Statement on the Possibility of a Tax Reduction.
AT THE press conference at the White House Tuesday, July 2, 1929, the President said:
"We are giving careful study to the possibility of tax reduction. We all hope that the situation may work out on the side of a safe surplus for material relief. We must determine three things before there can be any conclusion upon the subject.
"First, we must know what the effect will be of the legislation during the last 12 months which has greatly increased expenditures for the present fiscal year beyond the original budget. The new enlarged program for naval armaments, the increased expenditure on Army and Navy aviation, the rebuilding of Army posts and increased expenditures on veterans' services--in addition to the necessities in the Mediterranean fly and farm relief work--have all intervened since the budget was passed by Congress.
"Second, we must know how far we can reduce expenditures of the Government in other directions to partially compensate for these increases imposed during the past 12 months. We know that expenditures for the fiscal year just passed exceed the original budget by over $200 million and much of the legislation expanding expenditures has not yet come into effect. The completion of the budget for the year beginning July 1, 1930, will be helpful in determining the rate of these increased expenditures.
"Third, we must know how far the increase in revenue is due to the temporary stock exchange activity."
Herbert Hoover, Statement on the Possibility of a Tax Reduction. Online by Gerhard Peters and John T. Woolley, The American Presidency Project https://www.presidency.ucsb.edu/node/211052