U.S. Secretary of the Treasury Donald Regan
U.S. Secretary of the Treasury Donald Regan
Adult Caucasian male and female reporters gathered in White House Briefing Room, taking notes. Press Secretary Larry Speakes giving briefing: "I apologize for keeping you waiting. As you know, the President has concluded the meeting with the Democratic leadership. Present at the meeting were the President, the Vice President, Senator Byrd, Senator Long, Speaker O'Neill, Representative Wright, and Chairman Rostenkowski; in addition, Secretary Regan, Ed Meese, Jim Baker, and Max Friedersdorf. The Secretary will have a brief statement and then take questions, which we would like to limit to about ten to fifteen minutes, so he can get back to the Treasury."
U.S. Secretary of the Treasury Donald Regan
U.S. Secretary of the Treasury Donald Regan stepping up to podium in White House Briefing Room, adult Caucasian male and female reporters gathered for briefing. Regan: "Well, we've just come from a meeting, I'd characterize it as lengthy. I'd say that we're fairly divergent, widely divergent, on some issues, particularly as they relate to policies and principles. And I'd say we're fairly close on a lot of issues of things that might have been on the President's second tax bill that could possible be on a single tax bill this year. From the point of view on the widely divergent items, this is a matter of policy. The President wants, and is sticking by, multi-year, three year tax cuts across the board, at the margin. And the Democratic leadership has not been able to see its way clear as yet to accommodate the President in that. He thinks he needs these things, as he was elected on this basis, and it's a matter of principle with him. So, why don't I pause here and take questions."
U.S. Secretary of the Treasury Donald Regan
U.S. Secretary of the Treasury Donald Regan standing at podium in the White House Briefing Room. Adult male reporter (off camera) asks: "What's the next step? Are you now going to try to put together that coalition, and simply try to push the President's program through the house." Secretary Regan responds: "I would say that the door is open. They promised to come back to us. I hope to meet with Chairman Rostenkowski, after he's met further with members of the Ways and Means Committee. We obviously are going to talk to the Senate, because we have to bring in Senator Dole here to talk about what kind of a bill might come out of the Senate. At the same time, we're looking to see what we can do in the House to put together a majority for the President's proposals." Reporter: "So, the door is open for them to come to you, but you're not gonna go to them?" Secretary Regan: "The President's made it quite clear, that he's come pretty far. After all, he's come down about $18 billion or more in possible tax cuts. He slid the date quite a bit. And he thinks that's where he's going to stand."
U.S. Secretary of the Treasury Donald Regan
U.S. Secretary of the Treasury Donald Regan taking questions in White House Briefing Room; Adult male reporter (off camera): "At what point does the President decide to go his own way and try and work out something with conservative Democrats?" Adult Caucasian male and female members of the press seated, taking notes. Regan: " I'd say over the next several days that, that judgement will have to be made." Adult female journalist (off camera) asks: "O'Neill was saying you don't even have the Republican Party with you totally. So, the question of the Southern Democrats, how do you see it?" Regan: "I'd say that we have the Republican members of the House of Representatives together with us. I'll be up on the hill this afternoon discussing what went on with the Republican members of Ways and Means; to get their views on this. Obviously, we haven't taken a whip check yet, because there's nothing in front of them. But it would be my judgement, that we'll have fairly close to a hundred-ninety Republicans with us." Another female reporter (off camera) asks: "Mr. Secretary, you say that the President has given a lot, and yet when you look at it, he's only slipped the date three months out of three years, and all he's willing to do is agree to something that he, frankly, had said he was for during the campaign. So where is the give in the administration?" Regan: "I think it's quite a bit of give. If you remember what he campaigned on was ten-ten-ten, across the board, for three years starting January 1st, 1981. He's now suggesting that he could accommodate October 1st, 1981, which practically takes a whole calendar year out of the tax cut for what the American people are waiting for. He also has come down to a 5%, initially, as being something he might accommodate. That's cutting in half the tax cut. So he's moved quite a bit." Another female reporter asks: "...changing the distribution. I mean, affecting some lower income groups would be benefited more than they are now. Are you all willing to look at that in any form?" Regan: "That's one of the things Senator Dole, Chairman Rostenkowski, and I have been discussing. This has been part of our meetings, and we have indicated that we could be accommodating of that, if we can get this bill through, and get it through quickly. Yes?" Adult female reporter: "Mr. Secretary, was there any progress made at this meeting at all?" Regan: "I think the progress that was made, is that now the Democrats definitely agree that there must be a tax cut. And secondly, I think they agree that they have to come back with an alternative to see. So far, they have not come back with an alternative, and I would think it is up to them now to show what their alternative might be." Adult male reporter (off camera): "Is the Speaker looking for an agreement, or is he looking for a fight?" Regan: "I would say that the Speaker would like to think that he could come to an accommodation, but he has indicated that he might be digging in. And if that requires a fight, then that will require a fight." Woman reporter (off camera): "Did you get any commitment on a timetable?" Regan: "Yes, we did. The Speaker again reiterated that he would stick to the original timetable that he promised the President. That is that there would be a tax cut bill on his desk August the 1st."
U.S. Secretary of the Treasury Donald Regan
U.S. Secretary of the Treasury Donald Regan taking questions in White House Briefing Room; adult male reporter (off camera): "Do you have any plans for any further meetings this week with Rostenkowski or Dole? Do expect them to come back with some kind of further offer?" Regan: "I'll be meeting with Senator Dole. I don't think Senator Dole will be coming back with anything new, because Senator Dole knows what we want. Chairman Rostenkowski has left the door wide open to come back again, but he wants to check again with the Democratic members of the Ways and Means Committee." Reporter: "What's your own expectation for a further meeting with Rostenkowski?" Regan: "Well, that'll have to be surmised, but I would daresay that I'd be hearing from him the next forty-eight or seventy-two hours." Adult male reporter (off camera): "Mr. Secretary, the Southern Democrats are meeting tomorrow in a Caucus, the Boll Weevil group. Are you going to give them the go ahead to proceed with their bill?" Reagan: "We have no control over them. What the CDF'ers might do is up to them. We certainly will probably be talking to them within the next forty-eight or seventy-two hours." Reporter: "Are you going to encourage them to go ahead, sir?" Regan: "I would like to see exactly what their bill is to see how close it is to our proposals to see if we have anything. You had a question over here?" Adult female journalist (off camera): "Yes, sir. What about the inheritance tax and the marriage tax?" Regan: "The President indicated prior to this, to both Senator Dole and Representative Rostenkowski, that we could be accommodating in the first bill on something that President campaigned on; that is reducing taxes on estates and also reducing the marriage tax penalty. Adult male reporter (off camera) asks: "Is it your impression that Mr. Rostenkowski might be more willing to reach an accommodation? That he's being held back by some members on Ways and Means?" Regan: "Oh, I don't think I'd want to characterize that." Adult female reporter (off camera): "What do you think he's going to come back with? You keep waiting. You say the door is open for him to come back with...what are you thinking of? In what terms?" Regan: "I don't know. I honestly don't know what he's going to come back with." Reporter: "You think he'll give on on the multi-year?" Regan: "I would certainly hope so, because the indication is that this administration wants a multi-year bill, and the President thinks that he has to have that, and he's sticking on that principle." Adult male journalist (off camera) asks: "But if you have to go forward without all the Democrats, are you convinced that you have the votes in the House to win?" Regan: "Oh, I believe so. I think that there is a majority in the House, and definitely in the Senate for the President's proposals.
U.S. Secretary of the Treasury Donald Regan
U.S. Secretary of the Treasury Donald Regan taking questions from the press regarding negotiation on the tax reduction package compromise: "Well, again, the Senate Finance Committee is going to have to move rather quickly, because time's a-wasting here. The Ways and Means Committee are behind in their schedule right now, and as I said earlier, the Speaker promised the President he'd get that bill, send it along. With his great experience in tax matters, had to remind the Speaker that he had to get that bill up to the Senate fairly quickly. So, I would suggest that probably the Senate Finance Committee will get some movement started, so they can act rather rapidly as soon as they see whatever bill comes out of the House." Adult female reporter (off camera): "What exactly did the President say this morning, that he is willing to accept?" Sec. Regan: "He said that, in general, he could go along with the 5-10-10 starting October 1st, and of course the accelerated capital recourse system. By the way, in that meeting, there was unanimous agreement on the need for business cuts, and that business cuts would come effective sometime between January 1st and March 11th of 1981. The President indicated those, and he indicated then that some of the items that he had heard us --- that we were discussing, that is Senator Dole, Dan Rostenkowski, and I were discussing --- that he would be more than willing to go along with a package of those items in order to get the bill done. But getting into specifics, there were mentioned of various ones, but we didn't try to pin'em down with any degree of finality." Adult male journalist (off camera): "Marriage penalty?" Sec. Regan replies: "Marriage penalty was prominently mentioned."
U.S. Secretary of the Treasury Donald Regan
Press Secretary Larry Speakes interrupts press conference in the White House Briefing Room to announce there is a photo opportunity for those who would like to cover it; adult Caucasian men and women reporters in the room begin shifting around, giving room to those who need to exit the room. Secretary of the Treasury Donald Regan resumes taking questions. Adult male reporter (off camera): "Outside, the Speaker said you're in deep trouble with Social Security. What do you say to the Speaker?" Secretary Regan : "Oh, I don't think we're in deep trouble on Social Security, I think Social Security is in deep trouble. And I think it's a common problem that we have to solve together. There's no sense, you cannot ignore this problem. And it's something that has to have a short range solution, and a long range solution. Reporter: "Do you think you have the votes on Social Security as it stands now?" Sec. Regan: "I think that there will definitely be a bipartisan Social Security measure coming out of this Congress later this year, yes. Yes, sir?" Adult male journalist (off camera): " Speaker O'Neill, said that he was concerned with the administration's deficit projections and budget concerns.... How do you answer that?" Regan: "Well, there are two ways to overcome a deficit, pretty obviously. The first is to raise taxes, and the other is to cut spending. We've elected to cut spending. And if you noticed what has happened in the budget resolutions as passed by both Houses of Congress, they call for a modified deficit this year, from the original proposals, less of a deficit next year, and a balanced budget in 1984. And that's passed both Houses of Congress, and we'll stick on that." Adult male reporter (off camera): "What was the mood of this meeting? Was it a showdown, an ultimatum?" Regan: "Oh no, it wasn't the O.K. Corral or anything of that nature. It was more of a get together by the leadership to see, is there common ground? It was a very amiable meeting. There was no rancor. It was done in the best spirit of politics." Adult female reporter (off camera): "Mr. Secretary, you mentioned that you all agreed on tax cuts for businesses. Would it be retroactive?" Regan: "It'll be retroactive. Any tax cut for business will be retroactive to a period, they haven't set the actual date, but it'll be a date selected, between January 1st, 1981 and March 11th, 1981." Reporter: "What would you prefer?" Sec. Regan responds: "I don't have any druthers at this point, and I don't think the effect on the revenue estimates is that great to mean anything."
U.S. Secretary of the Treasury Donald Regan
U.S. Secretary of the Treasury Donald Regan taking questions on tax reduction package compromise. Adult female reporter (off camera): "Mr. Secretary, did Senator Long express any commitment to the compromise, or to the Dole, or whatever package you're calling it now, the 5-10-10, or did you receive any commitment from him, that he will not try to amend the bill on the floor?" Sec. Regan: "Senator Long merely said that it was his judgement. Again, not a scientific count, but he thought that a majority of Senators were for a three year bill. And he said he thought there would be a three year tax cut coming out of the Senate." Adult male reporter (off camera): "On the budget deficit question, Congressman Wright said that you said a five percent cut in interest rates would save $50 billion in the budget. Why isn't the administration doing something to bring down interest rates?" Sec. Regan: " We are doing something to bring down interest rates. Interest rates are, in effect, inflation, and we're doing our darnedest to get inflation down. Inflation, however, going back to simple economics, is too much money chasing too few goods. This is a monetary phenomena." Reporter follows up: "You don't believe that, do you?" Regan: "I certainly do." Reporter: "You ever see a bunch of money chasing goods?" Regan: "Right now son, take a look at it. It's out there in the economy." Adult male reporter (off camera): "Mr. Secretary, you said a while ago that there's only one way to cut a deficit; raise taxes or cut spending. If you have a three year tax bill in place, and your deficit figures just happen to be, by some miracle wrong, underestimated, what do you do then? And what kind of assurances does the Congress and the rest of the country, including the Republicans, have that you're not going to cut spending, or are you going to raise taxes? What are you going to do?" Regan: "That's purely a hypothetical question. It's a rather difficult one to answer, because we think that we will be balancing the budget in 1984. Now, supposing that we won't, we do exactly what the Democrats have been doing for the past four years, and that is having a tax cut at the time of a large deficit. Witness 1978." Reporter: "Can you answer the question?" Regan: "I did answer the question." Reporter: "What happens if your deficit figures are wrong? What do you do if you had a three year tax cut in place?" Regan: "You allow the tax cut to take place." Press Secretary Larry Speakes standing next to Treasure Secretary Donald Regan.