Evening star., 1943-01-12
otoi Wor BUDGET

total Wor Budget
The budget figures for the coming
fiscal year, calling for the expendi-
ture of just under 100 billion dollars
Tor the prosecution of the war, can
have little actual meaning for any
one. 1t is sum too vast for ordinary
comprehension, yet some conception
OF what 1t means in terms Of Federal
outlay may be obtained from a COM
parison with what has been spent
in the past
From the hour of the Inauguration
OF George Washington in 1889 down
to the day of the attack on Pearl
Harbor the Treasury spent a total
OF 1877 billion dollars. Rut that is
only one billion dollars more than
we will spend on this war alone in
the period beginning with Pearl Har-
Dor and ending with the windup of
the next fiscal year. Thus, in period
OF two years and one month, the war
is going to cost us virtually as much
as the Government spent on all ac-
tivities in all of the preceding CEN
tury and half. Certainly, however
we'll we manage this program, it is
going to subject our national econ
omy to stresses of unprecedented
severity.
To meet this strain, the President
has asked Congress for legislation to
raise a total of about fifty billion
dollars in tax receipts and compul-
sorry savings during the next fiscal
year. This is approximately sixteen
billion dollars more than the esti-
mated revenues from existing tax
laws, and would enable the Treasury
to defray about one-half the current
cost of the war. The balance, plus
about nine billion dollars for other
purposes, would have to be met
through borrowing.
The attempt to raise an additional
sixteen billion dollars in new taxes,
forced savings, or both, is going to
put a terrific load on the already
heavily burdened taxpayers. But
with the national income for the
year estimated at 145 billion dollars
it should be possible to achieve ell
or a substantial part Of this objec-
tive, provided the tax load is prop
erly distributed and Congress feels
that the economic factors justify or
require the imposition of such dras-
tic levies.
In return for shouldering such an
immense tax burden, the taxpayers
have a right to expect at least two
things in return. One is the elimina-
ton of every unnecessary non-war
expenditure and the avoidance OF
waste in war outlays. The second Is
the placing of his tax load on a pay
as-you-go basis. The tone OF the
Presidents message was encouraging
In both respects.
Mr.. Roosevelt said he would be
glad to cooperate with Congress in
further reductions Of non-war ex-
penditures, although pointing out
that they already had been reduceds
by 367 per cent since 1899. There
Is reason to believe, however, that
further reductions are possible. and
they should be made, but it is also
essential to keep in mind the fact
that the so-called non-war outlays
will constitute but 4 per cent Of
spending in the next fiscal year,
With 96 cents out of every dollar
going for the war, 1t will be neces-
sary to look to these items for econ
omy II any substantial saving is to
be made. There have been crafty
ing indications that members OF
Congress intend to do this, and it is
to be hoped that ways will be found
to trim some of the projected war
expenditures without impairment Of
the military effort.
The President did not elaborate
on the question Of tax collection, but
confined himself to the assertion
that "it is more important than ever"
to simplify taxation and ito put our
taxes as far as feasible on pay-as-
you-go basis" This is simple state
ment of fact. Unless Congress acts to
this end this year, it is no exaggera-
tion to say that the vastly increased
tax load is going to destroy the SOL
vency of great many taxpayers
Mr.. Roosevelt dealt with number
of other aspects of our fiscal prob
lem, such as the effect of current
taxation on the economic stabiliza-
ton program and the desirability Of
holding to minimum the burden
which must be passed on to future
generations. When all Is said and
done, however, the one great justi-
fication for the heavy load which he
has asked the country to assume lies
in the fact that 1t is necessary to the
winning of the war. And that, as
every one will agree, is justification
enough.