Evening star., 1933-12-03
TREASURY STUDIES
NEW TAXES AS j. s.
|DEbT NEARS PEAK
Administration Refinancing
Policy Shaped as Dollar Re-
valuation Continues.
BY the Associated Press.

Special taxes die with repeal, liquor
taxes come to life, and the Treasury is
carefully balancing revenues thus lost
against those gained in deciding what
tax rates shall be recommended for en-
actment at the coming session OF Con-
gress-
Yesterday officials noted an increase
in the public debt to the highest point
since wartime borrowing carried it to
its all-time peak, closed their books on
the offer to exchange fourth liberty
loan bonds for the October issue of
l2s and made ready for the customary
mid-December financing, involving the
refunding or more than s70O,000,000 in
maturing obligations.
At the same time they held the price
of newly mined domestic gold station
ary after three increases in as many
business Gays, which carried the quo
tation 25 cents upward for the week to
its highest level since the gold oper-
ations began.
A Special Treasury Committee headed
by Assistant Secretary Hewes is at
work on the tax recommendations. In
dications have been that it is con-
cerned principally with income taxes
with the primary object of providing
an indiSputably balanced budget for
the fiscal year which ends July l, 1885
Try at Balance,
A key piece in the jig-saw puzzle of
Federal finances which the committee
is attempting to fit together is the
amount of revenue from the special
taxes which will be lost soon, as COM
pared with the income to be derived
from legaliZed liquor. In making this
comparison, they have only estimates
with which to deal.
The special taxes are: One-half a
cent a gallon on gasoline, and S per
cent on dividends, both of which expire
January /; tax on corporations of 81
for every $1,000 of capitalization. which
expires at the end of the present fiscal
year. June 80; and levy of per cent
on corporation profits in excess Of 1212
per cent of capital structure. This be-
comes ineffective upon the beginning
of each corporations fiscal year follow
ing repeal.
The estimated yield Of the special
gasoline tax is $62000,000 year, the
| dividend tax, $4,000. 900, and capital
stock and excess profits tax combined
! $50 900 ,O00-a grand total of S212,-
100000. Liquor taxes are estimated to
yield $3.50 900 900 to $325 900, with
| $500. .00O,0 the unoficially, but most
| generally mentioned figure. From these
figures, it would appear that the Govern
ment stands to gain about $50, 600 900
However, the problem is not so simple
the difficulty lies in gauging the income
from the special taxes as they expire
To guide 1t, the committee has figures
| showing collections for the first foul
months of the fiscal year. These showed
yield from the gasoline tax OF $26,-
$4,000 as COMPARED with original estl-
mates of S2o,666000 for that period
dividends. $11 ATT 900 against estimate:
of S23 1888 900. and capital stock anc
excess profits S78,921 900, far above the
expected yield of $26 ,666o0o.
Levies As Sinking Fund.
The special taxes were levied in the
recovery legislation Of last June to pay
| interest and provide a sinking fund fol
| the bond issues authorized to finance
the s3,3O0,OOO,0O0 public works program
Looking forward to liquor revenues
| Congress stipulated that the taxes should
| expire as outlined after prohibition was
repealed.
AS a result, Treasury officials said that
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