Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-11-21

The $16O, O00, 900 tax cut recently
suggested by the administration is gen.
orally accepted as evidence that pros
perity will continue, despite the dis
turbance In the stock market, and that
business, baSically sound in itself, will
amply provide the needed income for
Government purposes.
mo better assurance of the conf
dence of President Hoover and Secre-
tary of the Treasury Mellon in the
essential soundneSS and security of
business conditions in the United States
could be had than their announcement"
states the Detroit News. 1T is tanta-
mount to their saying that the drastic
crash in the stock market has little re-
lation to real earnings. If not designed
as an influence toward the restoration
of full popular confidence, it may well
be accepted as such an influence. The
proposed reduction on earned incomes
Is substantial one, affecting both per-
sonal and corporation incomes"
4 ~
"The immediate effect" it is pointed
out by the st. Louis Globe-Democrat,
was noticeable on the market, but the
more important purpose was undoubt-
eddy "the stimulating effect upon busi-
ness generally" and Strengthening the
public confidence, which has shown
some indications Of weakening under
the strain of the markets collapse"
The Indianapolis News feels that
Secretary Melons announcement will
prove to be bull factor" In business
Throughout the country" Thus, at
may itself have a revenue-producing
influence which will help to Justify
the Secretary's confidence in the gen.
eral business situation" It is further
pointed out that experience has shown
that larger revenues have invariably
followed tax reductions. Not only Wall
Street, but the country as whole,
will approve the decision"
THE immense demands thrown upon
the National Treasury by the cost of
American participation in the largest
armed conflict in the history of the
world" says the Boston Transcript,
caused Federal income taxes to be
raised to a point which was, of course,
very abnormally high. AS those de-
mandS came to an end, in many cases,
when the troops were demobiliZed, and
as they Slackened off in other cases,
thanks to steady and handsome re-
duction of the national debt, thus low
ering interest charges, it was not only
feasible but inevitable that Federal In
come taxes should be greatly reduced"
The Transcript emphasizes the fact
that because of these circumstances
the Federal finances offer opportuni-
ties for reduction that are not shared
by the States.
AS showing progress since the war,
the Santa Barbara Daily News re-
marks that the reduction will be par
ticularly welcome, as 1t will all but
wipe out the income tax paid by the
small income Garner" and thai paper
finds particular public satisfaction in
the fact that lit is proposed to make
the reduction applicable to the in
comes of individuals and corporations
earned in 1929"
1t is most opportune." in the
opinion of the Chicago Daily News,
Government would not promise tax
reduction If 1t had reason to appre-
bend a recession of business involving
curtailment of revenue. 1t has no
such fear" continues the Daily News.
because sober consideration of the
banking and credit situation. the con-
dition Of industry, the purchasing
power OF the Nation and the country's
foreign trade prospects warrants full
confidence In the future. The bust
ness community and the investors of
the country should emulate the Fed
eral Government by refraining from
exaggerating the significance of the
readjustment in values of stocks"
THE reduction will help the smaller
wage earners," in the Judgment of the
Jersey City Journal, land they, in
view Of the fact that they contribute
directly or indirectly very large part
Of the taxes OF all kinds, are entitled
to consideration" The Green Bay
Press Gazette records that Secretary
Mellon has stood, against all oppo-
sition, for the principle of taxation