Evening star., 1948-01-07
Text Of Trumans State-of-the- Union Message

been and must continue to be held
to the lowest safe levels. Since vi
day Federal expenditures have been
sharply reduced. They have been
cut from more than $63 ,000, 900 900
in the fiscal year. 1916 to less than
$38 900 .000, 900 in the present fiscal
year. The number Of civilian en-
ployes has been cut nearly in half
from $3.50 900 down to 2,000, 900.
On the other hand. Government
revenues must not be reduced. Until
imitation has been stopped there
should be no cut In taxes that Is
not Offset by additions at another
point in our tax structure.
Certain adjustments should be
made within our existing tax struc-
ture that will not affect total re-
ceipts, yet will adjust the tax burden
SO that those least able to pay will
have their burden lessened by the
transfer Of portion of it to those
best able to pay.
Many of our families today are
suffering hardship because of the
high cost of living. At the same
time profits of corporations reached
an all-time record in l947. Corporate
profits totaled $1,000 ,0O0, 900 after
taxes. This compared with $12,500,.
100000 in 1916, the previous high
year.
Because Of this extraordinarily
high level Of profits, corporations
can well afford to carry a larger
share of the tax load at this time.
During this period in which the
high cost of living is bearing down
on so many of our families, tax
adjustments should be made to ease
their burden. The low-income group
particularly is being pressed very
hard. To this group a tax ADJUST
ment would result in saving that
could be used to buy the necessities
of life.
$40 Credit Recommended.
I recommend, therefore, that,
effective January !, 1948, cost of
living tax credit be extended to our
people consisting of a credit of $40
to each individual taxpayer and an
additional credit of $40 for each
dependent. Thus the income tax of
man with wife and two children
would be reduced $160. The credit
would be extended to all taxpayers,
but it would be particularly helpful
TO those in the low-income group.
1t Is estimated that such q tax
credit would reduce the Federal rev.
enue by $4,000, 100000. This reduc-
tion should be made up by increas-
Ing the tax on corporate profits in
an amount that will produce this
sum-with appropriate adjustment
for small corporations.
This is the proper method Of tax
relief at this time. 1t gives relief to
those who need it most without cut
ting the total tax revenue of the
Government.
When the present danger OF infa-
ton has passed, We should consider
tax reduction based upon a revision
of our entire tax structure.
When we have conquered infla-
ton, we shall be in a position to
move forward toward our chosen
goals.
AS we do so, let us keep ever be-
fore us our high purposes.
We are determined that every cit
izen of this Nation shall have an
equal right and equal opportunity
to grow in wisdom and in stature
and to take his place in the control
of his Nations destiny.
We are determined that the pro-
ductive resources of the Nation
shall be used wisely and fully for
the benefit. of AL.
We are determined that the demo-
cratic faith of our people and the
strength of our resources shall con-
tribute their full share to the at
tainment of enduring peace in the
world.
1t is our faith in human dignity
that underlies these purposes. 1t
Is this faith that keeps us strong
and vital people.
This is a time to remind ourselves
Of these fundamentals. For today
the whole world looks to us for
leadership,
This is the hour to rededicate
ourselves to the faith in mankind
that makes us strong.
This is the hour to rededicate
ourselves to the faith in God that
gives us confidence as we face the
of the years ahead.