The Waterbury Democrat., 1941-01-08
$17, 5,528, ,O49 Is
 Budget For Defenses
(Continued from Page 1)
Another Blank Check

Also for defense, the president requested another blank check" of S225 ,OOO, 900 for himself so that he might have ready cash handy for unforeseen emergencies"
 Anticipated government income next year will exceed estimates for the current year by $1.262, ,505 ,000. More than half of the total was ex- pected to be obtained from income taxes. They were estimated at $4, ,509 ,5OO,0OO an increase of $1 ,454,- 500,000 over this years expectations.
 MT. Roosevelt made no specific recommendations for new taxes, but said the existing laws were not ade- quate to carry out the governments policy that no o. .--. uld make any abnormal net profit out of na- tional defense.
 Elaborating on that passage from his budget message, MT. Roosevelt told his special budget press con- ference that he knew of lot of cases where people were getting rich out of the defense program and that the present excess profits tax system didn't seem to be fulfilling its function.
 The president, in his message, op- posed a ''pay-as-you-go" basis for financing defense because it would require very drastic and restrictive taxation" that would curtail con- sumption.
 T see many ways in which our tax system can be improved" he said, without resort to restrictive tax levies. By adjustments in the existing tax laws the present rates of progressive taxation could be made fully effective, as believe the congress intended"
 Expensive Years Ahead
 He said the nation must face the fact that continued maintenance of a powerful armed force and the interest on the expanding national debt will call for large federal ex- penditures in the years ahead.
 Our tax system must be made ready to meet these requirements" he added. T am as much concerned about our long-run need for inn proved tax system as am about the immediate necessity of financing the defense program"
 In this connection, he continued, no satisfactory tax reform can be achieved without readjusting the federal-state-local fiscal relation ship. He urged a thorough investi- gation of the possibilities of all- embracing tax reform.
 In spite of the need for revision of the tax laws, MT. Roosevelt indi- cated, prospects were bright for even higher revenues than forecast be- cause national income appears des- tined to reach an all-time high ill the 1941 fiscal year.
 The president told his press con- ference that the outlook was for a national income of between $86, 6,000,- 100000 and $88,0O0 100000 in that period. The boom year 1929 estab- lished the record high national in- come of 82,69l ,000, ,000.
 Free Hand in Treasury
 MT. Roosevelt'S suggestion that Congress remove the statutory limit on the public debt would leave the treasury with free hand for the first time in more than two decades to finance expenditures by borrow ing, when necessary. The president questioned the significance of statutory ceiling on indebtedness, pointing out that Congress managed to control its spending without a debt limit for the first 130 years of the nations existence.
 The primary worth of debt limit, he said, is as stop-look- listen signal to keep mounting federal expenditures before the public eye.
 A considerable portion of MT. Roosevelt's message was devoted to a discussion of the public debt. He said he understood the concern of those who are disturbed by the growth of the federal debt. The big fiscal problem, he observed, was not so much the rise of the debt as the increase of debt charges. But, he added, even an increase in interest charges can scarcely present seri- ous fiscal problem so long as a high level of national income can be maintained"