The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1923-12-10
j. s. ESTIMATES
GUT QUARTER
Of BILLION
Coolidge Submits Budget to
Congress Clears Views on
Bonus and Taxes.

CONTINUED from First Page.)
OF spending that would tend to abb
sorb the expected margin between
receipts and expenditures.
In view of President Coolidge's
firm opposition to the bonus there
is no doubt that he will veto the
adjusted compensation bill which
Congress is expected to pass this
winter. despite the belief of bonus
advocates that they have sufficient
strength to enact IL into law by
passing 1t over his veto.
The Presidents stand on the bonus
and the reduction of taxes is wholly
in accord with that Of Secretary OF
the Treasury Mellon.
The Governments expenditures
for 1926 were estimated by the
President in his budget message at
$3,298, O80, 444, which is $3.50, 1857 ,644
less than the estimated expenditures
for the current fiscal year.
The receipts for the coming fiscal
year were placed at $500, 762 ,O7S, so
that the surplus which the Presi.
dent expects to have in the Treas
ury on June 80, 1926, is $685., 1871 1914,
compared with surpluses 0f $685..
$780, 24 in the fiscal year ending
June 80, 1924; and $309, 657. 400 in the
year ending June 80, 1923.
Possible by Economy.
The President pointed out that
the surplus estimated for the COM
ing year would "be possible only If
the present pressure and co-ordi.
mated effort for economy in public
expenditures be continued without
relaxation, and there be no embark
alton upon any. extraordinary ex-
penditure prografn."
Il have in mind" he said, that
the taxpayers are the stockholders
Of the business corporation of the
United States. ana that If this busi-
ness ts showing q surplus Of re-
ceipts. the taxpayers should share
therein in some material way that
will be Of immediate benefit.
Having in mind that the Budget
and Accounting act of 1921, contem-
plates that the Chief Executive, I'M
der the fortunate situation in which
we now find ourselves. should make
such recommendations as in his
opinion the public interests require.
recommend a revision of tax laws
along lines which will effect a re-.
duction Of income taxes by taxing
earned incomes more lightly than in
come from business or from invest.
ments; by reducing the percentages
of the normal tax. and by reducing
the Gurtax rates, with commence
ment Of their application at $4,000
instead of $4,000.
FavOrs Tax Repeal.
II also recommend the repeal of
the tax on kilograms, telephones.
and leased wires, and Of the tax on
admissions, and revision of the mis-
cellaneous taxes which are a source
of inconvenience to taxpayers. and
difficult to collect.
son the other hand, amendments
which would cause some increase of
revenue should also be made to ex,
listing income tax laws relative to
deductions of capital losses: reduc-
tons from gross incomes for inter
est paid and nOn-business losses sus-
tanned, where income from tax-ex-
empt securities is involved; and the
manner of taxing community in
comes. These changes would reduce
taxes by more than $500, 900 900.
which is safely within the probable
surplus
The President said he knew moth
ing which will give the people of
this nation greater assurance that
we are unalterably committed to a
campaign of economy in public ex-
penditures than a reduction of our
present taxation" He also ex-
pressed the opinion that a reduction
of Federal expenditures and taxation
would lead to similar retrenchnent
in the financial activities OF the
States and municipalities, which. &C.
cording to an estimate of the late
President Harding, consumed 60 per
cent Of all the taxes collected in the
United States.
The appropriations for prohibition
enforcement contained in the 1925
budget are more than $1,6O0,0OO in