Evening star., 1932-12-28
FEDERAL REVENUE
BEHIND ESTIMATES
Defaulted War Debts Likely
to Be Small Item in Years
Shortage.
By the Associated Press.

By the Associated Press.
If the rate Ct decline in Federal
income for the full fiscal year ap-
proximates that Of the first quarter.
European war debt default may be far
down on the list Of things Congress has
to worry about In balancing the budget.
The total deferred CT defaulted by
France, Belgium. Poland, Estonia and
Hungary weS S24 996,5ll At the same
time Sl35 100000 deficit in postal
revenue is estimated by the Postma ter
General, and deficits Of S149 100000 In
customs receipts and $238 .000, 900 in
internal revenue are anticipated on the
basis of current remittance.
In round numbers the customs reve-
nue. for the first quarter of the fiscal
year was se3. 900 900. compared with
sl43 100000 for the first quarter Of the
fiscal year ending June 30, 1892 In
ternal revenue was approximately
S44s. 900 600, compared with $527 ,00O.-
600.
First payments under the increased
income tax rates viii not be made until
aaen si7s6oo 900 @ to income tax reeeipes P aa fo4
the year. Collections en- the old basis,
however. we're about Sl88, 8,0OO,000 COM
pared with 1899, 100000 for the first
quarter last year.
Internal Revenue on.
For the same period estate taxes
brought in little less than $4,000, 900,
compared with s21 ooO, 900 the year be-
fore
Total internal revenue for the first
four months was s79,000oo0 less than
the 1881 mark despite new excise taxes
or 26 commodity groups. 1t was esti-
mated these take, would result in
s457 600 600 of revenue. but first quar-
ter receipts totaled S68,000,000. This
was s84 C0O,O 900 less than anticipated, If
the estimates are broken up into equal
four month periods.
on the same basis the new gasoline
tax would have paid s50,000,00O the
first quarter. but actual receipts were
only $4,000 900. the collection of
So 600 900 from the new 2-cent tax on
checks was only s2oO0,OOo, less than
one-half the anticipated amount, and
the 5 per cent tax on sales of radios
ard phonc graph equipment produced
only s49500O, where 100000 was
anticipated
The per cent tax on passenger auto
mobiles, estimated to create S32 0000 900
Of revenue for the year, produced
100000 for the first quarter.
Receipts Behind Assessment
amusements increased revenues from
100000 for the first quarter of last
year to $5,000000, but this was still
100000 short Of one-fourth the an
tlcIpated s42 900 900 for the fiscal year
Despite the increased tax, receipts from
club dues decreased from 100000 for
the first quarter of last year to ST.
o0O000
Internal Revenue authorities say any
compilation of receipts under the bill
lion dollar tax bill' should carry ex-
feel the full force of many of the
higher rates While some OF them went
into effect on June 81. others did not
become effective until various dates in
july and receipts in many cases are
50 to 80 GAYS behind assessment.
In the case Of the tax on electrical
energy the user had until July 81 to
pay his bill, and the company had until
August q to make its refund to the
Federal Treasury misunderstanding
ard delay in computation and collec-
ton were believed responsible for much
Of the apparent deficit in the excise
taxes
In some quarters it was believed col
lectionS for the second quarter would
show material gain over those for the
first. but returns have been so far be-
low anticipation that Secretary Mills
and his advisers have urged on Con-
gress a general sales tax of pa per
cent on manufactures, except food and
clothing. which they said would create
1856, ,0O9 900 of revenue. The last ses-
sion of Congress defeated similar
sales tax of IA per cent.
Taxes Diminish Returns.
On the charge that some taxes have
been increased to the point OF dimin-
ishing returns. there is some sentiment
at the Capitol for repeal OF the higher
brackets, particularly on checks and
postage. Higher rates were once estl-
mated to add s16O000,000 to the $780,
000,0 900 Of postal revenue for the fscai
year, but receipts from so selected
cities for the first quarter total less
than $l00,000,000.
The Postmaster General has been
quoted as saying poor business rather
than the increased rates were respon-
sible for the decline in postal revenues.
Reports have been submitted. however.
purporting to show switch from postal
to messenger service in many instances
in such things as delivery OF service
bills and other charges by electric
light end gas companies and similar
agencies.
In its budget balancing Congress has.
In addition to the question OF revenues
for Federal expenditures, the problem
OF a Treasury deficit estimated at
Al.l29683,939 on December 10.