Transcripts For CSPAN3 1975 State Of The Union Address 20150

Museums and historic sites. History book shelf. The best known American History writers. The presidency looking at the policies and legacies of our nations commanders in chief. Lectures in history with top College Professors delving into americas past. Hour new series real america featuring archival government and educational films from the 1930s through the 70s. Cspan three. Created by the cable t skrrks industry and funded by your local cable or satellite provider. Liesk us on facebook and follow us on twitter. President obama delivers his state of the Union Address on tuesday, january 20th to a joint session of congress. Now American History tv looks back to 1975 and president jerald r. Fords state of the union speech which was dlifed eddelivered five months. He told the congress that he didnt expect much applause because as he said, quote ive got bad news. He detailed the opportunity ricountrys economic and energy woes blaming in part the ever increasing government benefits. He urged his country men to move in a new direction. President of the United States. [ applause ] mr. Spugs ub,seaker, mr. Vice president , members of the 94th congress and distinguished guests, 26 years ago, a freshman congressman, a young fellow with lots of idealism who was out to change the world stood before sam raber in the well of the house and solemnly swore to the same oath that all of you took yesterday. An unforgettable experience and i congratulate you all. Two days later, that same freshman stood at the back of this Great Chamber over there some place as president truman all charged up by his singlehanded election victory, reported as the constitution requires on the state of the union, when the bipartisan applause stopped president truman said, i am happy to report to the 84th congress that the state of the union is good. Our nation is able to meet the needs of the American People and to give them their fair chance in the pursuit of happiness. It is foremost among the nations of the world in the search for peace. Today, that freshman member from michigan stands where mr. Truman stood and i must say to you that the state of the union is not good. Millions of americans are out of work recession and inflation are eroding the money of millions more. Prices are too high and sales are too slow. This years federal deficit will be about 30 billion. Next years probably 45 billion. The National Debt will rise to over 500 billion. Our capacity and productivity are not increasing fast enough. We depend on others for essential energy. Some people question their governments ability to make hard decisions and stick with them. They expect washington politics as usual. Yet, what president said on january 5, 1949 is even more true in 1975, we are better able to meet our peoples needs, all americans do have a fair chance to pursue happiness not only are we still the foremost nation in the pursuit of peace but todays prospects of obtaining it, are infinitely brighter. There were 59 million americans employed at the start of 1949 now there are more than 85 million americans who have jobs. Incomparable dollars, the average income of the American Family has doubled during the past 26 years. Now, i want to speak very bluntly. Ive got bad news. And i dont expect much, if any applause. The American People want action and it will take both the congress and the president to give them what they want. Progress and solutions can be achieved and they will be achieved. My message today is not intended to address all of the complex needs of america. I will send separate messages, making specific recommendations for Domestic Legislation such as the extension of general revenue sharing and the Voting Rights act. A moment has come to move in a new direction. We can do this by fastening a new partnership between the congress on the one hand the white house on the other, and the people we both represent. Let us mobilize the most powerful and most creative industrial nation that ever existed on this earth to put all our people to work. The emphasis on our economic efforts must now shift from inflation to jobs. To bolster business and industry and to create new jobs, i propose a one year tax reduction of 16 billion, 3 4thss would go to individuals and 1 4 to business investment. This cash rebate to individuals amounts to 12 of 1974 tax payments. A total cut of 12 billion with a maximum of 1,000 per return. I call on the congress to act by april 1st. If you do and i hope you will, the treasury can send the first check for half the rebate in may and the second by september. The other 1 4th of the cut, about 4 billion will go to business including farms, to promote expansion and to create more jobs. The one year reduction for businesses would be in the form of a liberalized investment tax credit increasing the rate to 12 for all businesses. This tax cut does not include the more fundamental reforms needed in our tax system but it points us in the right direction, allowing taxpayers rather than the government to spend their pay. Cutting taxes now is essential if we are to turn the economy around. A tax cut offers the best hope of creating more jobs. Unfortunately, it will increase the size of the budget deficit. Therefore, it is more important than ever that we sake steps to control the growth of federal expenditures. Part of our trouble is that we have been selfindulgent. For decade weve been voting increasing levels of government benefits and now the bill has come due. Weve been adding so many new programs that the size and the growth of the federal budget has taken on a life of its own. One characteristics of these programs is that their Cost Increases automatically every year. Because the number of people eligible for most of the benefits increases every year when these programs were enacted, theres no dollar amount set. No one knows what they will cost. All we know is that whatever they cost last year they will cost more this year. Its simple aridgematic. Unless we check the aggressive federal expenditures, we will continue to run huge infactary deficits in the federal budget. If we project built in federal spending through the next 15 years, state, federal, and local government expenditures could easily comprise half of our Gross National product. This compares with less than 1 3rd with 1975. Ive just concluded the process of preparing the budget submissions for the fiscal year of 1976. In that budget, i will propose legislation to restart growth of a number of existing programs. Ive also concluded that no new spending programs can be initiated this year except for energy. [ applause ] further, i will not hesitate to veto any new spendinga adopted by the congress. [ applause ] as an additional step tort putting the federal governments [ inaudible ] in all Government Programs tied to the Consumer Price index including Social Security Civil Service in military retirement pay and food stamps i also propose a one year maximum increase of 5 . None of these recommended ceiling limitations over which congress has final authority because they involve anticipated payments to many many deserving people. Nonetheless, it must be done. I must emphasize that im not asking to eliminate, to reduce, to freeze these payments. Im merely recommending that we slow down the rate at which these payments increase and these programs grow. Only a reduction in the growth of spending can keep federal borrowing down and reduce the damage to the private sector from high interest rates. Only a reduction in spending can make it possible for the Federal Reserve system to avoid inflationary growth in the money supply and thus restore balance to our economy. A major reduction in the growth of federal spending and help dispel the uncertainty that so many feel about our economy and put us on the way to curing our economic ills. If we dont act to slow down the rate of increase in federal spending, the United States treasury will be legally obligated to spend more than 360 billion in fiscalkcal year 1976. Even if no new programs are enacted. These are not matters of conjecture but simple arithmetic. The size of these numbers andimplications for our everyday life and Economic System are shocking. I submitted to the last congress a list of budget defrlerals and decisions. Even so, the level of outlays for fiscal year 1976 is still much, much too high not only is it too high for this year but the decisions we make now will inevitably have a major and growing impact on expenditure levels in future years. I think this is a very fundamental issue that we the congress and i must jointly solve. Economic disruptions, we and others are experiencing stems in part from the fact that the world price of petroleum has quadrupled in the last year. But in all honesty, we cannot put all of the blame on the Oil Exporting Nations we, the United States, are not blameless. Our growing dependence upon foreign sources has been adding to our vulnerability for years and years we did nothing to prepare ourselves for such an event as the embargo of 1973. During the 1960s, this country had a surplus capacity of crude oil which we were able to make available to our trading partners whenever there was a disruption of supply. This surplus capacity enabled us to influence both supplies and prices of crude oil throughout the world. Our excess capacity neutralized any effort in establishing an affective cartel and thus the rest of the world was assured of adequate supplies of oil at reasonable prices. By 1970 our capacity our surplus capacity had vanished and as a congress, the latent power of the oil cartel could emerge in full force. Europe and japan, both heavily dependent on imported oil now struggle to keep their economics or economies in balance. Even the United States, our country which is far more selfsufficient than most other industrial countries has been put under serious pressure. I am proposing a program which will begin to restore our countrys surplus capacity in total energy. In this way, we will be able to assure ourselves reliable and adequate energy and help foster a new world Energy Stability for other major consuming nations. But this nation and in fact, the world, must face the prospect of energy difficulties between now and 1985. This program will impose burdens on all of us with the aim of reducing our consumption of energy and increasing our production. Great attention has been paid to the considerations of fairness and i can assure you that the burdens will not fall more harshly on those less abled to bare them. Im representing a plan to make us invulnerable to cut offs of foreign oil. It will require sacrifices but and this is most important, it will work. I have set the following National Energy goals to assure that our future is as secure and as productive as our path. First, we but reduce oil imports by 1 Million Barrels per day by the end of this year and by 2 million per day by the end of 1977. Second, we must end vulnerability to economic disruption by foreign suppliers by 1985. Third, we must develop our Energy Technology and resources so that the United States has the ability to supply a significant share of the energy needs of the free world by the end of this century. To attain these objectives we need immediate action to cut imports. Unfortunately, in the short term there are only a limited number of actions which can increase domestic supply. I will press for all of them. I urge quick action on the necessary legislation to allow commercial production at the elks hill california, Naval Petroleum reserve. [ applause ] in order that we make greater use of domestic cole resources i am submitting amendments to the Energy Supply environmental Coordination Act which will greatly increase the number of power plants that can promptly be converted to coal. [ applause ] obviously, voluntary conservation continues to be essential but tougher programs are needed and needed now. Therefore, i am using president ial powers to raise the fee on all importedroleum products. Crude oil fee levels will be increases 1 per barrel on february first. By 2 by barrel on march first and 3 per barrel on april first. Ty willi will take actions to reduce undue hardships on any geographical region. The foregoing are our interim administrative action that will be rescinded when the broader necessary rejlationlegislation is enacted. To that end i am asking the congress to act within 90 days on a more comprehensive tax program which includes excise taxes and import fees. Deregulation of new natural gas and an enactment of a natural gas excise tax. I plan to take president ial initiative to decontrol the price of Domestic Crude Oil on april 1st. I urge the congress to enact a windfall profits tax by that date to ensure that Oil Producers do not profit unduelyunduly. [ applause ] the sooner congress acts, the more affective the Oil Conservation program will be and the quicker the federal revenues can be returned to our people. I am prepared to use president ial authority to limit imports as necessary that guarantee success. I want you to know that before deciding on my energy Conservation Program, i considered rationing and hired gasoline taxes as alternatives. In my judgment neither would achieve the desired results and both would produce unacceptable inwebbing inequities. A program must be initiated to increase Energy Supply to tax demand and provide new stand by emergency programs to achieve the independence we want by 1985. The largest part of increased Oil Production must come from new frontier areas on the outer Continental Shelf and from the Naval Petroleum reserve in alaska. It is the intent of this administration to move ahead with exploration and production on those frontier areas of the outer Continental Shelf where the environmental risks are acceptable. Use of our most abundant domestic resource coal, is severely limited. We must strike a reasonable compromise on Environmental Concerns with coal. I am submitting clean air amendments which will allow greater coal use without sacrificing clean air goals. I vetoed the strip mining legislation pass bid the last congress. With appropriate changes, i will sign a revised version when it comes to the white house. I am proposing a number of actions to energize our Nuclear Power program. I will submit legislation to expedite nuclear leasing and the rapid selection of sites. In recent months, utilities have canceled or postponed over 60 of planned Nuclear Expansion and 30 of skplanedplanned additions to nonnuclear capacity. Financing problems for that industry are worsening. I am therefore recommending that the one Year Investment tax credit of 12 be extended an additional two years to specifically speed the construction of power plants that do not use natural gas or oil. Im also submitting proposals for selective reform of state Utility Commission regulation to provide the critical stability for our Domestic Energy production in the face of price and uncertainty i will request legislation to authorize and require authorize and require tariffs, import quotas or price floors to protect our Energy Prices at levels which will achieve Energy Independence. Increasing Energy Supplies is not enough. We must take additional steps to cut long term consumption. I therefore propose to the Congress Legislation to make thermal efficiency standards mandatory for all New Buildings in the United States. A new tax credit of up to 150 for those homeowners who install insulation equipment. The establishment of an energy Conservation Program to help low energy families purchase insulation supplies. Legislation to modify and defer automotive pollution standards for five years which will enable us to improve automobile gas mileage by 40 by 1980. These proposals and actions can reduce our dependence on foreign Energy Supplies by three to 5 Barrels Per Day by 1985. I propose stand by emergency legislation and a Strategic Storage program of 1 billion barrels of oil for domestic needs and 300 Million Barrels for National Defense purposes. I will ask for the funds needed for Energy Research and development activities. I will establish a goal of 1 Million Barrels of Synthetic Fuels and shale Oil Production per day by 1985 together with an American History<\/a> writers. The presidency looking at the policies and legacies of our nations commanders in chief. Lectures in history with top College Professors<\/a> delving into americas past. Hour new series real america featuring archival government and educational films from the 1930s through the 70s. Cspan three. Created by the cable t skrrks industry and funded by your local cable or satellite provider. Liesk us on facebook and follow us on twitter. President obama delivers his state of the Union Address<\/a> on tuesday, january 20th to a joint session of congress. Now American History<\/a> tv looks back to 1975 and president jerald r. Fords state of the union speech which was dlifed eddelivered five months. He told the congress that he didnt expect much applause because as he said, quote ive got bad news. He detailed the opportunity ricountrys economic and energy woes blaming in part the ever increasing government benefits. He urged his country men to move in a new direction. President of the United States<\/a>. [ applause ] mr. Spugs ub,seaker, mr. Vice president , members of the 94th congress and distinguished guests, 26 years ago, a freshman congressman, a young fellow with lots of idealism who was out to change the world stood before sam raber in the well of the house and solemnly swore to the same oath that all of you took yesterday. An unforgettable experience and i congratulate you all. Two days later, that same freshman stood at the back of this Great Chamber<\/a> over there some place as president truman all charged up by his singlehanded election victory, reported as the constitution requires on the state of the union, when the bipartisan applause stopped president truman said, i am happy to report to the 84th congress that the state of the union is good. Our nation is able to meet the needs of the American People<\/a> and to give them their fair chance in the pursuit of happiness. It is foremost among the nations of the world in the search for peace. Today, that freshman member from michigan stands where mr. Truman stood and i must say to you that the state of the union is not good. Millions of americans are out of work recession and inflation are eroding the money of millions more. Prices are too high and sales are too slow. This years federal deficit will be about 30 billion. Next years probably 45 billion. The National Debt<\/a> will rise to over 500 billion. Our capacity and productivity are not increasing fast enough. We depend on others for essential energy. Some people question their governments ability to make hard decisions and stick with them. They expect washington politics as usual. Yet, what president said on january 5, 1949 is even more true in 1975, we are better able to meet our peoples needs, all americans do have a fair chance to pursue happiness not only are we still the foremost nation in the pursuit of peace but todays prospects of obtaining it, are infinitely brighter. There were 59 million americans employed at the start of 1949 now there are more than 85 million americans who have jobs. Incomparable dollars, the average income of the American Family<\/a> has doubled during the past 26 years. Now, i want to speak very bluntly. Ive got bad news. And i dont expect much, if any applause. The American People<\/a> want action and it will take both the congress and the president to give them what they want. Progress and solutions can be achieved and they will be achieved. My message today is not intended to address all of the complex needs of america. I will send separate messages, making specific recommendations for Domestic Legislation<\/a> such as the extension of general revenue sharing and the Voting Rights<\/a> act. A moment has come to move in a new direction. We can do this by fastening a new partnership between the congress on the one hand the white house on the other, and the people we both represent. Let us mobilize the most powerful and most creative industrial nation that ever existed on this earth to put all our people to work. The emphasis on our economic efforts must now shift from inflation to jobs. To bolster business and industry and to create new jobs, i propose a one year tax reduction of 16 billion, 3 4thss would go to individuals and 1 4 to business investment. This cash rebate to individuals amounts to 12 of 1974 tax payments. A total cut of 12 billion with a maximum of 1,000 per return. I call on the congress to act by april 1st. If you do and i hope you will, the treasury can send the first check for half the rebate in may and the second by september. The other 1 4th of the cut, about 4 billion will go to business including farms, to promote expansion and to create more jobs. The one year reduction for businesses would be in the form of a liberalized investment tax credit increasing the rate to 12 for all businesses. This tax cut does not include the more fundamental reforms needed in our tax system but it points us in the right direction, allowing taxpayers rather than the government to spend their pay. Cutting taxes now is essential if we are to turn the economy around. A tax cut offers the best hope of creating more jobs. Unfortunately, it will increase the size of the budget deficit. Therefore, it is more important than ever that we sake steps to control the growth of federal expenditures. Part of our trouble is that we have been selfindulgent. For decade weve been voting increasing levels of government benefits and now the bill has come due. Weve been adding so many new programs that the size and the growth of the federal budget has taken on a life of its own. One characteristics of these programs is that their Cost Increases<\/a> automatically every year. Because the number of people eligible for most of the benefits increases every year when these programs were enacted, theres no dollar amount set. No one knows what they will cost. All we know is that whatever they cost last year they will cost more this year. Its simple aridgematic. Unless we check the aggressive federal expenditures, we will continue to run huge infactary deficits in the federal budget. If we project built in federal spending through the next 15 years, state, federal, and local government expenditures could easily comprise half of our Gross National<\/a> product. This compares with less than 1 3rd with 1975. Ive just concluded the process of preparing the budget submissions for the fiscal year of 1976. In that budget, i will propose legislation to restart growth of a number of existing programs. Ive also concluded that no new spending programs can be initiated this year except for energy. [ applause ] further, i will not hesitate to veto any new spendinga adopted by the congress. [ applause ] as an additional step tort putting the federal governments [ inaudible ] in all Government Programs<\/a> tied to the Consumer Price<\/a> index including Social Security<\/a> Civil Service<\/a> in military retirement pay and food stamps i also propose a one year maximum increase of 5 . None of these recommended ceiling limitations over which congress has final authority because they involve anticipated payments to many many deserving people. Nonetheless, it must be done. I must emphasize that im not asking to eliminate, to reduce, to freeze these payments. Im merely recommending that we slow down the rate at which these payments increase and these programs grow. Only a reduction in the growth of spending can keep federal borrowing down and reduce the damage to the private sector from high interest rates. Only a reduction in spending can make it possible for the Federal Reserve<\/a> system to avoid inflationary growth in the money supply and thus restore balance to our economy. A major reduction in the growth of federal spending and help dispel the uncertainty that so many feel about our economy and put us on the way to curing our economic ills. If we dont act to slow down the rate of increase in federal spending, the United States<\/a> treasury will be legally obligated to spend more than 360 billion in fiscalkcal year 1976. Even if no new programs are enacted. These are not matters of conjecture but simple arithmetic. The size of these numbers andimplications for our everyday life and Economic System<\/a> are shocking. I submitted to the last congress a list of budget defrlerals and decisions. Even so, the level of outlays for fiscal year 1976 is still much, much too high not only is it too high for this year but the decisions we make now will inevitably have a major and growing impact on expenditure levels in future years. I think this is a very fundamental issue that we the congress and i must jointly solve. Economic disruptions, we and others are experiencing stems in part from the fact that the world price of petroleum has quadrupled in the last year. But in all honesty, we cannot put all of the blame on the Oil Exporting Nations<\/a> we, the United States<\/a>, are not blameless. Our growing dependence upon foreign sources has been adding to our vulnerability for years and years we did nothing to prepare ourselves for such an event as the embargo of 1973. During the 1960s, this country had a surplus capacity of crude oil which we were able to make available to our trading partners whenever there was a disruption of supply. This surplus capacity enabled us to influence both supplies and prices of crude oil throughout the world. Our excess capacity neutralized any effort in establishing an affective cartel and thus the rest of the world was assured of adequate supplies of oil at reasonable prices. By 1970 our capacity our surplus capacity had vanished and as a congress, the latent power of the oil cartel could emerge in full force. Europe and japan, both heavily dependent on imported oil now struggle to keep their economics or economies in balance. Even the United States<\/a>, our country which is far more selfsufficient than most other industrial countries has been put under serious pressure. I am proposing a program which will begin to restore our countrys surplus capacity in total energy. In this way, we will be able to assure ourselves reliable and adequate energy and help foster a new world Energy Stability<\/a> for other major consuming nations. But this nation and in fact, the world, must face the prospect of energy difficulties between now and 1985. This program will impose burdens on all of us with the aim of reducing our consumption of energy and increasing our production. Great attention has been paid to the considerations of fairness and i can assure you that the burdens will not fall more harshly on those less abled to bare them. Im representing a plan to make us invulnerable to cut offs of foreign oil. It will require sacrifices but and this is most important, it will work. I have set the following National Energy<\/a> goals to assure that our future is as secure and as productive as our path. First, we but reduce oil imports by 1 Million Barrels<\/a> per day by the end of this year and by 2 million per day by the end of 1977. Second, we must end vulnerability to economic disruption by foreign suppliers by 1985. Third, we must develop our Energy Technology<\/a> and resources so that the United States<\/a> has the ability to supply a significant share of the energy needs of the free world by the end of this century. To attain these objectives we need immediate action to cut imports. Unfortunately, in the short term there are only a limited number of actions which can increase domestic supply. I will press for all of them. I urge quick action on the necessary legislation to allow commercial production at the elks hill california, Naval Petroleum<\/a> reserve. [ applause ] in order that we make greater use of domestic cole resources i am submitting amendments to the Energy Supply<\/a> environmental Coordination Act<\/a> which will greatly increase the number of power plants that can promptly be converted to coal. [ applause ] obviously, voluntary conservation continues to be essential but tougher programs are needed and needed now. Therefore, i am using president ial powers to raise the fee on all importedroleum products. Crude oil fee levels will be increases 1 per barrel on february first. By 2 by barrel on march first and 3 per barrel on april first. Ty willi will take actions to reduce undue hardships on any geographical region. The foregoing are our interim administrative action that will be rescinded when the broader necessary rejlationlegislation is enacted. To that end i am asking the congress to act within 90 days on a more comprehensive tax program which includes excise taxes and import fees. Deregulation of new natural gas and an enactment of a natural gas excise tax. I plan to take president ial initiative to decontrol the price of Domestic Crude Oil<\/a> on april 1st. I urge the congress to enact a windfall profits tax by that date to ensure that Oil Producers<\/a> do not profit unduelyunduly. [ applause ] the sooner congress acts, the more affective the Oil Conservation<\/a> program will be and the quicker the federal revenues can be returned to our people. I am prepared to use president ial authority to limit imports as necessary that guarantee success. I want you to know that before deciding on my energy Conservation Program<\/a>, i considered rationing and hired gasoline taxes as alternatives. In my judgment neither would achieve the desired results and both would produce unacceptable inwebbing inequities. A program must be initiated to increase Energy Supply<\/a> to tax demand and provide new stand by emergency programs to achieve the independence we want by 1985. The largest part of increased Oil Production<\/a> must come from new frontier areas on the outer Continental Shelf<\/a> and from the Naval Petroleum<\/a> reserve in alaska. It is the intent of this administration to move ahead with exploration and production on those frontier areas of the outer Continental Shelf<\/a> where the environmental risks are acceptable. Use of our most abundant domestic resource coal, is severely limited. We must strike a reasonable compromise on Environmental Concerns<\/a> with coal. I am submitting clean air amendments which will allow greater coal use without sacrificing clean air goals. I vetoed the strip mining legislation pass bid the last congress. With appropriate changes, i will sign a revised version when it comes to the white house. I am proposing a number of actions to energize our Nuclear Power<\/a> program. I will submit legislation to expedite nuclear leasing and the rapid selection of sites. In recent months, utilities have canceled or postponed over 60 of planned Nuclear Expansion<\/a> and 30 of skplanedplanned additions to nonnuclear capacity. Financing problems for that industry are worsening. I am therefore recommending that the one Year Investment<\/a> tax credit of 12 be extended an additional two years to specifically speed the construction of power plants that do not use natural gas or oil. Im also submitting proposals for selective reform of state Utility Commission<\/a> regulation to provide the critical stability for our Domestic Energy<\/a> production in the face of price and uncertainty i will request legislation to authorize and require authorize and require tariffs, import quotas or price floors to protect our Energy Prices<\/a> at levels which will achieve Energy Independence<\/a>. Increasing Energy Supplies<\/a> is not enough. We must take additional steps to cut long term consumption. I therefore propose to the Congress Legislation<\/a> to make thermal efficiency standards mandatory for all New Buildings<\/a> in the United States<\/a>. A new tax credit of up to 150 for those homeowners who install insulation equipment. The establishment of an energy Conservation Program<\/a> to help low energy families purchase insulation supplies. Legislation to modify and defer automotive pollution standards for five years which will enable us to improve automobile gas mileage by 40 by 1980. These proposals and actions can reduce our dependence on foreign Energy Supplies<\/a> by three to 5 Barrels Per Day<\/a> by 1985. I propose stand by emergency legislation and a Strategic Storage<\/a> program of 1 billion barrels of oil for domestic needs and 300 Million Barrels<\/a> for National Defense<\/a> purposes. I will ask for the funds needed for Energy Research<\/a> and development activities. I will establish a goal of 1 Million Barrels<\/a> of Synthetic Fuels<\/a> and shale Oil Production<\/a> per day by 1985 together with an Incentive Program<\/a> to achieve it. I have a very deep belief in americas capeabilityiescapabilities. Within the next ten years, my program envisions 200 major Nuclear Power<\/a> plants 250 major new coal mines, 150 major coal fired power plants 30 major new refineries, 20 major new synthetic fuel plants. The drilling of many thousands of new oil wells. The insulation of 18 million homes. The manufacturing and the sale of millions of new automobiles, trucks and buses that use much less fuel. [ applause ] i happen to believe that we can do it. In other crisis, the one in 1942, president franklin d. Rose roosevelt said we would build 60,000 military country by 1943 production in that program had reached 125,000 aircraft annually. They did it then. We can do it now. [ applause ] if the congress and the American People<\/a> will work with me to attain these targets they will be achieved and will be surpassed. From adversity, let us seize opportunity. Revenues of some 30 billion from some Higher Energy<\/a> taxes designed to encourage conservation must be refunded to the American People<\/a> in a manner which corrects distortion in our tax system brought by inflation. People have been pushed into higher tax bracketed. Business taxes are similarly distorted because inflation exaggerates reported profits resulting in excessive taxes. Accordingly, i propose that future individual income taxes be reduced by 16 1 2 billion. This will be done by raising the low income allowance and reducing tax rates. This continuing tax cut will primarily benefit lower and middle income tax payers. For example a typical family of four with a gross income of 5600, now pays 185 in federal income taxes. Under this tax cut plan, they would pay nothing. A family of four with a gross income of 12,000 now pays 1260 in federal taxes. My proposal reduces that total by 300. Families grossing 20,000 would receive a reduction in 210. Those with a very low income must also be compensated. A propose a payment of 80 of every person 18 years of age or older in that very limited category. State and local governments will receive 2 billion in additional revenue sharing to offset their increased energy costs. To offset inflationary distortions and to generate more economic activity, the Corporate Tax<\/a> rate will be reduced from 48 to 42 . Now, let me turn if i might to the International Dimensions<\/a> of the present crisis. At no time during our peace time history has the state of the nation depended more heavily on the state of the world. And seldom if ever, has the state of the world depended more heavily on the state of our nation. The economic distress is global. We will not solve it at home unless we help to remedy the profound economic dislocation abroad. World trade and monetary structure provides markets, energy, food vital Raw Materials<\/a> for all nations. This International System<\/a> is now in jeopardy. This nation can be proud of significant achievements in recent years in solving problems and crises. The berlin agreement, the salt agreements, our new relationship with china. The unprecedented efforts in the middle east are immensely encouraging but the world is not free from crisis. In a world of 150 nations, where Nuclear Technology<\/a> is proliferating, and region conflicts continue, International Security<\/a> cannot be taken for granted. So let there be no mistake about it, internationalgstional cooperation is a vital factor of our lives today. This is not a moment for the American People<\/a> to turn in. More than ever before our own well being depends on americas determination and americas leadership in the whole wide world. We are a great nation spiritually, politically militarily diplomatically and economically. Americas commitment to International Security<\/a> has sustained the safety of allies and friends in many areas. In the middle east and europe, in asia. Our turning away would unleash new instabilities, new dangers around the globe which in turn, would threaten our own security. At the end of world war ii we turned a similar challenge in a historic opportunity. I might add a historic achievement. An old order was in disarray, political and economic institutions were shut. In that period, this nation and its partners build new institutions, new mechanisms of mutual support and cooperation. Today, as then, we face a historic opportunity. If we add to imaginatively and bully as we acted then this period will in retrospect be seen as one of the great creative moments of our nations history. The whole world is watching to see how we respond. A resurgent American Economy<\/a> would do more to restore the confidence of the world in its own future than anything else we can do. The program that this congress passes, can demonstrate to the world that we have started to put our own house in order. If we can show that this nation is able and willing to help other nations meet the common challenge, it can demonstrate that the United States<\/a> will fulfill its responsibilities as a leader among nations. Quite frankly at stake is the future of industrialized democracies which have perceived their destiny in common and sustained it in common for 30 years. The developing nations are also at a turning point. The poorest nations see their hopes of feeding their hungry and developing their societies shattered by the economic crisis. The long Term Economic<\/a> future for the producers of Raw Materials<\/a>, also depends on couldnt cooperative solutions. Our relations with the communist countries are a basic factor of the world environment. We must seek to build a long term basis for coexistence. We will stand by our principals we will stand by our interests. We will act firmly when challenged. The kind of a world we want depends on a broad policy of creating mutual incentives for restraint and for cooperation. As we move forward to meet our global challenges and opportunities, we must have the tools to do the job. Our military forces are strong and ready. This military strength deters aggression against our allies. Stabilizes our relations with former adversaries and protects our homeland. Fully adequate conventional and Strategic Forces<\/a> cost many, many billions. But these dollars are sound insurance for our safety and for a more peaceful world. Military strength, alone is not sufficient affective diplomacy is also essential in preventing conflict and building world understanding. The blood of our negotiations with the soviet union represent a major step in moderating strategic arms competition. My recent discussions with the leaders of the atlantic community, japan and south korea, have contributed to meeting the common challenge. But we have Serious Problems<\/a> before us that require cooperation between the president and the congress. By the constitution and tradition, the execution of for Foreign Policy<\/a> is the responsibility of the president. In recent years under the stress of the vietnam war, legislative restrictions on the president s ability to execute Foreign Policy<\/a> and military decisions have proliferated. As a member of the congress, i oppose some and i approved others. As president i welcome the advice and cooperation of the house and the senate. [ applause ] but if our foreign policies is to be successful we cannot rigidly restrict lenl slagsgislation, the ability of the president to act. The conduct of negotiations is ill suited to such limitations. Legislative restrictions, intended for the best motives and purposes can have the opposite result as we have seen most recently in our trade relations with the soviet union. For my part, i pledge this administration will act in the closest consultation with the congress as we face delicate situations and troubled times throughout the globe. When i became president only five months ago i promised those last congress a policy of communication, conciliation, compromise and cooperation. I renew that pledge to the new members of this congress. Let me sum it up. America needs a new direction which i have sought to chart here today. A change of course which will put the unemployed back to work, increase real income and production restrain the growth of federal Government Spending<\/a> achieve Energy Independence<\/a> and advance the cause of world understanding. We have the ability. We have the noknow how. In partnership with the American People<\/a>, we will achieve these objectives. As our 200th anniversary approaches, we owe it to ourselves and to posterity to rebuild our political and economic strength. Let us make america. Once again and for centuries more to come, when it has so long been a strong hold and a beacon light of liberty to the whole world. Thank you. [ applause ] president ford has just finished his first state of the ub yonftof the Union Address<\/a> lasting 41. 5 minutes. He was absolutely right. He got very little applause during that. I think past president s have generally managed to have as many as 33 breaks for applause. 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