Evening star., 1944-03-06

facts-some of which may come as
q surprise even to many American
readers:
l. The American people will pay
close to $4,000, 100000 in taxes in
the fiscal year 1914, which ends
June 80, next, and, assuming the
continuance of total war, they will
pay about $4,000, 900, 900 in taxes in
the fiscal year l945, which ends
June 30, 1945. Either of these sums
in Federal taxes alone is more than
the entire national income was in
1882 or 1888, respectively. The Fed
eral taxes paid in the fiscal year
1943 were only $4,000, ,00o,0 ,000 A
Jump of nearly 100 per cent from
one year to the next is something
worth talking about.
2. The American people are
financing the difference between
tax receipts and total expenditures
that is, the annual deficit-in a
manner calculated to prevent in
flation. Thus, the total Federal
budget for the fiscal year 1914 is
officially estimated now at 500, ,000,-
100000 and when the Sal, 900, 900 900
of taxes-official figures-are sub
tracted it leaves $50, 10000 900 to be
raised by borrowing. To curb in
flation it must be the kind of bor-
rowing that comes out of current
savings and not from the deposit
moneys of commercial banks. The
American people are now furnishing
such savings at the rate of $45, ,000,-
100000 a year. Both in the War
Loan drive last September and
the drive just concluded, the pur-
chases by mutual savings banks,
corporations, insurance companies
and Northumberland is, sources out
side the commercial banks-ran at
the amazing rate of $45,000, ,000,000
year. This is an extraordinary
proportion out of the $4,000, 600 900
needed and is all the more notable
because it was accomplished with
out any forced savings legislation.
3. The Treasury, unintentionally,
of course, overestimated for the
President the expenditures and
underestimated the tax receipts.
Thus, in January, 1943, the President
announced the 1914 budget at $1O4,-
10000 900, stuck to that figure in
August, 1943, but revised it down
to $99, ,000, 100000 in his message of
January this year. On taxes the
President in the January 1943)
message estimated $33, ,O0O, ,000, 900 as
the amount that would be collected,
increased his total to $38 8,OO0, 900 900
in his August l (1943) summation
of the budget when the withholding
tax came in, and revised his total
upward to SAL ,000, 900 900 in his jan
uary 0944 message. Actually, the
tax receipts will be about 42,00O,-
100000 and the budget will be nearer
$4,000, 100000 than $99, ,00O, ,0O0, ,00O-
according to reliable, though tlnoffi-
cial, estimates.
What, then, was all the shouting
about? In the January, 1943, mes
sage the President asked for $16,-
0O0,Oo0,000 in additional taxes for
the 1914 budget. BY January, 1914,
he Topped off $5,OO0,O0 900 from the
budget and added $4,000, 100000 to
his tax estimate According to his
own figures, the Treasury, therefore,
is $4,000, ,000 900 better off than 1t
was in his survey of January, 1943.
The President in October, 1943, re-
vised his request for additional taxes
downward from $4,000, 100000 to
$10,500 900, 900. So, actually, without
counting the revenues from the tax
bill just passed, the President got his
,500,000,00O and had $2,5O0,OO0,-
600 to spare. If we look at the 1945
picture for which Congress has Just
given the Treasury net addition
of $2,000000, 0,000 it means that Mr..
Roosevelt, in effect, finds the Treas
ury with ,000,00O000 out of the
$16,000,000, 900 he requested in Jan
uary, 1943, and with $4,000, 900 900
more than he requested in October,
1943, and repeated in January and
February, 1914.
AS for the fiscal year 1945, the
budget picture looks even better. As
suming continuance of total war,
the tax collections should reach
$44 900, 100000 with the new revenue
Just provided by Congress. The budg-
ct may run about $94,000,O00 900,
even including the outlays of the So
called governmental corporations
like the RFC. If we use the Presi-
dents method of counting social
security receipts it means that on a
cash basis we shall take in $46,-
500,000,000. This is more than so
per cent of the money needed for