Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-07-09

With an announced surplus of $685.
10000 at the end of the 1scai year, the
Treasury Department arouses special
interest in national finance for the
coming months. There IS q fairly strong
tendency to expect another reduction in
Federal taxes, though many observers
give warning that the uncertain de-
mands for farm relief and other large
projects may affect action in that di-
rection. On the other hand, it is sug-
gested that tax cuts may increase pros
perity and thus favor large tax returns
on lower rates.
Washington calculations" impress
the Syracuse Herald as showing the
probability Of "a surplus of between
$500, 000, 900 and $400, 000,0 900 six months
hence, or at the close of the present
calendar year. Congress will then be in
regular session." continues that paper,
with another budget problem before
1t. The preponderance Of Washington
opinion Is that a substantial reduction
in Federal taxation, including the tax
on earned incomes, may then be ex-
pected. This Is on the theory that the
Farm Board cannot advantageously use
more than 5000, 900 900 Of its potential
fund during the present calendar year."
The figures given by the Treasury
are taken by the Philadelphia Evening
Bulletin to mean that the country is
entering upon q new fiscal year under
favorable auspices" and to reflect a
condition confirmed by other barome-
tiers of industry, including the status
Of the steel, motor and rail interests.
Just as better business makes for lower
taxation" continues the Bulletin, low
er taxation in turn stimulates business.
The outlook for increase Of revenue de-
rtvable from income taxation, both
from corporations and from individuals
sharing in their profits and making un-
usual speculative gains, is excellent.
Barring an unexpected setback before
the end Of the calendar year, the tax
payer will be justified in holding out his
plate for another helping Of tax reduc-
tion."
takes levied upon the people," de-
clareS the Birmingham News, have
enabled Mr.. Mellon to do what he has
achieved. This record of his does not
imply economy In the administration
Of the Government. With its enormous
revenues, accruing under Federal tax
laws, the Government may be extrava-
CANT in its expenditures and yet re-
duce the national debt and have
surplus Of $185,000,000. This surplus
IeDIGSEIJS u pCI CdR1b<b fkk41ud1 Oc1A VA
approximately $1.85 upon every citizen
of the continental United States. Is
this tax justified? Does the surplus Of
$185, 100000 encourage Congress to
practice economy in its appropriations
or the departments at Washington to
practice economy in their expenditure
of the Governments revenues?"
The feasibility Of tax reduction is
upheld by the Rochester Democrat and
Chronicle, while the San Antonio Ex-
press holds that experience would in
dictate that the burden on productive
MISREPRESENTATION the corporation
tax-can be lightened further, and
certainly equity demands reduction in
the middle income-tax brackets, which
were overlooked in the last two pre-
ceding revenue acts" The Chicago
Daily News suggests that eff further
tax reduction should become desirable,
Justice and enlightened expediency
would dictate abolition Of all that re-
mains of the So-called nuisance taxes,
reminders Of the war;"
X X n n
eve need to 60 slowly, thinking Of
q further income tax reduction" warns
the Milwaukee Journal, believing that
when the large appropriations under
Mr.. Coolidge for naval construction
and by the present Congress for farm
relief are recalled, the surplus Is not
too big" The Indianapolis News points
out that "the narrowing margin be:
tween income and outgo warns that
budget balancing henceforth will de-
mand more of precision than hitherto. "
The South Bend Tribune thinks, how
ever, that "in December, when Con-
gress convenes In regular session, the
financial situation will be clear enough
to warrant formulation Of q program"
"Many people would prefer to see q
reduction before the next income tax
falls DUE" says the Detroit News, "but
It is perhaps advisable to play safe,
provided Congress does not run riot.
A surplus is not spending money. In
the past It has been rightly devoted TO
decreasing the public debt, while at the
same time taxes have been lowered in
an attempt to provide that the excess
money remain thereafter in the pockets
Of the taxpayer" The Cleveland Plain
Dealer is convinced that before an
other tax Is voted or even seriously
saopsidexsd. 4 Nes'ld % ~ - sNlnl