The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-06-16
OF POSES
HIGHER
4.
SUN
Contest Expected in Congress
Where Some Members Want
$500. 900, 900 Slash
By ROBERT s. THoRNBURGH.

By ROBERT s. THORNBURGH.
President Coolidge today for
nnaIly launched his 1926-27 econ
omy program, aimed at drastic
cost cutting policies in Govern.
nent which may be reflected in
tax reduction in the Sixty-Ninth
Congress.
At the Presidents direction de-
partment heads were requested
by Budget Director H. NJ. Lord
to attend the annual meeting of
the Governments business organi-
xation on June %. Plans to se-
cure greater efficiency and econ
onny for the coming two years
viii be outlined, according to
Lord.
Congress Row Expected.
Coincident with the calling Of the
economy session came indications OF
q clash in Congress between the Adj
ministration and advocates Of tar
reduction who feel Government rev.
snue can be cut more than
$500, 000, 900.
While Secretary Of the Treasury
viii submit no specific plan to Con-
gress and will avoid an open break
on new legislation, he opposes reve-
nue. reduction exceeding $500, 600, coo.
A greater cut would force the Gov.
eminent to borrow money to meet
expenses, experts said.
The Treasury revealed that the
surplus for 1926 viii be approx
.mately $3.50, 000, 900. compared to the
premflinary $s73. 700, 900 estimate.
Partially balancing this loss. how
ever, was the probability that the
1925 surplus viii exceed the estf.
mate of $67.ooQ.0O0 by $50. 900. 900.
Change In Law Needed.
The Treasury is against a revenue
cut greater than the surplus. Mellon
also opposes applying payments on
foreign debts directly to tax reduc-
ton. holding that 1t is better economy.
to reach. taxes indirectly by apply
Ing payments to the public debt.
A change OF Treasury policy wosIld
require an amendment to the law.
If taxes are reduced rates must
be levied so scientifically that the
new bill viii eventually increase
revenue. officials said.
Mellon believes cut in surtaxes
60 Is or Is per cent will accomplish
this end. Officials pointed out
that in 1916 under low taxation
there were 2.449 incomes Of over
100000 reported; in 1921 at the
maximum tax period the number
was 472, while In 1928 at lower
tax rates It went to 1,193.
The Government reduced its OPP
Grating expenses by $120,665. 900
from July 1, 1924, to June L.. com
pared to the same period of 1923
1924. Ordinary expenses were 81,
ISL 900 higher, but cut being due
to reduced public debt interest.
Attitude of Coolidge.
The Agriculture Department In
creased its expenditures $26, $50 900,
the Navy $14.971 900 and the War
Department $s.s4s.o0O. Led by the
Veterans Bureau with $22, 81 900
five departments cut expenses.
President Coolidge is expected to
ask department heads to use the
pruning knife to get under the
tS.267 900 900 estimated costs for
1926, appropriations for which have
Already been made.
The President will fix a. maxi
mum expenditure for the Govern
ment in 1927. The figure for 1926
was $500 1000 Budget officials
said ordinary expenditures for 1927
probably would exceed 1926 by
$50, 900 900.
Government revenues under the
1924 revenue act will be higher
than was expected. Receipts for
eleven and one-haH months were
81 ,420, 600, 900. with not all the esti-
mated $3.50 ,000, 900 June collection
included. Income tax receipts will
exceed the $1.420 .000.o 900 estimate.