The Republican. [volume] (Oakland, Md.) 1877-current, 1936-01-23
New Deal Spending and the
Future Tax Burden
Speech of Representative Allen 7
Treadway, of Massachusetts

Present and prospective taxes will
be one of the most important issues
in the approaching national election.
No question more directly or more vi
tally affects the nation as whole.
The money the Government spends
must necessarily be collected from the
people in taxes of one form or an
other-imposed at one time or an
other. No one escaped their burden.
Those taxes which we do not pay di-
rectly are hidden i'm the cost of the
things we buy. When the Government
resorts to borrowing to meet current
expenditures, it does not thereby
avoid the necessity of taxes; it merely
postpones the evil day.
Inasmuch as the present New Deal
Administration has been the most
prolific spending administration in
peacetimes in all our history, it fol-
lows that the taxes which must be
imposed to pay for its unprecedented
spending must be higher and more
burdensome than ever before.
We can only realize the enormity
of the Administrations reckless ex-
travagance when we consider that it
has cost the people as much as was
spent during all the administrations
from President Washington to Presi-
dent Taft, inclusive. The annual re-
ports of the Treasury Department
show that the expenditures of the
Government in this 125-year period
were $24,521, $4,000. President Roose-
welt has spent an equal amount since
March 3, 1888.
Present Taxes Insufficient
The numerous income and excise
taxes now imposed by the Federal
Government are only sufficient to pay
one-half the cost Of the New Deals
profigate spending program. In the
first half of the current fiscal year,
the Treasury had collected 81 ,002, 900,
900 and disbursed $3,782, 100000. This
practice of spending So for each 81
collected in taxes has been going on
ever since the present New Deal Ad-
ministration took Office, and will have
resulted in an accumulated deficit of
$1,000, 100000 in the three-year per-
iod between July l., 1888, and June
80, 1886.
With Federal, State and local tax
collectors now taking one-fifth of the
national. income, the tax burden al
ready is too great. But if we think
we are heavily taxed at present, then
let us consider what our burden will
be when Congress starts levying the
taxes necessary to pay for the wild,
wanton and wasteful spending spree
of the New Deal. When that day ar
rives-ard it is not far off-we will
really have something in the way of
taxes to complain about.
Moreover, we may expect this tax
load to continue for many years to
come. Even future generations will be
called upon to help pay for present
day extravagances, in addition to as
suming the burdens which their own
times will bring.
In this annual message to Con-
gress on January Sd, the President
stated that 1--WE approach balance
of the national budget" and asserted
his "belief" that no new taxes would
be necessary. How the President can
feel justified in making such a state
ment do not know. In the fiscal year
1884, the Budget was $4,00O,000,00O
in the red; in 1885, $3,600,000,0OO;
and this years estimated deficit will
be in the neighborhood of $1,000, 000,-
900. The Presidents Budget Message
for 1887, which has recently been pre-
scented, indicates a further deficit of as
much as $3,OOO,OOO,0OO. Thus it does
not appear that there will be a balance
of receipts against expenditures for
some time to come.
Budget POstpOnements
Every year since he has been in
office, President Roosevelt has kept
postponing the date for balancing the
Budget. 1t has now gotten to the point
where he is only willing to say that
we are approaching" a balance. All
idea of a definite date seems to have
been abandoned.
Even when balanced Budget has
been realized, whether by decreased
expenditures or increased taxes, the
taxpayers will still have to pay off the
accumulated national debt, which now
stands at the unprecedented total Of
301s billions of dollars. It will take
more than Presidential smile to wipe
out this tremendous obligation. The
interest on the debt alone amounts to
$8O0,000,000 annually, which is more
than it cost to run the entire govern
ment when I came to Congress some
% years ago.
So far aS the Presidents nromise