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the opportunity to correct the abuses in their own inheritance tax laws, the gift tax and publicity section are to be repealed many miscellaneous taxes are lowered or abandoned, and the Board of Tax Appeals and the administrative features of the law are improved and strengthened.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.