|I have found it advisable not to give too much heed to what people say when I am trying to accomplish something of consequence. Invariably they proclaim it can't be done. I deem that the very best time to make the effort. -Calvin Coolidge|
The Coolidge Administration’s principal objective was to restore the Federal government’s finances to peacetime basis and by doing so, to encourage and facilitate the country’s return to normalcy. The Administration’s primary focus was on reducing the huge war debt, followed by cutting the high wartime tax rates. This was accompanied by an unceasing effort to make the governmental establishment operate efficiently, effectively, and economically. The newly created Bureau of the Budget, which fell under President Coolidge’s direct supervision, played a principal role in this process. President Coolidge himself made pioneering use of the radio to reach out twice annually to the American people to report on the progress of his economic program.
National debt lowered from $22.3 billion in 1923 to $16.9 billion in 1929.
Coolidge/Mellon Tax Cuts: After years of very high wartime tax rates, rates were reduced significantly under the Revenue Acts of 1921, 1924, and 1926, especially the latter, which was the crowning achievement of Coolidge tax program. The combined top marginal normal and surtax rate declined from 73 percent to 58 percent in 1922, and then to 50 percent in 1923 (income over $200,000). In 1924, the top tax rate decreased to 46 percent (income over $500,000). The top rate was only 25 percent (income over $100,000) from 1925 to 1928, and then fell to 24 percent in 1929. By 1927, 98 percent of the population paid no income tax. It is also worth noting that numerous “nuisance” taxes, such as on cars and theatre tickets, were eliminated.
Federal budget reduced from $5.1 billion in 1921 to $3.3 in 1929.