76-17-A1

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Food Stamps

Transcript As the U.S. Congress began watching the clock on the last day before the Memorial Day recess the people took something of a beating. Rushing to adjourn, the Senate passed and sent to the House the "Food and Agriculture Act of 1977" Included in the act was a two-year extension of the Food Stamp program. Now I, for one, have advocated a thorough overhaul of the food stamp caper for some time; even had a task force work on a plan for reform my last year as Governor. But, what I had in mind was somewhat different from the changes the Senators made. The Welfare lobby, with the President's blessing, ended the requirement for purchasing food stamps. The stamps are now free. In the past there was some effort to recognize the extent of need. Some people received stamps free, others paid on a sliding scale based on their income and need. But, even at the top of the scale, the stamps were a bargain. Now they are more than a bargain. They are free for everyone but the taxpayer. Senator McGovern has long advocated doing away with the purchase part of the program as a -- QUOTE -- "First step" UNQUOTE -- toward a guaranteed annual income. The Senators didn't change that part of the program that made strikers and college students eligible for food stamps. I remember a student at one of our state universities who had quite a deal worked out. He was allowed to buy $25.00 worth of food stamps for 50¢. Another convenience in the program was recognition that you couldn't always make your food stamp purchase come out to an even $25.00 so the stores could give a small amount of cash for the unused stamps. In his case it amounted to 47 cents. The first week of each month he'd buy $25.00 worth of stamps -- get $24.53 worth of supplies and 47 cents change. The second week he'd put 3 cents with the 47 cents and repeat. By the end of the third week he'd have a total of $73.59 worth of groceries plus another 47¢. Putting in his 3 cents again, he'd make his fourth week buy of food stamps which he then sold to friends for $15.00. For a monthly investment of 59 cents, his "take" each month was $15.00 in cash, plus $73.59 worth of food. When I first learned about him, I didn't know whether to stop what he was doing or hire him as State Finance Director. Now, of course, he doesn't even need the 59 cents. Free food stamps are intended for the poor. But, in establishing whether a recipient qualifies, they use net, not gross income. Therefore, the real cut-off point for a family of four is about $10,600 and for larger families it is much higher. If you aren't irritated yet -- try this for size. Senator Carl Curtis proposed an amendment to at least halt or reduce chances for fraud. He wanted the Department of Agriculture to issue I.D. cards containing the recipient's photo, set up an earnings clearance system to check reported income with employers and a cross-check to prevent recipients from picking up more than one set of food stamps. On May 24th the Curtis amendment to prevent outright cheating was defeated in the Senate 57 to 37. This must go down in the records as a sad day for those who toil and pay taxes -- indeed for America. This is Ronald Reagan. Thanks for listening.		Details Batch Number 76-17-A1 Production Date 07/??/1977 Book/Page Online PDF Audio Youtube? No
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