These proposals and actions, cumulatively, can reduce our dependence on foreign energy supplies from 3 to 5 million barrels per day by 1985.  To make the United States invulnerable to foreign disruption, I propose standby emergency legislation and a strategic storage program of 1 billion barrels of oil for domestic needs and 300 million barrels for national defense purposes.

I will ask for the funds needed for energy research and development activities.  I have established a goal of 1 million barrels of synthetic fuels and shale oil production per day by 1985 together with an incentive program to achieve it.

I have a very deep belief in America’s capabilities.  Within the next 10 years, my program envisions:  200 major nuclear powerplants; 250 major new coal mines; 150 major coal-fired powerplants; 30 major new refineries; 20 major new synthetic fuel plants; the drilling of many thousands of new oil wells; the insulation of 18 million homes; and the manufacturing and the sale of millions of new automobiles, trucks, and buses that use much less fuel.

I happen to believe that we can do it.  In another crisis—­the one in 1942 President Franklin D. Roosevelt said this country would build 60,000 military aircraft.  By 1943, production in that program had reached 125,000 aircraft annually.  They did it then.  We can do it now.

If the Congress and the American people will work with me to attain these targets, they will be achieved and will be surpassed.  From adversity, let us seize opportunity.  Revenues of some $30 billion from higher energy taxes designed to encourage conservation must be refunded to the American people in a manner which corrects distortions in our tax system wrought by inflation.

People have been pushed into higher tax brackets by inflation, with consequent reduction in their actual spending power.  Business taxes are similarly distorted because inflation exaggerates reported profits, resulting in excessive taxes.

Accordingly, I propose that future individual income taxes be reduced by $16.5 billion.  This will be done by raising the low-income allowance and reducing tax rates.  This continuing tax cut will primarily benefit lower-and middle-income taxpayers.

For example, a typical family of four with a gross income of $5,600 now pays $185 in Federal income taxes.  Under this tax cut plan, they would pay nothing.  A family of four with a gross income of $12,500 now pays $1,260 in Federal taxes.  My proposal reduces that total by $300.  Families grossing $20,000 would receive a reduction of $210.

Those with the very lowest incomes, who can least afford higher costs, must also be compensated.  I propose a payment of $80 to every person 18 years of age and older in that very limited category.

State and local governments will receive $2 billion in additional revenue sharing to offset their increased energy costs.

To offset inflationary distortions and to generate more economic activity, the corporate tax rate will be reduced from 48 percent to 42 percent.