Conversation: 905-010
Prev:  905-009 Next: 905-011Start Date: 26-Apr-1973 10:24 AM
End Date: 26-Apr-1973 11:20 AM
Participants:
Nixon, Richard M. (President); Shultz, George P.; Ehrlichman, John D.; Bull, Stephen B.; Recording Device: Oval Office
NARA Description:
On April 26, 1973, President Richard M. Nixon, George P. Shultz, John D. Ehrlichman, and Stephen B. Bull met in the Oval Office of the White House from 10:24 am to 11:20 am. The Oval Office taping system captured this recording, which is known as Conversation 905-010 of the White House Tapes.
Nixon Library Finding Aid:
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.