The Waterbury Democrat., 1931-12-09

reaching down to include thousands fof small income earners not now taxed. It would revive numerous stamp and sales taxes such as the s1924 law levied on automobiles, s,jewelry, certain amusement places, sstock transactions and legal papers. \, It would raise the minimum in- .come tax rate from 1z per cent to s2 per cent. Exemptions would be slowered from $1,500 to $1,000 on single persons and from $3,500 to $2,500 on married persons. The maximum surtax rate would be in- creased from 20 per cent on in- comes of more than $100,000 to a frate of 40 per cent on incomes of .more than $500,000.
 "We cannot maintain public con- fidence nor stability of the federal government without undertaking some temporary tax increases President Hoover said in his bud get message. "The plan of ap- aproximateiy reenacting the revenue tact of 1924 has the great advan- staEo that the government is equip ped by experience with similar leg islation for it's systematic and eco Snomical collection. The public has tpaid such taxes in the past and shas found them not intolerable and has found that they do not prevent .inWeased prosperity. By provid- .inR a definite date for termination .of the temporary increase it will .allow taxpayers to look forward to .definite relief"
 The president believes the tax increase should be arranged to raise about $920,000,000 year. This would not permit balancing sof the budget for the current. fiscal lyeAr which is almost half over, but 1t would do 50 for the next year, sexoept that it would not cover the .$500,000, 900 for retirement of the public debt.
 The necessity for this spartan course was impressed on Mir Hoover Aby the rapid rate at which the gov .ernment Is running into debt due to sharp falling off in income taxes. His budget message forecast an estimate total deficit of $4,442,OOO.- 1000 for the three year period end ing June 30. 1883. After deduct .sng payments toward debt redemp- tion this would still leave a net in Grease in the national debt of S3,- .247, 100000.
  dast June was $902, 900, 900; for the current fiscal year it is estimated at $2,123.000.000 and for next year. l,417,O00, 0,000.
 Meantime MT Hoover has squeezed down still further his budget requests for appropriations for the year beginning in July scutting them $365, 5,000.000 below !the amount being spent this year. He described this as a drastic curtailment" He emphasized that national defense would not be 1eopardized. The budget calls for a grand net total of $3,942,754,- ,614.22.
 Mir Hoover also asked congress to consider the effect of the capital gains and losses tax which has been criticized as encouraging Speculation and impeding economic recovery.
 He appealed for his program as aa necessary factor in rebuilding prosperity, and he urged all citl- Lens as patriotic duty to refrain from urging measures on congress which would add to government expenses.
 ''The welfare of the country de- mands that the financial integrity of the federal government be main tained," he said. This is neces- sary factor in the rebuilding Of sound national prosperity.
 "To carry out this program IL IS important to emphasize the fact that we are now in a period where federal finances will not permit Of the assumption of any obliGa- lions which will enlarge the ex- penditures to be met from the ordi- mary receipts of the government.
 q am confident that the con !eress realizes this situation and Twill give 1t full consideration in passing upon matters which may contemplate any such addition to Our spending program.
 ! To those individuals or groups who normally would importune the congress to enact measures Tn which they are interested, 1 wish 10 say that the most patriotic duty which they can perform at this lime is to themselves refrain and to discourage others from asking any increase in the drain upon public finances"
 Washington Dec 9 - United gPress)-The budget message of President Hoover to congress was, dn part. as follows:
 For the fiscal year ending June 80. 1892, the receipts, originally estimated at $3.956, 6,000.000. are now expected to fall of realization because of the severity of the de- bression and will fall below the estimates by $f.7f7000,0O0. The principal clements entering into this decline in revenues are income .tnx receipts, s1.140,0 0Oa 900; GUS tom receipts. S202 1000 1000; miscel- 1aneous internal revenue receipts. Si32 900. 900 and postponement of payments of principal and interest on foreign debt. $247.000 00, 900. d Expenditures are expected to ln- prease over the original estimates by 9437 .O00, 900 This is the net diff Terence between many Items of in- Urense and decrease. The principal ffcreuFes. In part cue 10 subsequent leglsIstion. Include added benefits to veterans, sf35, ,O90, 900; speeding iip of public works to nid unem- is'""'1ent. sig0. .000. 900: federal