Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-01
OFFICIALS STUDY
us FISCAL POLICY
Will Wait Several Months
Before Reaching Decision
on Tax Hike.
BY the Associated Press.

BY the Associated Press.
The administration has reached no
conclusion concerning its fiscal policy
for the next year. but is studying the
economic situation to determine If an
increase in taxes will be necessary.
1t was said authoritatively today that
Government leaders are studying the
economic outlook and will wait at least
two or three months before reaching a
decision as to whether the Government
can proceed without imposing additional
taxation.
1t was pointed out that no definite
knowledge exists as to the trend of
Government income. but that financial
leaders are contending that receipts
might rise rapidly with a change in
conditions.
Government leaders believe the pres
ent system of taxation. based in large
part upon the income and corporation
tax falls short in the face Of changing
economic conditions.
Seasonal Improvement Seen.
The administration holds the opinion
there has been some improvement in
the economic situation, but that this
is based in considerable part upon pres
ent seasonal factors. 1t does not min
imize the burden to be carried during
the next Winter, due to the unemploy-
ment situation.
1t was said also the administration
has been giving close. attention to the
economic situation in Europe, feeling
that the business outlook of the United
States has been dominated for the past
several months by the situation abroad.
Some of the factors upon which adj
ministration officials are basing their
views include the actual financial bur-
den of unemployment relief and the
rate of loans on bonus certificates.
Relief Adds TO Burden.
Statistics now in the hands of adj
ministration officials were said to show
expenditures for unemployment relief
have placed an added burden upon the
Governments financial machinery of
about $500 900, 600.
Other figures were said to show that
approximately 100000 more men now
are employed directly or indirectly by
the Government than was the case
last year.
If the present rate of loans of bonus
certificates continues, it was said. it
will require an increased expenditure
of between $200,0000 900 and $500 000,-
900 during the present year.
The administration was said to feel
that it could maintain loans on bonus
certificates until the opening of Con-
gress, but that if the present rate con-
tinues a considerable appropriation
would be necessary.
High Government officials regard the
$500, 900, 900 long-term loans to the
Government last June as approximate
ly covering the deficit of last year.
hey regard the recent 100000, 900
long-term issue able to cover payments
on bonus certificates.
1t was said the administration feels
the Government could not continue in
definitely living on what was termed
| its fat" but that if the economic stu
alton improves the Government could
continue for a considerable period in
this fashion.
The administration, it was said, in
tends to turn much of its machinery
during the coming Winter toward
maintaining what was termed its so
cial obligations preventing in so far as
possible real suffering from unemploy-
ment and the economic depression.