The Western news. [volume] (Libby, Mont.) 1933-current, 1937-01-21

Washington Roosevelt
is going to have plenty of trouble
restraining the pork and patronage
hungry senator's and representa-
tives when they study the figures
that will be available in his budget
message, especially as many OF
them were thoroughly convinced
last year, and year before last, by
the New Deal tax enthusiasts OF
the Frankfurter school, that taxes
on corporations ought to be great
deal higher than they are now.
Outside and unofficial estimates
indicate that the rise in revenue an
ticipated by the Treasury over last
years estimates will exceed bill
lion and half dollars-may cas-
lily reach two billions!
This is due in part to increased
taxes, in part to the policy OF fore
ing out dividends by the undistriout-
ed earnings tax, and even more
than either Of these to improved
business in 1896, bearing in mind
that while the government figures
on a fiscal year from July to
June 80, the individual and corpora
ton taxes are figured on the cal
endar year.
Estimates In President Roose-
velt's budget message in January,
1896, showed an increase in cor
poration income taxes OF S2ll $780,
600. of which 1000, 900 was due
to increased rates, and the remain
der to increased corporation In
come. Conservative actuaries out
side the Treasury department figure
the increase on top of this to be
shown in the Presidents budget
message will not be less than $780,
900 900.
Last January's budget message
estimated individual income taxes
would be 1896. 900, 900, an increase
over the preceding years estimate
of s207. 0o0, 900. OF this $50, 900 DOC
was due to increased rates. But
! this year, outsiders figure, the in
crease over last years estimates
will not be less than $500, 900, 900.
Out of Proportion
This seems out of all proportion
| to the increase in corporation taxes,
but there are two important rea-
sons. In the first place, the inn
provement in corporate earnings
for 1896 over 1885 is much better
than the increase 1895 showed over
1894. But dividends increased oui
of all proportion to earnings, due
to the unprecedented--in American
tax Observation-Disclosures earning.
tax.
AS a result, the boost in individual
incomes from dividends was much
greater than the boost in corpora
ton incomes. And az a tremendou.
percentage of dividend paying
/ stocks are owned by people already
paying income taxes, the result vii
be to force many OF them intt
higher tax brackets than the.
have ever figured in before. Al
the more income, the higher tn,
rates of tax, the swelling in fed
eral revenue here is greater il
proportion than the rise in income
Incidentally there has been mucl
talk about bonuses and salary AM
wage boosts also, but this is trifiin
SO far as federal income tax figure
are concerned, compared to tn
food of dividends. Lots OF the wag
increases went to people who Wi
not pay income taxes at all.
Estate and gift taxes, however
do figure Importantly. Even tn
January, 1896, estimates, showed
boost over the previous budget es
Inmates OF s42, 1000 900, though tn
total OF 1898 100000 would hav
shrunk had it not been for boos
in the rates and Tightening c
loopholes. But estates liquidated i
1886 benefited from much higher ST
curity and real estate prices tina
those liquidated at any time sine
the stock market crash.
Altogether, it looks like good hun
ing for the pork hunters.
Work for Congress
Despite many learned survey.
there is no agenda for the sessio
of congress recently opened.
will develop as it goes along, guide
somewhat in its building by change
due to expediency by the gentlema
in the drivers seat, and molde
Importantly by forthcoming ST
preme court decisions.
Those who look for an index
the three formal utterances /
President Roosevelt in January-h
first message, his budget messag
and his inaugural address-al
3 doomed to disappointment. Their
will be lots of messages as thing
develop. There will be telephor
messages and privately spoke
words to the leaders, some of WIKI
will be repudiated later. There 0
casionally will be indications tn
the President is letting congre
solve its own problems, but do n
,e unduly deceived by these. Co
5ress will not be.
For these reasons it is IRENE
foueIy difficult at the moment