Evening star., 1929-12-04
President Asks
$16O,OOO,OOO
Tax Cut.
ARMY AND NAVY =
FUNDS BOOSTED
Bright Picture of
Nations Finances
Is Painted.
BY WILL p. KENNEDY.

President Hoover today laid be-
fore Congress his first budget mes
sage in which he recommended a
reduction in taxes upon incomes
for the calendar year 1929 amount
ing to approximately $3.50, 200, 900,
submitted request for So, ,830, ,445,-
231 for all expenses of the Govern
ment during the next fiscal year,
beginning July l, 1880, and pre-
Sented a bright picture of the
state of the Nations finances, with
a warning that care must be taken
not to jeopardize either the bal
anced budget or a continuance of
the program of tax reduction.
The President pointed out that
there was no doubt that increased
revenues had always followed the
lowering of the taxes in the past
and that the stimulus given to
business was partly responsible for
these upward jumps in receipts.
He called attention to the fact
that the public debt has been de-
creased during the past 10 years
approximately $4,000, 0,00O, 900 and
that the Government is wisely
committed to a policy which in
sures the further progressive re-
duction of the debt"
He estimated the Treasurys outlay
for the IL months beginning next July
at l02,93S, 700 and forecasts that
there win be approximately. 81 % ,OoO, 900
surplus at the end Of that period.
Provisions for Capital.
Besides the recommendation for the
National Capital carried in the District
Of Columbia section of the budget, many
important developments for the Federal
City are provided in the strictly Fed
erS1 budget. These are all increases
and include in the vicinity of the Capt.
tol Building:
Enlarging and improving the Capitol
grounds. $500 600; starting work on
the new House ONCE Building, $780,
600: building an additional wing and
resurfacing the northern side Of the
Senate Once Building to At in with
the enlargement Of, the Capitol grounds,
$2,T00,000, and starting work on the
building for the United States Supreme
Court, 81, 600, 900.
The difference between appropriations
asked and expenditures forecast was ex-
planned as being due to the fact that
the President has not included any
amount for the revolving fund of the
Federal Farm Board because it had not
been determined how much would be
necessary. In the estimate of outRo,
however, the amount was placed at
$200, ,000, 900. A further difference of
$4,000, 900 was due to a carryover Of
appropriations from the present year
which will be available next year. as
submitted, the request was for $145,-
696. 900 less than for this year.
The tax reduction suggestion followed
the previously announced program of
the administration which desires a de-
crease of from IL to IL per cent. In
corporation income levies and reduc-
tions of per cent on normal individual
incomes, making those rates range from
one-hah per cent to per cent.
Deficit Only Concern.
In addition to the appropriations
asked. $760,470,577 will be needed for
the Post Office Department, but, mas
much as this Government activity pays
the larger amount Of its cost out Of its
O"n ASFcliueo, I!lc treasury VIII DC COn-
cerned only with the deficit.
The President called for increased
sums for a number of Government ef-
forts and organizations, including the
Army, the Navy, rivers and harbors,
flood control, Indian care and forest
protection. Congress was informed that
the Treasury would expend $50 500 900
in the present year in carrying on the
huge Government building program
and that it planned to allot an addi-
tionai $50, ,00o, 900 for next year. In
addition, he will submit later a re-
quest for $4,000, 900 more for this pur-
pose.
A total of $3.50 1892 .526 was asked for
the Navy, which is $16,399, 900 more
than last year.
Alterations on battleships. safety and
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