The Semi-weekly leader., 1922-11-04
DEFICIT MAY CAUSE
new TAXATION.
HARDINe,s ECONOMY CLAIMS ARE
KNOCKED SKY HIGH.
INCOME TAX RETURNS LESS
After Elections, Republicans Must Get
Down to Revenue-RaIslng-DefIcIt
OF Fiscal Year Of 1924 May
Reach a Billion.

Washington.-An estimated deficit
of approximately $1,000. 100000 for the
fiscal year of 1924, pyramided on the
s700, 100000 deficit of the present fis-
cal period, threatens to engulf the
Harding administrations economy pro-
gramme.
The Impending deficit was indicated
by preliminary estimates of the Off
GERS of the budget bureau.
The problem is engrossing govern
ment financial advisers and is likely to
compel new tax raising measures by
the next congress.
Signs of this financial crisis come
at the inopportune moment, when
spokesmen for the administration are
laying claim to great economy
achievements of the Harding regime.
Falling off in the revenue of the gov
ernment is the cause behind this situa-
tion. which may force the taxpayer to
dig down still deeper in his pocket
Income and profits taxes are said to
be running s2OO,OOO,O0O behind those Of
last year, while the pairing down pro-
cesses have reached the limit.
President Harding has consented to
come to the aid of the larger army
advocates and is expected to support
the navy in demand for an increase
Of 10000 in personnel, which would
mean increased drains on the treasury.
Treasury experts are not counting
too heavily upon the Fordney-McCum-
Der tariff bill add much to the gov
ernment's receipts, since its effects
may be so proht5itive of imports as
to result in an actual diminished reve-
nue. from the custom house.
Secretary Of the Treasury Mellon,
upon whom the responsibility rests Of
making income and outgo balance, is
already preparing his annual report to
congress. Freqsent conferences have
been held among administration ad-
visers in search of means to cut down
the growing disparities between in
COu6 anu expenditures.
On July IL, last, President Harding
addressing the second annual meet
ing of the business organization of the
government in Washington, said that
the estimated receipts for the fiscal
year of 1924 would be 100000, 900,
less than the appropriations for the
current year plus authorizations for
expenditure not included in the appro-
priations."
Since then constant falling off in
income and profits taxes has become
increasingly apparent
The internal revenue bureau is max
ing efforts to stem the tide by round
ing up tax dodgers, but the money OBJ
tanned in this way added to any in
crease that may come through the OPP
Grafton Of the tariff will fall far from
making up the loss due to decreasing
revenue from income and profits taxes.
The question of G new tax policy to
make up the revenue shortage will
probably be discussed by President
Harding and his cabinet as soon as all
the cabinet estimates are prepared and
ready for examination by the execu-
tive.
A revival of the luxury taxes is re-
ported to be under consideration, to-
gether with other changes in the rev.
enue law:
At present the presidents chief fis-
cal advisers are not eager for the so
called nuisance taxes or any increase
in the income and business profits as
sessments.