Evening star., 1934-03-29
NEW TAXES HELD
LIKELY TO FINANCE
PAy-YETERAN COST
Byrns Says Roosevelt May
Ask Levies to Meet
Expenditures.
s228, 100000 IS SEEN
IN EXCESS OF BUDGET
Denies President Suffered Worst
Defeat in Recent
Years.
By the Associated Press.

Representative Byrns, the Demo-
cratic leader, told newspaper men to-
day it was entirely possible" that
President Roosevelt would ask new
taxes to meet expenditures caused by
passage of the independent Offices bill
over his veto.
The measure, providing additional
appropriations for war veterans and
Government employees. was enacted
into law last night when the Senate
joined the House in overriding Presi-
dent Roosevelt's wishes.
1t was estimated by the President in
his veto measure that the expenditures
authorized by the legislation would ex-
coed budget estimates by S228,000.0c0.
Il do not know the Presidents
plans" Byrns added, but in view of
the potion he expressed in his veto
message it is entirely possible that he
will ask Congress to provide additional
revenue.
IF the Congress wants tc help the
President balance the budget it would
look as though it would have to raise
additional taxes
1t was pointed out. however, that
new taxes or increased rates might
be added to the tax bill already passed
by the House and now pending in the
Senate.
Laughs at G. o. P. Claims.
Byrns laughed at Republican state
ments that President Roosevelt has
suffered the worst defeat in recent
years" on the independent offices bill.
Why" he asserted, only four years
ago last June. the House passed, 29O
to IA, Spanish War veterans pen
sion bill over President Hoover's veto
president Hoover got only IA votes;
President Roosevelt got 72.'
Now that Congress has gone con-
trary to the President on disability
compensation. leaders of the veterans
bloc hope to push to Senate decision
the House-approved bill to pay the
S2.2OO,OOO 900 soldiers bonus with
new currency.
The measure is before the Senate
Finance Committee. Chairman Har-
rison, who has been busy getting out
the new tax bill, has given no indi-
cation when the committee might take
up the bonus proposal.
The S228,000. 900 voted by Congress
will be felt by the Treasury most
heavily in the next fiscal year and the
year after.
In the current fiscal year, which
ends June 80 Mr. Roosevelt has estl-
mated deficit exceeding S7,0OO,OOO,-
600. A slackening rate OF emergency
spending, however indicates a deficit
far below estimates.
Effort Accomplished.
The administrations effort has been
to hold routine Government eXpendl-
lures within ordinary receipts. For
the fiscal year through March II, THIS
had been accomplished
Receipts were S2,294,874,0 900 and
general expenditures, Sl,986 ,8o2' 2'0Oo.
as compared with year-end estimates
for these respective figures of $685.
$4,000 and $3.50, 100000.
If the salary increase and veterans
payment boost should throw routine
expenditures above receipts, 1t appar-
emily would be by narrow margin.
but would operate to unbalance the
routine Government budget.
The decline in emergency spending,
however. would more than offset the
difference Estimated to exceed ST.
O0O,O0O,OO0 during this fiscal year,
emergency expenditures have reached
only s2,785, ,929, 900, and just little
over three months remain in the fiscal
period.
In the 1885 fiscal year, when most
of the 1928 ,0o0O will be spent. the
President estimated a deficit of ST.
986,133,0OO. In the 1886 fiscal year,
he said, I'VE should plan to have a
definitely balanced budget
Treasury officials explained emer-
eency spending is being directed on
two-year basis. and that any uneX-
pended portion of the $1,000, 100000
estimated for the current fiscal year
would be used in the new fiscal year.
Would Increase Debt.
Regardless of how far actual outlays
fall below estimates this year, this
policy still would drive to the public
debt from today's figure of $2s, s,138,-
$4,000 to S31 1874, 100000 on June 80,
1885.
Another element in the Treasury
picture is taxes. Budget eStlmates
took no account of additional revenue
which might be obtained from the
increase in liquor taxes which became
effective in January or the income tax
tightening measure now pending.
Senators estimate this bill will add
s33O,0O0 900 annually to revenues.
Treasury estimates were believed TO
be somewhat lower, but the Dill still
might absorb some OF the new vet
erans' and salary costs.
Revenue estimates for 1885 were
given in the budget as $3,974, sos 600.
Increased liquor revenues and the
new income tax measure were ex-
pected to push this figure well over
$4,000 100000.