Atwater: You start out in 1954 by saying, "Nigger, nigger, nigger." By 1968 you can't say "nigger" — that hurts you. Backfires. So you say stuff like forced busing, states' rights and all that stuff. You're getting so abstract now [that] you're talking about cutting taxes, and all these things you're talking about are totally economic things and a byproduct of them is [that] blacks get hurt worse than whites. And subconsciously maybe that is part of it. I'm not saying that. But I'm saying that if it is getting that abstract, and that coded, that we are doing away with the racial problem one way or the other. You follow me — because obviously sitting around saying, "We want to cut this," is much more abstract than even the busing thing, and a hell of a lot more abstract than "Nigger, nigger."
Check out the full conversation: http://www.thenation.com/article/170841/exclusive-lee-atwaters-infamous-...
Background: Harvey LeRoy "Lee" Atwater (February 27, 1951 – March 29, 1991) was an American political consultant and strategist to the Republican Party. He was an advisor of U.S. Presidents Ronald Reagan and George H. W. Bush and chairman of the Republican National Committee.