A registered lobbyist confirmed Wednesday that he sought a tax break for Ross Perot from the House Ways and Means Committee in 1975.
In one of the most dramatic moments of the Tuesday night debate over the North American Free Trade Agreement, Vice President Al Gore said the Texas billionaire or his representatives had lobbied Congress for favorable tax legislation.
“You’re lying,” Perot said.
On Nov. 7, 1975, The Wall Street Journal reported that the Ways and Means Committee had passed a tax bill amendment that would have netted $15 million for Perot. The amendment was introduced during a late-night committee meeting by Rep. Phil Landrum (D-Ga.), who died in 1990.
The article said Perot’s lawyer, former Internal Revenue Service Commissioner Sheldon Cohen, had drafted such an amendment on Perot’s behalf and it “apparently was used.” Cohen was in the committee room when the amendment passed, keeping track of how members voted.
“The article is accurate,” Cohen said Wednesday. Cohen would not elaborate further except to say he had been properly registered to lobby the committee members.
On the floor of the House, Rep. Pete Stark (D-Calif.) later introduced another amendment to remove the tax break. The proposal was an “embarrassment,” Stark said at the time. It “would only benefit a very few rich individuals.” A majority of the House supported Stark.
The 1975 Wall Street Journal article also said Perot had contributed a total of $27,400 to the campaign funds of 12 Ways and Means Committee members, including $1,000 to Landrum.
On NBC television’s “Today” show Wednesday, the 1975 episode was recalled by Al Hunt of The Wall Street Journal, now the paper’s executive Washington editor and former bureau chief.
“I wrote the story 18 years ago this week,” Hunt said. “Perot secretly lobbied the Ways and Means Committee. He hired every lobbyist in town he could get, including a former IRS commissioner. It has nothing to do with NAFTA. It does have to do with veracity. Ross Perot simply didn’t tell the truth last night.”
During the debate on CNN’s “Larry King Live,” Perot had bristled when Gore said Perot had long lobbied-legally-for legislation favorable for his business.
“I don’t know of any single individual who lobbied the Congress more than you did, or people in your behalf did, to get tax breaks for your companies,” Gore said.
“You’re lying,” Perot replied.
“It’s legal,” Gore said.
“You’re lying now,” repeated Perot.
Gore challenged Perot to deny either lobbying the Ways and Means Committee or hiring lobbyists to seek the tax breaks in the 1970s. Perot did not specifically deny the lobbying, challenging Gore in return to be more specific. Gore did not specify the 1975 tax break, and the debate switched to other issues.
At a news conference Wednesday, Perot refused to be pinned down on his charge that Gore was “lying.”
“I kept asking the vice president what he was talking about and he never told me, so I didn’t put out any untruths,” Perot said.
“Then they changed the subject. I was trying to pin him down on what he was talking about. He never brought it up.”
When questioners persisted, Perot said “We’re not here to rehash this debate” and would not answer further questions about the 1975 lobbying.
