Question-and-Answer Session With Reporters on Proposed Changes in the Corporate Income Tax

January 26, 1983

Q. Is this your idea about the income tax, too -- the corporate income tax?

Q. Yes, about the corporate income tax.

Q. About the corporate income tax.

The President. What?

Q. [Inaudible] -- the corporate income tax.

Q. [Inaudible] -- the Massachusetts State Police could move so we can -- --

Unidentified speaker. [Inaudible] -- can't go behind the President.

The President. I said that you'd all be asking about it.

Q. Tell us about it.

The President. But I also said that it was some time when everybody has got to be more reasonable, that we could look at that and investigate as to whether it is an advantage or not.

Q. Well, I thought you wanted to be fair last night in your speech. How is this fair -- [inaudible]?

The President. Because corporations are owned by people. And instead you would take those profits and that money and give it to the shareholders, and they would pay the tax as individuals.

Q. Do you want to abolish it, then?

The President. What?

Q. Abolish the corporate tax.

The President. I said it was something that we ought to look at, because there isn't really a justification for it.

Q. Those stockholders -- [inaudible].

The President. Yes, but before they get it, they're entitled as owners to the entire profit. Before they get it, it is taxed at a corporate rate. Now, maybe some of those shareholders are not in as high a rate as the corporation.

Q. [Inaudible]

The President. No, I said it was something to study and look at.

Q. We'll ask you once again -- --

The President. I know you will.

Q. Stay the course.

The President. You should have taken some lessons from those kids over there at that plant. They asked good questions.

Q. Thank you.

Note: The exchange began at approximately 4 p.m. as the President was leaving the Millipore Corp. building to return to Washington, D.C.

As printed above, this item follows the text of the White House press release.