Evening star., 1947-07-23
To the Editor OF The Star:

President Truman vetoed the tax reduction
bill on June 16 and the Taft-Hartley Bill on
June 20 and the revised tax reduction bill on
July Is.
President Truman assumes that because tax
rates are reduced, total tax receipts will fall.
This assumption is refuted by the Treasury ex-
perience a generation ago. The top bracket
rates were reduced from IS per cent in 1921
to so per cent in 1922 then to 40 per cent in
1912, and finally to 20 per cent for 1s25-31.
The surtax bracket at $4,000 was reduced re-
spectively from "a per cent to 23 per cent, to
Is per cent and then to Is per cent. At the
same time, more drastic reductions were made
In the lower brackets. At the reduced rates,
surtax revenue rose fairly steadily from 1921
to 1928. At these declining rates revenues ex-
ceeded the estimates and the national debt
was reduced to $4,000 .0oo, 900 from the war
time peak of $26 900 GOO 900. The reduction in
the rate of tax is an incentive to take risks,
to increase employment, national income and
tax revenue. Tax avoidance through idleness
or unwillingness to take risks diminishes as
rates are lowered.
Frequent Vetoes Not Expected.
Since the Constitution gives Congress the
right to levy taxes, the Presidents veto con-
stitutes virtually legislation by a minority The
frequent use OF the veto was not contemplated
by the trainers of the Constitution Alexander
Hamilton made this point clear in his paper on
the veto power in the "Federalist:'
"The superior weight and influence of the
legislative body in free government and the
hazard to the Executive in trial of strength
with that body. afford satisfactory security
that the negative Cveto) would generally be
employed with great caution; and there would
oftener be room for charge of timidity than
OF rashness in the exercise of 1t. The King of
Great Britain, with all his train Of sovereign
attributes and with all the influence he draws
from thousand sources would, ut this day,
hesitate to put negative veto) upon the joint
resolutions of the two houses OF Parliament.
All well-informed men in that Kingdom will
accede to the justice Of this remark. A very
considerable period has elapsed since the mega
tive Of the crown has been exercised.
If magistrate 80 powerful and SO well forth
fled as British monarch, would have scruples
about the exercise Of the power under consider
alton, how much greater caution may be rea-
sonably expected in President of the United
States, clothed for the short period Of four
years with the executive authority of govern
ment wholly and purely republican,"
Note that, since Hamilton,s day. the King OF
Great Britain has been deprived Of all power
to veto legislation. British political evolution
continued. But 1t was because Of the unwritten
constitution. Our written Constitution re-
tarded the development Of our Federal political
machinery.
The veto power offsets the Executive against
the legislative. That opposition was based on
the 18th century concept Of the balance of
powers. This was a neat, mathematical notion
which grew out Of the opposition In the
American Colonies between the Governor ap-
pointed by the Crown and the legislature
elected by the people. Therefore, there was
conflict between the two branches of the
Government. Therefore, also, our Constitution