The Waterbury Democrat., 1936-01-24

|livered to the middle bracket and acwer income tax paying groups.
 Small Incomes May Pay \ That means, that persons whose |incomes range from $5,000 to $25,- 'OOO Q year will carry most of the Traditional burden. The alternatives are sales tax of some kind or new .processing taxes. There is some con- Rressional sentiment for higher tax ieg in the higher brackets. But United Press inquiry. indicates that lsentiment has diminished since MT. Roosevelt increased top bracket 1evies last session.
 E It is understood that the treasury Kbelieves the maximum of income tax revenue from the wealthy will DC obtained from the new rates and tthat the fattest Income tax field lyet unharvested lies in the middle And lower brackets. It is estimated informally that if business returned &c 1928 levels the existing tax rates would garner approximately &e,OOO, ,00O, 900 annually. MT. Roose- welt forecast in his budget message kIist they would raise $5,654, ,000. 900 3n the next fiscal year. Since, That brediction the supreme court out .Aawed the Agricultural Adjustment Act. That clipped $547, 1000 from Mfr. Roosevelt's rosy preview of the next fiscal year. Processing taxes Nhs such were not held upconstitu- kional. The ruling was, merely, that they could not be used to induce crop control.
 Farmers ssOO,OoO,OoO
 4 It is estimated that new farm re- lief costs and the expense of pay iang outstanding moral obligations" under AAA will approximate $800,- 900, 900. The caSh-bond bonus bill will require new funds aggregating .&2, ,237 ,000, 900. MT. Roosevelt is ex- .pected to ask for Q $2,000, 900, 900 new relief appropriation.
 4 His budget message said this re- Nief item would be added to the national debt. That is, Mir. Roose- welt will issue bonds to raise the Anoney. But he has stated repeated " that any reduction of AAA in- GOlne would have to be compensated 8cr with additional revenue. And when congress passed the bonus biil without providing revenue tC meet the obligations, 1t did so in kpite of direct warning from Mir. Roosevelt that he would insist on faxes to meet any unbudgeted ex- penditures.
 Certain to Veto Bill
 It appears certain, therefore, that 11e will veto the bonus bill and Recommend new revenue if congress 1nsists on passing 1t over his veto. Responsibility for new taxes to pay the bonus will fall upon congress Whether MT. Roosevelt or the su- preme court will be charged by popular opinion with responsibility for new taxes to pay the cost of Agricultural relief is not yet evi- dent.
 Tn any event, congressman up For reelection will be able to tell tae voters they merely followed the White House if they vote new levies Gor that purpose.
 There is no certainty, of course, Ehat MT. Roosevelt will ask for ad- giitional taxes. The treasury pre- 6umably will urge him to do so. His congressional advisers probably will urge him to stall for time until &he election is over. The final de- Dision is distinctly Q matter for &he president.
 Three Billion Piled On
 ' In reaching his decision the nresident will ponder the fact that within three weeks after presenta- ton of his budget message the con- &ress and the courts have added more than $3.0O0, 100000 to the irrespective deficit for the current Fiscal year.
 1 This has caused anxiety in high places over the effect so much ad- Hitional borrowing might have on Government credit. If the addi- fionaI expenditures are made the money can come from two sources
 -borrowing on tax revenue. Mir. Roosevelt has some discretionary &nthority to issue paper money. Eut he does not want printing press zloney and has no authority to issue &aough of 1t Co meet the new ehlIgstions created by congress and *Iie supreme court.
 The argument in behalf of new &6xes to pay some or all of the Unexpected federal expenses B
 xedicated on necessity for protect 1ng government credit. ii the peo- 1'sa' faith in the dollar begins to E'ide the eovernment,s credit would
 Ido With iinpredictable c0nse-
 IsHraeM