Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-05-17
VICTORY Of PENSION
VETO GIVES COOLIDGE
RENEWED STRENGTH
BY DAVID LAWRENCE
Special Leased Wire to The Journal


lCOpyIlgHl, 1J-f.J
WASHINGTON May 15.-Presi-
dent Coolidge's first important vic
tory in the exercise of his veto pow
er-namely, the failure of congress
to muster a two-thirds vote to over
ride his disapproval of the Bursum
pension bilI-means a renewed eff
fort on the part of the White House
to make economy in government eX-
penditure the basis of its attack all
along the line.
Mr.. Coolidge did not oppose the
principle of pensions, but states 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 I'M
amended, on the ground that it does
not provide the revenue required to
carry on the government of the
United States.
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
mately $475, 900 to meet the gov
eminent requirements. This is
based on the estimates of govern
ment actuaries. 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 legislate a deficit.
Balanced Budget Essential
It is true that occasionally the
estimates have varied and that the
figures have been $50,000,000 or so
above or below the line, but in each
case since the war the budget has
been balanced, a circumstance that
has helped give the dollar unusual
strength in the currency markets of
the world. But at no time has con-
gress faced a deficit of nearly $780,
10000
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 in the
main has ignored those suggestions
and made further cuts while failing
to provide productive substitutes.
Many people have the idea that
the questions at issue are whether
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 treasury
department, and particularly its
actuaries, there Is no such dlscrlml-
nation. Big business can avoid tax
levies just as investors who buy tax
exempt securities. The productivity
of a tax is not altogether a matter
of legislation. And the actuaries
In 10
business does to avoid taxes. For
instance, in respect of the undis-
tributed surplus taxes, some Of it's
provisions undoubtedly would be
evaded by skilfull bookkeeping, and
it is not certain that the govern
ment can force the distribution of
all funds when there is expansion
to be taken care ,of.
Some Evasion Always
It Is recalled that the government
by no means succeeded in collecting
all that it should of the excess prof
its taxes, and that as the latter form
of taxation was more and more stud
led, business found ways of avoid
ing it's heavy levies. The whole ques-
ton of estimating tax receipts is
a complicated one, but the treasury
experts have managed in the past
to attain a remarkable degree of &C.
curacy.
Apart from the failure of the SEN
ate bill to provide enough revenue,
there is also some uncertainty as
to the extent Of government appro-
priations. The budget as framed by
the executive branch of the govern
ment and the budget that will have
to be met when congress gets
through appropriating are two diff
ferent things. Congress has depart
ed from the budget and threatens to
depart still more. In his New York
speech Mr. Coolidge estimated that
nearly $4,000, 900 would have to be
appropriated to meet the bills being
pressed in congress. Most of these
will not be passed, but a dangerously
large proportion may be pushed
through at the last moment, all OF
which affects the revenue getting
side of the government.
Take, for example, the McNary-
Haugen bill, which requires $780,
900, 900 appropriation. Mr.. Coolidge
Erobably will veto that measure If
it comes to him. on the ground that
the government hasn't the money
for that purpose.
So it is economy the president has
seeded upon as his battle slogan,
and he can get more votes In con-
eESss; to support his veto that way
Ylan any other for the excuse of
lack of funds is unanswerable I'M
less taxes are to be increased instead
of reduced this year.