The Daily Alaska empire., 1938-01-25
Budgeting Hopes

tNew York World-1 cIegram)
 Said President Roosevelt in his budget message of year ago.
 Although we must continue to spend substan- tla sums to provide work for those whom industry mas not yet absorbed the 1888 budget is in balance; ana except for debt reduction of S40l O0O it will remain in balance if later on there are included additional expenditures of much as S 900 for recovery and relief. We expect moreover if im- provement in economic conditions continues at the present rate to be able to attain in 1939 completely balanced budget, with full provision for meeting the statutory requirements for debt reduction"
 Said President Roosevelt in his budget message recently
 "The net result of these estimates of expenditures and receipts shows for the fiscal year 1889 net deficit of S9500000O0 but it is fair to state at the same time that this deficit will be $138 100000 less than the expected deficit the current fiscal year.
 Frankly we don't know of anybody else who in January, 1937 could have made better guess than MT. Roosevelt did as to how his budget would wind up at the end ot the current fiscal year Nor do We Know of anybody else whose guess today would be better than his to how the next fiscal years books Will close eighteen months hence
 We cite these two quotations merely to emphasize that MT Roosevelt compounds his budgets out of guesseS and wishes. Nor is that Roosevelt nnova ton: MT. Hoover did the same and with even less success. And so long government continues to rely on the kind of tax structure it now has the Chief Executive must continue to man the fiscal program on lunches and hopes
 It is cream -skimmng tax system When busi- ness flourishes the skimmng is rich When business lls bad the skimming is thin.
 Aside from about cne and one-half billion dollars raised by various excise and nuisance taxes the yield of which varies comparatively little year to year. the government depends for revenue on taxes levied against individual and corporate incomes gifts es- tates, capital stock, etc The yield from these is ex tremely sensitive to changing economic conditions And it is made more because the two taxes which are keyed most closely to the principle of ability to pay-tne ndlvidual income and death duties-rest on la base plecariouSy narrow So narrow that only about 100000 persons out of potential 37 100000 pay taxes on incomes in relatively good years. so narrow that only estates of $4OOOO pay any tax whatever
 The governments revenue could be made more dependable, and Presidential budget estimates more reliable, if the tax base were broadened And since such taxes visible, and therefore painful such a broadening also would have the sautary effect of increasing public pressure for government economies And. incidentally, the new budget emphasizes how much additional pressure in that direction is needed Although the President has recommended a spending program 0000 smaller than this years the budgeted deficit is $949OO00OO And the public debt at the end of the ninth year of running in the red is expected to reach $385 OOO Even those are hope" figures.
 On the spending end they are based on the Presi- dents hope that pork-hungry Congressmen will not wipe out his recommended economies and his hope that he will not later have to ask more money for work relief and battleships
 On the end they are based on his hope for better business And that far as this particular budget is concerned, becomes the most important ot all the hopes.
 MT Roosevelt, forever the optimist has en- Vlsoned building the national income not only up tc 80 billion dollars which the country knew Tn the lush POS but on to 90 and to 100 billions Our budgetary problems would melt overnight in such prosperity as that
 | But since in mercural economic system dreams of better times have way of fading into the realities Of recessions, still think it would be good idea for the President and Congress to give some thought to placing the governments tax struc- ture on broader and firmer foundation.