The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1942-01-08
CONTINUED from Page one)

iSoheihuDu tfoiii hks onct
States budget readily il comps-
rable. Mr.. Roosevelt reminded
newspapermen at Tuesdays annual
White House seminar that it was
the biggest budget in the history
Of any nation at any time. He
said II confronted the nation with
the biggest production job in all
history.
Hint of Sire
A hint OF the size Of this budget
may be gained by considering the
1850, 900, 900 which the treasury
will pay in the next fiscal year as
interest on the national debt and
comparing that sum with the
1874 ,000, 900 - mere millions -
which sufficed to pay all govern
ment expenses in the fiscal year
1915.
The cuts were made In work
relief, public works, various
aids to youth and for agricul-
ture. Farm relief still may
coat around seso, 900. 900 In the
next fiscal year. although that
n . reduction Of &255, 400, 900
below current spending levels.
Proposed appropriations for free
food stamps were trimmed by
sac. ZOO, 900 to s1s2. 900 900, q cut
evidently imposed by the budget
bureau largely on its own author
ity because when he came to IL
in outlining the message to his
budget seminar, Mr.. Roosevelt re-
marked that someone other than
himself would have to defend that
particular cut before congress.
Roosevelt Not Alarmed
Mr.. Roosevelt II not alarmed by
the tremendous national debt pros
poets. He said our capacity to
carry debt without undue hardship
depends mainly on our ability to
maintain high levels Of employ
ment and national income. He
believes an integrsted fiscal pro-
gram including low interest rates,
flexible tax rates and effective
price control will permit debt re-
duction to begin early in the post
war period and. perhaps. lead to
gradual lessening of taxation. But
tax relief will be held back by the
inescsp able fixed charge for in
terest on the national debt. BY the
end of the next fiscal year that will
amount to 81. 500, 0oo, 900 annually.
The budget message, read to
congress by clerks. proposed new
fiscal legislation as follows:
Amendment OF the social Sc
l curity act TO make federal
grants 10 states in proportion to
their need instead Of in fixed pro-
portion 10 the money each individ-
ual state can raise. Poor states
would get proportionately more
federal aid that way.
o-Lower estate and gift tax ex-
4 emptions; re-examine privileg-
ed treatment given certain types
Of business in relation to corporate
taxation; careful consideration OF
a variety Of tax possibilities includ-
ing collection OF income taxes at
the source. payroll taxes and excise
leyies.
o-Correction in the tax laws Of
> various technical inequalities
and discriminatory defects. in gen
eral.
"A federal tax on income on all
' future state. municipal and
other similar bonds and. as q gen.
ersl proposition, abandonment OF
the issue Of so-called tax-exempt
securities.
c-RecApture from corporations
y OF excessive profits"
The president recommended
. general expansion of the So
cial security program % add
hundreds of thousands 30 the
covered group and 10 include
protection against hazards not
mutually covered. Specifically,
he recommended:
Increase in the eoversge Of old
age survivors insurance.
0-Addition Of permanent and
4 temporary disability payments
and disqualification payments be-
yond benefit programs
differentiation and expansion
, % unemployment eonpenss-