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Balanced Budget Amendment (1 of 3)
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Balanced Budget Amendment (1 of 3)
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Ronald Reagan Presidential Library Digital Library Collections This is a PDF of a folder from our textual collections. Collection: Blackwell, Morton: Files Folder Title: Balanced Budget Amendment (1 of 3) Box: 2 To see more digitized collections visit: https://reaganlibrary.gov/archives/digital-library To see all Ronald Reagan Presidential Library inventories visit: https://reaganlibrary.gov/document-collection Contact a reference archivist at: [email protected] Citation Guidelines: https://reaganlibrary.gov/citing National Archives Catalogue: https://catalog.archives.gov/ WITHDRAWAL SHEET Ronald Reagan Library Collection Name BLACKWELL, MORTON: FILES Withdrawer RBW 2/28/2011 File Folder BALANCED BUDGET AMENDMENT (1 OF 3) FOIA F06-0055/07 Box Number OA 9075 POTTER, CLAIRE 2 DOC Doc Type Document Description No of Doc Date Restrictions NO Pages 1 LIST RE. ATTENDEES FOR WHITE HOUSE 2 ND B6 BRIEFING ON 7/19/82 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. file THE WHITE HOUSE Tax WASHINGTON 4/29/82 TO: Dick Darman FROM: Ken Duberstein As we discussed, you may want to circulate this background fact sheet/ status report on the Balanced Budget Constitutional Amendment to our legislative strategy group (expanded) MEMORANDUM THE WHITE HOUSE WASHINGTON April 28, 1982 BALANCED BUDGET CONSTITUTIONAL AMENDMENT S.J. Res 58 now has 53 co-sponsors (39 Republicans and 14 Democrats). The principal sponsors are Thurmond and Hatch. H.J. Res 350, as of Wednesday, April 28, has 201 co-sponsors (147 Republicans and 54 Democrats). The principal sponsors are Conable (R-NY) and Jenkins (D-GA). S.J. Res 58 and H.J. Res 350 are identical. To pass, 2/3 of those present in the Senate and House must vote "aye." 32 states have endorsed a call for a Constitutional Convention. 34 are required for a Convention. 38 states required to ratify under this approach, which is the same ratification process required under the legislative approach. Since 1960, there has been only one balanced budget. What S.J. Res 58 and H. J. Res 350 do: SECTION 1: Prior to the beginning of each fiscal year, Congress must adopt a statement of income (receipts or taxes) and expenses (outlays) for the upcoming fiscal year which provides that income cannot exceed expenses. The Congress and the President are charged with ensuring this is adhered to. If the Congress wants to amend this during the year, both the Senate and House must concur and 3/5 of the whole number must support such a waiver. 261 hard votes in the House and 61 hard votes in the Senate. SECTION 2: Provides that taxes cannot increase any faster than national income. In other words, the budget can't be balanced simply by raising taxes disproportionately. This can be amended by Congress if a simple majority of the whole number of both the Senate and House (218 Hard votes in the House and 51 hard votes in the Senate). SECTION. 3: Provides that Congress may waive the budget balancing provisions for any fiscal year in which a declaration of war is in effect. SECTION 4: Provides that Congress may not require that the states engage in additional activities without compen- sation equal to the additional costs. In other words, the states are protected from the Feds shifting expensive programs to them without providing financing to support such programs. SECTION 5: Total receipts shall include all receipts of the United States except those derived from borrowing and total outlays shall include all outlays of the United States except those for repayment of debt principal. SECTION 6: This article shall take effect for the second fiscal year beginning after its ratification. On May 19, 1981, the Senate Judiciary Committee reported S.J. Res. 58 favorably 11-5. It is now ready for Senate Floor debate. In the House, Chairman Rodino of the House Judiciary Committee, is purposely delaying committee action. Date: 5/6/82 TO: Morton Blackwell FROM: WAYNE H. VALIS For your information Per our conversation Other: Some of the business folks are "on board." ince. hoge balw copy: R. Cavaney NATIONAL ASSOCIATION OF WHOLESALER-DISTRIBUTORS 1725 K Street, N.W. naw Washington, D.C. 20006 the national voice of wholesale distribution 202/872-0885 Dirk Van Dongen President May 4, 1982 Mr. Lewis Uhler President National Tax-Limitation file for: no Monton valir the blockwell Committee 1523 L Street, N.W. Suite 600 bosiver soe folls Washington, D.C. 20036 Dear Lew: are wv board" On behalf of the 121 national wholesaler-distributor trade associations (see attached) and 45,000 members of NAW, I want to convey our Board's recent endorsement of the balanced budget-tax limitation amendment (S.J. Res. 58/H.J. Res. 350). While we do not view its passage by the Congress or its ratification by the states as a short term solution to our current deficit problems, we believe its long term benefit will be substantial. By way of background, in 1981 the wholesale distribution sector of the economy was responsible for over 1.2 trillion of economic activity, employing 5.4 million people at 307,000 plus locations across the country. NAW has been, and remains, a strong advocate of President Reagan's economic recovery program. We believe that unabated and excessive Federal spending is one of the root causes of our present economic malaise. We look forward to working closely with the NTLC over the coming months in advancing this important legislation. You are to be commended for the excellent work you have already done in this regard. I look forward to making your acquaintance. Sincerely, DvD Dirk Van Dongen President CC: William Tobin Charls Walker Attachment William M. Burckart T.E. Addison, Jr. Kenneth Adler Vincent A. Fochtman W. Scott Smith, Jr. Dan W. Ruple Past Chairman Chairman of the Board Chairman Elect First Vice Chairman Second Vice Chairman Secretary Buffalo, New York Atlanta, Georgia Detroit, Michigan Traverse City, Michigan Chester. Pennsylvania Carson. California National Wholesaler-Distributor Organizations Affiliated with the National Association of Wholesaler-Distributors Air-conditioning & Refrigeration Wholesalers National Association of Plastics Distributors American Dental Trade Association National Association of Recording Merchandisers, Inc. American Jewelry Distributors Association National Association of Service Merchandising American Machine Tool Distributors' Association National Association of Sporting Goods Wholesalers American Supply Association National Association of Textile & Apparel Distributors American Surgical Trade Association National Association of Tobacco Distributors American Traffic Services Association National Association of Writing Instrument Distributors American Veterinary Distributors Association National Beer Wholesalers Association Appliance Parts Distributors Association, Inc. National Building Material Distributors Association Associated Equipment Distributors National Business Forms Association Association of Footwear Distributors National Candy Wholesalers Association Association of Steel Distributors National Commercial Refrigeration Sales Association Automotive Service Industry Association National Electronic Distributors Association Aviation Distributors & Manufacturers Association National Fastener Distributors Association National Food Distributors Association Bearing Specialists Association National Frozen Food Association Beauty & Barber Supply Institute, Inc. Bicycle Wholesale Distributors Association, Inc. National Independent Bank Equipment Suppliers Assn. Biscuit & Cracker Distributors Association National Industrial Belting Association National Industrial Glove Distributors Association Ceramic Tile Distributors Association National Lawn & Garden Distributors Association Ceramics Distributors of America National Locksmiths' Suppliers Association Coated Abrasives Fabricators Association National Marine Distributors Association Cooperative Food Distributors of America National Paint Distributors, Inc. Copper & Brass Servicenter Association National Paper Trade Association, Inc. Council for Periodical Distributors Association National Plastercraft Association Council of Wholesale-Distributors National Sash & Door Jobbers Association American Institute of Kitchen Dealers National School Supply & Equipment Association Distributors Council, Inc. National Solid Wastes Management Association Door & Hardware Institute National & Southern Industrial Distributors Associations Drug Wholesalers Association National Spa and Pool Institute National Truck Equipment Association Electrical-Electronics Materials Distributors Assn. National Welding Supply Association Explosive Distributors Association, Inc. National Wheel & Rim Association Farm Equipment Wholesalers Association National Wholesale Druggists' Association Flat Glass Marketing Association National Wholesale Furniture Association Fluid Power Distributors Association, Inc. National Wholesale Hardware Association Food Industries Suppliers Association Northamencan Heating & Airconditioning Wholesalers Foodservice Equipment Distributors Association North American Wholesale Lumber Association, Inc. General Merchandise Distributors Council Optical Laboratories Association Outdoor Power Equipment Distributors Association Hobby Industry Association of America Pet Industry Distributors Association Independent Medical Distributors Association Petroleum Equipment Institute The Irrigation Association Power Transmission Distributors Association, Inc. Institutional & Service Textile Distributors Association, Inc. Safety Equipment Distributors Association, Inc. International Ceramic Association Scaffold Industry Association Shoe Service Institute of America Machinery Dealers National Association Specialty Tools & Fasteners Distributors Association Mass Merchandising Distributors Association Spring Service Association Material Handling Equipment Distribution Association Steel Service Center Institute Monument Builders of North America-Wholesale Div. Motorcycle Industry Council Textile Care Allied Trades Association Music Distributors Association Toy Wholesalers' Association of America National-American Wholesale Grocers' Association United Pesticide Formulators & Distributors Association National Appliance Parts Suppliers Association Wallcovering Distributors Association National Association of Aluminum Distributors Warehouse Distributors Association for National Association of Chemical Distributors Leisure & Mobile Products National Association of Container Distributors Watch Materials & Jewelry Distributors Association National Association of Decorative Fabric Distributors Water and Sewer Distributors Association National Association of Electrical Distributors Wholesale Florists & Florist Suppliers of America National Association of Fire Equipment Distributors Wholesale Stationers' Association, Inc. National Association of Floor Covering Distributors Wine & Spirits Wholesalers of America, Inc. National Association of Manufacturing Opticians Wood Heating Alliance National Association of Marine Services, Inc. Woodworking Machinery Distributors Association National Association of Meat Purveyors NATIONAL ASSOCIATION OF WHOLESALER-DISTRIBUTORS 1725 K Street, N.W., Washington, D.C. 20006 202/872-0885 Inside THIS WEEK'S NEWS FROM Washington Reagan Boost Aids Tax-Limit Amendment hood of Washington, D.C., inspired something called "National Condom Week," an activity ac- The President's strong endorsement of the tually celebrated by the local D.C. government and Balanced Budget-Tax Limitation Amendment in endorsed by Mayor Marion Barry. The Planned last week's televised address to the nation is Parenthood group, which received over half-a- expected to give the amendment a big shot in the million dollars in Title X funds in the last 14 arm just as it nears a vote in the Senate. William H. Shaker, executive vice president of the Na- tional Tax Limitation Committee, told HUMAN An invitation Is... EVENTS: "We're really tickled pink that President Rea- THE 1th ANNUAL gan has endorsed the amendment. His support will really be helpful as we proceed to a vote in the Senate." As previously reported, the amendment RUDDER Fab 19. 1982 DISCO (SJ Res. 58, HJ Res. 350) has already been ap- 6 10 pm proved by the Senate Judiciary Committee and could reach the Senate floor at any time. The Beral 1148 Connecticut Ave. NW The proposed addition to the Constitution, which enjoys the enthusiastic support of Nobel The Men's Center admission free with a condom Prize-winning economist Milton Friedman, has Planned Parenthood dress: informal two key provisions. One requires that "total out- lays"-significantly including so-called "off budget" items-may not exceed "total receipts." The D.C. chapter of the Planned Parenthood orga- In emergencies, Congress could make exceptions nization, which is financed with federal funds, pro- to this rule. But this would require a three-fifths vided a perfect example of flagrantly wasted tax dollars when It staged a "Rubber Disco." vote "of the whole number of both houses" in favor of a measure providing for "a specific ex- months, admitted through its financial director, cess of outlays over receipts," and-to assure Edith Ledbetter, that the condom celebration had accountability-the measure would have to be been promoted with federal dollars. "directed solely to that subject." To get the week (February 14-21) off to a rous- The second major provision states that the gov- ing (or perhaps arousing) start, the local Planned ernment's "total receipts" for any fiscal year may Parenthood group sent out a promotional letter, not increase from year to year by more than the signed by Paula Wilborne, which read in part: growth of national income, "unless a majority of "Included among the celebration of National the whole number of both houses of Congress Condom Week are: A symposium on Male Sex- shall have passed a bill directed solely to approv- uality, a talk on Male Contraception, and last but ing specific additional receipts and such bill has not least, an evening of enjoyment and educational become law." exchange called RUBBER DISCO!!!!! - Yes, The amendment would become effective in the it is the 4th annual RUBBER DISCO. Admission is second full fiscal year after it was ratified by the free with a condom and an invitation which can be necessary three-fourths of the states. picked up at the Men's Center of Planned Parent- hood (located at 1108 16th Street, N.W.-that is, 16th and L). This fabulous dance will be held at The Beret Discotech, decorated with a rainbow of different colored, blown up condoms. The height Another Spending Scandal of festivities will culminate with a condom blowing contest, the winner of which is to receive a prize of Is There No More $35.00." Secretary of Health and Human Services Fat in the Budget? Richard Schweiker called this project "tasteless" and a "flagrant example of irresponsibility and Has the budget been "cut to the bone," as the bad judgment at any time, but especially in these liberals are so fond of saying these days? Judie times of budget restraint." Representatives Robert Brown, president of American Life lobby, insisted Walker (R.-Pa.) and John Rousselot (R.-Calif.) to a House subcommittee on appropriations last were appalled, and roundly condemned the misuse week that all sorts of money is being wasted on of taxpayers' money. Walker kept referring to the Title X of the federally funded Public Health Ser- occasion as "unbelievable." "This is yours and my vice Act. This program, she pointed out, referring federal tax dollars that are being used on this kind to a study by the General Accounting Office, "is of enterprise," he moaned. riddled with waste and abuse." Most people would find that hard to disagree Typical of hundreds of federal programs on the with. But Speaker Tip O'Neill and his Democratic books, this measure will cost $123 million in Fiscal colleagues, in breaking off the budget negotiations Year 1983, but the GAO claims that at least $48 with the President last week, keep suggesting that million is foolishly spent on a yearly basis. cutting such spending amounts to a cruel blow to Consider, for instance, that Planned Parent- the underprivileged. MAY 8, 1982 / Human Events / 3 379 PLANNED PARENTHOOD'OF METROPOLITAN WASHINGTON, D.C., INC. 1108 SIXTEENTH STREET, N.W. WASHINGTON, D.C. 20036 202-347-8500 Dear Friend, Thank you for taking the time to express your support for our ad in the Washington Post. As you know, the Senate Judiciary committee just passed the Hatch Amendment by a vote of 10 to 7. This Amendment (S.J. 110) reads: "A right to abortion is not secured by this Constitution. The Congress and several States shall have the concurrent power to restrict and prohibit abortion: provided, that a law of a State which is more restrictive than a law of Congress shall govern." Now that it has passed the Judiciary Committee, this anti-choice legislation may reach the Senate floor in the very near future. WHAT YOU CAN DO: First and foremost, you can express your views to our elected representatives. Members of the Judiciary Committee who voted pro-choice should receive personal thank-you notes. The pro-choice votes on the Judiciary Committee were: Mathias, MD Kennedy, MA Specter, PA Leahy, VT Baucus, MT Metzenbaum, OH Byrd, WV Write: Senator , United States Senate, Washington, DC 20510 Residents of Virginia and Maryland should also write their Senators and urge them to vote against the Hatch Amendment and all other anti-choice legislation. Maryland Residents Virginia Residents Write: Write: Charles McC. Mathias, Jr. Harry Byrd, Jr. 358 Russell Building 417 Russell Building Washington, D.C. 20510 Washington, D.C. 20510 Paul Sarbanes John Warner 2327 Dirksen Building 6239 Dirksen Building Washington, D.C. 20510 Washington, D.C. 20510 Finally, the Planned Parenthood Metropolitan Washington Public Affairs Program welcomes volunteers who want to work with us on this issue. If you can donate some time, please call us at 347-8500, or send in the attached coupon and we will contact you. Thanks again for your support! Sincerely, Amy Fine Amy Fine Public Affairs Director Please contact me, I would like to volunteer with your Public Affairs Program. Name Phone: Day , Eve.- , Address THE WHITE HOUSE WASHINGTON May 18, 1982 MEMORANDUM TO WAYNE VALIS FROM: ROBERT MOSS pay RE: Support for the Balanced Budget Amendment Attached is a letter from Bill Tobin of the National Tax- Limitation Committee with trade association support for S.J. Res. 58/H.J. Res. 350. Following is a list of specific organizations with respect to your request on their position regarding the balanced budget: National Association of Manufacturers Support the amendment with the reasoning that it will limit federal spending. U.S. Chamber of Commerce Have not formulated a position on the Balanced Budget Amendment. The Business Roundtable Have not formulated a position on the Balanced Budget Amendment. National Federation of Independent Business Support the Balanced Budget Amendment and will work on behalf of its passage. Westinghouse Electric Corp. Will support the White House position on the Balanced Budget Amendment. Mobil Corp. Supports the Balanced Budget Amendment. U.S. Steel Corp. Have not taken a position on the Res. They will await a budget compromise and will support The White House position on the BBA. National Association of Wholesaler-Distributors Strongly in support of the BBA. the national taxlimitation P.O. Box 513 X 1523 L Street, N.W., Suite 600 committe Loomis, CA 95650 Washington, D.C. 20005 (916) 652-0471 (202) 393-2060 MEMORANDUM OFFICERS Lewis K. Uhler, President (Attorney, businessman, consultant) TO: Bob Moss William H. Shaker, Executive Vice President Washington Office) FROM: Bill Tobin B.T. William J. Tobin, Vice President (NTLC-Washington Office) David Copeland, Vice President DATE: May 18, 1982 (Tennessee State Representative) Donald L. Totten, Vice President (Illinois State Senator) Attached is a list of national trade associations Jameson G.Campaigne, Jr., Treasurer (Publisher, consultant) that have formally endorsed the Tax Limitation/Bal- FOUNDERS & SPONSORS anced Budget Constitutional Amendment (S.J.Res.58/ H.J.Res.350). C. Austin Barker (Financial Consultant Noyes Partners, Inc.) The National Tax Limitation Committee is finan- George Champion cially supported by approximately 25,000 corporations (former Chairman, Chase Manhattan Bank) and companies, who presumably agree with our major M. Stanton Evans thrust to amend the constitution in order to limit (Author, columnist, Broadcaster) the growth of taxes and spending and plan a balanced Milton Friedman budget. I've enclosed a sheet giving examples of (Author, Economist, Nobel laureate) such corporations. Arthur Godfrey (Entertainer, commentator) Among corporation contributors who are to my Allan Grant (former President, American Farm knowledge most active are: Flowers Industries, Bureau Federation) Blue Bell and the Reserve Fund. They have contacted James M. Hall (former Secretary, California their employees/investors and have asked them to Human Relations Agency) contact their Senators and Representatives. Clare Boothe Luce (Author, columnist, former U.S. Ambassador, congresswoman) In addition to corporate support, NTLC has 600,000 individual members nationwide. Vern 1. McCarthy, Jr. (Director, Bank of Bellwood) Frank Shakespeare Please call me if you need additional information. (former Director, United States Information Agency: President RKO) William Craig Stubblebine (Professor of Economics, Claremont College) General A.C. Wedemeyer (U.S. Army, Retired) FOUNDERS & SPONSORS Currently in Government Service Robert Carleson William A. Niskanen Association Support of the Tax Limitation - Balanced Budget Amendment American Bakers Association American Council for Capital Formation American Farm Bureau Federation American Gear Manufacturers Association Associated Builders and Contractors National Association of Homebuilders National Association of Manufacturers National Association of Realtors National Association of Wholesaler - Distributors National Lumber and Building Material Dealers Association National Cattlemen's Association (National Screw Products Association) National Federation of Independent Business National Welding Supply Association United States Jaycees Illinois Manufacturers Association Michigan Chamber of Commerce Associated Industries of Kentucky Savings League of Wisconsin Oklahoma Bankers Association Virginia Agribusiness Council Texas Bankers Association FOR IMMEDIATE RELEASE Contact: William Tobin the 202-393-2060 national taxlimitation P.O. Box 513 X 1523 L Street, N.W., Suite 600 committee Loomis, CA 95650 Washington, D.C. 20005 (916) 652-0471 (202) 393-2060 BIPARTISAN SUPPORT GROWS FOR TAX LIMITATION/BALANCED BUDGET AMENDMENT -- SENATOR CANNON SIGNS ON AS COSPONSOR -- PRESIDENTIAL ENDORSEMENT WELCOMED OFFICERS Washington, D.C., May 14, 1982 -- Senator Howard Lewis K. Uhier, President (Attorney, businessman, consultant) Cannon (D-NV) is the latest member to announce support William H. Shaker, Executive Vice President (NTLC- Washington Office) William J. Tobin, Vice President for Res. 58, the Tax Limitation Balanced Budget (NTLC-Washington Office) David Copeland, Vice President Amendment pending before the U.S. Senate. His sponsor- (Tennessee State Representative) Donald L. Totten, Vice President (Illinois State Senator) ship brings the official number of Senate cosponsors to Jameson G.Campaigne, Jr., Treasurer (Publisher, consultant) 57. A number of additional Senators have indicated FOUNDERS & SPONSORS C. Austin Barker that they plan to vote for the Amendment. (Financial Consultant Noyes Partners, Inc.) President Reagan reiterated his support for the George Champion (former Chairman, Chase Manhattan Bank) Amendment in a speech to the Nation May lst. Public M. Stanton Evans (Author, columnist, Broadcaster) response has been running more than seven to one in Milton Friedman (Author, Economist, Nobel laureate) favor of the Amendment. Arthur Godfrey (Entertainer, commentator) Allan Grant Lewis K. Uhler, President of the 600,000 member (former President, American Farm Bureau Federation) National Tax Limitation Committee, praised the action James M. Hall (former Secretary, California Human Relations Agency) by Senator Cannon saying: "That such a distinguished Clare Boothe Luce (Author, columnist, former U.S. Ambassador, congresswoman) member of the Senate should endorse the Amendment at Vern I. McCarthy, Jr. (Director, Bank of Bellwood) this time demonstrates that Senate support is steadily Frank Shakespeare (former Director, United States Information Agency: President RKO) mounting. " A Senate vote expected in early June will William Craig Stubblebine (Professor of Economics, Claremont College) require 67 votes for passage. General A. C. Wedemeyer (U.S. Army, Retired) Along with Cannon, other members who have signed FOUNDERS & SPONSORS Currently in Government Service on as cosponsors in a bipartisan show of support since Robert Carleson the Amendment was favorably passed by the Senate Judiciary William A. Niskanen (More) - 2 - Committee are: Senators Lloyd Bentsen (D-TX), Quentin Burdick (D-ND), Walter Huddleston (D-KY), John Melcher (D-MT) Sam Nunn (D-GA), William Roth (R-DE), Jim Sasser (D-TN), John Tower (R-TX) and Nicholas Brady (R-NJ). Bipartisan support is also building in the House of Repre- sentatives, where the Amendment enjoys the cosponsorship of more than 200 Congressmen. The House drive is led by Representative Ed Jenkins (D-GA) and Barber Conable (R-NY). Among the House co- sponsors are Robert Michel (R-IL), Minority Leader, and Tony Coelho (D-CA), Chairman of the Democratic Campaign Committee. William H. Shaker, NTLC Executive Vice President reported that a number of other Senators, including Senator Lawton Chiles (D-FL) and Senator Charles Percy (R-IL), are closely studying the Amend- ment. Shaker said: "It now appears, based on constituent mail from Senators which has been shared with us by NTLC members, that the Amendment has sufficient support for passage." Regarding the President's endorsement, Uhler said: "NTLC welcomes the radio address by President Reagan on May 1 in which the President urged the grassroots to start putting pressure on Congress now to pass the Tax Limitation/Balanced Budget Amendment. " "We agree with the President," said Uhler, "that government must stay within the limits of its revenues. The sorry fiscal record of the last 25 years is convincing evidence that Congress and the Executive need the external restraint of a constitutional amendment to balance the budget and limit taxes." (More) - 3 - Both President Reagan and Vice President Bush supported this type of amendment during their respective Presidential Campaigns during 1980. Reagan first proposed such an amendment in 1973 as an amendment to the California constitution. If passed by the Congress this year and ratified by the states in the amount of time normally taken for such ratifica- tion, the Amendment would first go into effect in fiscal year 1986. This is the year that both the President and Congressional leaders have set for achievement of a balanced budget -- which would be the first balanced federal budget since 1969. Uhler said, "Passage of the Amendment will put teeth in this goal and make Congressional and Presidential commitment to fiscal respon- sibility permanent." The National Tax Limitation Committee played a principal role in formation of the Amendment's language and in introducing the Amendment in the Congress, as well as, spearheading the grass- roots campaign on the issue for the past seven year. # # # bec Wayne Valis R.Cavaney NATIONAL ASSOCIATION OF WHOLESALER-DISTRIBUTORS 1725 K Street, N.W. naw Washington, D.C. 20006 the national voice of wholesale distribution 202/872-0885 Dirk Van Dongen President May 4, 1982 Mr. Lewis Uhler President National Tax-Limitation for: no Maton Valis the Blackwell Committee 1523 L Street, N.W. Suite 600 file bosiver so of folls Washington, D.C. 20036 are wv Good" Dear Lew: On behalf of the 121 national wholesaler-distributor trade associations (see attached) and 45,000 members of NAW, I want to convey our Board's recent endorsement of the balanced budget-tax limitation amendment (S.J. Res. 58/H.J. Res. 350). While we do not view its passage by the Congress or its ratification by the states as a short term solution to our current deficit problems, we believe its long term benefit will be substantial. By way of background, in 1981 the wholesale distribution sector of the economy was responsible for over 1.2 trillion of economic activity, employing 5.4 million people at 307,000 plus locations across the country. NAW has been, and remains, a strong advocate of President Reagan's economic recovery program. We believe that unabated and excessive Federal spending is one of the root causes of our present economic malaise. We look forward to working closely with the NTLC over the coming months in advancing this important legislation. You are to be commended for the excellent work you have already done in this regard. I look forward to making your acquaintance. Sincerely, DvD Dirk Van Dongen President CC: William Tobin Charls Walker Attachment William M. Burckart T.E. Addison, Jr. Kenneth Adler Vincent A. Fochtman W. Scott Smith, Jr. Dan W. Ruple Past Chairman Chairman of the Board Chairman Elect First Vice Chairman Second Vice Chairman Secretary Buffalo, New York Atlanta, Georgia Detroit, Michigan Traverse City, Michigan Chester. Pennsylvania Carson. California National Wholesaler-Distributor Organizations Affiliated with the National Association of Wholesaler-Distributors Air-conditioning & Refrigeration Wholesalers National Association of Plastics Distributors American Dental Trade Association National Association of Recording Merchandisers, Inc. American Jewelry Distributors Association National Association of Service Merchandising American Machine Tool Distributors' Association National Association of Sporting Goods Wholesalers American Supply Association National Association of Textile & Apparel Distributors American Surgical Trade Association National Association of Tobacco Distributors American Traffic Services Association National Association of Writing Instrument Distributors American Veterinary Distributors Association National Beer Wholesalers Association Appliance Parts Distributors Association, Inc. National Building Material Distributors Association Associated Equipment Distributors National Business Forms Association Association of Footwear Distributors National Candy Wholesalers Association Association of Steel Distributors National Commercial Refrigeration Sales Association Automotive Service Industry Association National Electronic Distributors Association Aviation Distributors & Manufacturers Association National Fastener Distributors Association National Food Distributors Association Bearing Specialists Association National Frozen Food Association Beauty & Barber Supply Institute, Inc. National Independent Bank Equipment Suppliers Assn. Bicycle Wholesale Distributors Association, Inc. Biscuit & Cracker Distributors Association National Industrial Belting Association National Industrial Glove Distributors Association Ceramic Tile Distributors Association National Lawn & Garden Distributors Association Ceramics Distributors of America National Locksmiths' Suppliers Association Coated Abrasives Fabricators Association National Marine Distributors Association Cooperative Food Distributors of America National Paint Distributors, Inc. Copper & Brass Servicenter Association National Paper Trade Association, Inc. Council for Periodical Distributors Association National Plastercraft Association Council of Wholesale-Distributors National Sash & Door Jobbers Association American Institute of Kitchen Dealers National School Supply & Equipment Association Distributors Council, Inc. National Solid Wastes Management Association Door & Hardware Institute National & Southern Industrial Distributors Associations Drug Wholesalers Association National Spa and Pool Institute National Truck Equipment Association Electrical-Electronics Materials Distributors Assn. National Welding Supply Association Explosive Distributors Association, Inc. National Wheel & Rim Association Farm Equipment Wholesalers Association National Wholesale Druggists' Association Flat Glass Marketing Association National Wholesale Furniture Association Fluid Power Distributors Association, Inc. National Wholesale Hardware Association Food Industries Suppliers Association Northamerican Heating & Airconditioning Wholesalers Foodservice Equipment Distributors Association North American Wholesale Lumber Association, Inc. General Merchandise Distributors Council Optical Laboratories Association Outdoor Power Equipment Distributors Association Hobby Industry Association of America Pet Industry Distributors Association Independent Medical Distributors Association Petroleum Equipment Institute The Irrigation Association Power Transmission Distributors Association, Inc. Institutional & Service Textile Distributors Association, Inc. Safety Equipment Distributors Association, Inc. International Ceramic Association Scaffold Industry Association Shoe Service Institute of America Machinery Dealers National Association Specialty Tools & Fasteners Distributors Association Mass Merchandising Distributors Association Spring Service Association Material Handling Equipment Distribution Association Steel Service Center Institute Monument Builders of North America-Wholesale Div. Textile Care Allied Trades Association Motorcycle Industry Council Music Distributors Association Toy Wholesalers' Association of America National-American Wholesale Grocers' Association United Pesticide Formulators & Distributors Association National Appliance Parts Suppliers Association Wallcovering Distributors Association National Association of Aluminum Distributors Warehouse Distributors Association for National Association of Chemical Distributors Leisure & Mobile Products National Association of Container Distributors Watch Materials & Jewelry Distributors Association National Association of Decorative Fabric Distributors Water and Sewer Distributors Association National Association of Electrical Distributors Wholesale Florists & Florist Suppliers of America National Association of Fire Equipment Distributors Whichesdie Stationers' Association, Inc. National Association of Floor Covering Distributors Wine & Spirits Wholesalers of America, Inc. National Association of Manufacturing Opticians Wood Heating Alliance National Association of Marine Services, Inc. Woodworking Machinery Distributors Association National Association of Meat Purveyors NATIONAL ASSOCIATION OF WHOLESALER-DISTRIBUTORS 1725 K Street, N.W., Washington, D.C. 20006 202/872-0885 Dairy and Food Industries for Morton Supply Association, Inc. Blockwell 6245 EXECUTIVE BOULEVARD, ROCKVILLE, MARYLAND 20852 (301) 984-1444, Telex: 908706 Fred J. Greiner Executive Vice President 7 May 1982 five The President The White House Washington, D.C. Dear Mr. President As the chief executive officer of this Association we want your office to be aware that this Association has gone on record as supporting the Constitutional Amendment re balanced Federal budget The action supporting this movement was taken by our Board of Directors at our annual meeting on April 21, 1982. We are very pleased at your announcement of support made in your telecast last week and we want you to know how much we appreciate your effort toward achieving fiscal responsibility in the United States budget making process. Cordially Jane Fred J. Greiner Executive Vice President bcc - Wayne H. Valis Wayne: Fn you Junel READING SERVICE 126 S. Putman, Williamston, Mich. 48895 HILLSDALE, MI DAILY NEWS E-8,780 MAY-1 -82 Huber Senate bid based on experience By Paul Manning Krawzak & Chemical Co, in Detroit, which he think he's made the right moves would take for economic recovery if militarily than any other nation, said sells its products in international both internationally as well as he became a senator, Huber said, "It said, since peace is not possible ur Robert J. Huber believes, for two as well as U.S. markets. He is also nationally, he said. isn't a question of specific things. It's the "strongest army, navy, air foi reasons, that he is more qualified chairman of the board of a plastics He would, however, place more an attitude, an approach to is in the hands of the most peace han those opposing him in the race corporation in Arkansas, director of emphasis than Ronald Reagan has on problems, nation." 0 replace U.S. Michigan National Bank in Troy, and balancing the budget. "If my. votes had been followed For two reasons he supports 1 en. Donald director of a Detroit firm. He is For this, he favors a tax on im- (when he was in Congress) we would president's proposed arms buildt tiegle. somebody who understands in- ported oil, which would raise' have had a balanced budget," he First, he is in favor of the program "I've served dustry and the problems of in- gasoline prices somewhat and said. he said. Second, he said, "I da a every level of dustry," he said. provide the government with $30 to "Live within the means now really believe there is anybody in t overnment, Riegle's term expires at the end of $40 billion it could use to cut the that's the philosophy one has to have U.S., including the secretary he 59-year-old this year. Opposing Huber on the federal deficit "It would reduce and Don Riegle doesn't have it," he defense, who understands the tol tepublican said Republican side are former consumption of gas that would said. "We've had the Riegles running picture of our total problems exce 'riday during a Michigan Congressman Philip help our energy crunch," he said. By the railroads for the last 20 years and the president." top in Hillsdale. Ruppe, William Ballenger and cutting the federal deficit, it would that's what's brought us to ruin." "I THINK THE president mu luber served as University of Michigan Regent Dean promote reduced interest rates, and HE SAID THAT if an imported oil explain his position to the people nayor of Troy Baker. it would also improve the nation's tax is implemented, there will be an the U.S. and I think he's done that or six years, on Economic recovery is the main balance of trade, since the U.S. would upturn in the industrial base due to he said. he Oakland issue facing the Senate, he said, and import less, he said. lower interest rates, an increase in Given equal military forces by tl County Board of Robert his approach to it would stress "I THINK IT'S essential to have a employment, and a resulting cut in U.S. and Soviet Union, there is tl upervisors for Huber creating "an attractive business balanced budget," he said. But the deficit, since more tax revenue temptation on the part of the Sovie our years, as state senator for six environment in, which the free en- Huber is not comfortable with a will flow in to the government and to "aggressively attempt to utili: ears, and as a U.S. representative terprise system can flourish." constitutional amendment requiring less welfare benefits will flow out. what force they have to overpower or two years. "Nobody in this race "I THINK THE president's one (which Reagan has proposed), "I think we've bottomed out in the intimidate," he said. "And the on as that," he said. program is a very good, com- Congress passed a law two years ago economy," he said. "The recovery's way to stop that is to show them thi MOREOVER, HUBER has spent prehensive program," he said. "The requiring a balanced budget by 1981, not going to be rapid but it's going to they would bite off more than the 7 years in industry. Since 1952 he has control of the inflation was a he said. be steady." could chew." een president of Michigan Chrome tremendous asset to industry Asked what specific actions he The U.S. must be stronger Huber lives in Troy ROBERT J. HUBER for U.S. Senator "He Means Business" Memo to: mr. Morton Blackwell From: Bob Huber Thought you might like tosee the different approaches being taken on the balanced budget issue. + think we'd all agree the time has come to put America's fiscal house in order, and I support the President's efforts in that area file 1982 Electibe Paid for by friends of Bob Huber 9732 Erwin Ave., Detroit, Mich. 48213(313) 571-9670 MICHIGAN PRESS READING SERVICE 126 S. Putman, Williamston, Mich. 48895 PONTIAC, MI OAKLAND PRESS E-74,546 MAY- 5-82 Ruppe. Balanced budget amendment 'phony baloney By HANK SCHALLER 154 That view is shared by Riegle In comparison, former U.S. balanced budget if that is the Of The Oakland Press "It seems to me the as related by his press secretary Rep. Robert J. Huber of Troy, We may have gotten only thing that can be done, balanced budget Mike Russell. University of Michigan Regent Ballenger explained One of the leading contenders A balanced budget Deane Baker of Ann Arbor, to the point where "I'm certainly in favor of a for the Republican U.S. Senate amendment is amendment is something to be former state Sen. William Congress has let the balanced federal budget. At this nomination has parted company looked at at least two or three Ballenger of Lansing, and the point, though, I'm not certain with the Reagan administration geamg guys off the years down the road," Russell other GOP candidates, agree budget get out of its want to go the whole mile with a over the for a hook for not making explained. "It has little bearing with Reagan and basically constitutional amendment. I'm constitutional amendment hands, however. on the problems of today. What support a Constitutional always wary of tampering with mandating a balanced federal the hard decisions. is more important is to keep a Amendment mandating a - William Ballenger the Constitution. We may have budget. - Philip Ruppe open dialogue between balanced federal budget. gotten to the point where In fact, former U.S. Rep President Reagan and Huber said Congress is force the U.S. Senate and House Congress has let the budget get Philip Ruppe of Houghton baloney, Ruppe said Tuesday congressional leaders on budget already ignoring a law which of Representatives to live within out of its hands, however. agrees more closely with the It seems to me the balanced talks." required a balanced federal its budget like responsible For his part, Baker said he stand of incumbent U.S. Sen budget amendment is getting Ruppe said a better control on budget beginning in 1981. citizens do. Huber explained. supported the concept of a Donald Riegle, D-Michigan, the guys off the hook for not making federal spending would be tax "Since laws are designed to While stressing he had some balanced budget amendment as man he hopes to unseat in the hard decisions. indexing which would wipe out control people while constitution reservations about a balanced long as it was flexible enough to November, than whis three Any balanced budget the benefits of inflation to the amendments are passed to federal budget amendment, deal with national emergencies. opponents foreithe GOP amendment would be framed to federal treasury. He explained control governments, the Ballenger said he could support The concept would be good if nomination. have an out for politicians. It federal revenues now increase American people must now the proposal. for no other reason that it would This balanced budget would be more promise than 1.6 percent for every percent of initiate the process of a "I have no problem living with discipline the representatives amendment is so much phony reality. inflation. constitutional amendment to a constitutionally required and senators, Baker explained. THE WHITE HOUSE WASHINGTON June 7, 1982 to Morton B. MEMORANDUM FOR RED CAVANEY THRU: DIANA LOZANO FROM: MORTON C. BLACKWELL MR SUBJECT: Grover Norquist's Group Here is some material put out by Grover Norquist's new group. Lile Have we put the Balanced Budget - Tax Limitation Amendment on the back burner? Red morton- indicates balanced leudert 15th no rally action this wich battle. still pending because the of pup. for budget Diana 6/16 mort: Dictation from yester day. A Tyle June 15, 1982 MEMORANDUM FOR THE RECORD Unfortunately, the main concern of the NTLC leaders is that a strong Presidential initiative on the balanced budget tax limitation will steal their thunder. They resent the idea that the President will jump on board the bandwagon. They did a good job in crafting the amendment with the assistance of Milton Friedman and other scholars, but they have no record of successful political organi- zation. Uhler was the chief of the Proposition 1 Tax Limitation campaign in California which went down to defeat: At that time, his organization never even went back to the petition signers and grassroots financial supporters of their campaign for assis- tance in passing Proposition 1, which narrowly failed. Our experience in dealing with the NTLC has amply demonstrated that they are not well organized. Last year we helped them out with a briefing which caused us more last minute emergencies than virtually any other briefing we have undertaken. The President will be perceived as leading on this and other major issues as Franklin Roosevelt led the country in the 1930s. Their suggestion that the President should wait until the Senate has passed the Amendment and then give a speech -- outside of Washington -- endorsing the amendment, is almost absurd. It is certainly not in the best interest of the President. If we go forward immediately with a major Presidential event here in D. C., the NTLC has no alternative but to applaud the President's support. Even private grumblings would be unbecoming and seen by them as dangerous. There is a big difference between battling for a proposition in California and fighting a legislative battle. One major difference is that elected politicians are not held accountable in referendum - 2 - battles. The National Right to Work Committee opposed almost violently the effort which put a proposed Right to Work bill on the statewide ballot in Missouri. Unlike the situation in other states which have had battles in their state legislatures over the Right to Work issue, the losing Right to work referendum in Missouri a few years ago had absolutely no favorable impact on subsequent legislative contests. If the President goes out in front in behalf of this amendment, we will swamp the Hill with favorable grassroots comments. There is no likelihood that a comparable grassroots opposition to the amendment can be mounted. The NTLC leaders are simply not capable of organizing a massive grassroots effort across the nation which would heighten voters' awareness of how their legislators voted on the amendment. Only a Presidentially-led grand coalition could accomplish this fully. The NTLC leaders' argument that Presidential involvement would hurt the amendment effort by making it appear to be partisan is not a very serious point. It ought to be quite easy for the President in his strong endorsement of the amendment to make it crystal clear that he is not approaching this as a partisan issue. He could single out for praise prominent Democrats not running for reelection this year and prominent boll weevils, strongly commending them for their support. The final point the NTLC made is that the President will not be helped if the amendment should lose in the Congress this year. This is simply not SO. From the standpoint of the Congressional elections, it is clear that supporters of the President would benefit much more from the amendment issue in Congressional races if the amendment had narrowly lost in the House. If the amendment passes, the issue will effectively be moot in Congressional races because the battle will be transferred to the state legislatures. - 3 - This is not to say that we should attempt to create a narrow loss for the amendment. We should go all out to win on it, but the argument that a loss after a good fight will hurt the President simply does not stand up to analysis. If we do go ahead with a major Presidential event in D. C., it would be highly appropriate for the President to single out Lew Uhler and the NTLC for special praise for the excellent position they have done in bringing this important proposal before the American people. 6-16-82 Submitted to Red Cavaney 12:00 N Balanced Budget the BALANCED BUDGET - TAX LIMITATION AMENDMENT Mr. Paul Weyrich, Director 546-3000 Committee for Survival of a Free Congress 721 Second St. N. E. Washington, D. C. 20012 Rev. Jerry Falwell, President (804) 528-4112 The Moral Majority National Capitol Office 500 Alleghany Ave. Lynchburg, VA 24501 Mr. John T. Dolan, National Director 522-2800 National Conservative Political Action Committee 1500 Wilson Blvd., Suite 513 Arlington, VA 22209 Mrs. Karen Davis, Director 817-429-6396 Christian Women's National Concerns 654-4022 Box 1224 Fort Worth, TX 75202 Mrs. Phyllis Schlafly, Chairman (618) Eagle Forum 462-5415 68 Fairmount Alton, Illinois 62002 Mr. Howard Phillips, Chairman 281-6782 The Conservative Caucus 422 Maple Avenue East Vienna, VA 22180 Mr. Don Todd, Executive Director 546-6555 American Conservative Union 316 Pennsylvania Avenue S. E. Washington, D. C. 20003 Mr., Lewis Uhler, President 393.2060 National Tax Limitation Committee 1523 L St. N. W. Washington, D. C. 20005 Mr. James A. DAvidson, Chairman 543-1300 National Taxpayers Union 325 Pennsylvania Avenue, S. E. Washington, D. C. 20003 7/21 Wayne - - Dirk Van Dongen President 74I NATIONAL ASSOCIATION OF WHOLESALER-DISTRIBUTORS ПАШ 1725 K Street, N.W. Washington, D.C. 20006 202/872-0885 DW July 12, 1982 for Morton Senator Orrin Hatch United States Senate Blockfull Washington, DC 20510 Russell Senate Office Building file FYD Dear Senator Hatch: Way This is to urge your support for S.J.Res.58, the proposed Balanced Budget/Tax Limitation Constitutional Amendment. In our view, this amendment is a responsible measure -- from both an economic and constitutional perspective -- and would establish in the Constitution fundamental principles of political accountability. S.J.Res.58 is a carefully crafted, consensus constitutional proposal that will prove effective in eliminating the structural bias toward greater public spending in our fiscal process, while being sufficiently flexible to allow Congress to properly respond to a variety of changing economic and other circumstances. At the same time that Congress is engaged in addressing short-term economic problems, it is critical that efforts also be made to address longer-term economic difficulties. S.J.Res.58 represents such an effort and ought to be sup- ported. State legislatures, representative national organiza- tions, and the public generally have all made increasingly clear to Congress their desire for a constitutional amend- ments to restore an environment of public fiscal responsibil- ity. We would respectfully ask you to recognize these calls and support S.J.Res.58. Although we do not know what amend- ment may be offered to this measure, we would also ask you to recognize the balance that has been achieved in S.J.Res.58 and view such amendments with great caution. Sincerely, National Tax Limitation Committee American Bakers Association American Council for Capital Formation American Gear Manufacturers Association American Subcontractors Association Associated Builders and Contractors Chamber of Commerce of the United States Citizen's Choice Independent Bakers Association National Association of Homebuilders National ASsociation of Manufacturers National Association of Temporary Services National Cattlemen's Association National Federation of Independent: Business National Knitwear Association -2- National Lumber and Building Material Dealers Association National Screw Machine Products Association National Taxpayers Union Steel Services Center Institute United States Jaycees National Association of Wholesaler - Distributors and affiliated organizations: Air-conditioning & Refrigeration Wholesalers American Dental Trade Association American Jewelry Distributors Association American Machine Tool Distributors' Association American Supply Association American Surgical Trade Association American Traffic Services Association American Veterinary Distributors Association Appliance Parts Distributors Association, Inc. Associated Equipment Distributors Association of Footwear Distributors Association of Steel Distributors Automotive Service Industry Association Aviation Distributors & Manufacturers Association Bearing Specialists Association Beauty & Barber Supply Institute, Inc. Bicycle Wholesale Distributors Association, Inc. Biscuit & Cracker Distributors Association Ceramic Tile Distributors Association Ceramics Distributors of America Coated Abrasives Fabricators Association Cooperative Food Distributors of America Copper & Brass Servicenter Association Council for Periodical Distributors Association Council of Wholesale-Distributors American Institute of Kitchen Dealers Distributors Council, Inc. Door & Hardware Institute Drug Wholesalers Association Electrical-Flectronics Materials Distributors Assn. Explosive Distributors Association, Inc. Farm Equipment Wholesalers Association Flat Glass Marketing Association Fluid Power Distributors Association, Inc. Food Industries Suppliers Association Foodservice Equipment Distributors Association General Merchandise Distributors Council Hobby Industry Association of America Independent Medical Distributors Association The Irrigation Association -3- Institutional & Service Textile Distributors Association, Inc. International Ceramic Association Machinery Dealers National Association Mass Merchandising Distributors Association Material Handling Equipment Distribution Association Monument Builders of North America-Wholesale Div. Motorcycle Industry Council Music Distributors Association National-American Wholesale Grocers' Association National Appliance Parts Suppliers Association National Association of Aluminum Distributors National Association of Chemical Distributors National Association of Container Distributors National Association of Decorative Fabric Distributors National Association of Electrical Distributors National Association of Fire Equipment Distributors National Association of Floor Covering Distributors National Association of Manufacturing Opticians National Association of Marine Services, Inc. National Association of Meat Purveyors National Association of Plastics Distributors National Association of Recording Merchandisers, Inc. National Association of Service Merchandising National Association of Sporting Goods Wholesalers National Association of Textile & Apparel Distributors National Association of Tobacco Distributors National Association of Writing Instrument Distributors National Beer Wholesalers Association National Building Material Distributors Association National Business Forms Association National Candy Wholesalers Association National Commercial Refrigeration Sales Association National Electronic Distributors Association National Fastener Distributors Association National Food Distributors Association National Frozen Food Association National Independent Bank Equipment Suppliers Assn. National Industrial Belting Association National Industrial Glove Distributors Association National Lawn & Garden Distributors Association National Locksmiths' Suppliers Association National Marine Distributors Association National Paint Distributors, Inc. National Paper Trade Association, Inc. National Plastercraft Association National Sash & Door Jobbers Association National School Supply & Equipment Association National Solid Wastes Management Association National & Southern Industrial Distributors Associations National Spa and Pool Institute National Truck Equipment Association National Welding Supply Association National Wheel & Rim Association National Wholesale Druggists' Association National Wholesale Furniture Association National Wholesale Hardware Association Northamerican Heating & Airconditioning Wholesalers -4- North American Wholesale Lumber Association, Inc. Optical Laboratories Association Outdoor Power Equipment Distributors Association Pet Industry Distributors Association Petroleum Equipment Institute Power Transmission Distributors Association, Inc. Safety Equipment Distributors Association, Inc. Scaffold Industry Association Shoe Service Institute of America Specialty Tools & Fasteners Distributors Association Spring Service Association Steel Service Center Institute Textile Care Allied Trades Association Toy Wholesalers' Association of America United Pesticide Formulators & Distributors Association Wallcovering Distributors Association Warehouse Distributors Association for Leisure & Mobile Products Watch Materials & Jewelry Distributors Association Water and Sewer Distributors Association Wholesale Florists & Florist Suppliers of America Wholesale Stationers' Association, Inc. Wine & Spirits Wholesalers of America, Inc. Wood Heating Alliance Woodworking Machinery Distributors Association THE WHITE HOUSE WASHINGTON July 15, 1982 file MEMORANDUM FOR DISTRIBUTION FROM: EDWIN J. GRAY Ba SUBJECT: BALANCED BUDGET AMENDMENT -- ISSUE UPDATE Attached is a redraft of OPI's Issue Update on the Balanced Budget/Tax Limitation Amendment which the President has endorsed. Because of urgent deadlines facing the distribution of the paper, I have to request any comments or changes by 6 p.m. today. If I do not hear from you, I will assume the paper meets with your approval. Thank you very much for your cooperation. I apologize for the short deadline. To: James Jenkins Roger Porter Bill Barr RN 191 Morton Blackwell David Gerson Eric Hemel Michael Uhlmann THE AMERICAN LOBBY FOR PRESIDENT REAGAN'S BALANCED BUDGET AMENDMENT July 15, 1982 The Honorable Morton C. Blackwell Special Assistant to the President for Public Liaison The White HOuse 191, Old Executive Office Building Washington, D.C. 20500 Dear Mr Winton ackwell: On behalf of the American Lobby, and Mr. Donald Kendall, National Co-Chairman of The American Lobby, I would like to invite you to The American Lobby reception for our National Advisory Committee, State Co-Chairmen, and State Advisory Committee Members as part of the activities on July 19 to inaugurate the American Lobby's drive toward Congressional passage and State ratification of President Reagan's Balanced Budget Amendment. The reception will be held from 5:30 p.m. to 7:00 p.m. on Monday, July 19, 1982, at The Capitol Hill Club, 300 First Street, S.E., Washington, D.C. I would be deeply honored if you could grant us the time in your busy schedule to participate in The American Lobby's first efforts in support of the President and a Balanced Budget. Even if you must limit your visit to just a few minutes, it would be greatly appreciated. Sincerely, Andre Andre E. LeTendre Executive Director The American Lobby for President Reagan's Balanced Budget Amendment R.S.V.P. 225-3865 Morton FYF LETS REBUILD, AMERICA Chamber of Commerce of the United States NEWS waye 1615 H Street, N.W. RELEASE Washington, D.C. 20062 file FOR IMMEDIATE RELEASE Contact: Frank Benson Thursday, July 15, 1982 (202) 463-5682 NEW CHAMBER GALLUP SURVEY FINDS AMERICANS FAVOR BALANCED BUDGET AMENDMENT BY THREE TO ONE WASHINGTON, July 15 -- There is heavy public support for an amendment to the Constitution which would both require a balanced budget and limit tax increases to no more than the increase in Gross National Product (GNP) during the previous year. This was among findings of the most recent U.S. Chamber/Gallup survey of consumer attitudes toward a wide range of policy issues which was conducted last month. By a ratio of three to one, respondents favored an amendment similar to the balanced budget/tax limitation constitutional amendment now before the House of Representatives and Senate. Respondents were asked their opinion of a two-part proposed amendment as follows: I. Congress would not be allowed to approve a budget with an expected deficit unless: (a) Both the House and Senate approve the budget by a three-fifths vote, or (b) In the event of war II. Federal tax increases could not be larger than the increase in the nation's total output of goods and services (GNP) during the previous year. Sixty-four percent of those polled responded they would favor such an amendment, while only 20 percent would oppose it. Seventeen percent had no opinion. Importantly, this support holds up along a wide cross-section of the public. Union members favored it by a ratio of 63 percent to 24 percent, while non-union members favored it 64 percent to 19 percent. Although it is not a survey finding, the fact that the only important source of opposition to the amendment comes from the leadership of several major trade unions lends a note of irony to the survey's finding of such strong support from union members. Support for the amendment was also widespread among major income groups. Respondents from families with incomes of $15,000 or less favored the amendment by 58 percent to 17 percent Over $15,000, both support and opposition increased, respectively, to 68 percent and 22 percent. The results are based on face-to-face interviews by the Gallup Organization with 1,504 adults, 18 years and older, conducted during June 11-14, 1982. It is very probably (95 chances out of 100) that the findings are within three percentage points of the figures that would have been obtained if the entire adult population had been interviewed. Because of sample size, the margin of error for subgroups is larger. ##### (82-240) NOTE TO CORRESPONDENTS: Additional information and comments abount the survey are available from the director of the Chamber's Research Survey Center, Dr. James Morris, (202) 463-5620. Action ISSUE: CONSTITUTIONAL AMENDMENT TO LIMIT TAXES AND BALANCE THE BUDGET (H.J. RES. 350) ACTION Prompt contact. with your Representative. NEEDED: Urge him to sign the discharge petition needed to break the big spenders' control Call over H.J. Res. 350, and bring it to a vote on the House floor. July 9, 1982 Despite intense efforts by the President and his supporters in Congress to limit Federal spending growth, the federal budget is still out of control and triple-digit deficits are expected in both fiscal years 1982 and 1983. Indeed, deficit spending has become the normal state of affairs in federal budgeting. Since 1950, the budget has been in deficit for 26 of 31 years, and has run a surplus in only one of the past 21 fiscal years. Although most politicians pay lip service to the goal of balancing the budget, their actual votes on spending programs move the country further and further from this goal. This pattern of rampant deficit spending is a recent phenomenon. For most of our history, balancing the budget was considered a major obligation of government, even though unstated in the Constitution. When deficits were incurred, usually as a result of war-related expenditures, efforts were made to restore balance by running subsequent surpluses. The deficits of the Civil War were followed by 28 years of surpluses. The deficits of World War I were followed by 10 years of surpluses. As is evident from recent patterns of budgeting, the government's sense of fiscal discipline has greatly diminished -- some say disappeared -- over the past three decades. Electoral mandates for lower spending have been ineffective in slowing budget growth. Public opinion polls showing strong support for greater spending cuts are disregarded by Congressmen eager to preserve and expand pet projects and programs. Statutes and resolutions calling for smaller deficits and limited spending are routinely passed and routinely ignored by Congress. Obviously, something stronger is needed to limit Congress' propensity to spend and tax. A constitutional mandate to balance the budget is an important first step in finding a solution to this problem. BACKGROUND Persistent and expanding levels of deficit spending have made it painfully evident that something is fundamentally wrong with the government's budget process. It is clear that the failure to limit spending growth stems from an inherent bias in the budget process toward ever-increasing spending. The number of entitlement program beneficiaries has increased rapidly relative to the number of taxpayers, and the cost of such programs has risen even faster. At the same time, Congress has become increasingly reluctant to make the necessary changes in automatic entitlement programs to hold back the excessive growth in transfer payments. (over) FOR THE NATIONAL CHAMBER'S CONGRESSIONAL ACTION SYSTEM CHAMBER EDADE OF COMMERCE Legislative Department / Chamber of Commerce of the United States / 1615 H Street NW / Washington DC 20062 STATES UNITED - 2 - The chief cause of this bias is the imbalance of power between special interest groups and the general taxpayer, the individual. The so-called "needs" of each special interest group are heard loud and clear -- and taken separately, the cost of each special program to the taxpayer is relatively small. This encourages Congress to satisfy the vocal and well organized special interests at the expense of the taxpayer. Taken collectively, the costs of funding these programs have added up to an oppressive tax burden and record level deficits. This systematic bias in the political system in favor of tax spenders versus tax payers is encouraged by the fact that it has been unnecessary for Congress to confront explicitly the consequences of its excessively generous spending decisions by voting for tax increases. Tax increases have occurred automatically as a result of the progressive tax system and the inflation that has pushed American workers into higher and higher tax brackets. This pro-spending bias cannot be rectified within existing Congressional authority. Given the scope of the problem and the record of failure in limiting spending growth, a constitutional mandate is needed to restore balance to the budget process. HOW THE AMENDMENT WOULD WORK The purpose of the amendment is to make the budget process more responsive, more neutral and more democratic. It would do this by eliminating the structural bias toward increased levels of spending that is now built into the political system. H.J. Res. 350, the Balanced Budget/Tax Limitation Constitutional Amendment, restores this balance by limiting both deficits and tax increases. It limits growth in taxes by requiring that the increase in taxes in any given fiscal year be no greater than the prior calendar year's growth in national income. It thus ends excessive and automatic increases in the tax burden. H.J. Res. 350 restrains deficits by a combination of two of its provisions. First, Congress must plan a balanced budget: planned outlays must be no greater than planned receipts. This is the basic balanced budget provision of the amendment. Second, actual outlays may not exceed planned outlays. This is the absolute require- ment of the amendment. The basic requirements of a balanced budget and of tax increases limited to the growth in national income can be overcome by other provi- sions of this amendment, but this cannot. H.J. Res. 350 is sufficiently flexible to allow Congress to override some provisions of the amendment in the event that a prolonged recession or threat of war necessitates deficit spending. For such reasons, and any others that the Congress may consider appropriate, an unbalanced budget statement can be adopted. It must, however, be adopted explicitly by a vote on that subject alone. Congress can vote to accept a deficit if three-fifths of the full membership of both houses feel such a deficit is necessary. It allows a simple majority of the full membership plus the President to approve an increase in taxes in excess of the rate of increase in the prior year's national income. In conclusion, H.J. Res. 350 would restore to the budget process the essential balance between tax spenders and tax payers, and impose on Congress the fiscal disci- pline that has been absent for several decades. It would thus end the seemingly automatic process of expanding the federal sector and increasing the tax burden, causing chronic deficits. - 3 - LEGISLATIVE STATUS H.J. Res. 350 (Conable, R-N.Y., Jenkins, D-Ga.) has 223 cosponsors. Despite the endorsement of a majority of the House, opposition by the Democratic leaders has led Rep. Rodino (D-N.J.) to use his power as Chairman of the Juciciary Committee to bottle the legislation up in his committee, preventing the full House from voting on it. Such an antidemocratic power play can be overcome, however, with a little-used legislative procedure called a "discharge petition." The petition, when signed by a majority of the members, discharges the committee from consideration of the bill and the bill would be brought before the full House with no further delay. ACTION NEEDED Prompt contact with your Representative. Urge him/her to sign the discharge petition needed to bring H.J. Res. 350 before the full House. In addition, if not now a co- sponsor (see list below), urge him/her to become one. Regardless of whether your Representative is in favor of H.J. Res. 350, the discharge petition merits signing. A balanced budget amendment is too important to keep bottled up in committee. The full House must be given an opportunity to debate the proposal publicly and vote on it. Tell your Representative you are fed up with persistent deficit spending and H.J. Res. 350 is the only viable alternative to a flawed budget process that has allowed federal spending to surge out of control. Prompt communication is essential. For further information, call Dr. Ron Utt (202) 463-5620. Distribution: Selected business members, corporate CAC chairmen, local chamber CAC execs, Washington corporate reps, state chamber execs. Address for all Representatives: The Honorable , House of Representatives, Washington, D. C. 20515. Phone for all: (202) 224-3121. REPRESENTATIVES WHO HAVE NOT COSPONSORED H.J. RES. 350 Addabbo, Joseph - NY Bethune, Edwin - AR Byron, Beverly - MD Akaka, Daniel - HI Biaggi, Mario - NY Chisholm, Shirley - NY Albosta, Donald - MI Bingham, Jonathan - NY Clay, William - MO Alexander, Bill - AR Blanchard, James - MI Collins, Cardiss - IL Anderson, Glenn - CA Boggs, Lindy - LA Conte, Silvio - MA Annunzio, Frank - IL Boland, Edward - MA Conyers, John - MI Anthony, Beryl - AR Bolling, Richard - MO Coyne, William - PA Applegate, Doug - OH Boner, William - TN Crockett, George - MI Aspin, Les - WI Bonior, David - MI de la Garza, E - TX Ashbrook, Jean - OH Bonker, Don - WA Dellums, Ron - CA Au Coin, Les - OR Breaux, John - LA De Nardis, Larry - CT Bailey, Wendell - MO Brodhead, William - MI Derwinski, Ed - IL Barnes, Michael - MD Brooks, Jack - TX Dicks, Norman - WA Bedell, Berkley - IA Brown, George - CA Dingell, John - MI Beilenson, Anthony - CA Burton, John - CA Dixon, Julian - CA Benjamin, Adam - IL Burton, Phillip - CA Donnelly, Brian - MA (over) - 4 - Dorgan, Byron - ND Kemp, Jack - NY Rahall, Nick Joe - WV Dougherty, Charles - PA Kennelly, Barbara - CT Rangel, Charles - NY Dowdy, Wayne - MS Kildee, Dale - MI Ratchford, William - CT Downey, Thomas - NY Kogovsek, Ray - CO Regula, Ralph - oH Dunn, Jim - MI LaFalce, John - NY Reuss, Henry - WI Dwyer, Bernard - NJ Lantos, Tom - CA Rhodes, John - AZ Dymally, Mervyn - CA Lehman, William - FL Richmond, Fred - NY Early, Joe - MA Leland, Mickey - TX Rinaldo, Matthew = NJ Eckart, Dennis - OH Long, Clarence - MD Roe, Robert - NJ Edgar, Robert - PA Long, Gillis - LA Rosenthal, Ben - NY Edwards, Don - CA Lowry, Michael - WA Rostenkowski, Dan - IL Emery, David - ME Luken, Thomas - OH Roukema, Marge - NJ Erlenborn, John - IL Lundine, Stanley - NY Roybal, Edward - CA Ertel, Allen - PA McClory, Robert - IL Russo, Marty - IL Evans, Billy Lee 1 GA McHugh, Matthew - NY Sabo, Martin - MN Fary, John - IL McKinney, Stewart - CT St Germain, Fernand - RI Fascell, Dante - FL Markey, Edward - MA Savage, Gus - IL Fazio, Vic - CA Marks, Marc - PA Scheuer, James - NY Ferraro, Geraldine - NY Matsui, Robert - CA Schneider, Claudine - RI Fish, Hamilton - NY Mattox, Jim - TX Schumer, Charles - NY Fithian, Floyd - IN Mavroules, Nicholas - MA Seiberling, John - OH Florio, James - NJ Mazzoli, Romano - KY Shamansky, Bob - OH Foglietta, Thomas - PA Mica, Dan - FL Shannon, James - MA Foley, Thomas - WA Mikulski, Barbara - MD Sharp, Philip - IN Ford, William - MI Miller, George - CA Simon, Paul - IL Frank, Barney - MA Mineta, Norman - CA Smith, Joseph - PA Frost, Martin - TX Minish, Joseph - NJ Smith, Neal - IA Fuqua, Don - FL Mitchell, Parren - MD Solarz, Stephen - NY Garcia, Robert - NY Moakley, Joe - MA Stanton, William - OH Gaydos, Joseph - PA Moffett, Toby - CT Stark, Fortney - CA Gejdenson, Sam - CT Molinari, Guy - NY Stokes, Louis - OH Gephardt, Richard - MO Mollohan, Robert - WV Stratton, Sam - NY Gilman, Benjamin - NY Mottl, Ron - OH Studds, Gerry - MA Gonzalez, Henry - TX Murphy, Austin - PA Swift, Allan - WA Gore, Albert - TN Murtha, John - PA Synar, Mike - OK Gray, William - PA Myers, John - IN Traxler, Bob - MI Green, William - NY Natcher, William - KY Udall, Morris - AZ Guarini, Frank - NJ Nelligan, James - PA Vento, Bruce - MN Hall, Tony - OH Nelson, Bill - FL Walgren, Doug - PA Hamilton, Lee - IN Nowak, Henry - NY Washington, Harold - IL Harkin, Tom - IA Oakar, Mary Rose - OH Waxman, Henry - CA Hawkins, Augustus - CA Oberstar, James - MN Weaver, James - OR Heckler, Margaret - MA Obey, David - WI Weiss, Theodore - NY Heftel, Cecil - HI O'Neill, Thomas - MA Whitten, Jamie - MS Hertel, Dennis - MI Ottinger, Richard - NY Williams, Lyle - OH Hollenbeck, Harold - NJ Panetta, Leon - CA Wirth, Tim - CO Howard, James - NJ Pashayan, Charles - CA Wolpe, Howard - MI Hoyer, Steny - MD Patman, William - TX Wortley, George - NY Hughes, William - NJ Patterson, Jerry - CA Wright, Jim - TX Hyde, Henry - IL Pease, Donald - OH Wyden, Ron - OR Jeffords, James - VT Pepper, Claude - FL Yates, Sidney - IL Jenkins, Ed - GA Perkins, Carl - KY Yatron, Gus - PA Jones, James - OK Peyser, Peter - NY Young, Robert - MO Kastenmeier, Robert - WI Price, Melvin - IL Zablocki, Clement - WS Kazen, Abraham - TX Pritchard, Joel - WA Zeferetti, Leo - NY # WITHDRAWAL SHEET Ronald Reagan Library Collection Name Withdrawer BLACKWELL, MORTON: FILES RB 2/28/2011 W File Folder FOIA BALANCED BUDGET AMENDMENT (1 OF 3) F06-0055/07 POTTER, CLAIRE Box Number OA 9075 2 DOC Document Type No of Doc Date Restric- NO Document Description pages tions 1 LIST 2 ND B6 RE. ATTENDEES FOR WHITE HOUSE BRIEFING ON 7/19/82 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.