Douglas daily dispatch., 1926-12-09
Coolidge Puts Fefund
SqudreIy Up to Congress
UNPRECEDENTED PROSPERITY
(contlnued rrom Page one2

UNPRECEDENTED PROSPERITY
WASHINGTON, Dec. 8 R.-Presi-
dent Coolidge revealed to congress
an almost unprecedented prosper
Gus condition of the treasury in his
annual budget message today, but
he again emphatically declared against
any permanent reduction in tax rates
at present.
A surplus of $SS3,O79.O95 is in
sight for this fiscal year, ending
June so, and 2OO,7O3,S63 for the
following year This years surplus
is $500. .OoO, 900 more than was orig
inally estimated and lespite the cut
in tax rates of last March Will eN-
coed tho margin of last year by
100000.
But not until there mas been an
ether years test of tho new revenue
law, and a sounding OF the extent
Of the prf sent prosperity, the presi-
dent said, can it be determined
what our permanent policy Of tax
alton shall be-"
Coolidge discussed the benefits Of
two possible means of disposing OF
tho surplus-ap application of it to re-
t:rement of the public debt, or it's
return to the taxpayers = and left
the choice entirely up to- congress.
He asked that if the latter course
were pursued, it be accomplished by
giving the taxpayers credit on their
first two payments of the coming
year.
with our still enormous natlonal
debit amounting to nearly $19,5OO,-
900 OOO surplus can be no en-
barrassment," he said, since 1T can
be applied without difficulty to the
reduction of the interest bearing OBJ
LEGATIONS of tie government and thus
effect a saving in interest costs
Should congress be of the OPINION
that the surplus estimated for the
current fiscal year based upon re-
ceipts expected TO be received under
the existing law is too large, then
suggest temporary tax redu2-
tion measure which will cut down
this expected surplus by leaving the
excess in the rccl1etbooks of amer
lean taxpayers"
. Stating that the surplus includ~
ed 5000, 100000 in money previously
snent by the government, but just
now returned and which could not
he counted on in the coming year,
fhe president insisted that the new
revenue law be given a full test be-
fore it was revised.
business can easily adjust ltsell
to less expenses brought about by
less taxes" he cautioned, but 1T is
much more difficult to make an ad-
iustment for more expenses mace
necessary by more taxes This Is
particularly true with respect u
federal taxes, since the necessary
of imposing additional taxes woulu
arise from decline in prosperi'N
which would decrease governmental
revenue below governmental eXpen-
gditures. a decline which must also
affect all taxpayers. Increased taxes
TO meet government requirements
eu,o,,ld come at time not of pros :
perity but of depression, and would
aggravate the depression. For these
reasons I do not advise the pres
emf session of congress to reduce
permanently our tax rates or aooi-
ish any Particular tax. Each or the
three reductions in taxes which nave
been enacted by the congress since
the fiscal year of 1921 have been
predicated on an assurance that our
financial condition warranted 1t. NO
such assurance can be given today
as a warrant for future permanent
tax reduction.
with the experience of another
wears test of the revenue act CT
1925, and with more accurate
knowledge which the year will give
NJ what the future has in store for
a continuance of our prosperity, we
can determine what our permanent
policy of taxation shall be- In t'meS
Of peace we must meet governmental