A strong nation, like a strong person, can afford to be gentle, firm, thoughtful, and restrained. It can afford to extend a helping hand to others. - Jimmy Carter

Also, we need tax reduction and tax reform. They go together. They add up to $25 billion in net cuts in the income taxes Americans have to pay, and they are also designed to create an additional 1 million new jobs. Seventeen billion dollars of this tax cut will be for working families in our country, personal income tax reductions, and the rest in corporate tax reductions. Corporations will also receive higher tax credits for investing in the sort of new plants, new equipment that will make New England and the rest of the Nation competitive with aggressive foreign exports. But we can't have these cuts in taxes unless we help pay for them by eliminating some of our unnecessary and unwarranted income tax subsidies. Two of these are the deferral subsidy and the DISC subsidies. Both have a particularly bad effect in New England, where competition from abroad has had such a terrible effect on businessmen and on workers alike. The deferral subsidy sets a situation in effect where multilateral corporations pay lower taxes on foreign profits than they pay on their U.S. profits. This amounts to subsidizing corporations to export jobs overseas. The so-called DISC subsidies are just as bad. They let U.S. corporations set up dummy corporations to handle foreign exports, so as to keep from paying U.S. taxes on half their profits. Both these giveaways go overwhelmingly to a few of the largest multinational corporations, and both mean that the average taxpayer has to pay the bill, more taxes, just to take up the slack caused by these subsidies. And both cost America, and particularly New England, jobs. Both loopholes should be closed. As for the famous three-martini lunch, I don't care how many martinis anyone has with lunch, but I am concerned about who picks up the check. I don't think a relatively small minority has some sort of divine right to have expensive meals, free theater tickets, country club dues, sporting events tickets paid for by heavier taxes on everybody else. If the Congress will help me by getting rid of these tax loopholes and by enacting the entire economic program, we can have a good start on correcting unemployment and inflation. The economy won't turn around overnight, of course, any more than an ocean liner can turn around on a dime. The job will require slow, careful planning, not dramatic master strokes. It will require small corrections, of course, that we adhere to very patiently. It will require careful planning, careful adjustment, careful tuning and cooperation. The machinery of the American economy is sound. We have a lot to be thankful for. It's worked well despite severe shocks, but it can work better, and that's our major goal in this country this year.

Our fourth major goal, I want to mention briefly, is our welfare system and our tax system. In both of these cases, tinkering is not going to be enough. They must be thoroughly redesigned. Our present welfare system robs the taxpayers who support it, discourages the people who administer it, and sometimes degrades the people who really do need help. It's an extraordinarily complex and difficult problem, even more so than I had expected. Two weeks ago I outlined the principles that must underlie the reform of the system, and we will have legislative proposals ready by the end of this summer. We've already begun to move in this direction by simplifying the food stamp program--eliminating the purchase requirement and reforming the eligibility rules. As for our tax system, it, too, must be reformed through and through. Our tax system was once relatively simple, fair, and progressive. It isn't any more, because it's been changed so much over the years--often for the benefit of those who are rich enough to hire their own lobbyists in Washington. The process of redesign is well underway, and we intend to submit legislation to the Congress for a fair and simple income tax system this year.

When combined, the small individual contributors of caring, friendship, forgiveness, and love, each of us different from our next-door neighbors, can form a phalanx, an army, with great capability.