The Waterbury Democrat., 1942-01-07
President Has Given
 Congress Stiff Jolt
Continued from Page D

Continued at any time. He said 1t confronted the nation with the biggest produc- ton job in all history.
 Hint of Budget Size
 | A hint of the size of this budget may be gained by considering the $1 ,75O,00000O which the treasury will pay in the next fiscal year as interest on the national debt and comparing that sum with the $734,- O0O,O0O-mere millions-Which suf- feed to pay all government expenses | in the fiscal year of 1916.
 Organization to spend the money this budget will raise will be a tre- mendous job. MT. Roosevelt esti- mates that expenditures may reach volume of $5,000 100000 a month -$1 ,0O0 100000 or more a week - next year as against about $2,000,- 100000 a month at present.
 i MT. Roosevelt has cut non-defense spending for the next fiscal year. But the overall reduction leaves the total proposed expenditures for oth- CT than war purposes at the sum of $6,141 100000 The overall cut amounted to $437, ,464,O00, but ex- cluding certain fixed charges which the President was poWerless to re- duce-and which actually increase the cut was around $1,000, ,000, 900.
 The cuts were made in work re- | tof to yTynY youth and for agriculture. But farm relief still may cost around $780, 100000 in the next fiscal year, al- though that is a reduction of $255,- 100000 below current spending levels.
 Some Trimming Done Proposed appropriation for free food stamps were trimmed by $26,- 100000 to $132,0OO00O, a reduction evidently imposed by the budget bu- reau largely on its own authority be- cause when he came to it in outlin- ing the message to his budget sem- mar, MT. Roosevelt remarked that someone other than himself would have to defend that particular de- crease before Congress.
 He said his whole budget was based on the assumption of "only a moderate rise in prices" but that Congress must act quickly with price control legislation if that assump- ton is to be borne out.
 MT. Roosevelt was not alarmed by the tremendous national debt pros poets. He said the country's capacity to carry debt without undue hard ship depends mainly on its ability to maintain high levels of employ ment and national income. He be- lieved an integrated fiscal program including low interest rates, flexible tax rates and effective price control will permit debt reduction 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 unacceptable fixed charge for interest on the nationa! debt. By the end of the next fiscal year that will amount to $2,500,000,- 900 annually.
 Fiscal Legislation
 The budget message, read to Con- gress by clerks, proposed new fiscal legislation as follows:
 l. Amendment of the Social Secur- ity Act to make federal grants to states in proportion to their need instead of in fixed proportion to the money each individual state can raise. Poor states woulc get propor- tionately more federal aid that way
 2. Lower estate and gift tax eXemptions; re-exaniIle privileged treatment given certain types of bus ;ress in relation to corporate taxa tion; careful consideration of a va riety fo tax possibilities including collection of a variety of tax pos. abilities including collection of in- come taxes at the source, pay rol axes and excise )egies.
 3. Correction in the tax laws 0. various technical inequlties and dis criminatory defects, in general.
 4. A federal tax on income from all future state, municipal or othel similar bonds and, as a genera proposition, abandonment of the is' sue of so-called tax exempt securi ties.
 5. Recapture from corporations O "excesivet profits"
 Social Security Expansion
 He recommended general expan sion of social security program t add hundreds of thousands to tn covered group and to protect agains hazards not initially included Specifically, he recommended:
 l. Increase in the coverage of ol' age survivors insurance.
 2. Addition of permanent an temporary disability payments an disqualification payments beyon present benefit programs.
 8. Liberalization and expansia 5 of unemployment compensation 1 : 8 uniform national system. s He suggested that collection C