Evening star., 1939-01-05
u. S. BUDGET

U. S. Budget
Continued From First Page.)
fiscal year next June 80. The legal
limit of the public debt is now $45,-
900 100000. In view of the fact that
the expected gross public debt will
be close to this limit, Congress prob
ably will be asked to increase the
legal limit of the debt.
While the budget message does
not refer to the $4,000, ,000, 600 stabil-
iZation fund, created by the cut in
the gold content of the dollar, Con-
gress must renew authorization for
this fund. Otherwise this sum may
be used by the Government for some
other purpose. 1t is understood
that this fund is available in toto
and that it has even been increased
through its administration. Pre-
sumably Congress will be asked to
reauthorize the stabilization fund
which has been extremely valuable
in stabilizing American exchange
abroad.
No Specific Tax Program.
The President makes no specific
recommendations for new taxes in
his message. although he says I'VE
could contribute very materially to-
ward that end "a balanced budget
and steady recovery by a wise tax
program" The President does rec
ommend the extension of miscellan-
eous internal revenue taxes which
expire under existing law next June
and July, and the maintenance of
current rates of those taxes which
would otherwise be reduced next
June. He recommends, too, the
continuance during the next fiscal
year, of the Scent postage rate for
first-class mail A third recon-
mendation, while it has nothing to
do with taxes, would make the Civ
ilian Conservation Corps a perma-
nent agency of the Government.
The President has said in the past
he believes increases in expenditures
to meet the agriculture parity pro-
gram and new programs for national
defense should be cared for by ad-
ditional revenue. Congress has not
yet come across with the additional
revenue for the agriculture parity
payments, which amounted to ap-
proximately $2120O0,0OO.
AS it is proposed to spend actually
$210 100000 in the new program for
national defense in the coming fiscal
year, it is obvious that a total of
at least s422 ,00O, 900 additional rev.
enue is desired by the President.
He said in his message today:
I'm view of the additions to our
public expenditures involved in the
proposed enlarged national defense
program and the program for agri-
cultural parity payments, for which
no revenue provision has yet been
made, think we might safely con-
slider moderate tax increases which
would approximately meet the in
creased expenditures on these ac-
counts. 1t should be added, how
ever, that it Is my firm conviction
that such new taxes as may be
imposed should be most carefully
selected from the standpoint of
avoiding repressive effects upon
purchasing power"
$5,s99, ,0O0, 900 Revenue Estimate.
Estimated Government receipts
for the fiscal year 1910 total $685.
000, 900, with the largest sources of
revenue the income tax and the mis-
cellaneous internal revenue taxes.
The estimated revenues for the fiscal
year 1899 total S., $40, ,000, 900, and the
actual receipts In 1898 were $6,242,-
100000.
Revenue from the income tax for
1910 is estimated at $1,903, 900 900,
and for the miscellaneous internal
revenue $2,333, 600, 900.
At the outset of his budget mes
sage the President holds out q hope
of balancing the budget through an
increase in the national income,
with the present tax structure con-
tinuing In force. He points out
that revenue of the Government in
taxes, which provide all of the
Government income except less than
5 per cent, depends mainly on two
factors. They are the rate of taxa
ton and the total of the national
income.
1--WE can and do fix the rate of
taxation definitely by law" the
President said. I'VE cannot by a
simple legislative act raise the level
of national income, but our expert
ence in the last few years has amply
demonstrated that through wise
fiscal policies and other acts of Gov
ernment we can do much to stimu-
late it,"
Step-ups Estimated.
The national income today Is ap-
proximately $4,000, 100000 a year.
Included in the budget message is a
table which shows the estimated
revenues, under the existing tax
structure which may be derived
when the national income reaches
levels between $7O,00O,O00,000 and
500, 900 100000. When the national
income is $4,000, 100000 the esti-
mated revenue is put at $4,000, ,O00,-
900; when the national income
reaches $50 900, ,000, 900, the revnue is
put at $4,000, 900 900, and when it is
800 900 600, 900, the revenue is esti-
mated at $10,600, 900 900. The Presi-
dent says that this table is not in
tended to indicate the national in
come for any particular year, and
that Of necessity the estimates are
rough and may vary somewhat
either way. This table, he says, Is an
indicator and not q gauge.
The budget message carries also
. new table breaking down the ex.