Evening star., 1941-01-08

! Pi ~ PNA VIM ANNNSStOAA 40
achieved in the maintenance costs
of various social and economic pro-
grams.
Total ALLEGATION for these in the
new budget is S3,478 900 900. as COM
pared to s4,O94 100000 this year.
Among the anticipated savings are
$45 600 900 in the agricultural pro-
grams, S67,000000 in public works
| and $400 900, 900 for work relief.
In this latter connection the
President recommended an appro-
priation of 1895 600 900 for work re-
lief for the full fiscal year. APP
proximately this much already has
been made available for the present
fiscal year and supplementary ap-
preparation of about s400 100000 is
expected to carry the work relief
load through June 80
Urges Security Extensions.
Regarding his estimates for next
wear, MI. Roosevelt held out hope
that further e-employment on de-
fense work might reduce the funds
needed below the 1895 100000 figure.
He pointed out, however. that there
are many persons on relief who are
untitled for employment in private
| industry.
For this group" he said, "the
Government must provide work
| opportunities"
| And contrasting with the tendency
| toward restriction in domestic pro-
| grams, the President repeated his
suggestion incorporated in the an
nual message on the State Of the
Union to the effect that application
| of the social security law be ex-
tended.
Il deem it vital" he said. that
the Congress give consideration to
the inclusion in the old-age and
survivors insurance system and the
unemployment compensation system
of workers not now covered
Tax Increase Studied.
At his special press conference he
explained that this might mean ex-
tending the program to domestic
and farm workers, and to owners
and operators of small business en-
Jerprises, perhaps on a voluntary
basis. Coverage under the un-
employment compensation system
might be extended to workers in
any concern of an industry falling
under the law-inStead of being
mandatory only on concerns en-
ploying eight or more persons as at
present. The District of Columbia
law already applies to all firms in
industries covered but in some States
there is no coverage unless the firms
employ eight or more persons.
Disclosing at his press conference
that he will not urge new tax legis-
lation until after the March returns
have been received, Mr.. Roosevelt
noted in his message that there is
no agreement on how much of the
extraordinary defense program
should be financed on pay-as-you-
go basis and how much by public
borrowing OF his own feelings he
spoke as follows
only very drastic and restrictive
taxation which curtails consump-
ton would finance defense wholly
on a pay-as-yougo basis. I fear
that such taxation would interfere
with the full use of our productive
capacities. We have a choice be-
tween restrictive tax measures ap-
piled to the present national income
and a higher tax yield from in
creased national income under less
restrictive tax measures.
Urges Ability to Pay Plan.
IT suggest, therefore, a financial
policy aimed at collecting progress
sive liability to pay taxes out of
higher level of national income.
am opposed to a tax policy which
restricts general consumption as
long as unused capacity is available
and as long as idle labor can be
employed. A start should be
made this year to meet a larger
percentage of defense payments
from current tax receipts"
At this point, the President told
his press conference that despite
tax and other safeguards there are
lots of persons getting rich out of
the defense program, a condition
which he deplored.
Because it is the fixed policy of
the Government that no citizen
should make any abnormal net
profit out of national defense" he
said, "I am not satisfied that existing
laws are in this respect adequate"
Increases Above $1,000 Hinted.
The President indicated sympathy
for increasing individual income
taxes when he told his special press
conference that virtually everybody
making salaries of $4,000 per year
or more could afford to pay higher
taxes. On the other hand, he added.
the low income earners-he cited
girls clerking in stores-could not
afford added tax burdens.
Referring to complaints that sur
tax rates already are theoretically
conflscatory, the President chal-
lenged any belief that high income
people ever pay such proportion
of their earnings to the Govern
ment. Various exemptions, such as
income from tax-eXempt securities,
permit escape from onerous taxa
ton, he explained.
Securities for Small Investors.
AS he has done on previous years,
Mr.. Roosevelt again expressed his
concern at the present Federal
State-local fiscal relationship and
urged investigation of possibilities
for a comprehensive tax reform.
Turning to the part which bor-
rowing may play in financing. the
President declared that "indixidual