The purpose of reducing expenditures is to secure a reduction in taxes.
That purpose is about to be realized. With commendable promptness the Ways
and Means Committee of the House has undertaken in advance of the meeting
of the Congress to frame a revenue act. As the bill has proceeded through
the committee it has taken on a nonpartisan character, and both Republicans
and Democrats have joined in a measure which embodies many sound principles
of tax reform. The bill will correct substantially the economic defects
injected into the revenue act of 1924, as well as many which have remained
as war-time legacies. In its present form it should provide sufficient
revenue for the Government.
The excessive surtaxes have been reduced, estate tax rates are restored to
more reasonable figures, with every prospect of withdrawing from the field
when the States have had the opportunity to correct the abuses in their own
inheritance tax laws, the gift tax and publicity section are to be repealed
many miscellaneous taxes are lowered or abandoned, and the Board of Tax
Appeals and the administrative features of the law are improved and
strengthened. I approve of the bill in principle. In so far as income-tax
exemptions are concerned, it seems, to me the committee has gone as far as
it is Safe to go and somewhat further than I should have gone. Any further
extension along these lines would, in my opinion, impair the integrity of
our income-tax system.
I am advised that the bill will be through the House by Christmas. For
this prompt action the country call thank the good sense of the Ways and
Means Committee in framing an economic measure upon economic
considerations. If this attitude continues to be reflected through the
Congress, the taxpayer will have his relief by the time his March 15th
installment of income taxes is due. Nonpartisan effort means certain, quick
action. Determination of a revenue law definitely, promptly and solely as a
revenue law, is one of the greatest gifts a legislature can bestow upon its
constituents. I commend the example of file Ways and Means Committee. If
followed, it will place sound legislation upon the books in time to give
the taxpayers the full benefit of tax reduction next year. This means that
the bill should reach me prior to March 15.
All these economic results are being sought not to benefit the rich, but to
benefit the people. They are for the purpose of encouraging industry in
order that employment may be plentiful. They seek to make business good in
order that wages may be good. They encourage prosperity in order that
poverty may be banished from the home. They, seek to lay the foundation
which, through increased production, may, give the people a more bountiful
supply of the necessaries of life, afford more leisure for the improvement
of the mind, the appreciation of the arts of music and literature,
sculpture and painting, and the beneficial enjoyment of outdoor sports and
recreation, enlarge the resources which minister to charity and by all
these means attempting to strengthen the spiritual life of the Nation.