Evening star., 1926-06-01
COOLIDGE BAN|SHES
HOPE FOR TAX CUT
President Does Not Antici-
pate Further Reductions
for Several Years.

President Coolidge does not antict-
pate further tax reductions for several
years it was made known at the
White House today.
1t was explained in this connection
that what surpluses accrue this year
and the following. and throughout the
period until there is another ta', re-
duction can he used in paying OH the
national debt. as the President was
represented as believing there is no
better or safer investment for the
Nations money than by applying 1t
to this avenue. AS this debt is re.
duced, the annual interest to be pald
necessarily will be smaller.
Neither does President Coolidge
feel that the revenues of the country
are coming in to such an extent that
there Is very little danger OF the
Government facing dehcit. lie be
lieves a deficit is unlikely for the
present wear. but 1T was repeated
that his concern is for the f1scal
year to end June 30, 1927: and the
following year.
Warns Of Extravaganza.
The President was represented as
saving it is a known certainty tha'
a deficit cannot be avoided n there
are reckless appropriations and use
less expenditures. AS for the amount
OF the surplus likely to be found In
the Treasury at the end of the pres
ent year, the President was unable
today to attempt any estimate.
throughout the tax revision study
in the House and Senate last winter.
the President warned against TOO
great q reduction. Contendlns thefe
would he a deficit unless the business
Of the country was kept booming as
it ia TODAY and unless strict economy
was nracticed hy the Government it
self. Despite his admonitions. the re-
ductions made were considerably
larger than those recommended by
the President. He accepted this with
good grace, but with repeated remlno-
ers that Congress must cease appfo.
priating for purposes not urgent, ana
must put a check TO appropriations
that would continue indefinitely.
1t is these latter appropriations
that are causing the President me
greatest anxiety in the matter. lie IL
said to feel that with the assistance
of the department heads he can sue
ceed in bringing about further econ
omies. but as for the continuing ap-
preparations. that remains with Con
sress. For that reason he has been
more than ordinarily insistent that
the latter use great care and cooper
ate in the administration s economy
program.
Taxes Gauged by Business.
Whether there Is to he a surplus or
a deficit in the Treasury next year or
the year following depends TO a large
extent upon the business condition or
the United States. according 10 the
Presidents viewpoint. The condition
of the Treasury is now largely IN
fiuenced by the sizes OF the incomes
of the citizens of this country me
more prosperous the people, the larger
will be their income and necessarily
the larger will be the taxes they
will pay into the Treasury. There
fore. the President. in discussing the
matter with those enthusiasts VINO
are talking so optimistically at this
time about surpluses and further tax
reductions has reminded them to give
serious thought to this phase OF the
question.
The President also has reminded
them that with a diminishing OF bust
ness throughout the country incomes
would he reduced, there would be
much unemployment and income Ia
PAYMENTS would be smaller. Also II
the Nations foreign commerce shouid
experience similar slump. there
would follow reduction in the tariff
revenues. all of which, he pointed out.
would soon eliminate the dreams OF
surpluses and would result in a de-
pleted treasury. he President. more
over. is insisting that the Legislators
should bear these things in mind while
they are considering proposals for ap'
preparations.
Although the President is not an
ticipating any further tax reductions
for several years to come, he believes
1t probable that some adjustments
may be made in the present law that
would serve to make more equitable
the distribution Of the tax burden.