The Washington times., 1937-03-16
$40 MILLIONS 5
IN REVENUES
EXPECTED
Levies for 1886 Due to
Exceed Year Before
Nearly Billion
BY ERIC FRIEDHEIM
Internatio News Service

DIV EkeNN ENAGDAAAANA
International News Service
Treasury tax-harvesters reaped
a bumper crop of revenue today as
the SO Federal collection districts
reported more than six million
individuals and corporations had
filed 1886 income returns up to
midnight.
While awaiting tabulations by its
regional -.gencies, the Internal
Revenue Bureau predicted unof-
ficially this months collections
may exceed the $40 million dollars
estimated recently.
. Blanks Run Short
Shortly before the midnight
deadline, several Internal Revenue
ofices telegraphed urgent appeals
for additional tax blanks. Some
collection districts announced the
number of returns filed in their
areas was nearly double that Of a
year ago.
Treasury officials were conf
dent the first quarter yield from
income taxes would Surpass esti-
mates in President Roosevelt's
budget message. The latter fore
cast income levies would produce
2,372 million dollars during the
current fiscal year, or nearly 1000
millions more than was derived
from this source in the previous
fiscal period.
The Administration is counting
on the newly-enacted corporate
surplus tax act and vastly i'm
proved economic conditions to fill
Government vaults with much
needed revenue.
The deluge of income payments
this month will enable the Treas
ury to pay off in cash 800 million
dollars of maturing Short-term OBJ
legations in addition to building
up its cash balance which has
shrunk to approximately 900 mil
lions in recent weeks.
Heavy income tax yields, coupled
with healthy rises in other sources
of Federal revenue, will enable the
Treasury to operate on a balanced
budget basis for the remainder OF
the fiscal year. This marks the
first time during the Administra-
ton that receipts will exceed ex-
penditures for any extended period.
For the fiscal year as a whole,
however, the Treasury will register
a deficit.
Tax Boost Hinted
Meanwhile, with the ink barely
dry on 1886 income forms, the
Federal Reserve Board limited
general tax increase may be neces-
sary to provide for relief and a
permanently balanced budget.
Chairman Mariner Eccles ex-
pressed vigorous opposition to re-
ducing Government relief costs
"at the expense of the destitute
and unemployed" He said:
81 am in favor of increasing
taxes on incomes and profits If
necessary to sustain the volume
of relief and at the same time
bring the. budget into balance
and permit the pairing down Of
public debt"
Eccles reiterated his support
of an "easy money" policy, de-
claring:
money must be used as the
servant to increase production
and employment at home. To
restrict the available supply Of
capital at this time would not
only be anti-SOCial but unecO-
nOmic."
Eccles' suggestion for increased
taxes drew no comment from
Treasury officials.
Engaged in Study
The latter are engaged in a gen.
eral study of the existing tax Struc-
ture with view to reShaping pro-
visions of the new corporation
levies.
Unless Congress disregards Presi-
dent Roosevelt's budget calcula-
tionS, the Administration plans no
major tax legislation for this ses-
sion of Congress.
The sole revenue measure await
ing enactment is for extension of
the 500 million dollars manufac-
turers excise taxes, which expire
in June.
Increase of 80 Per Cent