Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-12-04

tlected in the two years for which we
now anticipate surplus. I therefore
recommend that taxes upon incomes for
the calendar year 1929 be reduced in
the approximate sum of $16OOOO,O 900. I
would suggest to the Congress that this
be effected, as recommended by the
Secretary Of the Treasury, by reducing
by per cent the rate of normal tax on
the incomes of individuals and corpo-
rations, applicable to 1929 incomes and
payable in the calendar year 1880. This
will afford, either directly or indirectly,
relief to the minimum number of tax
payers. Our effort will be to conduct
our financial requirements so as to con-
tinue the benefits of reduced taxation
for succeeding calendar years. 1t would
not, however at this time be safe to eX-
tend the period of the reduction. A
year hence we will know more definitely
whether the condition of our finances
justifles continuation or extension of
the reduction"
Emphasizing that the estimated ex-
penditures for the current and for the
coming fiscal years are well within the
expected receipts, President Hoover, in
concluding his budget message, warns
that any proposed additional activities
must be carefully scrutiniZed in order
not to jeopardiZe either the balanced
budget or tax reduction. He said:
Our finances are in sound condi-
ton. The public debt which at its
peak in August, 1919, amounted to $685.
500 100000, stood at $16,93l 900, 600 on
June 80, 1929. We are wisely COM
mitted to a policy which insures the
further progressive reduction of the
debt. We will reach in 1881 for the
first time the period when the annual
reduction required by law in the prin-
cipal of the debt will be greater than
the annual interest charges on the
debt. We are also committed to the
annual amortization of our long term
commitments-such as the adjusted
service certificate of the veterans of
the World War and our liability under
the retirement laws affecting civilian
| personnel. Our estimated expendi-
lures for this and the next year are
well within our expected receipts. With
the recommended reduction in taxes the
margin between the two will be con-
Siderably lessened, but to what extent
We do not definitely know to-day. This
| situation emphasizes the necessity for
careful scrutiny of any proposed adj
ditional activities which would involve
material increase in expenditures in
order that we may not jeopardiZe either
the balanced condition OF the Budget
or the continuation of the benefits of
reduced taxation"
A synopsis of the estimates of ap-
preparations for all branches of the
Government. exclusive Of the Postal
Service payable from postal revenues,
| shows that there has been appropriated
| for the fiscal year 1880, 1876, 141 ,65l %,
and the Budget estimates for the fiscal
year 1881 total 1880. 445, 2S1.86, or a
decrease of $145 696, 4l9,40.
The appropriations for. 1880 include
| $l50,000,0 600 for the revolving fund of
the Federal Farm Board for which no
amount is included in the Budget es-
Inmates for 1881, but estimates for 1881
to meet the need for additional funds
under the authorization of $500 900 900
contained in the Agricultural market
! ing act" approved June IS. 1929, will
be transmitted when requirements for
such additional funds are more def
nitely known. When this item of $780,