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

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-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

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-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

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-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

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-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

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-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

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-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

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-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

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-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.