The Waterbury Democrat., 1944-01-13
War spending Program
Totals 15 Of Trillion
Continued from Page ~

tContinued
The current 1914 fiscal year ends
on June 80. A year ago Mr.. Roose-
welt budgeted to spend $l08000,-
600, 900 in that fiscal period but he
will fall short by about $4,000, 900, =
900.
The budget message, the pres
ident's 18th, was read in the house
by clerk. His estimate Of l945 fed
eral revenue at $40, 796, 100000 was
substantially more than the value
Of all the goods and services pro-
duced by all the people Of the Uni
ted States in the depression year
1888 when he took Office.
Challenge
The president directly challenged
congress on three counts:
/. He said the $2,275, 900 900 tax
bill now pending in the senate was
not stiff enough to support the eco
nomic sterilization program.
2. He said congress should have
permitted the doubling of old age
and survivor benefit taxes as sched-
uled on January /.
8. He said he was disturbed be-
cause congress seriously was consid-
ering amending the renegotiation
Of war contracts act in such form
as to restrict its operation IF not
destroy its effectiveness"
The American people are united
In their resolution to prevent war
profiteering," he said. Taxation
alone is not enough. The recapture
Of exorbitant war profits, in my
judgment, should be definitely as
Sured by renegotiation."
The overall war spending pro-
gram and the nation debt provided
the most spectacular budget figures.
The total war program for three
and one-half years from June 1910
through December 1913 already to-
tails $344,ooo, 900, 900. In that time
the United States actually has
spent $l53, 900 100000 for this war.
the remainder having been commit
ted by contract obligations or other
wise. Actual war spending runs
more than a year behind the au-
thorized program. By the end OF
this fiscal year on June 80, 1914 It
was estimated that the United
States will have spent 5000 ,oOO 900, =
900 for the war.
Overall Program
With additions from this new
budget, the overall war program will
swell to an aggregate of 1897 900, =
100000. The budget estimated that
1921 900 100000 of this actually will
be spent by June 80, l945.
The national debt will reach $685..
900 900, 900 on this June 30 when
the 1914 fiscal year ends and will
be more than quarter OF a tril-
lion dollars by the end Of the 1916
fiscal year. Mr.. Roosevelt there
fore informed Congress that it will
be necessary to increase the $780,
900, 100000 statutory limit upon the
public debt.
1t will cost the taxpayers $5,000,-
100000 annually just to pay interest
on the $4,000, 100000. But Mr..
Roosevelt told Congress that this
interest load and some provision for
gradual debt retirement should not
prove oppressive If the national in
income can be held at $l25, 90, O00,-
900 or more year. National in
come was about $l35 900, 100000 in
1913.
This l945 fiscal year budget turns
out to be very similar to the actual
operation Of the 1914 budget. One
year ago Mr.. Roosevelt budgeted
for $l08, 1908. 100000 of expenditures
in the current fiscal year. But with
six months of that fiscal period
to go, he estimates now that ex-
penditures will aggregate only $685.
276, 900, 600.
The greatest discrepancy was an
increase for the 1915 fiscal year of
more than $l,0O0,000,O00 in nom
war expenditures. This was at
tributable to increased veterans
pensions and benefits and to re-
serves against the refundable por-
tons OF corporate excise profits
taxes.
Mr.. Roosevelt hit hard for high
er taxes and for extending the fed
eral old age and survivors insurance
system TO many groups now exclude
ed, which also would raise addi-
tional reveue.
Most urgently he sought addi-
tional taxes without proposing any
particular method other than to
cite last October's treasury plan to
raise $l0,500, 100000 as a minimum
requirement. He recalled that his
budget message last year asked for
SIC, O00, 000, 900 In additional taxes or
forced savings or both, and that
he then had sought simplification
of the tax system which he said
still should be realized.
Let us face the fact" he con-
tinued, "the failure thus far to
enact an adequate fiscal program
has aggravated the difficulties Of
maintaining economic sterilization.
Increases In income should be lin
tied to reasonable rewards for adj
ditional effort. A wartime tax pol
icy directed to that objective Is a
necessary support to wage and price
sterilization. It Is, furthermore, an
important wartime contribution u
postwar fiscal planning.
'"The time to impose high taxes
A. awnamnmanm ava htvfa MNaA