Evening star., 1923-12-10
President Asks
Huge Saving
in Message.
TAX SLASH PLAN
BLOW TOBONUS
Veterans Relief Bill
Is Held Poor
Policy.


appropriations for the fiscal year
1925 is provided in the annual bud
get transmitted to Congress today
by President Coolidge.
At the same time, the President,
In a message transmitting the bud
get, proposed reduction Of approx
imately $275,OO0,0Oo in the operating
expenses of the government for the
coming fiscal year.
Total expenditures are estimated
at S3,2oS0 S0SO,444, exclusive of the
postal service, which is paid for out
OF receipts, and total receipts at
S.6o3.762, 2,078. This leaves a surplus
OF S3956Sl,634
These estimates, however, are on
the basis OF existing revenue laws,
and should Congress reduce taxes as
recommended by the administration,
much of the expected balance would
be wiped out.
The President, in message
transmitting the budget, specifically
recommended that a reduction be
made in the taxes of more than
S3O0,0OO,OOO
At the same time he presented
views in opposition to the proposed
soldiers bonus.
The difference between the esti-
rIot ho
mated expenditures lies in the fact
that there will be expenditures dur
ing the next fiscal year out of ap-
propriations made in previous years
and in the fact that contracts for
the purchase of Army and Navy sup
plies take into consideration seasonal
demands.
Appropriations requested for the
year beginning next July / aggre-
gate s3,o1s,0 ,s46, or s260.3s5.O22 less
than those for the current fiscal year.
President Coolidge said this reduction
was In response to executive instruc-
tions in the preparation of estimates
by the various departments and fed
eral agencies.
This was essential to a continu-
alton of the policy Of strict and
icy. 1t has been adhered to un-
sWervingly In the past and we shall
hew to the line in the future"
Opposed to Bonus.
Discussing the soldiers bonus and
the proposed reduction in taxes. the
President said:
ANY program of new expenditure
on large scale would make tax re-
duction impossible for years to come"
He added that tax reduction would
certainly tend to align the whole peo-
pie in support of economical admin
istration of government" which. he
declared. is becoming 'every day more
and more necessary"
Il recommend revision Of tax
laws" Mr.. Coolidge said, "along lines
which will effect a reduction Of in
come taxes by taxing earned income
more lightly than income from busi-
ness or from investments; by reduc-
ing the percentages of the normal tax
and by reducing the surtax rates,
with commencement of their applica-
ton at $4,000 instead of $4,000 I
also recommend repeal Of the tax on
kilograms, telephones and leased
wires and of the tax on admissions
and revision of the miscellaneous
taxes. which are a source of incon-
collect. On the other hand, amend
ments which would cause some in
crease of revenue should also be made
to existing income tax laws relative
to deductions of capital losses; de-
ductions from gross income for in
tereSt paid and non-business losses
sustained, wherein income from tax
exempt securities Is involved, and the
manner of taxing community incomes.
These changes would reduce taxes
h1r
safely within the probable surplus
The President recommended to Con-
gress an annual appropriation Of
$5.o00.000 for the construction Of
needed buildings in the District Of
ties of the government. No items for
such an appropriation are found in
the budget, however, since there
must be specific authorization by law
for such expeditures before the estt-
The budget transmitted to Con-
gress today is drafted SO as to cover
the proposed changes in salary for
employees of the Federal and District
governments In the District of CO.
lumbia. The salaries OF the govern
ment employees in the field are on
the same basis as in the current law.
with the understanding that the S240
bonus will be continued for them
until they can be reclassified.
$40 Bonus Absorbed.
Where the classification Is effective
In the budget, 1t is shown that the
bonus has generally been absorbed
and salaries increased over and above
that bonus.
The cost Of national defense next
year Is placed at $548.531,238, a reduce
tion of $S5,000,000 as compared with
this year, Military DensionR reffra.
msnt pay, world war allowances and
the like will take $3.50, sos out of
the Treasury as against $703,111,57S
this year.
Fixed charges on account of the
public debt are placed at 31,372,277,-
975, which includes $3.50, ,0o0. 900 of In
terest and 2.277.s76 for retirement
OF securities. The interest payment
shows q reduction OF $4,000, 900 az
compared with that for the current
year.
OF the total of $311.000.o0O Of ex-
NAN nditupea by the NAVY Dana rtuAnt