The New York herald., 1922-03-18
BONUS means $3.50
new TAX PER CAPITA
Government Must Spend
$38.44 for Every Resident
if Raid Succeeds.
$34.64 If 1T FAILS
Burden Would Compel
Families on Average to
Contribute $192.20.
CHECKMATE TO SAVINGS
Federal Revenue in 1923 Will
Be 40 Per Cent. Lower
Than in 1921.
CHECKMATE TO SAVINGS
Special Dispatch to THE New YORK HERALD
New York Herald Bureau,
Washington, ID. c., March IL,

i
Tho Government during the next
fiscal year must spend total of
SSS.44 for every resident of the United
States. according to Secretary Melons
estimates. if the general soldier bonus
bill is added to the appropriations al
ready planned. Without the bonus
bill. estimated to cost $500, 900, 900 a
year. the total cost OF the Govern
ment for the fiscal year will be s34.64
for each resident of the country.
From the pocketbooks- Of taxpayers
the Government plans to remove next
year $31.79 for every resident of the
country. This leaves a deficit of s2.S5
resident. The addition of the bonus
expense would increase the deficit to
$685. for each resident.
| With the bonus added to the cost of
Government the head of a family of
five persons will contribute to the
Government a total Of s192.20 in in
come taxes and levies, tobacco. amuse-
mentS and such other things as Con-
gress may decide to tax to take care
of the bonus.
Getting Money From Relatives.
Ex-service men will be/taxed to pay
the bonus which the Government will
hand over to them, thus receiving
back their own money. Their relatives
will pay in the same proportion as
the ex-service men, but the Govern
ment will take the money from the
relatives AMI pay ii to the former
soldiers That is how the bonus works,
officials explain.
the Government again will approach the
totals of the war period, from which the
much advertised economy program Of
Congress has been trying to relieve the
country. During the fiscal year 1921,
closed June 80 last, the Government col
lected in taxes and miscellaneous rev.
enues $53.57 for each resident of the
country. Then President Harding set
the budget bureau to work, reduced ex-
penditures, and made IL possible for
Congress to write a new tax bill that
would take less from the average Amer
lean pocketbook.
During the present fiscal year collec-
tions will be reduced to $37.55 for each
resident of the country. according to the
| budget bureau estimates now before
Congress This Is without the bonus bill
The bureaus plan represents a reduc-
tion OF nearly 80 per cent. from 1921.
A larger reduction is estimated for the
fiscal year of 1929 IL the bonus bill does
not increase the need for larger taxes.
Aim of Administration.
Revenues during 1928 will be 40 per
cent lower than In 1921. The President
and Secretary Mellon are trying to keep
disbursements down to the falling level
| Of collections. That is why Secretary
Mellon advised against the immediate
passage of the bonus bill.
The bill would increase the 1929 As
cal years disbursements by approxi-
mately 10 per cent. the Treasury De-
partment figures show. That would mean
that tax collections would have to be
I increased In a larger percentage to in
sure enough money to meet the cost of
the bill. even without the large imme-
diate cash outlay which was at first
planned.
The Treasury expects a deficit of
$500, 100000 for the present fiscal year
without the bonus expenditures. Ordi-
nary receipts, it is estimated will run
short of ordinary disbursements by at
least that amount. The shortage may
be greater since tax collections are not
materializing In the same proportions
heretofore expected
Up to March 10 the ordinary receipts
totaled s.. .s3s, 77S. 500 The ordinary dis
bursements amounted to only 81, 800. .2i4,-
| 49, or $44s, ,534. .370 less than the receipts
Up to that day the Government was
| ahead of all the calculations OF the Off
cials who planned deficit. 1t was TAX
/ ing In more than II was paying out
| But this was on the basis OF income and
excess profits taxes paid on the basis OF
duplicates filed last year. II was re.
ceipts on the basis of earnings durint
1920, good business year The pay
ments OF many corporations do not COR
respond with either the Governments :
| fiscal year nor with the calendar year.
/ Based on Poor Business Year.
But, beginning March Is. the Govern
ment revenues went on the basis OF
earnings of the poor business year OF
\ 1921 Corporations and individuals began
4 filing duplicates based on earnings OF
1921. These duplicates will show very
| material reduction from those OF the
year before. II Is known. although exact
/ reports are not yet available. In short
! the Government revenue began to fall
off beginning March 10. The reduction
will continue throughout the remainder
OF the present fiscal year, 1t is predicted
The year ends June 30.
With the coming OF the new fiscal year
demands upon the Government will total
billions in addition 70 the proposed bonus
cost and the regular, ordinary cost OF
managing the public business.
More than 50,ooO.0Oo worth of war
savings securities will mature. No pro-
vision for paying these is made in the
Treasury computations, which place the
estimated cost of government during
1923 at ss4si per resident OF the United
states without the bonus. Add to this
/ the maturing securities and the bonus
and the total cost per resident will run
close to the war time disbursements.
which ran up to 800 person, officials
| say.
But the savings securities are not the
only obligations of the Government
which are scheduled TO mature within
| the next few months. The Victory notes,
L