(1) CONSTITUTIONAL BALANCE BUDGET AMENDMENT (2) TUITION TAX CREDITS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84B00049R001700120001-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 11
• Document Creation Date: December 22, 2016
• Document Release Date: October 21, 2009
• Sequence Number: 1
• Publication Date: March 17, 1982
• Content Type: MEMO

Sanitized Copy Approved for Release 2009/10/21 : CIA-RDP84B00049R001700120001-5
NSC Review Completed as Redacted.
Cabinet Meeting
18 March 1982
10:45-11:45
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 Sanitized Copy Approved for Release 2009/10/21 : CIA-RDP84B00049R001700120001-5
ES/t1I 119
17 March 1982
MEMORANDUM FOR: See Distribution
.SUBJECT Meetings
Y
Type of Meeting Full Cabinet
uate Thursday, 18 March
Time : 10:45-11:45
P1 ace Cabinet Room
Chaired By President.'
Principal only? : Yes
Subject/Agenda (1) Constitutional Balance
Budget. Amendment
(2) Tuition Tax Credits
When to Expect Papers: Papers will be available at the 'Situation Room
a noo
n
#uta ~I+Iv rceeelveo Per Patsv Cabinet Office 11.25 a.m.
Anne
o ay, ur couriers Wi 1.p1ck up.
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 Sanitized Copy Approved for Release 2009/10/21 : CIA-RDP84B00049R001700120001-5
THE WHITE HOUSE
CABINET MEETING AGENDA
Thursday, March 18, 1982 -- 10:45 PAM
1. Constitutional Balanced. Budget Tax Limitation
Amendment/CM219
2. Tuition Tax Credits/CM136
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 Sanitized Copy Approved for Release 2009/10/21 : CIA-RDP84B00049R001700120001-5
QUESTIONS AND ANSWERS REGARDING THE "EDUCATIONAL OPPORTUNITY AND
EQUITY ACT OF 1982"
1. WOULD THE TAX CREDIT BENEFIT INDIVIDUALS OR INSTITUTIONS?
A. A tuition tax credit is meant to provide a direct benefit to
individuals -- primarily parents of children enrolled in private
schools as a matter of tax equity. These parents have already
paid one school bill -- in the form of local taxes. Because they
are paying a second bill for private school, they are in need of
some relief.
2. WON'T THIS BILL GET THE FEDERAL GOVERNMENT INVOLVED IN
DICTATING POLICY IN PRIVATE SCHOOLS?
A. Because the bill would not make available any Federal
financial assistance to the schools themselves, but would only
provide tax credits to parents, it would create no Federal
jurisdictional nexus which would enable the Federal government to
dictate policy to the schools.
3. WILL THIS BILL PROMOTE "WHITE FLIGHT" AND EMPTY OUT THE
PUBLIC SCHOOLS?
A. To the contrary.
The Congress of Racial Equality stated on behalf of tuition tax
credits before the Senate Finance Committee: "the presence of
even a fairly small number of alternatives, even just the
potential of parents being able to reject a school that is not
doing its job, can work great changes in the public schools."
A. First of all a majority (54%) of all parents who have
children in private elementary and secondary schools have incomes
of less than $25,000. These parents currently pay average
tuition costs of $900. The bill tends to provide the greatest
relief for this "marginal." taxpayer.
5. HOW CAN THE ADMINISTRATION JUSTIFY A COSTLY TAX CREDIT
PROPOSAL WHEN IT IS PROPOSING MAJOR REDUCTIONS IN THE EDUCATION
BUDGET, ESPECIALLY FOR PUBLIC SCHOOLS?
A. Reductions in the education budget are a part of the
Administration's economic recovery program that is aimed at
limiting Federal spending.
Some portion of the education reductions will be offset by
consolidation, deregulation and other Administration proposals
currently before the Congress that would limit the burdenns
imposed by the Federal government on public schools.
Sanitized Copy Approved for Release 2009/10/21 : CIA-RDP84B00049R001700120001-5
 Sanitized Copy Approved for Release 2009/10/21 : CIA-RDP84B00049R001700120001-5
Tax credits are consistent with the Administration's priority to
reduce taxes and promote tax equity.
The diversity that tax credits promote will strengthen both
public and private schools alike.
5. WON'T TAX CREDITS ENCOURAGE THE ESTABLISHMENT AND SUPPORT OF
SCHOOLS THAT SYSTEMATICALLY DISCRIMINATE AGAINST MINORITY
STUDENTS?
Under this proposal, schools must not deny admission to any
person on account of race, color, national or ethnic origin. The
Administration strongly supports these provisions and considers
them an essential element of the proposed tuition tax credit
bill.
7. WON'T TUITION TAX CREDITS SIMPLY RESULT IN INCREASED PRIVATE
SCHOOL TUITION?
A. The tuition tax credit is unlikely to result in increased
private school tuitions, because:
It will only cover 50 percent of tuition. Thus, if a school
raised tuition, the credit would cover, at most, half of the
increase and parents would have to pay the other half.
This should be a major disincentive for schools to try to
"capture" the credit by raising tuition.
Tuition tax credits would provide some monetary relief to those
parents who choose to place their child in a school other than
the school or facility recommended by the school district.
Assisting parental choice is particularly critical in the case of
handicapped children because of the potential controversy
surrounding the question of an appropriate placement for each
child.
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 Sanitized Copy Approved for Release 2009/10/21 : CIA-RDP84B00049R001700120001-5
March 18, 1982 -- 10:45 a.m.
1. National Agriculture Day The President
2. Balanced Budget Amendment Donald Regan
3. Tuition Tax Credits Robert Carleson
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 Sanitized Copy Approved for Release 2009/10/21 : CIA-RDP84B00049R001700120001-5
CABINET MEETING PARTICIPANTS
Thursday, March 18, 1982 -- 10:45 a.m.
The Cabinet -- All Members *
* Walter J. Stoessel, Jr., Deputy Secretary
of State, for Secretary Haig
* Donald L. Hovde, Under Secretary of the
Department of Housing and Urban
Development, for Secretary Pierce
* Fred Bush, Deputy Chief of Staff, for
The Vice President
* Ted Olson, Assistant Attorney General,
for the Attorney General
James A. Baker
Michael K. Deaver
Richard G. Darman
Kenneth Duberstein
Craig L. Fuller
David Gergen
Edwin L. Harper
Murray Weidenbaum
Rich Williamson
Sanitized Copy Approved for Release 2009/10/21 : CIA-RDP84B00049R001700120001-5
 Sanitized Copy Approved for Release 2009/10/21 : CIA-RDP84B00049R001700120001-5
March 18, 1982 -- 10:45 a.m.
1. National Agriculture Day The President
2. Balanced Budget Amendment Donald Regan
3. Tuition Tax Credits Robert Carleson
Sanitized Copy Approved for Release 2009/10/21 : CIA-RDP84B00049R001700120001-5
 Sanitized Copy Approved for Release 2009/10/21 : CIA-RDP84B00049R001700120001-5
CABINET MEETING PARTICIPANTS
Thursday, March 18, 1982 -- 10:45 a.m.
The Cabinet -- All Members *
* Walter J. Stoessel, Jr., Deputy Secretary
of State, for Secretary Haig
* Donald L. Hovde, Under Secretary of the
Department of Housing and Urban
Development, for Secretary Pierce
* Fred Bush, Deputy Chief of Staff, for
The Vice President
* Ted Olson, Assistant Attorney General,
for the Attorney General
James A. Baker
Michael K. Deaver
Richard G. Darman
Kenneth Duberstein
Craig L. Fuller
David Gergen
Edwin L. Harper
Murray Weidenbaum
Rich Williamson
Sanitized Copy Approved for Release 2009/10/21 : CIA-RDP84B00049R001700120001-5
 Sanitized Copy Approved for Release 2009/10/21 : CIA-RDP84B00049R001700120001-5
QUESTIONS AND ANSWERS REGARDING THE "EDUCATIONAL OPPORTUNITY AND
EQUITY ACT OF 1982"
1. WOULD THE TAX CREDIT BENEFIT INDIVIDUALS OR INSTITUTIONS?
A. A tuition tax credit is meant to provide a direct benefit to
individuals -- primarily parents of children enrolled in private
schools as a matter of tax equity. These parents have already
paid one school bill -- in the form of local taxes. Because they
are paying a second bill for private school, they are in need of
some relief.
2. WON'T THIS BILL GET THE FEDERAL GOVERNMENT INVOLVED IN
DICTATING POLICY IN PRIVATE SCHOOLS?
A. Because the bill would not make available any Federal
financial assistance to the schools themselves, but would only
provide tax credits to parents, it would create no Federal
jurisdictional nexus which would enable the Federal government to
dictate policy to the schools.
3. WILL THIS BILL PROMOTE "WHITE FLIGHT" AND EMPTY OUT THE
PUBLIC SCHOOLS?
A. To the contrary.
The Congress of Racial Equality stated on behalf of tuition tax
credits before the Senate Finance Committee: "the presence of
even a fairly small number of alternatives, even just the
potential of parents being able to reject a school that is not
doing its job, can work great changes in the public schools."
4. ISN'T THIS A TAX CREDIT FOR THE RICH?
A. First of all a majority (54%) of all parents who have
children in private elementary and secondary schools have incomes
of less than $25,000. These parents currently pay average
tuition costs of $900. The bill tends to provide the greatest
relief for this "marginal." taxpayer.
5. HOW CAN THE ADMINISTRATION JUSTIFY A COSTLY TAX CREDIT
PROPOSAL WHEN IT IS PROPOSING MAJOR REDUCTIONS IN THE EDUCATION
BUDGET, ESPECIALLY FOR PUBLIC SCHOOLS?
A. Reductions in the education budget are a part of the
Administration's economic recovery program that is aimed at
limiting Federal spending.
Some portion of the education reductions will be offset by
consolidation, deregulation and other Administration proposals
currently before the Congress that would limit the burdenns
imposed by the Federal government on public schools.
Sanitized Copy Approved for Release 2009/10/21 : CIA-RDP84B00049R001700120001-5
 Sanitized Copy Approved for Release 2009/10/21 : CIA-RDP84B00049R001700120001-5
Tax credits are consistent with the Administration's priority to
reduce taxes and promote tax equity.
The diversity that tax credits promote will strengthen both
public and private schools alike.
6. WON'T TAX CREDITS ENCOURAGE THE ESTABLISHMENT AND SUPPORT OF
SCHOOLS THAT SYSTEMATICALLY DISCRIMINATE AGAINST MINORITY
STUDENTS?
Under this proposal, schools must not deny admission to any
person on account of race, color, national or ethnic origin. The
Administration strongly supports these provisions and considers
them an essential element of the proposed tuition tax credit
bill.
7. WON'T TUITION TAX CREDITS SIMPLY RESULT IN INCREASED PRIVATE
SCHOOL TUITION?
A. The tuition tax credit is unlikely to result in increased
private school tuitions, because:
It will only cover 50 percent of tuition. Thus, if a school
raised tuition, the credit would cover, at most, half of the
increase and parents would have to pay the other half.
This should be a major disincentive for schools to try to
"capture" the credit by raising tuition.
8. WHAT ABOUT COVERAGE FOR THE HANDICAPPED?
Tuition tax credits would provide some monetary relief to those
parents who choose to place their child in a school other than
the school or facility recommended by the school district.
Assisting parental choice is particularly critical. in the case of
handicapped children because of the potential controversy
surrounding the question of an appropriate placement for each
child.
Sanitized Copy Approved for Release 2009/10/21 : CIA-RDP84B00049R001700120001-5