Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1919-12-11
WILSON'S MESSAGE
READ TO CONGRESS
President First Urges the Adop-
ton of a Federal Budget
System.
PEACE TREATY NOT TOUCHED
Revision of Income and Profits Taxes
Is Suggested-Country Must Aban-
don Provincial Business Stand
ards-Unrest and Its Causes

washington, Dec. Z.-PreSIdent VIII
sons message to the sixty-sixth con-
gresS was read to that body today.
The text of the message follows:
To the Senate and House Of Repre-
sentatives:
sincerely regret that I cannot be
present at the opening Of this session
Of the congress. / am thus prevented
from presenting in as direct way as
l could wish the many questions that
are pressing for solution at this time.
Happily, / have had the advantage Of
the advice of the heads of the several
executive departments who have kept
in close touch with affairs in their
detail and whose thoughtful recon-
mendatiOns | earnestly second.
In the matter of the railroads and
the readjustment of their affairs grow
ing out Of federal control, shall take
the liberty at later date of address
ing you.
Asks Budget System.
l hope that congress will bring to
conclusion at this session legislation
looking to the establishment of a bud
get system. That there should be one
single authority responsible for the
making of all appropriations and that
appropriations should be made not in
dependently of each other, but with
reference to one single comprehensive
plan of expenditure properly related
to the nations income, there can be
no doubt. | believe the burden of
preparing the budget must, in the ma
ture of the case, if the work is to be
properly done and responsibility con-
centrated instead of divided, rest upon
the executive.
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-
preparation should be made by the
congress except such as may have been
included in the budget prepared by the
executive or added by the particular
committee charged with the budget
legislation.
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 existing law the
only audit is for the purpose Of ascer-
tanning whether expenditures have
been lawfully made within the apprO-
priations. No one is authorized or
equipped to ascertain whether the
money has been spent wisely, eco
nomically and effectively.
The auditors should be highly
trained officials with permanent ten
ure in the treasury department, free
Of obligations to or motives of cOnsid-
Grafton for this or any subsequent add
ministration, and authorized and en-
powered to examine into and make re-
port upon the methods employed and
the results obtained by the executive
departments of the government. Their
reports should be made to the con-
treasury.
Problem of Taxation.
/ trust that the congress will give
its immediate consideration to the
problem of future taxation. Simpli-
tication OF the income and profits tax
eS has become an immediate necessity.
These taxes performed indispensable
service during the war. They must,
however, be simplified, not only to
save the taxpayer inconvenience and
expense, but in order that his liability
may be made certain and definite.
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 consideration certain amend
ments necessary or desirable in con-
nection with the administration of the
Iaw-recOmmendatio 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, pay
able in the calendar year 1921.
War Time Rates May Be Too High.
The congress might well consider
whether the higher rates of income
and profits taxes can in peace times
be effectively productive of revenue,
and whether they may not, on the con-
trary, be destructive Of business &C
tivity and productive of waste and
inefficiency.
There is a point at which in peace
times high rates of income and profits
taxes discourage energy, remove the
incentive to new enterprise, encourage
extravagant expenditures and produce
industrial stagnation, with consequent
unemployment and other attendant
evils.
The problem is not an easy one.
A fundamental change has taken place
with reference to the position of Amer
lea In the worlds affairs. The pref
udice and passions engendered oy
decades of controversy between two
schools of political and economic
thought-the one believers in protec-