The Washington times., 1937-03-23
SIT STRIKERS, ="
COURT PLAN
AREISSUES
Necessity for Asking
New Taxes Looms
As Revenue Lags
By GEORGE r. HOLMES


While President Roosevelt tar
ries in the spring sunshine OF
Georgia, troubles pile up on his
desk here against his return the
last Of the week.
The epidemic Of sit-down strikes
and industrial warfare ap-
proaches q national crisis, with
increasing clamor for the Federal
Government to "do something" !"
His judicial reorganization faces
increasingly harder shedding in
the Senate, with the opposition
now going in full blast.
New Taxes Likely
Today the possibility developed
that the Administration may, after
all, and however reluctantly, be
compelled to ask Congress for in
creased taxes at this session.
Treasury officials have been sur
prised and disappointed at the
failure Of March income tax col
lections to come up to the esti,
mates. With most of the districts
reporting, collections for the first
quarter are running almost 5000,
600, 900 behind what the Treasury
expected. They are greatly in ex'
cess of the 1885 figures, but dis
appointing, nevertheless.
Deficit to Increase
It seems fairly certain Mr..
Roosevelt is going to have to re-
wise his January budget estimate
of q gross dificit of $4,000, ,000, 900
for the current fiscal year. To
hold it to that is going to be ex-
ceedingly difficult in view of the
failure of income tax returns to
come up to expectations, and the
continued clamor from mayors
and governors for more relief
money.
It is Mr.. Roosevelt himself who
will have to make the decision
whether to ask Congress for fur.
ther tax legislation. Congressional
leaders are divided on the matter
Administration leaders are ex,
tremely loath to go to the country
for increased taxes at time when
business as a whole is beginning
to look like the good old days OF
the 'twenties again.
The Republicans, handful OF
conservative Democrats, and a
few of the ProgressiveS like Sena.
tor La Toilette Of Wisconsin, are
in favor, however, Of putting up
taxes to the budget-balancing and
pay as-you go stage, no matter
how much it hurts.
Tax Boost Opposed
Senator Harrison CD of Missis-
sippi, the Administrations fiscal
leader in the Senate, does not be-
lieve it necessary or desirable to
boost taxes at this time, even If
the income tax collections are
short of expectations.
House Democratic leaders are
likewise adverse to opening up a
pandora's box of tax troubles at
this session.
Representative Allen Treadway
of Massachusetts, the Republican
fiscal spokesman in the House,
said that while the Government
is now spending $7,935,000 more
every day than it takes in, II
defy any advocate Of a balanced
budget at this time to show how
taxes can be increased without
confiscating the property of the
country"
Relief Bill Next
Thus far this session, Congress
has economized-to the extent OF
keeping appropriations well under
budget recommendations. Every
appropriation bill has been cut.
But the big relief bill is yet to be
presented and, when it is, it is
probable the savings thus far ef
fected will be wiped out. President
Roosevelt informed the leaders be
fore he went away that he wanted
the appropriations kept within
budget recommendations and that
he hoped to hold the relief bill to
$1,537, 100000. His whole fiscal
program and the possibility of q
balanced budget next year was
predicated on that.