The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-12-12
COOLIDGE ON TAXES

silence, he is equally capable of clear
and unmistakable expression when he
does speak. This is evidenced by his
message to congress and by his later
supplementary statement regarding
taxation. The president is for reduc-
ton of taxes, just as the Republicans
have nominally been for more than
two years past. On this point he says:
81 know of nothing which will give
the people of this country greater
assurance that we are unalterably
committed to a campaign of economy
in public expenditure than reduction
of our present taxation" This reduc-
ton as proposed would tax unearned
incomes, that is, incomes from bust
ness and investment, more heavily
than earned incomes and would raise
the minimum income on which the sur
tax is levied from six to ten thousand
per annum. The percentage of the
normal tax would also be reduced and
! other amendments are suggested which,
while they would result in tax in
creases in some instances, would de-
crease the total taxation by an esti-
mated three hundred million dollars.
1t is noted that the president omits
recommendation of the Mellon plan TO
abrogate tax exemptions on public
securities.
Although the president is opposed to
the provision of soldiers bonus, he
takes occasion to give explicit reasons
why he does not favor this expendi-
ture. From the viewpoint of saving
all the money possible, the presidents
reasoning, of course, is sound; but
from the viewpoint of those who be-
lieve.that adjusted compensation is a
moral obligation, it is difficult to find
any refuge in logic to escape such
obligation. 1t is also possible to differ
with the president that the bonus
would be burden upon rich and poor
alike. 1t is believed that it is feast
bic to assess this burden upon those
who are best able to pay it, among
whom are included those who made
unprecedented and enormous profits
during and Immediately after the
World War while the veterans were in
the army or else going around fruit
lessly looking for jobs after the war
was over. 1t is true that there are
plenty of jobs now, but there were
not plenty when the boys came back.
not even the jobs that many of them
were promised.
In the estimates for the next fiscal
year there are notable reductions in
the legislative establishment, navy de-
partment, department of agriculture,
interior department, department of
labor, state department, veterans bu-
reau, emergency fleet corporation and
other offices of the executive depart
ment. There is a decrease of nearly
twenty-five millions in the estimated
deficit in the postoffice department.
The current year this deficit is run
ming little more than twenty-four
million dollars. Next year it is ex-
pected that the deficit will be only
little more than two millions. With
such reform as is thus indicated, it
is not too much to hope for the day
to come when the postoffice depart
ment will show balance on the right
side of the ledger. True to its policy
of economy, the treasury department
leads the way in reductions, with an
estimated operating expenditure Of
1928, 900 next year as compared
to $262,012,366 for the current year,
or a decrease of over thirty-three mil
lions. The reductions contemplated
in national defense may or may not
constitute a real economy. 1t IS
feared that they will not. The de-
cline of forty-eight million dollars in
appropriations asked for the Vete-
rams Bureau indicate more favor
able situation as regards the necessi-
ties of the disabled veterans.
1t is evident that the presidents
message to congress on its opening was
but an outline of policy which he ex-
poets to amplify in detail from time
to time, as various matters of national
moment become pertinent objects of
congressional consideration. Cool
idge's clarity of expression is doubt
less in large measure due to his fixity
of purpose. Right or wrong, he is
evidently possessed of will to carry
through to the end what he has IN
mind.