Evening star., 1948-04-02
Text of Truman Tax Veto
president Trumdn's nessaoe

President Trumdn,s message
retoing the s4,S00, ,o00, 900 tar-cut
bill tolloaos.
To the House Of Representatives,:
return herewith, without my
approval, H. r. 4790, entitled "An
act to reduce individual income tax
payments and for other purposes"
1t is a matter of deep regret to
me that I am compelled to take
this action. II I could conscien-
tiously approve tax reduction /
would gladly do SO.
But I am convinced that to re-
duce the income Of the Government
by 5000, ,000, 600 at this time
would exhibit reckless disregard
for the soundness of our economy
and the finances Of our Govern
ment.
All Of us are aware that the world
situation is one of uncertainty and,
indeed, danger. The United States,
In common with other free nations,
Is taking positive action on many
fronts to preserve conditions of
peace with justice against the forces
of dissension and chaos.
In this endeavor, as I stated in
my address to the Congress on
March II, 1948. "the United States
has a tremendous responsibility to
act according to the measure of our
power for good in the world"
WouId Weaken Nation.
Under these conditions, the pri-
mary test which I must apply in
considering this bill is whether OF
not 1t would contribute to the
strength of the United States.
My fundamental objection to the
bill is that 1t would not strengthen
but instead would weaken the United
States.
This is true for two reasons.
First, the bill would reduce Gov
ernment revenues to such an extent
as to make likely deficit in Gov
ernment finances at time wher
responsible conduct Of the financial
affairs of this Nation requires q
substantial surplus in order to re-
duce our large public debt and tc
be reasonably prepared against con-
tingencies.
Second, the bill would greatly
increase the danger Of further in.
f1ation by adding billions of dollars
of purchasing power at time wher
demand already exceeds supply al
many strategic points in the econ
omy, and when Government ex.
penditures are necessarily rising.
The estimates of Government ex.
penditures for the fiscal year 194s
which I submitted to the Congress
in January totaled $39, 700 600. 900
Receipts we're estimated at $44 4,500,.
100000, leaving surplus of $4,800,-
600, 1000 for debt retirement and con-
tingencies.
New Expenditures Faced.
It has since become apparent thai
despite the most stringent efforts
toward economy, there will be sew
eral important increases in expendi.
lures above the January estimates
Legislation has been enacted in.
creasing payments to veterans
Larger amounts will be required
for assistance to certain foreign
countries. Legislation to increase
the salaries of Federal employees
Is being considered. 1t has beer
necessary to recommend substantial
additional appropriations to the
Congress to bring our armed forces
to a proper strength.
Altogether these increases, after
taking due account of appropri-
alton actions by the Congress to
date and of the additional tax re-
funds which would occur under
this bill, involve additional tax re-
funds which would occur under
this bill, involve additional ex-
penditures for the fiscal year 1949
of at least $500, O,000, 900 above the
January estimates. In the fiscal
year 1850, these additional pro-
grams would increase expenditures
by another $4,000 900, or by q
total of $5,500,000,0O0. 1t is clear
that, II this bill which reduces
taxes by 5000 900, 900 were to be.
come law, there would in fact bt
a deficit in the fiscal year 1949 ever
under the more optimistic estimates