Evening star., 1936-09-02
TEXT OF ROOSEVELTS BUDGET STATEMENT
Loss Tax and Increased
Burden o Immediate BonusP
Nv the Associated Press.

the estimates of revenues ana expenol-
lures which have occurred since the
1887 budget was transmitted to Con-
rress in January, 1896. Two outstand-
ing events have taken place since that
time which have materially affected
the receipts and expenditures OF the
Government. The first of these was
the decision Of the Supreme Court de-
claring the agricultural adjustment
act unconstitutional, as a result OF
which the Government lost substantial
revenue from processing taxes. The
second was the passage by the Congress
of the adjusted compensation payment
act providing for the immediate pay
ment at their face value of the vet
erans' adjusted service certificates,
which by their terms were not due un-
til 1945.
Cites $452, 100000 Tax Loss.
As q result of the Supreme Court de-
cision the estimated revenue from
processing taxes for the fiscal year 1896
was reduced by $452 100000. up to
the time Of that decision, the Agricul-
tural Adjustment Administration hao
expended in accordance with law the
sum of $325, 900 900 and had made sub
stantial commitments for additional
expenditures in anticipation OF revenue
from this source. To provide for car
rying out the moral obligation Of the
Government with respect to the COM
mitments already entered into with
farmers and which on their part had
been at least partially performed, Con-
eress appropriated $296, ,0o0, 600.
BY the enactment of the soil con-
seryation and domestic allotment act,
which included authority for an annual
appropriation of not to exceed $780,
900 900, Congress provided new farm
program to preserve to the farmers the
benefits of fair and adequate prices Tor
the product Of their labors.
The passage of the adjusted COM
pensation act caused an increase In
payments to veterans for the past
year of $1,674,o00,0 900 and will result
in further payments estimated at
$3.50, 900 900 on this account during
the present fiscal year.
Revenue Reimbursement Asked.
To meet the additional require
ments of the Treasury on account OF
these expenditures, the Congress was
requested to provide sufi1cient addi-
tional revenue-O) to make good the
loss of processing taxes in the fiscal
year 1886, (2) to defray the annual
cost Of operation of the new farm pro-
gram and (3) to amortize over
period of nine years the cost of pay
ment Of the adjusted service certih-
Gates.
The revenue act Of 1886, enacted
BY the Congress in response to this
request, will produce, on the basis OF
estimated business conditions for the
calendar year 1886, annual revenue IN
the amount OF $652,000, 900. For the
fiscal year 1887 the amount OF this
revenue will be only $328. .000, 900. since
onlv the first and second Of the quar-
terly payments Of income taxes under
this act will be made to the Treasury
within that year. For the same year,
however, there will be non-recurring
revenue OI S0E,UUOyVOV AA0hA WAN ~
called windfall taxes.
Review Of 1886 Fiscal Year.
The total receipts amounted TO $4,-
l15,956,615, against the estimate In
the 1887 budget of $4,410, 1885, ,946, q
net decrease Of $2s4,sS7,331. After
taking into consideration the loss IN
processing taxes of $452. 100000, re-
ceipts from other sources amounted
to SIS, 100000 more than was esti-
mated. Total receipts showed net
increase Of $4,000, 900 over those
for 1885, and receipts from sources
other than processing taxes showed
an increase over 1885 of $760, 0,o00, 600.
The total expenditures of the Gov
ernment for the fiscal year ended
June 80, 1896, amounted to $685.
79s,25S. The estimated expenditure
shown in the budget Of last January
of $7,645, ,301, 1888 did not, OF course,
include $1.764, 100000 for adjusted
compensation payments. Except for
these payments, the expenditures
would have been about $439, 0,000
less than the January estimate.
The deficit for the year amounted to
a, ,763, BAL ,642, which included $403,-
24o,150 for statutory debt retire.
ment. Deducting this amount leaves
q net deficit of $4,360, SOL ,492. The
estimated net deficit as shown in the
budget of last January was $685.
482 1872. Had 1t not been for the
invalidation Of processing taxes and
the passage Of the adjusted compen-
sation payment act, the net deficit
would have been less than the January
estimate by more than $400,000,0 900.
The public debt increased during
the year $5,077, ,65o.869, but in that
time the balance of cash in the gen.
eral fund of the Treasury likewise
showed an increase of s840, 0,164, ,664.
Forecast for 1887 Fiscal Year.
Total receipts in the fiscal year
1887 are now estimated at $685.
S39 900, q net increase of $4,000, 900
over the amount Of the 1887 budget
estimate. The estimated increases in
general revenue more than Offset the
revenue losses, due In part to the in
valuation of the special taxes levied
under the provisions Of the agri-
cultural adjustment and bituminous
coal conservation acts, and in part
to the method finally adopted for
collecting taxes under the social Sc
curity act which will defer to the fiscal
year 1898 the collection of a portion
Of these taxes. The losses from these
causes amount to $668, ,000, 900, which
ere slightly more than offset by the
following estimated increases in
revenue: Sale, 100000 Gncluding $82,-
000, 900 from the windfall taxes) re-
sulting from the revenue act of 1896;
$33 .000, 900 from delayed collections of
taxes on carriers and their employees,
and $237, 100000 constituting an up
ward revision of revenue estimates due
chiefly to improvement in business
conditions.
The expenditure requirements for
the fiscal year 1897 are now estimated
at e7 7S2 23k ann which fY,ei1,des ts6fl