We have become not a melting pot but a beautiful mosaic. Different people, different beliefs, different yearnings, different hopes, different dreams. - Jimmy Carter

1977 is a year when we are seeing major legislation, long overdue, passed, hopefully, that cause some increases in taxes. And additional taxes are necessary to restore the integrity of the social security system; some wellhead taxes are necessary to carry out a comprehensive energy policy and to hold down unnecessary consumption. I would hope that all those changes in the law that bring about any tax increase would be concluded in 1977. In 1978, there will be substantial tax reductions, and combined with that will be an adequate proposal for tax reform. I spent several hours this week going over the details of our tax reform package. We can't conclude that analysis until we know what will be done on energy and social security, because they have such a high impact on the tax structure. But there will be substantial tax reductions in 1978, combined with comprehensive tax reform.

Our national energy plan is based on 10 fundamental principles. The first principle is that we can have an effective and comprehensive energy policy only if the Government takes responsibility for it and if the people understand the seriousness of the challenge and are willing to make sacrifices. The second principle is that healthy economic growth must continue. Only by saving energy can we maintain our standard of living and keep our people at work. An effective conservation program will create hundreds of thousands of new jobs. The third principle is that we must protect the environment. Our energy problems have the same cause as our environmental problems-wasteful use of resources. Conservation helps us solve both problems at once. The fourth principle is that we must reduce our vulnerability to potentially devastating embargoes. We can protect ourselves from uncertain supplies by reducing our demand for oil, by making the most of our abundant resources such as coal, and by developing a strategic petroleum reserve. The fifth principle is that we must be fair. Our solutions must ask equal sacrifices from every region, every class of people, and every interest group. Industry will have to do its part to conserve just as consumers will. The energy. producers deserve fair treatment, but we will not let the oil companies profiteer. The sixth principle, and the cornerstone of our policy, is to reduce demand through conservation. Our emphasis on conservation is a clear difference between this plan and others which merely encouraged crash production efforts. Conservation is the quickest, cheapest, most practical source of energy. Conservation is the only way that we can buy a barrel of oil for about $2. It costs about $13 to waste it. The seventh principle is that prices should generally reflect the true replacement cost of energy. We are only cheating ourselves if we make energy artificially cheap and use more than we can really afford. The eighth principle is that Government policies must be predictable and certain. Both consumers and producers need policies they can count on so they can plan ahead. This is one reason that I'm working with the Congress to create a new Department of Energy to replace more than 50 different agencies that now have some control over energy. The ninth principle is that we must conserve the fuels that are scarcest and make the most of those that are plentiful. We can't continue to use oil and gas for 75 percent of our consumption, as we do now, when they only make up 7 percent of our domestic reserves. We need to shift to plentiful coal, while taking care to protect the environment, and to apply stricter safety standards to nuclear energy. The tenth and last principle is that we must start now to develop the new, unconventional sources of energy that we will rely on in the next century. Now, these 10 principles have guided the development of the policy that I will describe to you and the Congress on Wednesday night.

In Atlanta, as a joint friend of mine and Vernon Jordan's at the time when Vernon was thinking about running for Congress, the man who finally ran for that seat, Andy Young, has become throughout the world the exemplification of what this Nation stands for, what our Government stands for in the field of basic human rights. And Andy Young will be on your program this year as a member of our Cabinet, a man who has a voice of his own, but who works closely with me. And I might say other members of the United Nations have joined with him in letting the deprived people of the world know that the United States, with all its power and influence, is interested in them and is their friend.