Well, this time I’m getting an early start! Eighty years ago tomorrow, Calvin Coolidge wrote his daily “Calvin Coolidge Says” column about a subject near and dear to his heart, and also somewhat pertinent to our day and age – taxation:
The Congress has before it two distinct problems which in their solution conflict with each other. One is the necessity of providing revenue to meet obligations already incurred, or any new commitments for relief. The other is to do what it can to encourage business. The obligations must be met. But that requires taxes and perhaps more taxes. That will retard business. The answer may lie in temporary borrowing to meet temporary emergency. The danger there is extravagance.
It would seem perfectly clear that business will not be improved by spending tax money. Taxes are already too high. With all the national reductions, states and municipalities have raised taxes until the grand total is about $13,000,000,000.
Nothing would so encourage business than a reduction of this local and national burden. In 1921 it was particularly the drastic cuts in Federal expenses and taxes that brought economic revival.
While relief must be provided, those who now advocate higher taxes may be meeting the Treasury requirements but are postponing prosperity. Those who seek to improve our economic position by spending more tax money are going in the wrong direction. Rigid governmental economy would finally solve both problems.
Interestingly for those who now approvingly quote Coolidge (or Mellon) policies, it is clearly apparent that Coolidge was not of the “deficits don’t matter” school. As Joe Thorndike has only recently pointed out, Coolidge was for tax reduction when accompanied by rigid government economy, and certainly not in favor of extravagant borrowing – I’m positive he would be aghast at today’s levels of national indebtedness.