The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-12-26
NATIONS PURSE is REFINED
Ne70 Deal Returns May Pay Recovery Plan Costs
BY WILLIS THORNTON
lines Special Writer.

Taxpayers WHO FlSlOn Lle
government as wading into a
hopeless swamp of debt needn't
be alarmed unduly. Taxpayers
who see the future as an endless
parade Of higher and higher fed
eral taxes may take hope.
The debt being piled up in
fighting for recovery is not yet
hopeless.
The trade upturn which has
been ray Of daylight to many a
business man also has begun to
put little lining in your Uncle
Sans fiat pocketDook.
His income is increasing, and
increasing so healthily that the
state Of his pocketbook is rather
favorable than not"
You may take the word of L. H
Parker for that. He's chief of
staff of the joint committee on in
ternal revenue taxation, and it's
he who supervises the gathering
of information on which con-
gresSmen later base tax policies.
And Mr.. Parker feels that, so
far as incoming revenue is con-
cerned, the governments situa-
ton is distinctly hopeful"
Todays deficits have two causes.
It's not only that Uncle Sam is
spending money like water in
fighting the depression. That's
but one side of it. The other side
is that, as business stagnated, his
income fell off sickeningly.
That's the side that's picking
up as business picks up. Here's
how it works: Miscellaneous in
ternal revenue taxes mot includ-
ing the income tax put $3.50, 49,
ia into the federal purse in Oc-
tober. In August they produced
S135 100000. Compare that with
August, 1882, when they produced
S64OO0,000.
TAKE a typical case Of such
Il tax. the tobacco tax. The rate
hasn't been changed for years.
Therefore, the proceeds from it
make pretty good index of bust
ness. In August, 1888, it Melted
Uncle Sam S4O700,0O0, compared
to $35 100000 in August, 1882,
That's a better than 100000
dividend to Uncle Sam through
business recovery in single
month, and it's been increasing
steadily ever since April.
The playing card tax 90 cents
a pack Melted $501, 000 in August,
1888, compared to $264,0O0 in
August, 1882, nearly double.
That gives you a picture Of how
Uncle Sam stands to gain from
every increase in business that he
can foster.
Very son now, further income
should begin to pour in from
liquor Estimates vary. Mr.. Park
er believes it should bring not less
than $5O0,0O0,O0O every year, and
some optimistic estimates have
gone as high as a billion. 1t all
depends on how much liquor is
used, and on how high the tax can
be set without starting excessive
bootlegging.
Four taxes now on the books
the federal additional half-cent
tax on gasoline, and the dividends,
capital stock, and excess profits
taxes of the NIRA-are automat-
ically repealed as soon as prohi-
bition is dead.
But, despite this, the net tax
gain to the government every year
should be at least $280,000,000
through liquor taxes.
Further, it seems likely that the
income tax reached an all-time
low in receipts for the fiscal year
ended June 80, 1933-$62O 100000
Under the highest peace-time
rates ever set. Compare that with
income tax receipts of $685.
100000 in fiscal year 1920 and
$3,228,000 900 in fiscal 1921, when
only slightly higher rates pre-
vailed.
Either of these tremendous COL
lections would have paid in cash
for the $1,000, 100000 public works
program which is causing concern
as a high public expenditure.
DUT the income tax sagged
- especially since 1929. 1t was a
little more than two billions in