Evening star., 1940-01-04
National Budget
Continued From First Page.

deficit then would total $2,176,000,-
600.
The Chief Executive carefully
omitted any precise recommendation
as to what kind of tax he would pre-
fer, but he cautioned the Congress
that "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"
Mr.. Roosevelt is understood to be
of the opinion that increased income
taxes would not fall into the group
decreasing consumer buying power,
circumstance which may lead to
favorable consideration of this levy
for the special defense needs.
While Governor of New York
he sponsored an income tax assess
ment imposed on the tax actually
paid; in other words, raising by a
fixed percentage the tax originally
computed and paid. Furthermore
the New York State assessment was
made retroactive in such way that
it became quickly collectible, factor
of Importance in the present Fed
eral situation as the public debt
hovers so close to the statutory limit
The President left open to himself
the possibility of asking for more
than $1,000 100000 for various work
relief programs, remarking in his
message that this total represents a
large-perhaps too large-reduction
of current expenditures" Affected
are the Work Projects Administra-
ton, the National Youth Admins
tration, the Civilian Conservation
Corps and the grant program OF the
Farm Security Administration. For
1910, the comparable total for these
agencies was approximately $2OO0,-
100000.
while the 194D estimates are
appreciably less than those for the
current year." Mr.. Roosevelt said
II am hopeful that they will prove
adequate. The Work Projects Ad-
ministration will be able to provide
employment for an average OF
1.35O,00O persons. The National
Youth Administration can employ
an average of nearly 100000 Ameri-
can youths, and the Civilian Con-
servation Corps will operate 1927
camps and provide for monthly
average of 100000 enrollees. The
Farm Security Administration will
operate on about 80 per cent of its
1910 level. Relief expenditures
should be closely geared to actual
needs. If conditions fail to meet
our hopes, additional funds may be
necessary. I may, therefore, submit
revised estimates later in the ses-
sion"
May Ask for Balancing Tax.
Presumably if any upward revision
Is made in this category, the Presi-
dent will ask for a compensating
tax provision or for the politically
dangerous increase in the public
debt limit.
BY comparison with the above fig
ures of persons covered in the vari-
Gus relief programs, the w. P. A
this year is employing an average
OF 1,S50,O00. persons, the N. Y. A
provides for about 100000, and the
c. c. c. has had an average monthly
enrolment of about 295,000.
Despite its being the largest item
in the program, the President Of
fered little detailed discussion OF
the national defense estimate be-
yond noting that the 81 300, 900 00C
is an increase. roughly $500, ZOO, 900
over the present year.
TT is far less" he said, than
many experts on national defense
think should be spent, though it is
in my judgment, sufficient amount
for the coming year"
The deferse item was broken
down, however, to normal and
emergency categories, the 1941 ex-
penditures of an emergency classi-
fication being figured at $500, ,000, 900
For the present year this emergency
expenditure was placed at $50, ,000,-
600, although more than this Is be-
Ing obligated for future outlay.
The separation, Mr.. Roosevelt