Evening star., 1940-01-04
the responsibility Of adopting either
The Other Side Of the Budget

hCISHHC cOttHtutSo. SSeNA NsASN -
enues are estimated at S6,l5l 600 ,0oO.
Tax revenues, after deducting ap-
nropriations to the old-age security
fund. are estimated at s5,548 ,00O,-
600. Although net revenue collec-
tions for the fiscal year l941 are estl-
mated to exceed by 1882 100000 the
estimated collections for the hscal
wear 1910, the increase Is not as
large as some might have expected.
This is owing partly to the IN
evitable lag of tax collections be-
hind increasing incomes, and also
partlv it is feared, to an impair
ment of the productiveness OF the
tax base arising from the revlslons
in 1898 and 1899 of corporate and
individual income and capltal-galns
taxes.
Return Of surplus funds from Gop-
ernn1ent corporations. At various
times in the past as emergencies
have arisen. the Federal Govern
ment has established credit cor
porations and has invested SUB
stantial amounts in their capital
structures. Although these expen-
ditions were homecoming and ex-
traordinary costs. they were re-
fected in the annual budgets as
charges against current receipts and
increased the deficits of prior years.
With the lessening need for loans
in some cases and the growing
surpluses in other cases, 1t appears
that some of these corporations Will
have excess capital funds. Cur
rently, in response to Senate reso-
luton $50, Seventy-sixth Congress.
comprehensive survey and ap-
praisal of assets of Government
corporations is being carried out.
On the basis of preliminary studies,
1 estimate that it will prove feasi-
BILE to reduce the capital funds OF
some of these corporations by an
aggregate figure of $4,000 900, with
out in any way impeding their
operations.
In the case of certain lending
agencies, any funds received from
the retirement of stock will be cred
tied to revolving funds in the Treas
ury and will be available for new
subscriptions to stock when, as and
if needed. In these cases pay
ments to the Treasury will appear
as credits under certain expendl-
ture items. In other cases, pay
ments will be reflected in miscel-
laneous receipts.
National defense tdIeS-1 am con-
vinced that specific tax legislation
should be enacted to finance the
emergency national defense expen-
ditures. Although these expendi-
lures appear unavoidable, they will
not increase the permanent wealth.
producing capacity of our citizens.
I believe that it is the general sense
of the country that this type of
emergency expenditure be met by
special tax or taxes. Moreover,
this course will make for greater
assurance that such expenditures
will cease when the emergency has
passed.
1 strongly recommend to the Con-
gress, therefore, that additional
taxes be imposed to yield in the
fiscal year 1941 at least enough to
cover the emergency national de-
fense expenditures in the fiscal
years 1910 and 1941 In seeking
additional sources of revenue, hope
that the Congress will follow the
accepted principle of good taxation
of taxing according to ability to pay
and will avoid taxes which decrease
consumer buying power.
The Defcit-The deficit for the
fiscal year 1941 is estimated at
$2,176, 100000, as contrasted with
SO 1888 100000 for the fiscal year 1940
It is expected that these deficits will
be met in normal course partly by
additional tax collections, partly by
carrying lower balances, and partly
by borrowing. If the Congress adopts
my recommendation with reference
to taxes the deficit for 1941 will be
reduced to $1,716,000 900.
Financing the Maintenance Cost
of Certain SerUices.-I have always
believed that many facilities made
available to our citizens by the
Government should be paid for, at
least in part, by those who use them.
For example, I believe that in the
case of parks, national forests, his
toric monuments, and so forth,
small fees, as low as or 10 cents
per person, should be charged to
those who enjoy them. A start on
this policy has been made. In such
a way a substantial part of the an
nual cost of maintenance Of roads,
trails, and grounds in forests and
parks will come back to the Treas
ury and reduce the annual cost Of
government. Another example is
the 10000 the Government