, the first budget be $1.2 billion higher than anticipated, all entirely of his own coming from increased domestic pro- making, of a "mod- grams. The postmen and other govern- est" $500 million sur- ment workers are getting more. The crop plus? support program is costing more than Primarily, what allotted, not unexpectedly. Public works went wrong was that programs have been accelerated by $200 the President didn't million. know what he was And not surprisingly, the interest on talking about, and our national debt has risen by $400 mil- wouldn't listen to lion, partly because the debt is higher, any of the economists and partly because government bonds who told him SO. He are harder to peddle these days. took the word of his Byrd The truth is that business did have a theoretical, sociological Harvard eco- fairly good year. Revenue from taxes is nomists who were still operating in the higher than in the last fiscal year. It is depression days of pump-priming eco- up at an annual rate of about four per nomics. cent. This is a normal figure which the Pres- The President predicted a business ident would have been wise to count on. boom 50 big that tax revenues would But he, with derring-do and sleight-of- reach $93 billion, against the $81.5 billion hand, figured it would go up more than last year. three times that much. Senator Byrd, Republicans in Congress called the among others, could have told him better. prediction "absolutely ridiculous." and Senator Harry Byrd, a Democrat who WHAT HORRIFIES us is not that the deficit will be so large. This we pre- dicted last January. What is disturbing is that there are no indications that the President intends to do anything about it. His economic advisers accompanied the bad news with the word that "the deficit is neither inflationary nor danger- ous to our balance of payments position' which is not so. We're spending more than we have, so that's inflationary, To cover the deficit, we have to sell more bonds, thus weak- ening their value and that's bad for our balance of payments. A balanced budget would require a cut in foreign aid, which is about the only thing that would improve our balance of payments deficit. Even worse, the President and his ad- visers are working on a new tax program, to-include major reductions. This, says the President, will stimulate business enough to make up for losses. Our tax structure needs revision, badly and immediately. But tax cut isn't enough. It must be accompanied by spending cuts-plain old economies and getting rid of luxury pro- grams we can't afford. Increasing spending while cutting taxes is the same as if the head of a fam- ily lost his job and then went out and bought new car to ease the bad news for his wife As we said last January when the President unveiled his rosy forecast, Much of what is in the budget-defense takes more than half-is essential and desirable. But when the peacetime budget for fiscal 1963 reaches within whispering distance of the all-out war year of 1945, it is time some halts were called." The time is 10 months later, and no halts are yet in sight, U.S. News & Work VOLUME LVI-No. 9 WASHINGTON JUST WHEN YOU WILL GET YOUR TAX CUT - And How Big It Will Be That tax cut, long promised, is here at last. Tax rates, for all brackets, drop in two steps. First effects will show up in pay envelopes First cut is dated back to last January 1. So are rly in March. Withholding tax drops from 18 dozens of changes in tax rules. Second cut: next 14 per cent. Result: more spending money. January 1. Here are the details for taxpayers. It's all set now: The biggest tax cut ever voted by Con- ass is about to become a reality. A TIMETABLE OF THE TAX CHANGES Final terms of the tax bill were settled February 19, when Senate-House committee compromised differences between Jan. 1. 1964: First step of general tax cut is made two branches of Congress. retroactive to start of the year. All told, when fully effective in 1965, the new law will Personal tax rates, 20 to 91 per cent heretofore, worth 11.5 billion dollars a year to taxpayers. drop to a range of 16 to 77 per cent. Relief comes in two steps-this year and next. Every tax- Corporation tax goes down from 30 to 22 per ver gets lower rates. New tax rules affect millions. cent on first $25,000 of profit. and from 52 to 50 per Individuals get about two thirds of their cut this year, cent on profit above $25,000. full cut next year. Small corporations get their whole cut Dividend "exclusion" is increased from $50 to 1964. Big corporations are given about half their cut in pility on 1964 profits, the full cut in 1965. $100. Dividend "credit" is cut from 4 per cent of dividend income to 2 per cent. mmediate benefits. Cash benefits of the reduction in A long list of changes in tax rules takes effect, es will start showing up almost immediately. A timetable the tax changes is given on this page. applying to such items as stock options, casualty losses, sick-leave pay. First to feel the effects will be people on payrolls-those ose taxes are withheld by their employers The withholding-tax rate will be reduced on the first pay- Early March, 1964: Withholding tax rate drops from 18 to 14 per cent. This becomes effective on the that occurs eight days or more after the President's nature on the bill. This rate drops from 18 to 14 per cent, first payday occurring eight days or more after the President signs the bill. aning raises in take-home pay for millions. The next big group to feel the cash benefit will be those 0 estimate their taxes and pay them quarterly. The 1964 April 15, 1964: First quarterly payment reflect- claration of estimated tax" and the first quarterly pay- ing the lower rate on individuals' estimate of tax for 1964. at are due by April 15. New official instructions and rate les will be available to taxpayers shortly. By applying the Corporations owing more than $100,000 a year V rates and rules, people will be able to scale down their in taxes make first payment on estimated 1964 tax at lower rates. il, June, September and January payments to take ad- tage of the tax cut. also on April 15, large corporations must make their first Jan. 1, 1965: Second step of the rate reductions takes effect. ment on estimated 1964 income. This is five months ICT than under old law. Companies owing more than Personal rates go down to range of 14 to 70 per 0,000 a year in taxes are being shifted gradually to a cent. -as-you-go basis. Corporation rate on profit above $25,000 drops etroactive cuts. All these changes in payments begin- to 48 per cent. Rate on first $25,000 remains at 22 ; in March and April merely implement the new basic per cent. dules of income tax rates for individuals and corpora- Dividend credit is climinated. Exclusion con- S. The first cut, along with a long list of changes in tax tinues at $100. (continued on next page) NEWS & WORLD REPORT, March 2, 1964 00 25 U.S. News & World Report [continued from preceding page] tions come under new restrictions. So do casualty losses at sick-leave pay. Some better breaks go on the books for 0 rules, is dated back to last January 1, thus affecting all 1964 people, for professional people and others with widely fluct income. The second cut takes effect next January 1, affecting ating incomes, and for working mothers. Small taxpayers, f. income of 1965 and later. the first time, are to get the benefit of a "minimum standar Retroactive to Jan. I. 1964: deduction." Personal tax rates, which heretofore ranged from 20 to The second step. Then, effective Jan. 1, 1965: 91 per cent, drop to a range of 16 to 77 per cent. Personal rates drop to a range of 14 to 70 per cent. Corporation rates are cut. On the first $25,000 of profit, For corporations, the rate on profits above $25,000 go the tax drops from 30 to 22 per cent. On 1964 profit above down to 48 per cent. The bottom rate stays at 22. $25,000, the rate is cut from 52 to 50 per cent. The dividend "credit" is wiped out. For stockholders, the dividend "exclusion," or exemp- By the time all the new provisions are in effect. tl tion, is raised from $50 to $100. The dividend "credit" is changes will touch nearly every major section of the t. ent from 4 per cent of dividend income to 2 per cent. laws. What it all means to you is spelled out on the pag Other new rules for individuals take effect: Stock op- that follow. HOW TAX CHANGES AFFECT YOU A taxpayer's guide to the new than you owe, you'll have to check up The bottom rate has been 20 per ce on many new rules. And note: The new on the first $2,000 of income-$4,0 tax law is given in what follows. rules are effective on income, spending for a married couple. It shows, in practical terms, what and investing in all of 1964. Bottom bracket of the new schedule to expect from lower rates and To help you start right now to take made up of the first $500 of income advantage of the new opportunities, and $1,000 for a couple. Tax on that will I other changes taking effect now. to avoid new pitfalls: 16 per cent for 1964 income, then per cent in 1965 and later years. As a taxpayer, you will have to get TAX RATES The chart below shows what tax accustomed to a new set of tax rules as By far the most important changes for people will pay at various income leve well as new tax rates. you are in the reductions in tax rates. and in different family situations. The big tax bill of 1964, now ready Rate schedules. Bracket rates have To understand what these cuts C: to go on the statute books, makes the been cut at all levels. mean, however, note two angles. most extensive changes in the revenue The top rate, now 91 per cent, drops One is the way the savings can pi laws in 10 years. to 77 per cent on 1964 income, and to up. In 10 years, a man with a $25.00 If you are to avoid paying more taxes 70 per cent in 1965 and later years. (continued on page 28) TM 1040 U.S. INDIVIDUAL INCOME TAX RETURN- SINGLE PERSON Treasury Department that Revenue Service or taxable year beginning 1966 ending Annual Income 1963 Tax 1964 Tax 1965 Ta ame and initial Last name $ 3,000 $ 422 $ 360 $ 329 H jemt return of husband and wife, use first names and $ 5,000 $ 818 $ 720 $ 671 street $ 8,000 $ 1,540 $ 1,372 $ 1,28( THIS town DE post office, and State $ 10,000 $ 2,096 $ 1,872 $ 1,742 OU file for 1963? Yes No. If name or address fresent than show $ 15,000 $ 3,787 $ 3,377 $ 3,15 $ 20,000 $ 5,900 $ 5,233 $ 4,918 Single Morge refu ven if on Unmarried He $ 25,000 $ 8,324 $ 7,409 $ 6,982 acient child Marl Give name of wife or husband only if also $ 35,000 $ 13,778 $ 12,344 $ 11,62 return, include all income of and wite-INCOME-- either you or your wife worked for more that Wages, salaries, tips, elc., and excess of allowances over business expenses: $ 50,000 $ 22,788 $ 20,384 $ 19,23 Employer's name Where employed (city and state) $100,000 $ 58,116 $ 51,399 $ 48,18: $200,000 $138,280 $120,081 $111,07 $300,000 $219,974 $189,278 $174,070 Totals "Sick pay" if included in line 1 (attoch required statement) jubtract line 3 from line 2 Note: Tax figures assume deductions equal to 10 per cent of income, of Dividends (Schedule B) 26 U.S. NEWS & WORLD REPORT, March 2, 19 News & World Report HIGHLIGHTS OF THE TAX CHANGES Tax cuts: Biggest ever voted at one time, 11.5 Sick-leave pay: Generally, no exemption for sick billions a year-effective in part this year, re- pay until absence from work exceeds 30 days. mainder next year. Casualty losses: Hereafter tax deductions only on Personal taxpayers: Lower rates for everybody. amounts in excess of $100 for each loss. Old rates: 20 to 91 per cent. New rates, when fully effective in 1965: 14 to 70 per cent. Old people: Better break on deductions for medi- cines. Also, easier tax rules on sale of a home. Withholding tax: Rate cut from 18 to 14 per cent, effective in March. Actors, authors, professional people: A system of "income averaging" for people with widely fluctu- ating incomes. Corporations: Again, rate cuts across the board. Special break for small companies. Working mothers: On child care, easier rules and larger deductions for many. Stockholders: Dividend "exclusion" doubled, to $100. Dividend "credit" cut from 4 per cent to Group insurance: A new rule requiring company 2 in 1964, zero in 1965. executives to pay taxes on a portion of the pre- miums paid by the company on a big policy. Little taxpayers: New minimum standard deduction -$300 for taxpayer himself, plus $100 for each Also: Easier tax rules on capital losses; on em- additional exemption listed on return, up to $1,000. ployes' moving expenses; on large donations to charity; on use of the investment credit; on iron- Stock options: New restrictions, tougher rules for ore royalties. Tighter rules on personal holding stock to qualify for full benefit of capital-gains companies; on borrowing to buy life insurance; on treatment. oil and gas depletion allowances. MARRIED COUPLE, NO CHILDREN MARRIED COUPLE, 2 CHILDREN Il Income 1963 Tax 1964 Tax 1965 Tax Annual Income 1963 Tax 1964 Tax 1965 Tax 3,000 $ 300 $ 226 $ 200 $ 3,000 $ 60 $ 0 $ 0 5,000 $ 660 $ 554 $ 501 $ 5,000 $ 420 $ 325 $ 290 8,000 $ 1,240 $ 1,080 $ 1,000 $ 8,000 $ 976 $ 840 $ 772 10,000 $ 1,636 $ 1,440 $ 1,342 $ 10,000 $ 1,372 $ 1,200 $ 1,114 15,000 $ 2,810 $ 2,501 $ 2,335 $ 15,000 $ 2,486 $ 2,208 $ 2,062 20,000 $ 4,192 $ 3,744 $ 3,484 $ 20,000 $ 3,800 $ 3,392 $ 3,160 25,000 $ 5,774 $ 5,162 $ 4,796 $ 25,000 $ 5,318 $ 4,754 $ 4,412 35,000 $ 9,601 $ 8,523 $ 7,997 $ 35,000 $ 9,037 $ 8,031 $ 7,529 50,000 $ 16,648 $ 14,819 $ 13,964 $ 50,000 $ 15,976 $ 14,213 $ 13,388 100,000 $ 45,576 $ 40,768 $ 38,460 $100,000 $ 44,724 $ 40,016 $ 37,748 200,000 $116,232 $102,798 $ 96,364 $200,000 $115,224 $101,916 $ 95,548 300,000 $195,872 $171,312 $159,140 $300,000 $194,804 $170,374 $158,300 dard deduction if this produces a lower tax in 1964 and 1965. vs & WORLD REPORT, March 2, 1964 27 S. News & World Report FINANCE WEEK AFTER TAX CUTS-MORE PROSPERITY, HIGHER REVENUE New budget trends disclose Now the Tax Committee is talking grams have been started in low gear, about an actual balance in the regular fueled with a few million or a few his paradox- budget for the year starting July 1. In hundred million dollars. But many have The Treasury's tax take has fact, the Committee's staff foresees a been planned from the start to pyramid een rising steeply. modest surplus even if spending on Viet- into much more impressive figures. nam rises somewhat beyond the Presi- The tax outlook. Still, even the ap- Yet tax rates have been re- dent's budget forecast of last January. proach that now is being made to a uced in recent years. What has led to all this is high pros- budget balance is being interpreted as perity, with high individual and business meaning two things. Now the talk is about a budg- incomes on which taxes are collected. Advocates of the "new economics" are surplus in the year that is to The prediction of a surplus next year taking the steep rise in revenues to mean art July 1. is considered overoptimistic by many that they were correct in pushing for close observers of the budget. major tax cuts. It was tax relief, they Question: How much did tax Expenditures, the record shows, have say, that gave business activity the fillip its contribute to the prosperity increased almost as rapidly as revenues. that was needed to boost the economy In the year that ended in mid-1962, to levels required to generate budget- at generated the revenue rise? budget spending was at 87.8 billion dol- balancing revenues. lars. It is expected to reach 106.4 billion Talk of a budget balance, at the same The unusual budget spectacle of in this year that ends June 30 and more time, has all but scotched any serious arply rising revenues following the big- than 112.8 billion in the following year. discussion of a tax increase to head off tax cuts in history is beginning to With stepped-up spending on war in inflation. In recent months, the tax-in- tonish even those who pushed hardest Vietnam, the total could be several bil- crease issue has been one of the most tax cuts in the first place. lion more than that. hotly debated in Washington. Tax reductions put into effect from There also is this to note: Spending Now, as business indicators point to 162 through 1965 had been advocated increases that already have occurred are some slowing of the boom and revenue the cure for a "fiscal drag." only a part of the commitment that has trends point ahead toward a budget bal- The theory: High tax rates were such been written into the budget for years ance, the steam is going out of the drive brake on business that the economy just ahead. for inflation-curbing tax increases. uld not generate the tax revenues Typically, the "Great Society" pro- (Another Finance Week article, p. 104) -ded to balance the big federal budget. The prescription: Cut taxes and, in e. reach a budget balance. in four years, tax reductions were or- ed on an unprecedented scale. Rates to reduced for individuals and busi- ses. Tax deductions for depreciation re speeded up. Special tax credits TAXES DOWN, e offered for business investments. ises were eliminated or cut. Federal tax cuts of the last 4 years add up to an annual $20 billion. JI told, relief from the annual bur- of federal taxes was granted in the Yet: Revenue has gone up, not down. 1 of about 20 billion dollars. Revenue 4 years ago-year ended in mid-1962: $81.4 billion. he steepness of the revenue rise that Revenue now-latest estimate for year ending in mid-1966: $103.9 billion. wed was never predicted by the Gain in annual revenue: $22.5 billion. ocates of the "new economics." he chart on this page shows what Main reason: High and rising prosperity, meaning more and more personal happened. income and business profits on which to collect taxes. nce the year that ended in mid- 2, budget revenues have risen from For the coming year, starting July 1, a staff report to Congress predicts billion dollars to 103.9 billion-a another-big jump in revenue, to $116.2 billion. If so, says the report, of 22.5 billion. this could mean a balanced budget-the first one in 7 years-even ext year, the one starting July 1, the though spending, like revenue, has been climbing year after year. bect is for 116.2 billions in budget nues. That figure-predicted by the Note: Revenue for this year and next is estimated by the staff of Congress's Tax Committee of Congress- Joint Committee on Internal Revenue Taxation. Figures are on a regular- d mean a gain of 34.8 billions, or budget basis, omitting Social Security and other federal trust funds. y 43 per cent, in just five years. NEWS & WORLD REPORT, June 13, 1966 103 THE WHITE HOUSE WASHINGTON February 9, 1983 Dear Mr. Palmquist: Thank you for your letter about the Lou Harris speech. I enjoyed your comments about politics in general and am most pleased that you took the time to share your thoughts with me. With best wishes. Sincerely, MICHAEL K. DEAVER Assistant to the President Deputy Chief of Staff Mr. Roy A. Palmquist 4525 Manchester Drive Omaha, Nebraska 68152 Mr. Roy A. Palmquist 4525 Manchester Drive Omaha, Nebraska 68152 1-402-455<3405 2-4-1983 1724 Denners 9. in hrte House loashington, D.C & - 2050 Be - Kervis Harris talks and artreles re - polls publisher C in marrous newspapers throughout-the crunty hours Harris was a wild man at the Omeha Chanter Former funchern at 12:07 Nom, medinesday, in Omain, Metuchn -a dornt gloomtaller, that all local radio / TV news Arradcart high hearen - Thanks to the Omaha Loosed Henlth they clidn't mention his talk, but onfollowing puthorished LouisHines Boll- copy enclosed for your eagle eye - I may he after get a casselle tape of his lalk Ined. at amber Linder, if do - will mail it to you The Crx cable booketsing it tonight the live outsurity amale lmute, so don't have Cable yet wilt tope it -on chamel 9@ 900 m - - Re - article re Harris Billin Recovery etc - - the survey shmple compused 1254 - when you considered almost 87, mo, 100 poted in 1980, and in 1984 it will be about 90, 070, no peplemoling, The 1254 = about 1/10,00 = How Can you predict anying thing with such a small figue. How can the average cityen preductrection, when expert lemomist can't - K our Havis missestly bost in 1980 when hersaid Caster would have a hairline victory - l picked a landslide retory after the Democrater Convention aim august 1980 - as som as Carter was nonemated he was beat ,Ted Kennedy was the man the convention wanter -Dengan would have immin/980, butit would have cheen a harrline victory - Boy Mr. Mrs. Roy A. Palmquist from 4525 Manchester Drive Bis- Omaha, 1-402-455-3405 Nebraska 68152 If our poputation is now new 235, m, 000 - and address the armed freen in - 1, 700, does that make about 101,2 1TO looking hr past month listed 99, 550, 100 working. Today it was amounced as 10.2% with anned or - Last moth 10.8% was lieted as insemployent Aguse word (rxer) Learn that make there out of work around 12,000, 000 plus I you may resel my aug -1980 Presidential Prediction Regan3 states, 420+ electrol both - of course my prediction a little Emsemation light of actual results - 489 electrol vites and 44 states - l hasla smile formular 1 toth 1976 Front Presedential Result furnishedity the Clerk the House - I gane Reagan the 26 States ford corn on 1976 ,Hen thool the seven states Carter barely utn m1976, and game there to Regan = 33 thates -Mousl considered 20 13 l gave Rengan 6 hence 39 states my electrons voteraried, che to juggling various southern states for Pergan such as Tepas every presidential wimes since nov- 1928.that is men 52 years, will be54 when 1984 my experience I will pick winner for 1984 after conventions Majority in Poll Indicated Recovery Is Not for 1983 By Louis Harris The Chicago Tribune Harris A 55-38 majority of those surveyed in Poll a Harris Survey indicated that they didn't foresee a recovery for the econ- 2-4-83 omy from now through January 1984. However, a 53-41 percent majority indicated that lower mortgage rates in would see more people losing homes the year ahead would result in more and farms because they couldn't meet housing being available. New housing mortgage payments. starts have risen over the past few -A 53-44 percent majority said they months, as interest rates have declined. expected that "more people will be go- Among those survyed, a 48-41 plu- ing hungry" in the next 12 months. rality indicated that they doubted that -A 66-32 percent majority of those the sustained lower rate of inflation surveyed said they believed the country would continue "to remain well below was in a depression, not just a deep 10 percent." In late November, a 50-39 recession. percent plurality indicated that infla- -A 65-29 percent majority indicated tion was under control. that "the rich and big business will be The survey polled 1,254 adults nation- much better off" in 1983. wide and was taken by telephone from Jan. 2 to Jan. 5. In a sample this size, one can say with 95 percent certainty that the results were within plus or minus three percentage points of what they would have been if the entire adult population had been polled. For the first time since August, those surveyed indicated that they were pes- simistic about the rate of inflation. Other survey results: -A 53-40 percent majority indicated that they were not convinced that the next year would see interest rates go down sharply. -A 48-47 percent plurality said they did not believe that "unemployment will be reduced to below where it is now." -A 64-32 percent majority indicated that they thought the next 12 months 1 1 a THE WHITE HOUSE WASHINGTON February 9, 1983 Dear Mr. Keegan: Thanks for letting me know about the January 27th meeting in New Jersey. My special thanks, too, to Denise O'Leary and Charles H. Hardwick for outstanding efforts in bringing about this fundraising activity in New Jersey. I'm a big booster of the ACYPL program. Thanks again for your contribution. Sincerely, MICHAEL K. DEAVER Assistant to the President Deputy Chief of Staff Mr. Philip M. Keegan Kupper Associates 15 Stelton Road Piscataway, N.J. 08854 K KUPPER ASSOCIATES 15 Stelton Road, Piscataway, N.J. 08854 (201) 752-5600 January 31, 1983 Hon. Michael Deaver mank Assistant to the President Deputy Chief of The White House Staff The White House Washington, D.C. 20500 Re: American Council of Young Political Leaders Dear Mr. Deaver: I would like to take this opportunity to congratulate Denise O'Leary for pursuing many of us in fund raising activities for ACYPL since, through her outstanding efforts, a meeting took place in New Jersey on January 27th which might never have come about. On January 27th, Denise O'Leary and I met with Speaker of the General Assembly, Alan J. Karcher, Assemblymen John Doyle and Charles L. Hardwick. This meeting produced a viable list of corporations in the State of New Jersey which we are going to solicit for donations to the ACYPL. Denise is going to coordinate the first phase of this project which will be the general mailing, and also participate from that point on with various meetings that we will conduct in New Jersey, with numerous corporations, on individuals or collective bases. I have per- sonally contacted former delegates of our exchange program and they are anxious to help us in our fund raising. Again, I would like to state that it was through Denise's efforts that we were able to hold this meeting. I would also like to acknowledge the efforts of Charles H. Hardwick, who has been a true asset in pursuing fund raising activities in New Jersey. Very truly yours, KUPPER ASSOCIATES Philip M. Keegan Vice President PMK/pd cc: All Members - ACYPL Bd. of Trustees THE WHITE HOUSE WASHINGTON February 9, 1983 Dear Bill: Thanks SO much for sending along the letter from Owen Butler to Congressman Gradison. I appreciate your letting me know about this, and will pass it along. Sincerely, MICHAEL K. DEAVER Assistant to the President Deputy Chief of Staff Mr. C. William Verity, Jr. 600 Thorn Hill Lane Middletown, Ohio 45042 I C. WILLIAM VERITY, JR. Middletown, Ohio 45043 March Dear mike Inc attaching a letter from one of on Divitors to Congressman Beie Gradison He is arging Are to Lave Congress join The Social Security system. I woned wigh you to have The President say That Le believes are americans should belong to Social Security - and That he and his entire staff are goining up. It would be a great coup for him Dest wishes Dice 1/21/83 OWEN BRADFORD BUTLER 4346-5, STATE ROUTE 123 MORROW, OHIO 45152 January 26, 1983 The Honorable W. D. Gradison, Jr. 2311 Rayburn House Office Building Washington, D.C. 20515 Dear Bill: It is indeed difficult for me to find temperate words with which to express my shock and dismay at the course on which Congress appears to be embarked as it addresses Social Security "reform". Let me say at the outset that I endorse most of the recommendations of the bipartisan commission. As one who worked long and hard on the CED's study of retirement policy, I believe that most, if not all, of the recommendations should be adopted. My concern, indeed my outrage, is directed at the absence of what should have been the first recommendation -- specifically, that Congress and the Administration have an absolute obligation to immediately include every member of the Administration, every member of Congress and every member of Administration or Congressional staff in the Social Security system. You know, as well as I, that Social Security is not a savings plan. Individual benefits have only the vaguest kind of relationship to individual payments into the plan. The Social Security system is essentially a tax on working individuals to generate revenues which are paid to present retirees. It is unthinkable that the very individuals who impose this severe tax (and it is one of the severest taxes on most of our working people) should continue to exempt themselves (and almost no one else) from the payment of that tax. I urge you and your fellow members of Congress to display some leadership in the effort to restore some degree of public confidence in the equity of the Social Security system. There simply is no better way to restore that confidence than to have the members of the Administration and Congress proclaim that their first order of business will be to include themselves in the system. I and the other 40,000 U.S. employees of our company have a right to expect that of you! The Honorable W. D. Gradison, Jr. January 26, 1983 Page Two I urge you to take a prominent personal role in calling for this kind of leadership by the members of Congress. What you and your associates do will clearly set an example. It is up to you to decide whether that will be a very bad example or a very good example. Sincerely, O.B. Butler OBB:nc cc: Mr. William R. Burleigh Mr. George R. Blake