The daily monitor. (Mount Clemens, Mich.) 1940-1942, 1942-01-07
Budget
Continued from Page ~

and unprecedented borrowing
that would send the federal debt
above $4,000, 900, 900.
This is q war budget" he
said in his annual budget mes
sage to Congress. Its magni-
tude and composition depend on
events at the battlefronts of the
world. $50 Nothing short Of q
maximum will suffice. l cannot
predict ultimate costs because /
cannot predict the changing for
tunes of war. I can say only
that we are determined to pay
whatever price we must to pre-
serve our way of life"
BIGGEST IN WORLD
He added at a press confer
ence that it was the biggest bud
get in the history of the world.
Government estimates indicated
it was nearly double Germany's
annual war expenditures. 1t
called, the president said, for a
step-up in the rate of war spend
ing from the current So, 900, 000,-
900 a month to $5,000,000, 900 a
month.
To the United States armed
forces and their Allies, the Presi-
dent promised that the budget
meant "a crushing superiority of
equipment"
TO the public he said that it
meant heavy new taxes because
"a fair distribution of the war
burden Is necessary for national
unity"
1t also meant, he declared,
that the people would have to do
without 'many conveniences
and luxuries" so that the nation
may shift labor, materials and
facilities from the production OF
civilian articles to the produc-
ton of weapons and other war
supplies"
WIDE RANGE
Technically, the budget con-
cerned only money to be paid
out of the treasury. However,
in setting up the $56, 900, 100000
war program, the President said
that beside an estimated $751;
1856, 1876, 900 out of the treasury,
he believed that an additional
$3,O0O,0O0,000 would be spent
out of the purses of the recon-
struction Finance Corporation
and other non-budgetary agen-
cies for war purposes.
The treasury budget called for
total expenditures of $59,027,-
1928 in the fiscal year begin
ming next July /. This included
the huge war item plus $1,75O,-
600, 900 for interest on the public
debt, and reduced allotments for
work relief, farm aid, govern
mental running expenses and
other non-military costs.
TAX ESTIMATES
To pay for this, President
Roosevelt estimated there would
be SIG, 487, 200, 900 of taxes from
existing tax laws, asked $1,000
600, 900 of new general taxes
(not counting increased social
security taxes, which do not
count as revenues), and propos-
ed borrowing of $35, $40. 792, 900
from social security and other
government trust funds and
from the public.
In the current fiscal year he
figured treasury expenses would
total $30,675,7 96,l62, including
$23, 900, 525, 400 for defense, and
calculated that taxes would
yield $11,943,993 900, leaving a
deficit of $18,731,803,162 to be
covered by borrowing.
This meant that the World
War spending peak of $18.522,-
100000 will be passed this fiscal
year and approximately tripled
next year.
VARIOUS NEEDS
In his tax program, the Presi-
dent asked for approximately
So, 900, 100000 Of added social
security taxes plus $7,O0O,OOO,-
900 of income, excess profits, es-
tate and gift, and excise taxes.
He approved of almost any kind
of new taxes except a general
sales tax-and he indicated that
even that type of levy later
might become necessary on a
temporary basis.
Saying that taxes were inn
portant not only to finance the
war but also to prevent infla-
ton, he asserted, "any tax is bet
ter than an uncontrolled price
RISE"
The President, however, offer
ed little bright news to the gen.
eral public, too.
He said the Nations produc-
tive resources were enough in
spite of diversions to war output
TO enable the people Ito main
tain a standard of living more
than adequate to support the
health and productivity of our
people. / do not at present
propose general consumer ration
cards"
While automobile tires are al
ready rationed, he explained