Milford chronicle., 1937-04-09
ECONOMIC HIGHLIGHTS
Happenings That Affect The Dinner
faiIs, dividend Checks and Tax
Bills OF Every Individual


posal has stolen the headlines frol
all other pending Congressional az
tivities. II will continue to hold th
headlines for some time to COM
But, once that matter is ended,
number of other questions of yer
direct interest to the American pee
pie will be up for debate. One G
those questions can be expressed q
I one Ominous word: Taxes!
No one wants more taxes or high
er taxes. Chairman Harrison OF tn
potent Senate Finance Committe
recently calculated, God know
taxes are high enough now,
Spokesman for industry express sim
liar emotions. Yet, as Business WeeI
says. Much heavier Federal spend
ing is definitely due and highel
taxes on corporate and individual in
comes are definitely under consider
alton by the Administration.
Two incidents-one a matter O
cold fact. the other matter of fac
tually-supported opinion-can. he cit.
Eu W onON tuC way tlit Wiiiu OiOn >
First of these incidents has to dc
with income tax forecast of the Blu
reau of Internal Revenue. Before
March Is, the Bureau anticipated
that 100000 people would fill out
blanks. Here 1t underestimated-
well over that number struggled
through the forms and sent them in.
But the Bureau also forecast that il
would receive about sS40 .000, 900 in
income tax payments. Here. accord
in gto Times il seemed to Overesti-
mate. Bulk of all payments are in
by the Goth of March-yet on that
date payments totaled only $780,
000.00 And even though this repre-
sents a great increase over last year,
it means that, in all probability,
Federal income for the fiscal year
will be hundreds of millions of dol
lars short of expectations.
Second incident is found in the
statement of Chair
man of the Federal Reserve Board
Eccles. Mr.. Eccles is New Dealer
and he is also a banker and econO-
mist with a reputation for hard
headedness. Gist of Mr.. Eccles'
statement is that it is absolutely es-
sential to recovery and stability that
The budget be balanced and that
Federal debt be reduced-either by
cutting expenditures or increasing
axes. And practically every econo-
mist of note has been busy issuing
that unless such a pro-
gram is adopted, ruinous imitation is
,Cming fast.
At the present time, Federal spen-
ling is at record highs. The govern
nent is putting out. on the average,
'593, 100000 per month. as against
;552. 900. 900, S545, 100000 and $685.
100000 for 1886. 1885 and 1884. re-
pectively. The outlook for material
Y reducing spending is extremely
lack. As the U. S News points out.
many activities classified as 'emer- +.
.ency' a year or two or three ago, /
ow are classed as permanent"
terrific pressure is ex-
rted to keep Federal relief checks /
lowing out of the machines that /
rite them. When a short time ago.
was announced that WPA spend
ls was TO he cut. governors. mayors
nd other officials cried to high hea-
en-and the result was that the re-
uctiOns were not made and may not
e made at all this year.
Thus. viewing the situation realis-
cally. it seems certain that, under
resent conditions. only hope for a
alanced budget is more income. not
SIS OutgO. More income means Ell
Ter new taxes or higher taxes. Off
ais are chary of both. For one
ing. the Federal government has
ars; ii is doubtful whether there
e many sources of Importance yet
tapped. And every elective Off
+ shivers when he thinks of the
'ssible political explosions higher
xes could cause.
Easy answer is to boost taxes on ;
n individuals, big corporations.
II taxes are already very high so !
r as these groups are concerned
my think they imperil prosperity
removing incentive and by tend
: to prevent businesses from build
/; up reserves against potential :
)nOmic storms. And, besides, II is =
fact that If all the real
big incomes in the country were ,
Ted 100 per cent, the resultant 3
Ienue would lack a good deal of =
wing government expenses. n
KS a result. many observers. in Il
ding some within the Administra- L
n. feel that the tax base must be
is. that exemptions I,
st he lowered so that people of T.
all and moderate means pay d. =
[ taxes. But there a big political
Iblem arises. Office holders know n,
I millions of citizens pay no d. NJ
t taxes at all-feel, even though
,ngly. that they are tax free. to
at attitude would these people p
e at the polls IL the tax collector y
le directly in contact with them?
his brief survey shows some of u
difficulties attendant on the tax q,
blem-and illustrates the terrific =
ter of argument and debate that nj,
follow the introduction of new 81
legislation into Congress. Many Nj
enator and Representative exper- :
es chills and fever when he real
that. sooner or later. he must go hil
record in favor of some revenue mi mi
cy. =,