Perth Amboy evening news., 1922-04-27

discovers that his income will be
only $500. He has signed con-
tracts To-Day the full $4,000. He
cannot get out of them. He must
borrow. He expects to do better
the next year and therefore does not
desire to ob.Igate himself to pay in
terest on his borrowing for a long
period. Therefore, he signs a
promissory note for a yea
In the larger national sense, a
Treasury Certificate of Indebtedness
merely is the Nations note to tide
the government over until it can
balance its budget-that is, have
expenses and income equal. These
certificates of indebtedness will ba
o by the Treasury to banks, cor
porations. individuals or anyone
who will buy them. The showing
of the March is tax installment
ineans mat 5000. 000, 900 in these
certificates must be sold between
COW and next January.
The Treasury in estimating the
income FOR this year took into con-
sideration the business depression.
but 1t seerls it did not realize how
far short income had fallen. The
previous year. the revenues from
49, 49, 20 ~ w.
.2S. Is 600. This sum was practi-
cally cut in two in making the esti-
mate for 1922 but 1t seems the in
come of the country has been cut
even more than that. In 1920, the
income and profits taxes amounted
to $3,956,956 000-nearly four bill
lions. To visualize how much the
national income has dropped since
1920. the toom year. contrast this
figure of s3.956, 936 900 for 1920
taxes with $1,000, 000. 900, the re-
vised estimate for 1922.
Not Due to Lower Rates
Some of the reduction can be ac-
counted for by relaxations in rates
but not much, as the principal re-
iaxations do not go into effect until
next year.. The March Is, 1922 tax
iEstallment of less than s400. 900, 900
compares with a payment of $72S,-
600. 900 on March Is. 1921. The
March Is payment in 1920 was over
l 1000. 900, 600.
Usually the March is payment.
being the first one of the four tax
installments, is the largest. Under
the income tax law, a taxpayer may
pay his entire tax for the year on
March Is, or may pay n quarter
Va AiAS annual taA VII that adlt anu
the remaining three quarters on
June Is, September Is and Deem
Der Is. respectively. This year,
however, so many taxpayers upon
figuring their incomes discovered
their total amount of tax liability
was so low hat they could afford
to discharge the entire obligation
en- March 10. and have the job done
with. There was an unusually large
number OF such full payments this
year. Possibly as much as a third
of the years income already has
been paid in and the years revised
estimates will fall substantially be-
low 81 1900, 000. 600.
This showing had had the effect
of dulling the enthusiasts of many
members of congress for the plan to
pay a soldier bonus and has in
creased the opposition of the Treas
ury to the plan. 1t is de ,lared that
with the Treasury in such poor con-
clifton it is not feasible TO add a
burden of two or three additional
billions for the soldiers. There are.
of course widely differing opinions
on this point many congressman
and others declaring that no matter
how much the Nation has to bor-
WV ~ eOAtlti JULIUS olOuIu Dt
paid in recognition of the conspic-
uous services of the soldiers in the
war.
When the governments income
falls below expectations and the
Treasury must resort to borrowing,
still more taxes are being piled up
against the people. Interest must
be paid on the loans made to make
up the deficit. Therefore. that in
terest charge must be added to next
years expeditures. Just the addi-
tional short term borrowing of 5000,
600. 900 to make up the gap between
this years expenses and income. will
cost interest amounting to $780,
Coca great fortune in itself. In
other words. because taxes were
5000. 900. 900 short this year, next
year they must be SOS. 900. 900