BUOYANT FINANCE

Auckland Star, Volume LX, Issue 288, 5 December 1929, Page 7

BUOYANT FINANCE

U.S. TAX REDUCTION. Stimulus To Business Has Always Followed, HIGHER NAVY GRANT. (United P.A.-Electric Telegraph—Copyright! (Received 10 a.m.) WASHINGTON, December 4. President laid before Congress on Wednesday a recommendation for a one per cent income tax reduction, totalling £32,200,000, and a request for £76G,059,806 for Governmental use next year. He drew a bright picture of the state of the nation's finances. Taking a lesson from the lowering of taxation in the past the President declared that undoubtedly increased revenues always followed, and the stimulus given to business was partly responsible for the upward jump of receipts. A total of £76,078,503 was asked for the Navy, an increase of £32,799,800 over the 192S expenditure. Alterations to battleships, increased Navy pay and other improvements caused the increase. Dealing with the cruiser construction procedure programme the President said: "For the fifteen cruisers and one aircraft-carrier authorised in February, 1929, provision had been made to carry forward the work on the two cruisers which -were already laid down and for the three more cruisers and one air-craft-carrier to be laid down late in the fiscal year of 1930 and for the remaining ten cruisers to be commenced late in the fiscal year."