Evening star., 1924-05-14
COOLIDGE HEARTENED
BY SUPPORT OF VETO
Victory on Bursum Pension Meas
ure Means Renewed Drive
for Economy.
REJECTION FOR TAX BILL
President Will Act Unless Amend
ments Are Made.
BY DAVID LAWRENCE

President Coolidges first impor tan
victory in the exercise of his veto
power-namely, the failure of Con
gress to muster a two-thirds vote
10 override his disapproval of the
Bursum pension bill-means re-
newed effort on the part of the
White House to make economy in
government expenditure the basis Of
its attack all along the line.
Mr.. Coolidge did not oppose the
principle of pensions. but states that
the government cannot afford further
bounties. He is against the soldier
insurance bill on the ground that
the government budget cannot stand
the increased expense. He will veto
the pending tax bill, if it is un-
amended, on the ground that it does
not provide the revenue required to
carry On the government of the
United States.
Puts Shortage Mt S475,OOO, 900.
Already Senator Smoot, chairman
of the Senate finance committee, has
announced that the pending tax bill.
now in conference between the two
houses Of Congress, fails by approx
imately $475.oOO,0oO to meet the gov
ernment requirements. This is based
on the estimates of government actu-
aries.
In the face of such figures not only
is it impossible for the President to
sign the bill, but it is difficult to see
how Congress can deliberately legis-
late deficit. 1t is true that occasion
ally the estimates have varied. and
that the figures have been 0.000, 600
or SO above or below the line, but
in each case since the war the bud
get has been balanced, a circumstance
that has helped to give the dollar un-
usual strength in the currency mar
kets of the world. But at no time
has Congress faced a deficit of near
ly a half-billion dollars.
Senate Ignores Suggestions.
When the Longworth bill passed
the House it carried a deficit, but the
Treasury Department suggested
changes which would provide the
needed revenue. The Senate has. in
the main, ignored those suggestions,
and made further cuts, while fall
ing to provide productive substitutes.
Many people have the idea that the
rich shall be taxed heavily, whether
big business shall escape levies, and
whether the man of smaller income
shall be preferred.
From the viewpoint of the Treas
ury Department., and particularly its
iactuarieS, there is no such diScrlmlna
tion. Big business can avoid tax lev
les just as investors who buy tax
exempt securities. The productivity of
a tax is not altogether matter of
oof1 inc L
from experience just what business
does to avoid taxes.
Tax Evasion Possible.
For instance, in respect to the un-
distributed surplus taxes, some of its
provisions undoubtedly would be
evaded by skillful bookkeeping and it
is not certain that the government
can force the distribution of all funds
when there is expansion to be taken
care of.
1t is recalled that the government
by no means succeeded in collecting
all that it should of the excess profits
taxes and that as the latter form of
taxation was more and more studied
business found ways of avoiding its
heavy levies. The whole question OF
estimating tax receipts is a compli-
Gated one. but the Treasury experts
have managed in the past to attain
a remarkable degree OF accuracy.
Apart from the failure of the Sen
ate bill to provide enough revenue
there is also some uncertainty as to
the extent of government appropria-
tions. The budget as framed by the
executive branch of the government
and the budget that will have to be
! met when Congress gets through ap-
propriating are two different things
Congress has departed from the
budget and threatens to depart still
more.
$1,000, 900 900 Needed.
In his New York speech Mr.. Cool
idge estimated that nearly three
billions of dollars would have to be
appropriated to meet the bills being
pressed In Congress.
Most Of these will not be passed, but
dangerously large proportion may be
pushed through at the last moment. all
Continued on Page 4. Column 81