The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1937-04-20
CALLS FOR A THOROUGH STUDY
OF PRESENT TAX STRUCTURE
international News Service

This is the teIt OF PreSiden
RooSeUelt'S message on the re
Uised Federal budget and relic
expenditures sent to Congress:
To The Congress of the United
States:
"In my budget message Of
January 5, 1887, I said that I
would transmit at later date
an estimte CT appropriation for
work relief for the fiscal year
1898. In connection with this
estimate it is deSirble to review
our present fiscal situation.
Budget estimates made last
December indicated a net de-
ficit for the current fiscal year
of $2,248, 100000. Thew also in
dicated a net surplus for the
fiscal year 1888 of 31,537,00
900, exclusive Of any provision
for a work relief appropriation.
On the basis of these estimates,
therefore, an appropriation for
work relief for the fiscal Jar
1898 of any sum less than ST.
537, 100000 would have left at
the end of that year budget
in balance.
Since then, however, new fac
tors have so altered the fiscal
situation as to make it neceS-
sary to present revised estimates
Of receipts and expenditures.
There is attached to this mes
sage q statement showing the
present estimates for the fiscal
years 1897 and 1888, as COM
pared with the estimates in my
budget message. A glance at
this statement will show that
the principal factor is the de-
cline in tax receipts below our
previous expectations.
FISCAL YEAR 1887
The analysis of returns re-
ceived in March, 1887, under the
new tax law indicates that in
come taxes will produce $751;
100000 less than the former es-
innate for the fiscal year 1887.
The receipts for the first nine
months of this fiscal year indi-
cate that other revenues will be
1887, 900 900 less than the eSti-
mate, which is due in large part
to the obstruction of collections
by numerous lawsuits against
the Government.
In view of the reduction in
revenue, it became apparent that
every effort should be made to
offset this loss as far as possible
by a reduction in expenditures.
To this end have directed the
heads of various Government &C
tivitieS to make a careful eXaml-
nation of their expenditure re-
quirements for the last three
months of the present fiscal
year, with a view to making sub
stantial savings by eliminating
or deferring all expenditures not
absolutely necessary during this
period, the money so saved to
revert to the Treasury. 1nforma-
ton thus far available indicates
that the 1887 expenditures will
probably be 1926, 900 900 below
the estimate of last January.
The amount of the net deficit
for the fiscal year 1887 is, there
fore, estimated at $2,557 900, 900.
an increase of 5000, 100000 over
the January estimate.
FISCAL YEAR 1888
For the fiscal year 1893 it is
now believed that receipts will
be 1887, 800, 900 less than was an
ticipated last January, the reduc-
ton of $410,0O0,000 in the eSti-
mate of income taxes being
slightly offset by increases in
other receipts.
Pending the enactment OF the
1888 appropriation bills it has
been impossible to make any ma
terial revision of the estimates
of expenditures for that fiscal
year, other than for recovery and
relief.
The revised estimates of re-
ceipts and expenditures for the
fiscal year 1888 as here pre-
Sented indicate an estimated net
deficit of $4,000, 1000. There is
included in the estimates of ex-
penditures the $500, 200, 900 for
work relief hereinafter recon-
mended.
And while recognize many
opportunities to improve social
and economic condition.
through Federal action, I am
convinced that the success Of
our whole program and the per-
manent security of our people
demand that we adjust all eX-
penditures within the limits Of
my budget estimate.
FUTURE FISCAL POLICY
I emphasize here what I said
last January with respect to
our future fiscal policy:
"EXpe nditureS nnuSt he