Evening star., 1936-01-06
THE FISCAL PROGRAM OF 1887

Postal revenues for the fiscal year 1886
are now estimated at $50 ONO. 600 whicn
is S25. .O00O 900 over the original estimate.
THE FISCAL PROGRAM OF 1887
There Is presented here brief fac
tual resume of the principal features cf
the budget for the fiscal year 1887. tive
details Of which appear in subsequent
text and tables. A few high points
stand out and justify emphasis.
without impairing the ability of the
Government to carry on its normal
functions and to prosecute tLose activi-
ties essential to continued recovery, the
budget reflects a substantial decrease
in the spread between income and out
go. This is consistent with the predic-
tiop made in the budget message year
ago and is possible because Of progrss-
Sive improvement in the economic
status of the people. -he state of ma
tional recovery Is such that receipts
from prevailing tax sources on the
basis of present rates appear adequate
for financing the ordinary operations
of the Government in 1887. including
service on the public debt; and no new
or additional taxes are proposed.
New Appropriation
Items Total $685., 100000.
Legislation enacted by the first ses-
sion of the Seventy-fourth Congress
makes 1t necessary to provide in the
1897 estimates new appropriation items
aggregating S667, 100000. This total
will become approximately s767.0O0.-
900 should the Congress reject the rec
ommendation. hereinbefore offered,
for repeal of that part OF the agricu.-
tural adjustment act which appropr:-
ates a sum equal to 80 per cent of GUS
toms receipts to the Secretary of Ag-
riculture.
Legislation enacted by the first ses-
sion also permits including in these
estimates a total of s769 .00c 900 of ad-
ditional receipts, of which about 20 Der
cent will accrue under the bituminous
coal conservation act. the act levyins
taxes Upon carriers and their employees
and the social security act. 1t is
worthy of note that but slightly less
than 80 per cent of this increase will
be derived under the revenue act of
1885. This act, it will be recalled,
slightly increased taxes on individuals
whose net incomes exceed $50.000 per
year; slightly increased estate taxes on
larger fortunes, with corresponding
increase in gift taxes; and in respect
of corporations, decreased taxes on net
earnings of small corporations while
increasing in relative ratio the taxes
on net income of larger corporations
The act also provided for an increase
In taxes on capital stock and on excess
profits of corporations. The effect of
the excess-proflts tax was to increase
taxes on corporations which earned in
excess of certain percentages Of their
adjusted declared value of capital
stock.
Revenue OF These Taxes
To Be Only s222,oO0.o0o.
The total revenue expected to be
produced by these taxes In the fiscal
year 1897 will be only $222. 900 900, or
IL per cent, over the income, estate.
gift, capital-stock, and excess-profits
taxes under the old law. Since col
lections in the fiscal year 1897 from
income taxes and the estate tax only
partially reflect the revenue act of 1888,
the above amount will be somewhat
larger on a full year basis.
A Federal public works program OF
$405. 600, 900 is recommended to meet
in part the development and improve
ment requirements of the Government.
and as a proper Federal contribution
TO work opportunity. While this oro-
gram represents an increase of about
$187, 900 900 over the amount for SIM
liar purposes for which the Congress
made specific appropriations for the
current fiscal year. It is $685., ,000.0 600
less than the total amount made avail
able for Federal public works In 1895.
considering allotmeuts made from
emergency funds.
The success attending the operations
of the Civilian Conservation Corps anc
the Agricultural Adjustment Admins
tration under emergency status justi.
fies taking them into the budget and
program for 1897 as regular activities.
and the estimates of appropriations
and expenditures have been prepared
accordingly. The appropriation rec
commended for Civilian Conservation
Corps is for the period March 81, 1886.
to March 81. 1897, and amounts to
Aols ann nnn wl,iis ft,A sps,ro,riation