The Waterbury Democrat., 1939-03-16

E:#:#5:H$ 32&$ $#G#$$$H dOO up tO oO AhuNAA sssSSS& SA'&M in actual dollars WS###$MN$SS #S$d and cents. Yet the E%MMa##M revisions are eag-
 Cation erly awaited, and the slightest Congressional moves toward economy are loudly cheered Proving, no doubt, that it isn't the money so much as it is the principle of the thing.
 That, as a matter of fact, express es it perfectly. It isn't the size of the savings or the sums to be saved through tax revisions that are im- portant. It is the simple fact that some savings and some revisions may be made.
 LOOK AT
 THE FIGURES
 For the fiscal year ending next June, the Treasury Department esti- mates that the governments income will be about $5,520, ,000,0 900. Budget ed expenditures for the same perioc are roughly $9,492 ,000, ,000, thus pro- ducing deficit for the year o1 $3,912,OOO,UOu.
 Taking those figures as standard then, take the expenditures and try to see where any savings big enough to make real dent in the deficit could be made. Government departments, $832,- 100000.
 Public works Jess emergency and relief projects), $576, 100000.
 Navy, $574,00O,000.
 Army, S435, 100000.
 Veterans benefits and pensions, $54O,OOO,O0O.
 Recovery and relief, s2,437. .ooo,- 900.
 AAA, S707, 7,00O,OO
 CCC, $2O0, 100000.
 Social security, 330,000,000.
 Interest on public debt, $976,- 100000.
 Debt retirement, $100, 900.
 Revolving funds (Farm Credit Adm., REC, etc.), $138,00O,000.
 Old age reserve, railroad retire. ment, civil service retirement, S6S5 ,OOO, 900.
 Refunds on taxes, customs, pro cessing levies, $66,000,000
 Supplemental deficiency appro- priations, etc.), $90O,000,0OO.
 Go down that list and try to finc a spot for a substantial slash that would really mean something tc the deficit.
 MOST COSTS
 MOUNTING
 The reorganization bill-when and if passed-will effect its savings in the regular government departments whose total allowance is only $832,- 100000. Army and navy funds will go up, not down. Veterans funds most certainly won't be cut.
 A House effort to cut IVA failed The shaving of $150,000,000 off the WPA deficiency appropriation came only after a terrific fight, carried by one vote-and may yet be reversed
 If the Social Security figure goes anywhere it will be up, not down CCC won't be touched. Triple-A will almost certainly get more money. not less. Interest on the debt can't be touched.
 So "appeasement" has to come out of the other end of the horn Here something tangible probably will be done.
 Present indications are that tht administration will agree to sub. stantial notifications in the capita gains and losses and corporation surplus taxes. The capital stocl tax and excess profits tax may alst be toned down. Lower income taxe. for the higher bracketeers ar, prob able. PsYCHoLoGY's
 ROLE
 In actual cash, none of these re auctions would amount to much compared with the tremendou sums involved in the total tax bill The psychological effect, though might be vast-proving, once more that 1t isn't the money but thu principle of the thing.
 In the long run, a balanced bud get seems to rest on business i'm provement - which, in turn, ma! well rest on just such psychological considerations.
 The treasury figures that, with { national income of $70,000, ,0O0, 900 our present tax rates would bring in six billions. If income rises tt $50 ,000 ,000, ,O0O, the governments in. come would rise to eight billions.
 And since national income ot 80 billions would mean lots of re. employment and hence a big cut ir relief costs, that eight billion -dollal government income would probably give us a balanced budget.