Evening star., 1939-10-26
Improved Business
Needed 10 Meet j, ),
Expenses, Aanes Says
Nation Hos Ten-BiIIion
Appetite and Five-BiIIion
Pocketbook, He Asserts

NEW IOfth, Oct. I6.-A Roosevelt
administration fiscal officer, John w.
Hanes, believes that mo matter how
heavily we tax" there is no reason
able possibility of bringing up Fed
eral income to meet Federal spend
ing except through more business.
Improved business, he declared in
a speech at the ninth annual New
York Herald Tribune forum on cur
rent problems, would mean more
national (people's) income, and am
convinced that this is the only logi-
cal way to improve our financial
situation if we are to maintain our
present economic system"
The country, he said, had de-
veloped "a ten-billion dollar appetite
with f1ve-billion- dollar (tax) pock-
etbook."
Mr.. Hanes, who is Undersecretary
OF the Treasury, took the assump-
ton that outgo would remain at the
present level, remarked that in the
1899 fiscal year Federal expendi-
lures exceed what was taken in bv
about $4,000 900 900, and went on:
NO matter how heavily we tax,
we cannot raise three or four (addi-
tlonaD billion dollars from present
sources unless we get more on which
to levy"
Problems Outlined.
He said that even if "all of
widely discussed group of amend
mentS were enacted" the personal
income tax revenues would be in
creased by less than $3.50, 900. 900.
and that to produce as much as one
billion more, at the present peoples
income level, would require brutal
increase" in rates.
In any case, he added, any in
creases from that source would
have to be in the middle and lower
brackets, since the upper brackets
are perhaps already too high for the
production of maximum returns.
In my opinion, they have passed the
point of diminishing returns"
AS to the corporation income tax.
he remarked that even if it were
doubled-"and if, for the purpose of
argument, no dimunition resulted in
tax base or revenues elseWhere"-
the resultant increase would be only
IA billion.
Similarly, he said, "an enormous
rise IN rates in the estate and gift
taxes would bring in not more than
s400, 100000
OMahoney Speaks.
Speaking on the subject Con-
trplllng War Profits Senator OMa-
honey, Democrat, of Wyoming said
"enllghtened self-interest" would
prompt every person who has any,
thing to do with the charges which
are made for commodities at anv
stage between the production of the
raw material and the sale of the
finished article to keep those charges
from rising above justifiable level"
The avoidance of exploitation
over consumers through profiteer-
ing, he added in prepared ad-
dress. "is the only sure and certain
way to prevent the development of
an irresistible demand for Govern
ment control
The price structure today is in
private hands; it will stay there
II 1t is not abused, for private power
passes to public hands only if its
exercise results in wrongs for which
the public insists upon a remedy"
The Senator said that during the
past six weeks price increases had
resulted in an avalanche of com.
plants to the Federal Government"
Scientific Boom Forecast,
George Washington Carver, noted
colored scientist, believes America
is on the eve of the greatest
scientific development it has ever
known"
THE peace which will come after
this war;" he told the forum. will
be laden with many new scientific
possibilities, growing out of the
destructive ravages of the conflict"