The Waterbury Democrat., 1939-01-05
RELIEF FUND OF
 OVER TWO BILLION
(Continued from Page D
conditions expected to prevail after July can be obtained.
 TnfoV CncA nf VUpA

July can be obtained.
 Total Cost of WPA
 However, the President estimated that the total cost of WPA, Na- tional Youth Administration and Farm Security activities of the 1940 year would aggregate $1,750 900 900.
 It was learned authoritatively that $500, 100000 would be for WPA; $125, 100000 for IVA and $60, 0,000,000 for FSA.
 No new Public Works Adminis- tration program was proposed in the budget message. However, provi- sion was made for $469 ,165. .000 to meet PWA commitments in 1940 un- der the program authorized by the last congress.
 The supplemental WPA estimate submitted today is designed to carry on WPA operations after about Feb. l when the present $1,425, ,000, ,000 appropriation voted last summer will be exhausted. This fund was voted by the last congress with the un- derstanding that additional funds would be provided later for the last five months of the year.
 May Seek More
 Mir. Roosevelt actually is expect ed to ask congress for somewhat more than the $750, eco deficiency appropriation actually needed in or- oer to give the WPA 8 cushion fund.- which will enable it to carry over to the beginning of the 1940 fiscal year.
 MT. Roosevelt did not recommend increased funds for the United States Housing Authority. He asked that $5,500,000 be given the agency for administrative costs of approxi- mately $700, 100000 in low-cost housing and clearance pro- jects.
 Senator Robert F. Wagner, D., N. Y., sponsor of the USHA, has indi- cated privately that he expects to introduce bill which would auth orize another $8O0,000,000. These funds presumably would be raised through the Housing Authority's powers to issue and sell bonds guaranteed as to princi- pal and interest by the federal gov- ernment.
 The President called on congress to enact more than $1,000. .000, ,000 in tax levies, including at least $422, ,000, 900 in new revenue. Tax proposals of the Presidents budget message called for both re- enactment of expiring revenue laws and imposition of the new fund.- raising taxes.
 MT. Roosevelt asked: 1. New taxes to finance $212,000,- 900 farm parity payments and $210,- 100000 emergency defense expendi- lures.
 2. Re-enactment of so-called nuisance" taxes which expire June 30. These were estimated to yield between $500,000,000 and $500, GOO ,0O0 annually.
 3. Exploration of the possibility of levying new taxes to finance ap- proximately $236, 100000 in Social Security grants to states. No Specific Sources
 The President did not suggest specific sources which congress might tap to find the new revenue. However, there was strong indica- ton that he felt the field of in- heritance and estate taxes might prove a fertile.
 The President indicated that he would not press for general revi- sion of the tax structure at this session. However, he specifically asked that congress find revenue to provide for party payments under the 1898 farm bill and to finance start of the defense program. He ir- dicated that he would like revenues to finance projected grants to states for old-age assistance, mater nal and child welfare. public health work, and for aid to dependent chil- dren and the blind.
 If congress provides $422, 2,000 O00 in additional taxes, projected federal income in the 1940 fiscal year would be increased to $6,091 ,320, ,000 and the budget deficit of $3.326, ,343, 200 would be reduced to $2,904 ,343 200. No Processing Taxes
 MT. Roosevelt left a strong im- precision that he did not sympathize with suggestions for processing taxes to finance farm payments. In addition to possible increases in in- heritance and estate tax rates. an- other revenue source would be re- moval of tax exemptions on salaries of government employees and future issues of government securities.
 Another source to which the ad- ministration might not object is lowering of personal income tax ex- emptions. Some members of con- gress, including Sen. Robert La- Toilette, F., Wis, plan to introduce such legislation at this session.