Evening star., 1924-09-28
TREASURY INCOME
AMAzES EXPERTS
Figures So Far Above PredIc'
tions That Further Tax
Cut Could be Made.
BY HARDEN COLFAN.


The National Treasury is doing
much better than the experts pre-
dicted More money than they eX-
pected is flowing in. The balance on
hand is larger than they estimated 1T
would be- Expenses are being held
down to the minimum. Early esti-
mates are being checked up and re-
vised The tax cut of last June will
not amount, apparently. to more than
half of the amount forecast
All of which, as interpreted here,
indicates that Congress could safely
make another reduction in taxes next
December if it cared to do so.
Whether it will or not is another
question, with the accent probably on
the not. 1t is holdover Congress,
passing out with the 4th of March.
The election will be past when it
meets again and there will be little
to be gained in d political way by
reducing taxes then, hence such ac-
tion is regarded as unlike ely, although
possible.
Startling Rev isiOns.
Nevertheless. the revised figures re-
Gently made public by the Bureau of
the Budget are almost startling in
their revelation of the extent to
which the experts overshot the mark
reduction on Treasury receipts. They
had estimated. it will be recalled that
tax reduction as proposed and finally
enacted would cut down the Govern
ments receipts by from S300.0O0,000
to s40o, 900. 900 a year. That was the
elastic estimate when the tax reduc-
ton bill was under discussion.
Now the experts have changed their
minds. They no longer expect a re-
nm
Their revised figures. according to
the Bureau of the Budgets annual
report, forecast a reduction in Gov
trnment revenues amounting to only
42,5s5,000, or something like 45 per
cent of the smallest reckoning of six
months ago.
Difference of S142. .6S5.OOO.
That is the amount of the reduction
expected now in income tax collec-
tions and other taxes collected by the
Bureau of Internal Revenue. Last
December. before tax reduction was
forced on AN unwilling Congress, the
experts predicted that the Bureau OF
Internal Revenue would take in
S2.12T,5S5.000 during the current fiscal
year. Ten months later, after tax re-
duction has become the law. they
estimate that the bureau Will ia ke
in S2.SS5.0 100000. The difference. rep
resenting the effect of tax reduction,
is s142 $4,000.
These and other pertinent estimates
are contained in the Budget Bureau
report of conditions during the past
fiscal year. recently off the press.
Experts Fooled on Tariff.
From this document it also appears
that the experts have revised some OF
their other estimates of receipts. nota
blv those expected from the tariff
Last December the experts predicted
that the tariff would bring to the
National Treasury during the current
year total of s493, 900. Today
they have raised their estimate to
$500 O00. 200, an increase of S7.00O,0o0
The actual showing, however. as
recorded in the Treasury's daily
statement covering approximately
the first three months operations
during the present fiscal year. goes
the experts still one better. Up to
and including September "a. latest
date for which figures are available,
the Government had collected nearly
S130, 200. 600 from the tariff. At that
rate. it would collect about $40, 0,000,-
600 during the present year. or s47,
000.00 more than the experts pre-
dicted.
Heavy Balance Likely.
The Budget Bureaus estimate of
expenses and receipts during the
present year. revised as of June 80
last, indicates a balance on opera
tions at the years close of bout
s25,000,000. To this will be added
$s3.000.0O0 additional as the result
of economies in holding down ex-
nenses under a program ordered by
the White House. making a total of
100000. In addition to that sum
there will be collected from Great
Britain and other foreign debtors
about 100000 in interest. Most
of this money. it is expected, will be
collected within the next month or so.
These collections would swell the
balance on the years operations to
S245, ,000,0 900. And as the last tax re-
duction will cut but s142,5S5,000 into
national revenues, observers here are
pointing out that the situation will
he such in December as to warrant
another cut of equal proportions and
still have balance of more than
S100,oo0.o00 on the years operations
on June so next.
Copyright, 1924. by Consolidated Press)