Evening star., 1936-11-20
Taxes
Continued From First Page.)

been drop of per cent in Gov
ernment expenditures in that period.
Il hope that by the fiscal year
1888 the budget will be balanced" !"
said Harrison. THE receipts from
taxation have far exceeded the esti-
mates"
The Mississippi Senator expressed
the opinion that there would be a
considerable reduction of govern
mental expenditures.
Emergency Agencies Cut Foreseen.
II believe that because of the great
rational decrease in Government ex-
penditures for certain activities of
emergency character" he continued.
Il am sure the country will welcome
as great curtailment Of expenditures
as the rational needs and demands
OF the country will permit
AS employment goes forward in
private industry, there can be a CORE
spending decrease in expenditures to
care for the unemployed"
Harrison said he believed the Gov
ernments housing activities were ad-
mirable He mentioned particularly
the operations Of the Federal Housing
Administration. He had good word
to say for the Public Works Admins
tration, and added that he believed
Congress would appropriate money for
many of the worth while projects
which have been approved under that
administration, but which have not vet
gone forward.
He saw retrenchments particularly
in the w. P. A. and the Resettlement
Administration.
Harrison was outspoken in his oppo-
sition to plans for new spending.
Any policy looking to new expendi-
lures by the Government" he said
will be scrutinized carefully and sup
ported. If at all, grudgingly"
Harrison said that the committee's
tax experts are working now with the
experts of the Treasury in the study
OF possible tax revision. He expects
he said, to get joint committee to-
oSsAiCA Al washing tOil SUIilc Illllt III
December. The work of the committee
will be to determine where inequities
exist in the present tax laws and to
recommend corrections. 1t will look
also, for instances where the costs OF
administration of certain taxes are toe
high to warrant their continuance. II
such taxes are found they will be
eliminated.
There will be no changes in the cor
porate surplus tax law at the coming
session, he said The administration il
anxious to see the law in actual opera
ton before it changes 1t in any respect
Furthermore, it needs the money.
Some Companies to Be Aided.
"In my opinion that law is goine
to work out all right" he said. There
will, however, be study of the pro-
visions with view to trying to present
q more liberal basis of taxation in the
case Of corporations which are in debt
or have obligations. No doubt some
corporations had to pass through
many lean years. They found it neces-
sary to borrow money to continue To
operate. 1t seems rather hard that,
when they have just one good year
they should be forced to pay heavier
tax, when they have already paid
much money out to reduce their debts
We tried to make some adjustment to
meet such cases. But the time was
short It was a difhcult problem. The
experts desired more time to work
1t out"
Harrison said that any change III
the law would not be effective for the
year now closing. Those taxes will
have to be paid.
Another possible change In the Law
that may be considered. Harrison said
is q provision to encourage moderniza-
tion or rebuilding Of plants. Such q
provision would grant more liberal
tax schedule for corporations under.
taking such work.