The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1922-01-15
NEED
prevents Any
i SLASH IN TAXES

Shipping Board, Postoffice. and
Navy Departments Need More.
Separate Bill for Bonus.
By EDMOND c. TAYLOR.
Universal Service.
There will be no reduction in taxes
when Congress again revises the
revenue laws late this session. lead
sfs in Congress predicted today.
~. Economy Program Fails.
:, Tire !,c'auhlican economy program.
which. was widely heralded when Con-
, gress reduced taxes in the Fordney
enrose revenue Gct last summer Is
not mat. rializing as well as House and
senate leaders expected.
: Accord ng to facts concerning ths
requ rements of the Federal Govern
r;ant la d before the House Appropri
atoms Committee recently when that
body was working on the rst budget,
the INK revision of last summer Will
btA found inadequate to meet the de.
E:ands upon the Federal Treasury.
. <! Need More Revenue.
When taxation comes up again mem
bers OF the Appropr atoms Committee
freely predict methods will have to b.
found for ra.s ng more revenue instead
of'an effort beng made further to re-
dnce the tax burden.
. 4, With only TWO OF the nine appro.
priation bills completed by the com
mittee and three others under prep
rrstion. House leaders already have
seen that the revenue produced und a.
the revision of last summer will not
meet the Governments expenses for
the present year.
1t was estimated that the total eX-
,penses of the Government would be
$4,000, 100000 for the fiscal year end
ing June 80, when the Fordney.Pen.
rose measure was before Congress
curing the special session. OF this
amount II was expected that $3,250,-
100000 approximately would be raised
by direct taxation. The remainder
would come from customs duties and
other sources of income.
Economy Road Rocky.
This was a reduction of nearly
$500, 100000 from the preceding year
fut In making this cut leaders In the
s'enate and House expected that the
program of economy as agreed upor
by President Harding and his Cabinet
could be carried out. The revenue
revision act was therefore drawn so
as to yield barely sufficient revenue
to cover the estimated expenditures
under the economy programme.
:. Treasury officials have informed
Congress that the existing tax laws
Will produce the amount 1t was esti.
msted they would yield. Neverthe-
less the Federal Treasury will have
TO- borrow money during the present
year II expenses are to be met &C.
cordtng to members of the House
Appropriations Committee.
The, first rock which the economy
program hit was the request sub
nitted by the Shipping Board this
week. for an additional $50 900 900.
The Shipping Board had been mark
cd. down for a saving of 500, 900 900.
and half Of this saving went when
the additional appropriation was
asked.
May Create Deficit.
According to members OF the COM
.rittee the board soon will make
smother request, this time or $780,.
100000. II 1t IS granted. that much
more of deficit will be created.
The appropriations committee also
hes been advised normally that be-
tore the end of the present fiscal
year one, and possibly two, Of the
departments will demand deficiency
appropriations.
The Navy Department, according
10 Information received by members
q the COMMITTEES, soon will ask for
from 500, 000,000 to $3.50 900, 900, de-
sptte. the Hughes reduction program.
The Postoffice Department also Is
expected by committee members to
request a deficiency appropriation,
but for a considerably smaller
Amount.
1.-The total additions to the require
ments of the departments for the
present year are expected by COM
mittee members to total more than
S309,000,000. This money must be
borrowed by the Treasury and paid
Back out Of taxes received next year.
- Bonus Not Included.
The requirements of the Govern
ment departments were cut to the
bone in the Harding economy pro-
gram, according to leaders in Con-
gfess, and no further reductions in
Expenditures can be looked for.
When Congress undertakes another
revision of taxation late this session
twill have to provide for expendi-
lures estimated to be as heavy as
the expenditures Of the present year
with the additional burden of this
years deficiencies.
The soldier bonus is not being con-
yidered by Congress leaders in con.
nsction with the fiscal program. Any
plan for paying the bonus out Of cur
rant revenues is strongly opposed in
both the Senate and House. When
the bonus bill Is complete 1t will carry
M own provisions for raising the
necessary funds.
Camp Sherman School