New Britain herald., 1921-08-06
Total Income Is Now
Figured To Be $4,217,
$4,000 As Against
Original Estimate OF
4,547,643,OOO
$130, 100000 of Decrease ii
: Attributed to Business De-
preston = Senator Borah
Would Economic By Re-
ducing Army.

washington, Aug. ga shrinkags
in three months of $330,o00, 900 in
the estimated government income for
this fiscal year based on the present
revenue law is disclosed by the state
ment recently presented to the house
ways and means com mittee by Sec
retary Mellon. The total income is
estimated now at $4,217,643,0oo al
against the estimate Of $4,547,s43,0o0
contained in Mr.. Melons letter Of
last April 80 to Chairman Fordney.
In the same time the estimated exc
penditures have decreased only $11,-
S64, ,216.. The estimated excess OF
disbursements over receipts is placed
now at $336,36s.517 as compared
with an estimate of $1s,234,o32
made by the treasury last April
Business Depression.
OF the total shrinkage in receipts
$3.50 100000 is charged to the ex-
pected falling off in internal revenue
largely as a result of the present
business depression. The remaining
5000, 100000 is accounted for by a
revision of the estimated amount to
be received in interest on foreign
obligations. In Mr.. MELONS letter
Of April 80 this interest fund was
placed at $225,c26,o00 and was based
on the assumption that several coun--
tries would make substantial pay
ments. The estimate now is $25.02s,.
600 most of which, it is said is ex-
pected to come from France.
Five Million Less
An analysis Of the figures sent to
the committee Thursday by Mr..
Mellon shows that returns from
taxes for this fiscal year pnder the
revis1ons suggested by the treasury
would be five million dollars less than
the estimate under the existing law.
Miscellaneous receipts would be $780,
100000 greater under the revision
than at present but it is estimated
that there will be a $55,oo0,00o de-
crease in the returns from corpora
ton income and excess profits tax il
last Janpary 1 and a fat corporation
income tax of 1 S per cent substituted.
$o0.OO0, 600 Greater
If the repeal were made effective
as of next January 1 however, the
estimated return from all taxes
would be. $50,000,0o0 greater than
under the existing law as the returns
from the corporation income and ex-
cess profits tax would be approxi-
mately the same as under the exist
ing law as the returns from the COR
poration income and excess profits
tax would be approximately the same
as under the eristing.
Corporation Payments.
It is estimated by treasury experts
that under the law as it now stands
the corporation would pay a total Of
81, 125 900, 900, divided s669, 100000
profits tax and $456. 100000 income
tax. Under the revision suggested
effective last January the corpora
tions would pay $1,070. 600, 600,
divided $413,000, 900 profits tax and
$657. 100000 income tax should the
revision be made effective as of next
January 1 the corporations would pay
the same amounts as under the pres
ing law.
Meanwhile leaders in congress are
| seeking a way to force a big cut in
estimated expenditures for the fiscal
year which Secretary Of the Treasury
Mellon says will reach $3.50, ,o0o,0o
unless drastic action is taken.
The difficulty lies in the fact that
most of the appropriations already
have been made for the expenditures
estimated by Mr.. Mellon.
Borah Aims at War Costs.
AS stringent economy measure,
Senator Borah proposed that the
army be cut to 100, 900 men, that Am
erican troops in Germany be returned
and that the construction of six bat.
tleships be stopped. This would save
100000, 900, he said. The senator
introduced resolution directing q
reduction of the army
Urges Army and Navy Cut.
Senator Borah, analyzing possible
means of reducing expenditures, as
serted that cuts in the army and navy
afford the only possible opportuni-
ties that will be at all conclusive,
since they are the source OF our
greatest expense.
He figured that a saving of which
$400, 100000 ca nbe effected, of which
$3.50, 100000 would be in lowering
the army force, and s25o.ooo, 900 In
abandoning part of the battleship
construction. He argued that the
bombing experiments on the Virginia
Capes demonstrated that battleships
now building are obsolete, or nearly
SO, believing that greater protection
would be afforded through submarine
and airplane construction.
Reductions in the army and navy at
this time, Senator Borah said, would
demonstrate to the world the good
faith of the United States in calling
the conference for limitation OF arm
aments as well as making possible
lowering of taxes, or at least prevent
ing an increase. Unless something OF
the sort is done. he prophesied, heavy
reductions in the republican ma3orf-