Evening star. [volume] (Washington, D.C.) 1854-1972, 1936-02-21

BY the Associated Press.
President Roosevelt said today the
tax bill to finance the new farm pro-
gram would be formulated finally after
his return next week from his home
in Hyde Park, N. Y.
He added that conferences with the
heads of Government spending
agencies would continue through April.
Discussions with the officers of the
Government lending units, Mr. Roose-
welt told newsmen, have about been
completed.
A billion-dollar cancellation in
authorized borrowing has been prof.
ected by the President, but he has
given no intimation of what may be
accomplished in the way of curtailing
Greet expenditures.
Business Gain Expected.
Noting rise of S38, 626.l26 in
ordinary internal revenue collections
last month, as compared with January,
1885, congressional tax advisers gave
figures to show that with a further
upSwing in business the present tax
rates would pour much more money
into the Treasury than it ever received
in peak prosperity years.
One congressional tax expert said
that present levies, applied to earnings
approximating those of 1929, would
produce s6,76s, 100000 annually. Total
revenue receipts recently have been
running at the rate of about $4,000
100000 year. almost as much as the
receipts in 1929, when the tax struc-
ture was different.
These figures were welcome to Con-
gress members who have been arguing
that sizeable new tax levies are not
necessary, despite the deficit, relief
demands, passage of the bonus and
the wiping out of A. A. AS processing
taxes by the Supreme Court.
Despite the gain in ordinary internal
revenues, the shutting-of of processing
taxes led to net drop of $4,000 900
in January. 1886, as compared to the
previous January
Democrats Hold Caucus.
An unannounced caucus of Demo-
Gratis on the House Ways and Means
Committee was held yesterday. Chair
man Doughton, Democrat. of North
Carolina, said it dealt with routine
matters" although other congressional
sources said the January revenue re-
port, showing improved business was
discussed. Legislators heard with in
terest that Treasury experts figure on
a Is per cent gain in income tax
collections next month, compared with
March. 1885.
Despite wide sentiment in Con-
gress against tax moves now, there
was no indication that Senate lib
erals" would abandon their plan to
seek new levies. Senator La Toilette,
Progressive, OF Wisconsin. plans to de-
mand further widening of the income
tax structure, to tax the wealthy more
ana levy on several million smaller
incomes now exempt.
In January total internal revenue
collections We're S183, 765 ,037, as COM
pared with $l94,365,65O in the same
month a year ago. The comparative
processing tax receipts were $3.50, 295
and $52,oo7,134, respectively.
Receipts Show Gain.
Treasury officials said that for the
nrst seven months of the fiscal year
which began last July l Internal Rev.
enue receipts amounted to $751;
038, l39, compared with S1,731 ,844573
IN the comparable period a year
previous.
This gain was registered despite a
slump of $250.183,86l in processing
taxes. Part of this slump was due to
the fact that courts impounded much
OF the processing levy, which SUISSE
quently was ordered returned to
professors.
Following up his assertion that this
refund, ordered by the Supreme Court,
was the greatest legalized steal in
history" Secretary Wallace struck at
1t again yesterday. In a report to
Senator Norris, Republican, of Ne
braska, he declared professors had
already collected "the equivalent Of
the impounded taxes from consumers
or producers"