White House Press Release, Message of President Harry S. Truman to the United States House of Representatives

108 HOLD FOR RELEASE HOLD FOR RELEASE HOLD FOR RELEASE APRIL 2, 1948 CONFIDENTIAL To be held in STRICT CONFIDENCE and no portion, synopsis or intimation to be given out or published until the READING of the President's Message has begun in the House of Representatives. Extreme care must therefore be exercised to avoid premature publication. CHARLES G. ROSS Secretary to the President TO THE HOUSE OF REPRESENTATIVES: I return herewith, without my approval, H.R. 4790, entitled "An Act to reduce individual income tax payments, and for other purposes". It is a matter of deep regret to me that I am com- pelled to take this action. If I could conscientiously approve tax reductions, I would gladly do so. But I am convinced that to reduce the income of the Government by $5 billion at this time would exhibit a reckless disregard for the soundness of our economy and the finances of our Government. All of us are aware that the world situation is one of uncertainty and, indeed, of 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 17, 1948, "the United States has a tremendous responsibility to act according to the measure of our power for good in the world". Under these conditions, the primary test which I must apply in considering this bill is whether or not it would con- tribute to the strength of the United States. My fundamental objection to the bill is that it would not strengthen, but instead would weaken, the United States. This is true for two reasons. First, the bill would reduce Government revenues to such an extent as to make likely a deficit in Government finances, at a time when responsible conduct of the financial affairs of this Nation requires a substantial surplus in order to reduce our large public debt and to be reasonably prepared against contingencies. Second, the bill would greatly increase the danger of further inflation, by adding billions of dollars of pur- chasing power at a time when demand already exceeds supply at many strategic points in the economy, and when Government expenditures are necessarily rising. The estimates of Government expenditures for the fiscal year 1949 which I submitted to the Congress in January totaled $39.7 billion. Receipts were estimated at $44.5 billion, leav- ing a surplus of $4.8 billion for debt retirement and contin- gencies. It has since become apparent that despite the most stringent efforts toward economy, there will be several important increases in expenditures above the January estimates. Legis- lation has been enacted increasing payments to veterans. Larger amounts will be required for assistance to certain foreign coun- tries. Legislation to increase the salaries of Federal employees is being considered. It has been necessary to recommend substantial additional appropriations to the Congress to bring our armed forces to a proper strength. (OVER)