Evening star., 1926-12-08
Reminds Congressof of
DangerofCutting
Taxes Now.
@,Ol4,57l,l24 ASKED
FOR COUNTRY In 1923
Executive Backs Output
for Dry Work, Defense
and Marine.
BY G. GOULD LINCOLN.

conditions of the Government are
revealed i4 the budget message
transmitted to Congress today by
President Coolidge.
The President estimates the total
receipts of the Government for the
fiscal year ending June 80, 1927, the
present fiscal year, at $4,026, ,780, ,688,
and the total expenditures for the
same year at $3,643,70l ,593. This
leaves surplus Of 583,07o,095.
1t is to this surplus that the pro-
posal by the President for a So
called temporary tax reduction runs.
1t is because of this surplus that
the Democrats are now proposing
that so-called permanent tax rates
be reduced. These figures are ex-
elusive of postal revenues and postal
expenditures, paid from postal re-
ceipts.
The estimates Of receipts and ex-
penditures for the fiscal year 1928.
however, the President places at
$3,772,753,O77 and $3,572049,214. The
surplus on June 80, 1923, therefore,
would be $2O0,703,S63.
This 1923 surplus, the President ar
CUES, is no greater margin of business
than the Government should have,
since it's business involves an annual
expenditure Of $500 ,000,0 900 from or
dinary receipts and an expenditure of
more than $4,000 100000 when the
postal expenditures are included.
President Urges Caution.
The Presidents statement is clear
and TO many will be convincing that
it is the better part of wisdom to look
before a leap is taken into further
permanent tax reduction.
He leaves to Congress the ultimate
determination of what shall be done
with the $3.50, ,00O, 900 surplus expected
at the close of the present fiscal year.
He recommends, however. that Con-
gress adopt one of two alternatives.
The first is a remission of part Of the
taxes which will be due and payable
by the people March IS and June IS,
1927. In this way the taxpayers
would receive direct benefit Of tax re-
duction from the accruing surplus.
At the same time there would be no
risk of deficit in the succeeding year.
The alternative is to slap the surplus
onto the payment of the public debt.
The reduction of this debt, the Presi-
dent points out, "offers the most fruit
full subject for permanent reduction
Of governmental expenditure"
It is clear that the President, firm
in his advocacy of economy in govern
mental expenditura, is opposed to the
use of the surplus for increasing the
Government establishment or for the
improvement of rivers and harbors,
the construction of public buildings,
ETC., as has been proposed by some
members of Congress.
Income Is Dwindling.
The President, in opposing change
in the tax rates at this time, shows
that during the last five years the
Treasury has had the benefit of re-
ceipts aggregating $950,000,00O, repre-
senting returns from moneys hitherto
expended Ito meet war needs, and In
addition $400, 100000 from income
taxes in excess of refunds. In the
present fiscal year. he explains. the
net income from these items is about
$3.50, 100000 Of the expected receipts.
The income from these sources. he
says, is about at an end, and in the
fiscal year 1928 it will not exceed $780,
900, 900.
1--WE have come to the point" he
continues, where we will have to
rely for the future entirely upon cur
rent taxes. The yield from current
taxes of the Federal Government is
measured by the prosperity Of ths
American people"
Good business, high national income,
the President points out. But should
the national business and national in
come decline, then the Government
would experience a lost Of revenue
under the existing tax rates.
1--WE have had too short an expert
ence with the new law to permit an
intelligent permanent reduction of
taxes" insists the President. "Busi-
ness can easily adjust itself to less
expenses brought about by less taxes,
but it is much more difficult to make
an adjustment for more expenses
made necessary by more taxes"
Total Estimate, $4,O14,5n, ,124.
The estimates Of appropriations for
the fiscal year, 1928, for the various
branches of the Government the
President fxes in the budget at 81 .014,-
571, ,124, including the Postal expendi-
lures. Without the latter, which are
payable from postal receipts, the total
appropriations are estimated at 1885,
COZ. .OO9 80. It is necessary to differen-
tiate between appropriations which
are authorized and made by Congress,
and the actual expenditures which are
made by the executive branch Of the
Government.
Authorizations for the fiscal year.
1927, were slightly less when those for
the postal service are included, and
slightly more than the 1928 estimated
appropriations when the postal service
is not included.
The budget now presented shows
approximately the same totals for
APPROXIMATIONS for the present fiscal
year and the next, so far as the
Executive Office and independent
establishments are concerned, al
though the individual items vary. For
the nine departments represented in
the Presidents cabinet, exclusive of
the Postofflce Department, and the
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