Secret White House Tapes

905-010a

About this recording

905-010a
  • President Richard M. Nixon
  • George P. Shultz
  • John D. Ehrlichman
  • Stephen B. Bull
April 26, 1973
Conversation No. 905-10

Date: April 26, 1973
Time: 10:24 am - 11:20 am
Location: Oval Office

The President met with George P. Shultz and John D. Ehrlichman.

Greetings

Shultz’s memo


Fiscal policy

-President’s position

-Congressional action

-“Top tax rates”

-Administration’s position

-Congress

-Effect on capital gains

-Individual income

-Earned income

-Interest and dividend

-Effect on capital gains

-7-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. September-2011)

Conversation No. 905-10 (cont’d)

-Tax shelters
-Reduction proposals
-Administration’s position
-Congress
-Capital gains tax
-Internal Revenue Service [IRS] [?]

-Compromise

-Increase

-Congress
-1969 tax bill
-Estate taxes
-Charitable deductions

-President’s position

-“Big government” advocates

-Wilbur D. Mills [?]
-“Egalitarian sophistry”
-Great Britain
-Congress’s role
-Administrations’ position
-Leaks
-1969 tax bill
-Treasury Department
-House Ways and Means Committee
-President’s position
-Opposition to estate, capital gains reform

-Bill signing

-Treasury Department’s role

-Dealmaking
-Executive sessions with Committee
-Shultz, William E. Simon
-Simplification
-Lee H. Henkel, Jr.
-Forms
-Elimination of dividend exclusion
-Reaction of New York Stock Exchange
-Impact on small investor stock purchases
-Compared to other deductions
-8-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. September-2011)

Conversation No. 905-10 (cont’d)

-Gas tax

-Retirement income credit

-Government revenue

-Social security

-Reasons

-Eliminate earnings deduction

-Eligibility

-Retirement age

-Cost increases

-Social security

-President’s schedule

-Yawning

-Coffee

-Forms
-Retirement income credit

-Cost

-Social Security

-Beneficiaries

-Federal employers
-Municipal government employers
-Estate and gift taxes
-Administration’s position

-Testimony

-Proposals

-Congress’s role

-Consolidation

-Controversy

-Wealth management

-Compared to capital gains

-Wealth management

-Transition rules
-Lon Scaife

-Unification of rates

-Marital deduction

-Liberalization

-Generation skipping trusts

-Proposal

-9-


NIXON PRESIDENTIAL LIBRARY AND MUSEUM


Tape Subject Log

(rev. September-2011)

Conversation No. 905-10 (cont’d)

-Controversy
-Rejection
-Capital gains at death [?]
-American Bankers Association
-Proposal
-Congressional relations
-Shultz’s role
-House Ways and Means Committee
-Mills
-Administration’s position
-Opposition
-Transition
-Issues
-Capital gains at death
-Rates
-Marital deduction
-Unification of rates
-Generation skipping trusts
-Bipartisan Congressional leadership meeting
-Purpose

Stephen B. Bull entered at an unknown time after 10:24 am.

President’s schedule

-Bipartisan leadership meeting

-Topics

-Taxes compared to foreign aid


Bull left at an unknown time before 11:20 am.

Fiscal policy
-Taxes
-House Ways and Means Committee
-Hearings on taxes
-Mills’s calendar
-Administration’s position
-Timing
-10-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. September-2011)

Conversation No. 905-10 (cont’d)

-Executive session
-Administration’s position

-Support for elderly, parochial schools, minimum tax

-Simplification

-Christmas tree metaphor
-Compared to 1969 tax rates
-Shultz
-Mills
-“Open rule” issue
-Estate and gift taxes

Phase III wage and price controls
-Congress
-Meeting
-John T. Dunlop, Troika

-Arthur F. Burns


Fiscal policy
-Tax on interest and dividends paid to foreigners
-Mills’s proposal
-Possible effects
-Capital investment
-Tax treaty negotiations
-Foreign tax shelters
-Switzerland
-Accountability
-Disparity
-Administration’s position
-Mills’s leadership
-Tax receipts
-Fiscal years 1973 and 1974 increases over budget estimates
-Public knowledge
-Bonkers, underwriters
-Re-estimate of receipts
-Methods of publicizing
-Shultz’s testimony
-President’s statement
-11-


NIXON PRESIDENTIAL LIBRARY AND MUSEUM


Tape Subject Log
(rev. September-2011)

Conversation No. 905-10 (cont’d)

-Economic Stabilization Act [Phase III]
-Congressional action
-Bill-signing statement
-Support for program
-Voluntary support of business, labor
-Budget deficit
-Tax receipts
-Shultz’s testimony
-Separate stories
-Effect on Congress
-Questions about receipts

US trade balance
-Deficit
-Council of Economic Advisor’s [CEA] skepticism

President’s oil import program’s effects
-New refineries
-Effect on jobs, supplies, prices

US economy
-Production
-New orders

Investment tax credit
-Schultz’s testimony before Congress
-President’s view
-Herbert Stein’s statement
-Burns’s proposal
-Mills’s opposition
-Stein’s statement
-Effect on financial markets

-Schultz’s testimony

-Pierre Rinfret’s call to Ehrlichman

-Shultz’s testimony


Economic Stabilization Act
-12-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. September-2011)

Conversation No. 905-10 (cont’d)

-Congressional action

-Administration’s position

-Phase III implementation

-Freeze and price rollback

-Public support

-Labor

-Price freeze

-Business

-Wage freeze

-Cost of living freeze

-Dale DeWitt, Rinfret, and John B. Connally

-Rollback compared to freeze

-Burns

-Publicity

-President’s action

-Public relations [PR]
-Troika meeting
-President’s Advisory Committee on Labor-Management Policy meeting
-Ehrlichman’s view
-William Baroody, Jr.

-Campaign

-Slogans


US economy
-Price increases

-President’s view

-Wholesale

-Annual rate
-Consumer Price Index [CPI]

-Decline

-Meat

-Phase III
-Publicity

-Price controls

-Effect on consumers

-Labor negotiations

-Troika bargaining

-13-

NIXON PRESIDENTIAL LIBRARY AND MUSEUM

Tape Subject Log
(rev. September-2011)

Conversation No. 905-10 (cont’d)

-Rubber industry settlement

-Phase III

-Public relations

-President’s letter to editors

-Radio, television [TV]

-Shultz, Stein

-Barody

-“Merchandizing Manager”

-Advertising Council

-Phase III enforcement

-Economic Stabilization Act

-President’s signing statement

-Cost of Living Council [COLC]

-Treasury Department

-Congress’s rejection

-Administration’s response

-Price increases

-Rollback

-Voluntary control program

-Business, labor
-Inflation, budget
-COLC
-Funding
-Dunlop

Harry S. Truman
-Action on rail strike

-Robert A. Taft, Sr.’s reaction

-Duration


Economic Stabilization Act
-Congress’s rejection
-President’s response
-Public speech
-Forum
-Chamber of Commerce
-Voluntary control program
-14-


NIXON PRESIDENTIAL LIBRARY AND MUSEUM


Tape Subject Log

(rev. September-2011)

Conversation No. 905-10 (cont’d)

-Collective bargaining
-Political positioning with regard to Congress

Wage and price controls

-Termination

-Possible effects

-Election cycle


President’s schedule

-Troika meeting

-Economic Stabilization Act

-PR planning


Request for Dr. [First name unknown] Brennan [?]

Shultz and Ehrlichman left at 11:20 am.
Secret White House Tapes |

905-010a

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