The Penn's Grove record., 1919-12-12
PRESIDENT ASKS
FOR BUDGET PLAN
Wilson's Message Urges Laws to
Solve Grave Problems
CHANGES PLANNED

present at the opening of this SEES
sion of the congress. L am mus
prevented from presenting n as dl-
rect a way as l could wish the many
questions thar are pressing for solu-
ton at this time.
Happily, | have had the advantage
of the advice of the heads OF the sew
eral executive departments VINO nave
kept in close touch with affairs In
their detail and whose ~thoughtful
recommendations l earnestly second.
In the matter Of the railroads and
the reimbursement of their affairs
growing out of federal control, shall
take the liberty at a later day OF
addressing you.
Urges Budget System.
l hope that congress will bring to
n conclusion at this session legisla-
ton looking 10 the establishment Oh
a budget system. That there should
be one single authority responsible for
the making of all appropriations ana
that appropriations should be made
not independently of each other, Du
with reference to one single compre-
hensive plan of expenditure properly
related to the nations income, there
can be no doubt.
I believe the burden of preparing
the budget must, in the nature OF the
case. if the work is to be properly
done and responsibility concentrated
instead of divided, rest upon the ex-
ecutive.
The budget so prepared should be
submitted to and approved or amend
ed by a single committee OF each
house of congress and no single ap-
prepriation should be made by the
congress, except such as may have
been included in the budget prepared
by the executive or added by the par
ticular committee of congress charged
with the budget legislation.
Economy Audit Needed.
Another and not less important as
pect of the problem is the ascertain
ment of the economy and efficiency
with which the moneys appropriated
are expended. Under eN s ing law the
only audit is for the purpose of as
pertaining whe her expenditures have
been lawfully made within the appro-
priations. No one is authorized or
equipped to ascertain whether the
money has been spent wisely, economi-
cally and effectively. The auditors
should be highly trained officials with
permanent tenure in the treasury de-
partment, free of obligations to or
motives of consideration for this or
any subsequent administration, and
authorized and empowered to examine
into and make report upon the meth
DDS employed and the results obta n
ed by the executive departments of
the government. Their reports should
be made to the congress and to the
secretary of the treasury.
Must Simplify Taxation.
I trust that the congress will give
it's immediate consideration to the
problem of future taxation. Slmplifi-
cation of the income and profits taxes
has become an immediate necessity.
These taxes performed Indispensable
service during the war. They must,
however, be s:mpiified, not only to
saw the taxpayer inconvenience and
expense, but in order that his liability
NAV be made certain and d:finite.
With reference to the details of the
revenue law, the secretary of the
treasury and the commissioner Of in
ternal revenue will lay before you for
your cons, Iteration certain amend
ments necessary or desirable in con-
nection with the administration Of the
law-recommendations which have my
approval and support. 1t is of the ut
most Importance that in dealing with
this matter the present law should not
be disturbed so far as regards taxes
for the calendar year 1920, payable in
the calendar year 1921. The congress
might well cor 5 der whether the high
err rates of income and profits taxes
can in peace times be effectively pro-
ductive of revenue, and whether they
may not, on the contrary, be destruc-
tive of business activity and prOduc-
tive of vase and ineficiency. There
is a point at which in peace times
high rates Ct income and profits tax
es discourage energy, remove the in
centive to new enterprise, encourage
eXtravagant expenditures and produce
industr al stagna-ion, with consequent
unemployment and other attendant
evils.
Pubiic Should Come First.
The preju'i e and passions engen-
dered by decades of controversy be-
;wtel tUo 5 h1ols of political AMI
economic thought-the one believes in
protection of American industries, the
other believes in tariff for revenue
only-must be subOrdnared 10 the
single consideration of the public in
terest in the light Of utterly changed
conditions.