Evening star., 1943-08-02
Spending Must Be Cut.

Similarly, Senator Radcliffe, Dem
ocrat, of Maryland said he thought
Congress was preparing to look
much more closely into future Army
and Navy requests. a subject the
Byrd Committee on Reduction of
Nonessential Expenditures has
marked for early exploration.
Senator Taft, Republican, of Ohio
predicted that Congress will have
trouble in finding additional rev.
enue sources for the truly stiff pro-
gram of additional taxes, savings, or
both that Mr.. Roosevelt said ought
to be enacted.
Senator Taft said it seemed i'm
possible on the basis of figures COM
piled by the Joint Congressional
Committee on Internal Revenue to
obtain more than about $3,000,000,-
600 in direct new taxes. He said the
committees figures showed that the
Federal Government will take S13,-
450,000,000 in taxes out of $2l 400
100000 in corporate profits in the
present calendar year.
The Ohioan said he doubted this
tax total could be increased more
than $1,000, 100000 at the outside,
with about $4,000, 100000 in new
revenues obtained from individuals
and from miscellaneous sources. The
administration has been searching
around for 1000 100000 additional
Greater Naval Strength.
In his first budget summation in
five years the President disclosed
Saturday that while the overall war
spending outlook remains unchanged
the Army now is expected to use
$4,000, ,000. 900 less than the $62,000,-
100000 estimated for it last January,
while the Navy's share will be
upped $4,000, 100000 to $4,000, ,000,-
600. Congressional circles viewed
this as perhaps indicating greater
offensive power was being sought for
the Pacific theater dominated by the
Navy.
Observing that revenue of the
Federal Government has increased
10-fold in the last decade, Senator
George said that new taxes to be
enacted at the forthcoming session
of Congress may be expected to yield
not more than $4,000, 600, 900 to So
900, ,000, 900, or scarcely one-half the
administration estimate of need.
ANY large increase must fall on
the middle income brackets and
down to $4,000 and $3,00O," he said.
THE truth is that of our national
income (now at $140, 900 900, ,000)
some SOL 900 100000 goes to people
in the lower brackets-people whose
income is $4,000 or less.
when we realize that taxes must
be uniform, it is clear that further
drastic increase would be back
breaking and destructive to the
middle class and to the lower upper
class.
IT would be greatly surprised If
the Ways and Means Committee of
the House undertook to raise any
specific sum of additional revenue,
and would be still more surprised
If, at the end of the work Of the two
committees CHouse and Senate), we
succeed in raising more than IS ,000,-
100000 or $4,000, 100000 in new
revenue"
Sales Tax Unlikely.
Senator George said he saw no
immediate prospect either for
Federal sales tax or for compulsory
sayingS-both presently opposed by
the Treasury. He added that the
Congress would insist on reasonable
exemptions" for food, clothing,
shelter and drugs if sales tax were
suggested by the Treasury. and thus
even 10 per cent levy would not
be likely to raise more than s3,0OO,-
600 900 or $4,000 .00C 900.
Next year, being an election year.
there will be no tax act" said SEN
ator George. The forthcoming
1943 Tax Act certainly will 20 on
for all of 1914. Certain provisions
already have been predetermined.
These are: Cd Individual and corp
crate income taxes will not be
retroactive. and (2) any changes or
increases will be effective only from
and after January l, 1914"
Explaining that strategy has been
more fully shaped since he sent his
previous figures to Congress, Mr..
Roosevelt added that battle casual
ties have been fewer and materiel
losses lighter than expected.
Although official sources insisted
that the fund transfer would not
alter the pattern of overall global
warfare, Senator Burton, Republi-
can, OF Ohio, member of the Tru-
man War Investigating Committee.
said 1t seemed apparent to him that
any increase in naval outlays spells
bad news for Toxic
There doesn't seem to be any,
thing in the offing that will require
much greater naval forces than we
already have in the Atlantic and the
Mediterranean" he said, "and this
expansion logically can be expected
to increase our Pacific naval forces"
Shipping Losses Smaller.
There YVES also disposition at the
Capitol to look on the cut in po-
tential army expenditures as an in
dication that the military forces are
losing less of their supplies in transit
by submarine sinkings than had
DCCI ChJCSJCd dllO GllS
war progresses that their expendi-
ture of materie1 and ordnance may
not be as great as projected.
In this connection it was pointed
out that far fewer bombs, artillery
shells and bullets had to be used
and fewer planes, tanks, guns and
ships expended in conquering a
major part of Sicily than If des-
perate resistance had been encoun-
tered from the enemy at all points.
The summation placed total Gov
ernment spending during the fiscal
year at 100000, 900 900, of which
s38, ,000, 100000 will be covered by re-
ceipts from present revenue laws,
leaving s68 1000, 100000 deficit that
will boost the national debt to
s206, 900 900, 900 by next June 80.
Spending in the past year aggre-
gated $50 900, 900 ,000-all but s5,000,-
100000 for war-while receipts of
l1ft Lac 80