Evening star., 1941-08-29
President Believes
Federal Expenses
Can Be Reduced
Senote keors End
Of Consideration of
3h Billion Tax Bill
Yy the Associated Press.

By the Associated Press.
President Roosevelt expressed a
press conference opinion today that
non-essential Government expendi-
lures could be reduced.
He has advocated that for long
time. the President said, adding,
however, that he did not pass the
appropriation bills.
He expressed his views when a
reporter reminded him that Senator
Byrd, Democrat, of Virginia had
proposed reduction in non-defense
spending and suggested that the
Senate appoint an investigating
committee. The Senate Finance
Committee Endorsed Senator Byrd's
suggestions as it neared the end of
its consideration of the So ,688, 500 900
tax bill.
New Budgets Asked.
After adding 5000 100 900 in taxes
late yesterday, the committee asked
the Budget Bureau to write three
new budgets-one providing a ST.
o00,000000 cut in non-defense eX-
penditureS for the current fiscal year,
another making a 81 500, 100000 re-
duction and a third whacking off
$4,000, 1000, 900.
Committee members explained
that the reason for asking three new
budgets was so that they could be
compared and Congress could de-
termine how much could be saved
without impairing essential Govern
ment functions.
The committee then approved a
resolution by Senator Byrd to create
a special 14-man committee to seek
out methods of eliminating or re-
ducing expenditures deemed by
the committee to be on-essential." J"
Non-Defense Cuts Urged.
The proposed new committee
would be composed Of IL members of
the Senate and House taxing and ap-
propriating committees. the Secre-
tary of the Treasury and the budget
director
In a statement, Senator Byrd said
that sharp tax increases were lab
solutely necessary in the teeth of the
current defense emergency But he
added that ''it is little short OF
outrageous to impose the burden Of
this tax bill upon the citizens OF
this country without at least a
sincere attempt to reduce Federal
expenditures outside OF essentially
emergency items. ~
After a week of drafting and re-
drafting various excise taxes, the
Finance Committee voted late yes
terday to increase three House
approved levies and to add new
one-a 10 per cent manufacturers
levy on electric light bulbs es-
timated to yield S8,000,000 annually.
The committee sought to raise
Sl00,000000 of additional revenue by
increasing the House corporation
surtaxes from S to per cent on
net income up to S25 900 and from
6 to per cent on net income above
that amount. Another estimated
72.500 900 would come from an in
crease from 10 to Is per cent in the
taxes on theater and other tickets
and about s28 800 900 would be added
by hike from 5 to 10 per cent in
the rate on local telephone bills.
The committee rejected recon-
mendations of a special subcom-
mittee, estimated to provide an addi-
tional $203 100000 annually, for in
creased taxes on gasoline, jewelry,
furs, cosmetics, motorboats and
excess corporation profits
to the Senate floor, the committee
had to dispose of the thorny ques-
ton of what to do about taxes of
husbands and wives in the COM
munity property States.
In those States-Louisiana, Texas,
Arizona, New Mexico California,
Idaho, Nevada and Washington
husbands and wives may divide their
income when paying taxes This
tends in most cases to lower the tax
Pension Plan Beaten.
Although the committee voted
earlier this week to require that
husbands and wives pay taxes on
their individual income unless they
chose to pool it for single joint
return, Senator Connally, Democrat,
of Texas won reconsideration and
final vote was scheduled today.
Senator Connally failed yesterday in
an effort to delete the provision
The committee yesterday quickly
slapped down, by vote of Is to 2,
a suggested plan to amend the tax
bill and increase old age pensions to
minimum of $50 a month for all
unemployed persons over so. The
suggestion was made by Chairman
Downey, Democrat, of California
of a special committee which has
been investigating pensions. Finance
Committee members said they did
not go into merits of the plan, but
objected to including it in the tax
bill.