Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-09-21
Government May Escape a
Deficit Next Year.
INCREASE IN RECEIPTS
EXPENDITURES SHOW BUT
SLIGHT FALLING OFF.
Suggested That Tax Be Imposed on
Patent Medicines Containing
Large Percentage Of Alcohol.

'It now looks possible to avoid any legis-
lation Of an extensive character during this
fiscal year to meet a deficit in the treas
ury," said Representative Tawney of Min
nesota today, 'as the outlook Is growing bet
ter all the time The receipts of the treas
ury are increasing right along over the
same period of the last fiscal year. when
there was a deficit of something like S24,-
10000, and If there is not some unexpected
squirt in expenditures the dencit this year
may be much below that l now believe
that We Will be able to reduce our 'ex-
penditures for the next nscaI year so as
to come within the receipts and not have
to bother with additional taxation of any
kind
Tax on Patent Medicines.
There is one small source of revenue
that we have. overlooked UP to this time
that may be inquired into at the coming
session. That is the matter of placing n
suitable tax upon patent medicines con-
tsining large percentages Of alcohol, as
many Of them do. The commissioner of in
ternai revenue a short time ago rendered
q decision that affects these medicines but
his decision deals with those medicines
that contain comparatively little medicinal
qualities and much alcohol. 1t seems to
me that any patent medicine containing
VI
medicinal ingredients, ought to pay tax in
accordance with the proportions of alcohol
contained. have not gone into this uues-
ton fully, but I shall investigate II with
care"
Mr.. Tawney is one of several congress
men who has this same subject in mind
The patent medicine people see that a
fight is ahead and propose to meet it..
Ihey Will resist efforts to impose special
taxes upon them, claiming that the alco-
hol that Is used has already paid taxes
Ihe position of members of Congress
who apparently favor additional taxes is
that these medicines are widely used in
prohibition communities, where even the
mildest OF alcoholic drinks are excluded.
1t is alleged that the effect is bad on peo-
pie who exceed the directions and become
confirmed in their use of the alcohol in
the medicines.
Prospects of the Treasury.
The fact that the deficit of the treasury
so far this fiscal year is only $13, ,5Q4, ,0sS,
against $2i. .63s, ,291 at this time a year
ago, is considered an indication that the
situation will not be bad at the close of
the year. Many treasury experts, how
ever, think this view is optimistic, as
there may be a run of expenditures in
the new few months that will place the
treasury as far behind as ever.
The receipts of Uncle Sam so far this
fiscal year amount to 1928, ,795, POI, while
S121 ,292. .427, an increase for this year of
about $7,500,000. This increase Is largely
ir customs revenues, which show a total
to date of $65 5,005, 1863, compared with $50
200, 741 to this time last year. Internal
revenue receipts also make a better show
Ing, the total income from that source to
this time being $54,192, ,450, compared with
$51,613,773 year ago. The miscellaneous
receipts. have taken fall, the total to
this time being S.. 1881. against $13,-
40S.913. The treasury last year at this
time was getting in some borrowed
money from the Louisiana purchase ex-
position, which was added to misce]la-
neous receipts, making it larger than this
year.
The expenditures in the present year
are not falling behind last year worth
mentioning. The total paid out to date
amounts to s142. .299, 800, as against $142,-
93Q. 119 year ago.
the expenditures the present fiscal year
which ends June 80, 1906 Will greatly ex-
ceed those of the year just gone. Re-
ceipts will have to hold their present in
crease to keep the deficit down below
that of the last fiscal year.
The income from customs shows that
the people are buying more largely
abroad now than they did a year ago and
that they are consuming more domestic
stuff upon which there is taxation by the
government.