The Barre daily times. (Barre, Vt.) 1897-1959, 1920-03-22
CURRENT COMMENT
A az Billion Deficit.

If the loss in the annual revenue
of the government will be about half
billion of dollars, as the result of the
United States supreme courts deci-
sion declaring stock dividends non-tax-
able as income, Congress faces still
more difficult situation. The official
estimate revenue for the year begin
ming June 80 next has been S6,035, $50
900, which must now be reduced to
about 5M billions. But official esti-
mated expenditures for the next fiscal
year amount to the huge sum OF So
0S6 1854 The deficit for the year
on this basis would be about 3ie bill
lions. 1t is small wonder that the re-
sponsible leaders of Congress are un-
easy over the outlook
The pressure for reduced taxation is
growing stronger. General Wood re-
Gently declared in favor of removing
the excess profits taxes, which is a
form of tax reduction very much de-
sired by some of the capitalists, bank
ers and corporation managers who are
backing his candidacy. There is
strong business argument against the
continuation of the excess profits tax,
but is it feasible to eliminate it, with a
heavy treasury deficit probable in the
next fiscal year? The reduction of tax
alton seems out Of the question for
several years TO come, as Secretary
Houston declared yesterday to a House
committee.
With an estimated revenue of but
so billions, taxes must be increased
instead Of reduced, or expenditures
must be cut by 31b billions from the
official estimates in order to avoid a
deficit In the face of this situation
is the demand of the American Legion
for bonuses for the soldiers of the war
a measure that might involve a new
expenditure anywhere from one TO two
billions. If the bonus program is post
poned. the treasury deficit may still
be so large next year as to require a
bond issue, vet no one can contemplate
another bond issue for any purpose
without the gravest misgiving because
it would cause more credit imitation.
The most obvious thing to do is to |
cut expenditures "ruthles sly" This is
the favorte word "ru;hlessly." Yet the |
government has TO do everything on |
the prevailing high cost basis and the |
high cost Of government is probably as
as the high cost of living |
As things are. the government service
has lost heavily in trained personnel /
because of the failure of Congress TO /
scale up salaries of government EN-
ployes The head forester OF the gov
eminent. Mr. Graves, has Just resigned
because OF his low compensation. How
to cut expenditures ''ruthlessly" is as
much of a puzzle TO the congressional
leaders as how to increase the revenues
without taxing the people more. If GER
ain services are virtually starved out,
.he friends of those services almost
invariably can show convincingly that
ZONE other services should be starved
irst Many progressive activities of
he government can be eliminated for
he sake of economy only at the cost
If injurious social or industrial Teac-
ion. In the present very uncertain
tate of international affairs. with
more friction than harmony develop
ng between nations which should be
friends. the curtailment Of army and
lavy expenditures even can possibly
,e criticized
The government suffers from the lack /
i wellordered budget in ,this pc
iod Of abnormally swollen receipts and
expenditures. lts fuundering and rath- +,
T futile efforts to make ends meet"
re due in no small degree to the hap !
azard growth and methods distin-
ulshing is fiscal system for over 100 ]
ears The congressional leaders talk (
economy bK1vely enough vet no one 4
rin be able 20 recognize it in she fin Z,
she'd work OF the session The econ Z
my fixed up for the campaign will {
6 mere window dressing. Everybody
n0ws it and knows what 10 expect. J
The problem is in no sense a party !
.sue II has it, roots in generations s
I past government and also in the :
amper and easy-gong spirit II a peo- 9
le educated 10 think Of the national Z
a. inexhau-tiblr senator g
relinghuy-en j. right The way our ]
oYernment Is run on the fiscal and :
pending side would inevitably bank d
apt any private concern IN q short Z