Evening star., 1937-12-01
The Alternatives.


President Roosevelt, in conformity
with his intention of balancing the
Federal budget, has sent to Congress a
recommendation to apply the ak TO
highway appropriations 1t seems to be
. reasonable request. The President does
not propose to call halt on Federal
appropriations for roads. Far from it,
He proposes to spread an authorized
expenditure of s238, 900 for the fiscal
year 1888 over two years. He asks Con-
gress to repeal its authorization of
similar amount for the fiscal year 1899
and not to exceed $l25, 5,OO0, 900 in high
way authorizations in any one year
thereafter.
The road builderD in the Senate and
IN the House are Immediately up in
arms. They insist that the road pro-
grams planned by the States would be
disrupted seriously. Well, that may be
the case. At the same time it is
more serious and disruptive to keep the
Federal Government in the red; to spend
money which the Federal Government
does not have. They argue. too, that
highway building is the most direct way
to give relief to unemployed labor
Again they may be correct. But that
does not necessarily mean that the
President should be halted in a serious
effort to bring Government expenditures
into balance with its revenues.
1t has been increasingly apparent that
Al efforts to diminish Government
spending would meet with opposition.
Already the Mayors of Americas largest
and most prosperous cities have been
heard in criticism of reduced relief ap-
preparations. Now the voice of Con-
gress is being lifted-or at least con-
siderable bloc in the House and Senate,
the road-builders bloc There will be
other such blocs and if they form an
alliance. the President may find himself
checked in his determination to bring
balance to the budget. His only re-
course would be veto. And only when
the President has vetoed large appro-
priations or authorizations of appro-
priations has he been overridden by the
Congress. The soldiers bonus was a case
In point.
There is in Congress, however,
nucleus OF opposition to the continuance
OF huge Government spending. It
should stand firmly back of the Chief
Executive and even take the lead in
this fight to reduce expenditures.
Congress faces alternatives which are
not cheerful-from the point of view
OF men who are up for denomination
and reelection within few short
months. The first is to balance the
budget by cutting down the spending.
The second is to balance the budget by
raising more money through taxation.
combination of the two processes
might be tried with good effect
Under the leadership of the admin
astration, Congress has sought to raise
billions OF dollars by levying more and
more taxes upon business and upon
those persons who have wealth. Some
OF these taxes have been so injurious to
business and to employment of labor
that Congress is now panicky, with good
cause, over them, and is urging a repeal.
The discovery is being tardily made that
tt is still possible to kill the goose that
lays the golden egg.
What remains? The income tax base
may be broadened, so that millions of
men and women who now escape ali
direct Federal taxation will make their
annual contribution to the upkeep of
the Government. They do a great deal
today through indirect, or hidden taxa
ton. But they are not conscious"
And to be tax-conscious is to keep tight
grip on the xpenditures-through the
ballot-of Government Senator La Fol-
lette OF Wisconsin, an advocate of Gov
eminent spending for public works, has
had the courage to advocate a broaden
ing of the income tax base. At least
he is willing to let the people know that
If there is to be spending, they must
also pay for it.
The broadening of the income tax
base in order to make the people under
stand where all the money comes from
which the Government spends lavishly
would exercise a salutary effect-not
only in creating revenue, but in curbing
expenditures.