The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-01-06
/ TO 3BI[[ION relief deficit
ISF0RECAST BY PRESIDENT
IN annual BUDGET MESSAGE
National Debt to Be 81 Billion, He Says;
Proposes Balanced Figures for Regular
Expenditures During 1897.
Continued From Page One)

Congress we're made up of total of
So, 1856, 100000, the total gross def
cit for the fiscal year 1897 would
not exceed that of 1886, which was
the lowest gross deficit of the last
three years.
Therefore. it follows that by
whatever amount the appropriation
for work-reief at this session is
less than S2,136, 100000, the gross
deficit for 1887 will be less than the
deficit for 1886 by the same amount.
Il do not anticipate that the
need for additional relief funds will
be as great as that sum-"
Formal Estimate Difficult
Mr.. Roosevelt said it would be
difficult to make a formal budget
estimate now of the sum which WI!
be necessary for work-relief IN the
fiscal year beginning July l. He ex-
planned that the New Deal had only
too recently reached our goal of
putting 100000 people at work;
and the beneficial effects from this
program and from increasing ex-
pendltureS on public works can not
be foretold- as accurately today as
1t can two months from now"
L shall transmit such estimates"
Mr.. Roosevelt continued, with far
greater knowledge and, therefore.
with greater accuracy in sufficient
time before the adjournment of this
session to give the Congress full op-
portunity to examine into the sub
Ject and to make necessary appro-
priationS.
The budget message generally fo,-
lowed the trend indicated last Sep
TENDER when the Treasury revised
It's estimates of the previous Janu-
airy to show that expenditures were
slowing and Federal revenue was
continuing to increase. Mr.. RooSe-
Velt emphasized that there was "a
substantial decrease in the spread
between income and outgo" reflected
IN moderated estimates of the pro-
Spective national debt during the
next 18 months.
Present Rates Adequate
THE state of national recovery is
such" said Mr.. Roosevelt, that re-
ceipts from prevailing tax sources
on the basis Of present rates appear
adequate for financing the ordinary
operations of the government in
1887, including service on the pub
lie debt. No new taxes are pro-
posed"
The President explained that the
increased income tax and similar
revenue should be attributed largely
to the old tax rates prevailing be-
fore personal and corporate taxes
and the estate tax were raised last
session.
He said revenue under the high
or schedules, applying only to larg-
er incomes and fortunes, would pro-
duce but 1922 100000 of the esti-
mated 1887 revenue. Mr.. Roosevelt
attributed swelling, revenue to in
creased earning power and profits
fostered by his recovery and relief
policies.
Income Tax to Gain
Typical of improving Treasury
conditions were the income tax
which produced $1,000 100000 in
1895 compared with $1,942,0 DOC
expected during the next fiscal
year; the alcoholic beverage tax,
which is estimated to hit a record
high of $3.50, 100000 next year COM
pared with SAIL, 026,000 in the 1885
fiscal year, and tobacco taxes which
broke all records with $44 900 900
more revenue than in any previous
year.
Expenses also are mounting. not
ably the charge for war veterans
pensions and benefits which will
be $790,05800 in the next fiscal
year compared with $605 $4,000 in
the fiscal year ended last June 30.
The current fiscal year data re-
flected improved business condi-
tionS in forecast tax receipts which
will aggregate $419,000,000 more
than the Treasury expected when
original estimates were complied a
year ago.
New Sources Tapped
Continuing the favorable picture
of the 1886 fiscal year as of today
compared with year ago. Mr..
Roosevelt said the New Deal had
spent 1915 100000 less than the So
100000 which had been Sched-
uled for disbursement during that
period. Most OF the decrease rep
resented a lag of $738,000O00 in re-
covery and relief expenditures The
gross deficit for the current fiscal
year, instead of aggregating $4,-
529, 100000 as Mr.. Roosevelt expect
ed, has shrunk to a prospective def
cit of SO 234.0O0,000.
The President emphasized that the
gross deficit was diminishing year
by year while receipts, expenditures
and the public debt continue to rise
he predicted that, ultimately, the
ascending receipts and descending
expenditures lines would meet and
cross establishing a balanced budget
in all departments of Federal
spending.
The neXt-to-record annual income
expected by Mr.. Roosevelt in the
1887 fiscal year will be achieved with
the aid of three new tax sources
tapped by the last Congress: Social
security payments, expected to ag-
gregate s433, 200,o 900; bituminous coal
conservation tax receipts, $12. 800, 900,
and tax contributions under the
railroad pension act, $101, 100000.
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