The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1943-06-24
1914 TAX PLANS
STILL UNCERTAIN
Treasury Begins New Fis-
cal Year Next Week With
l4O Billions Debt
BY LYLE C. WILSON

BY LYLE C. WILSON
Washington, June 24.-CUP)-The
treasury will begin a new fiscal year
one week from today with 1914 tax
plans still uncertain and a national
debt which probably will be in ex-
cess Of $4,000, 600, 900.
The expiring fiscal year has been
record-breaker in all respects. But
both receipts and expenditures EVIL
IDENTIFY will fall below the estimates
President Roosevelt submitted to
congress in his budget message last
January.
Message last January 6.
Here are current figures for this
fiscal year compared with last Jan
uary's estimates:
This Yea
To Date January Estimates
National Debt
$l38, 722, 000, 900 $134, 300, 900 900
Expenditures (alD .............
1915, 100000 8O,4OO,OOO, 900
War Expenditures .............
60,430,000,000 $4,000, 900 900
ANSSSAPUo
20,477, 00O, 900 $4,000, 900 900
Net Deficit ....................
54,714,000,OOO 57,4oo,o0O 900
The discrepancy between tn e
smaller-than-expected net deficit
and the larger than-expected public
dept Is explained by the cash bal
ance of more than $4,000, 100000 now
at the treasury's disposal. This huge
fund is reflected in the debt but not
the deficit.
Thief igures show that tax receipts
paid considerably less than one
third of the cost of the war in this
fiscal year. Secretary of Treasury
Henry Morgenthau, Jr, who first
proposed that taxes and savings
should bear two-thirds of the war
cost in the next fiscal year, starting
July I, already has lowered his OBJ
festive to so per cent and there is
no assurance that goal will be reach
ed. Morgenthau, an opponent of
forced savings, hopes that the public
voluntarily will invest Is per cent
instead off 10 per cent Of its in
come In War Bonds.
In submitting his budget last jan
uary, Mr. Roosevelt told Congress:
II believe that we should strive to
collect not less than $4,000, 100000
of additional funds by taxation, saw
ings, or both, during the (next) fis-
cal year 1914"
This month the treasury has been
revising its spending tax plan which,
Nc ON-jr NoI
badly by congress. Morgenthau's adj
visers also favor increased income
and corporation taxes But under
congressional pressure, the treasury
has agreed to reduce the additional
Legislative revenue goal from $16,-
300 100000 to $4,000 100000 for the
next fiscal year. 1t has been further
agreed that such new income levies
as may be enacted shall not become
effective until Jan. l, 1914, which is
a date just midway in the 1914 fis-
:al year.
Failure OF congress to act since
january on Mr.. Roosevelt's request
Tor sic, 900 100000 additional revenue
largely is explained by the protracL-
ed dispute over pay-as-you-go tax
egislation which was signed on June
10. The forgiveness of only rs per
cent instead of 100 per cent of 1912
taxes to persons whose liability was
n excess of $50 provided 100000,
boo windfall to the treasury. That
figured in Morgenthau's reluctant
consent to reduce the new revenue
detectives from the $16,000,00O, 900
budget message proposal. The 3d.
100 100000 is payable over a period
If two years.
Whereas congress generally was
hostile to spending tax legislation in
he early winter, there is somewhat
more favorable disposition now.
such legislation, regardless Of It's
)ther advantages or disadvantages,
would be directly effective in reduc-
ng public purchasing power at
ime when there is an enormous eX-
ess over available purchasable COM
nodities and services.
Congressional leaders have agreed
O proceed sometime this summer
With a new tax bill. 1t Is pointed out,
however, that If the objective Is $12,-
90 600 900 more tax revenue in the
text fiscal year, the income tax in
reases will have to be extremely
teep because or the committmnt
hat shall not become effective I'M
il Jan. /, next. That would leave
my six months of the 1914 fiscal
ear In which income taxation could
ontribute it's share Of the proposed
Il, 900 100000 addition to treasury
evenue. If excise or manufacture
rs sales tax--levies are increased,
hey probably will become effective
Immediately with enactment of the
eW revenue law.