Windfall Profits Tax Revenues Letter to the Speaker of the House and the President of the Senate Transmitting an Allocation Proposal.
Dear Mr. Speaker: (Dear Mr. President:)
Pursuant to Section 102(d) of the Crude Oil Windfall Profit Tax Act of 1980, I am submitting this proposal for an allocation of the net revenues expected from the Act during fiscal year 1981.
The allocation which I propose is, of course, consistent with my recommendations on the budget for 1981. It also reflects congressional action on the 1981 budget.
As I stated when I signed the Act into law, expenditure of the funds raised by the windfall profit tax requires specific authorization and appropriation by the Congress through the normal legislative process. This provides both the Administration and the Congress with the flexibility needed from year to year to determine how these funds will be used in the best interests of the country.
At present our highest priorities are fighting inflation and disciplining public spending. In meeting these goals, spending for low income assistance, for transportation, and for energy objectives must continue. Although enactment of tax reductions for 1981 may be appropriate in the next Congress, it is impossible at this time to allocate funds between tax reductions and deficit reductions. The enclosed allocation shows these two purposes combined.
Note: This is the text of identical letters addressed to Thomas P. O'Neill, Jr., Speaker of the House of Representatives, and Walter F. Mondale, President of the Senate. Both letters included the enclosure printed below.
ALLOCATION OF WINDFALL PROFIT TAX REVENUES FOR FY 1981
[In millions of dollars]
Sec. 102 Formula 1 President's Budget
Total net revenues available 16,242 16,242
Low income assistance 4,294 4,294 2
Energy and transportation programs 2,015 2,015 3
Income tax reductions 9,093 9,933 4
TOTAL 16,242 16,242
1 Derived from basic net revenues except as follows. $2,806 million of additional net revenues are included in total net revenues available. This represents the amount of revenues beyond the level assumed in the Conference Report on the Act. These additional net revenues are distributed to low income assistance ($935 million) and income tax reductions ($1,871 million).
2 FY 1981 outlays proposed in the President's budget (revised in March 1980) are $39,536 million for the total public assistance subfunction (604).
3 FY 1981 outlays proposed in the President's budget (revised in March 1980) are $19,689 million for all energy and transportation programs in the energy function (270) and the ground transportation subfunction (401).
4 As noted in the Conference Report on the Act, amounts not otherwise allocated to and appropriated for the uses shown would reduce the deficit. Although enactment of tax reductions for 1981 may be appropriate in the next Congress, it is impossible at this time to allocate funds between tax reductions and deficit reductions. The allocation therefore shows these two purposes combined.
Jimmy Carter, Windfall Profits Tax Revenues Letter to the Speaker of the House and the President of the Senate Transmitting an Allocation Proposal. Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/251593