Legislation Before Congress, December 1926

December 2, 1926

Report Outline
Status of Legislation in Short Session
The Federal Budget
Tax Reduction and the Public Debt
The Agricultural Problem
Transportation and Mining
Banking and Alien Property Legislation
National Defense and Aviation
Regulatory and Miscellaneous Legislation

A prospective surplus of $383,079,095 for the present fiscal year is disclosed by President Coolidge in the new federal budget submitted December 8 at the opening of the second session of the Sixty-ninth Congress. In his annual message the President recommemds that a “balanced portion” of this surplus be applied to a reduction of taxation. He opposes the Democratic plan for a permanent downward revision of tax rates at the present session on the ground that adequoat experience upon which to base a permanent policy of taxation will not have been acquired until after the session has come to a close.

“Meantime, it is possible to grant some real relief by a simple measure making reductions in payments which accrue on the 15th of March and June, 1927. I am very strongly of the conviction that this is so much a purely business matter that it ought not to be dealt with in a partisan spirit…As I do not think any change in the special taxes or any permanent reduction is practical, I therefore urge both parties of the House Ways and Means Committee to agree on a bill granting the temporary relief which I have indicated.”

The amount of the relief to be afforded, the President says in his budget message, should depend upon the amount of the surplus which Congress may desire to divert from debt reduction to tax reduction. “It is a problem on which the House under the Constitution must originate action.”

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