Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1921-09-03
CONGRESS PROVIDES
FOR TAX SHORTAGE

WASHINGTON-A half-billion dol
lar anchor to windward has been
provided by the house Of representa-
tives against failure of the new tax
law to provide for the governments
expenditures for the current year.
This anchor may be a life-saver
in either of two likely contingencies.
One-If the new schedule of taxes
provided by the law fails to pro-
duce sufficient revenue to cover tile
total of appropriations.
Two-If the departments fail to
live within the amounts provided Tor
them under the slashing of estimates
by Budget Director Dawes.
In order to make possible an ap-
which, politically, is declared i'm
perative, provision is made for in
creasing the public debt by $780,
thus raised would be used in lieu of
taxes in meeting the current ex-
penses Of the government.
How It's Done
This provision is inserted as an
bond act, authorizing an increase in
the amount of that issue from So
O0O, 900, 900 to $500, 100000, "to meet
public expenditures authorized by
law" 1t is an index Of the uncer-
tainty and apprehension with which
congress views the whole revenue
situation.
The revenue needs of the govern
ment for the next year, despite any
reductions that may be made by the
budget commissioner or voluntary
economies within the departments,
ately to the taxpaying abilities of in
dividualS and industries,
The whole range of returns from
income and profit taxes and from
customs duties has been so d1sar-
ranged by existing unemployment,
of world commerce that the oest
estimates of what revenue given
tax will return is only guess.
Huge Deficiencies
While the revenue bill thus guard
eddy provides against possible def
icit Of s500,000,000 in government
income necessary to cover appropr1a-
lions, there is a further fear lurking
In congressional minds that despite
all administration efforts at economy,
deficiencies amounting to many MIL
lions will be incurred in several de-
partments during the year ,,.r
looping off of $350,000,00O from the
estimates of sums needed by the
departments Of war, navy and agrl-
culture, and the shipping board and
railroad administration, was appar-
emily done with little consideration
for many claims and probabl. ex-
penditures that will have to be met
The result Of this reduction, many
congressman, including Republicans,
believe, will only be an increase in
the deficiencies which will have to
be provided for next year.
Other Deficiencies
IaF nj hill fnr 1921 Qnnlfnt.
ficiencies was reached in 1918. as a
result of war expenditures, when 1t
amounted to 06,1S0,209.
The chief hope for forestalling a
deficiency this year, both in expend1-
lures of the government over appros
expenditures alike over government
income, lies in the salvaging Of sew
eral hundred millions from supplies
and property acquired during the
war.
If the estimated deficiency OF
$500, 900, 900 in the shipping board
sale of ships at junk prices or 9TH
erwise, the one biggest saving may
be made.
That it will be saving at sac
rifice of tangible assets will be the
least of the administrations con-
Germ. The big thing will be to re-
duce the necessity for taxes and to
keep expenditures inside the taxes
laid.
At present the government is
spending far more than it's estimated
budget. For July, the first month
of the new fiscal year, 1t spent $15,-
100000 more than in July, 1920. In
the first half of August it spent $780,
600, 900 more than for the same Pc
Rod last year.