The Washington herald., 1921-03-07
Next Session Faces Task
Of Reducing Financial
Burden on People.
REVENUE SURPLUS
TO DECIDE RESULT
Question of Soldier Bo-
nus Adds Uncertainty
To Situation.
n, ARTHUR SEARS HENNING.

and other Questionable taxes. the
reduction Of the tax burden gen
orally and a simplification OF the
tax system are the prospective out
standing features of the revision OF
the revenue law by the Sixty
seventh Congress. which President
Harding shortly will couvoke In
extraordinary session.
To what extent taxation can be
reduced will depend upon the mar
gin of prospective revenue over
prospective expenditure and such re-
financing of government obligations
as may be decided upon.
Cut One-Third-
Thu appropriations for the next
fiscal year were cut one-third below
the departmental estimates. Even
so, the total. including the eleven
measures passed and signed by the
President, the army bill passed by
both Houses but killed by q pocket
veto" and the naval bill, which was
hIibustered to death in the Senate.
ran above ss,soo, 100000. Included
in this total is about s5oO,ooo'ooo
for the postal service paid out Oh
postal receipts
II no other expenditures were TO
be made during the fiscal year and
IL no funds were to be used toward
the retirement of the floating debt.
there probably would be q surplus
of about s1,50,00o,oo out of antici-
pated revenue.
PrebIem Seen.
The problem confronting Con-
-ress is whether this surplus should
be used toward wiping out the float
ing debt. as was advocated by for
mer Secretary of the Treasury
Houston, whether Objectionable
taxes.>sueh as the excess profts
tax, should be repealed and no sub
stitute provided. ubethsr DOS
sible contingencies. Including tAS
enactment of soldiers bonus legis|
lation. make 1t advisable to impose
new taxes in place of those re-
pealed-
The revenue In prospect during
the fiscal year beginning July FL,
1891. and ending June 30, 1899, for
which appropriations were Just
made, totals about $5,35o.oeo,ooo on
the basis Of present laws. After
taking into account the greatly
diminished returns caused by the
slump in business activity, the
Treasury Department has estimated
that the present schedule of internal
taxes win yield approximately $4,-
O00.oOO,0o0 for that fiscal year.
Ira
customs receipts in prospect under
the present tariff law, which may
be increased substantially when q
Republican protective tariff is
placed In effect, postal receipts
amounting to about $5oo,ooo,ooo and
miscellaneous receipts amounting
TO about sseo.ooo.ooo more.
Co1parisen Made.
Comparison of appropriations
with revenue expected under revised
tax laws cannot be made with any
great degree of accuracy because Of
the fact that while the appropria-
tions partially made at the recent
session apply to the fiscal year 1922,
the revenue available during the
first half of that period will be de-
rived under the present tax law,
and that for the latter half under
the new law. While the new tax law
will apply to'incomes of the calen-
dar year 1921, none of the money
will be collected until the calendar
year 1922
In considering future expendi-
lures there Is no certainty that any
further decrease in appropriations
can be made during the next two or
three years, and 1t is quite within
the realm of possibility that the
new department heads will insist
upon additional funds. ...,
Soldiers Bonus.
The question of a soldiers bonus
also Is an uncertain element en-
tering into the situation. The bo-
nus bill, as reported recently from
the Senate Finance Committee. pro-
vided that its benefits should not
be made effective until january.
1923. but agitation may be renewed
in the coming session to advance
the date. The Senate leaders have
suggested that the necessary funds
be obtained by diverting for this
purpose the interest on the sIo.-
100000 owed the United States bv
European nations. Presumably by
that time these debtor nations will
have resumed payment of the $780,
100000 annual interest. This item
of s5oo.ooo.oo0 is not being consid-
cred in the computations which are
being made in connection with the
forthcoming revision of revenue
laws. The bonus could be financed
out Of this sum IL spread over a
period Of years. Estimates of the
cost of the bonus bill range from
about s1.5oo.ooo. 900, IL all former
service men took cash, to $4,000. .ooo.-
900 r. other forms of adjusted com
pensaSion were preferred.
Return Inpossfble.
In considering government ex-
penditrres there appears no possi-
bility OF ever returning to the level
of pre-war years. The interest ON
the public debt alone amounts to
approximately $1,000. .ooo, 900 year,
which is more than the entire an
nual budget totalled formerly.
With the single exception Of the
year 1sS5 at the close Of the civil
war. the fiscal year 1917 was the
first In which ordinary disburse-
ments. which do not include nav
ments for the postal service. ex-
ceeded $1,000. 100000. The total In
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