Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1927-09-02
Republican Leaders Thrown Into
Confusion.

Estimates oil probable Treasury surplus
at the end of the next fiscal year have
thrown Republican leaders into confusion
over the question of a reduction in Fed
sral taxes by the first session of the
Seventeen Congress.
According to the budget estimates laid
before President Coolidge by Director Lord.
Of the Budget Bureau, the surplus for the
next fiscal year will be approximately
2i4.000,000. This is such a small mar
gin that some Of the Republican leaders
fear that when appropriations are made
for food relief and control and for in
creased navy expenditures. due to the COM
pie failure Of the Geneva naval parley.
held at the suggestion Of President Cool
idge. there will be little surplus left TO
make the tax cut which the administra-
ton had planned for the eve Of the 1928
presidential campaign.
At the last session Of Congress. it is
well remembered. the Democrats offered
plan TO reduce taxes approximately IS 35.-
100000 during the calendar year 1927.
The whole power Of the Republican ma
chine was employed to defeat the propo-
sal. Its leaders said the Treasury surplus
would propably not exce-d 100000. 900.
and a reduction could not be afforded
Democrats predicted the surplus would be
a half billion dollars or more. and that the
reduction they proposed would be made
and still leave large surplus. For the
fiscal year ending June 80. the surplus was
actually $630.000.O00. The Democratic
reduction could have been made and left
100000. 900 surplus Republican lead
ers wished to defer the cut until the eve
Of the 1928 campaign. With the recent
estimate Of only a small surplus some of
them are now probably sorry they didn't
let the cut be made when large surplus
was assured.
Democratic leaders are still Of the opin-
ion that the Treasury condition will make
possible revision Of the Federal taxes
next winter. They are still insisting that
absolutely necessary appropriations. such
as may be needed for food relief and con-
troll. for example. be made. and that tax
revision then be undertaken to such extent
as the state Of the Treasury will allow.
They contend for the principle that it lie
wrong for the government to take from
the people more in taxes than is actually
needed for the expenses Of the govern
ment.
Also. they know the country has learned
that little reliance is to be placed in Treas
ury estimates Of deficits and SURPRISES.
and that quite often Treasury figures are
juggled to make them show what the ad.
ministration wishes to have them show.
For example. it will be recalled that when
the soldier bonus bill was before Congress,
Secretary Mellon told Congress the country
couldn't afford il; that the Treasury was
confronted in 1928 with a probable deficit
OF SS0O,000.000 Instead. there proved
to be a surplus Of 100000. 900; billion
dollar error by Mr. Mellon.
When the Simmons tax bill was
up in 1924. Mr.. Mellon opposed it and
President Coolidge signed il under protest.
Mr.. Mellon said 1t would create a Treasury
deficit Of S300.O00.0OO. Instead, the
Treasury showed surplus of more than
half billion dollars for the fiscal year 1924
and Of quarter of a billion dollars for
1875. Last fall, when the last Garner tax
plan was before the House, the admins
tration said the surplus wouldn't exceed
$SOO,000.000. but II turned out to be
more than twice that amount. These fie-
ures show that Treasury estimates can't
always be accepted at face value.
Also, the President himself falls into
error now and then. He is now reported
as being nettled that Congress didn't cut
taxes last fall. He knows that Republican
members Of the House Ways and Means
Committee voted against reporting out any
tax bill. and that his party's leaders in the
House and Senate successfully opposed
even a vote on such reduction. Also, he
Is now quoted as saying thatff the next
session Of Congress doesn't appropriate
more money than he recommends, there
can be some reduction. The President is
reminded that instead Of exceeding budget
estimates. Congress has actually appro-
priated $l50.000000 less than recon.
mended by the Budget Bureau since he
became President, and for whatever econ
omy Of expenditure there is any credit. IL
is due to Congress. which has actually re-
quired the Departments to get along with
S50.000,000 less money than Mr.. Coolidge
asked for them.
General Decrease Is Outlook,