Evening star., 1947-07-04

to the needs Of Congress on tax
figures. He Is authority for the esti-
mate just given.
Mr.. STAN points out that the re-
duction in tax revenues will affect
only half Of the fiscal year which
began July /, 1947, and extends to
June 30, 1948. Thus the full effect
of the tax rates would not be felt
in the fiscal year 1948, which is the
one in which expenses are expected
to be much higher than in the fiscal
year 1949.
Figures to Garry Weight.
There are some experts who figure
that, with favorable business condi-
tions, the estimated loss of revenue
due to tax-rate revision will not be
as large as predicted because when
tax rates are reduced, there Is
usually a stimulus to business and
the total volume of transactions in
: cfeases. Mr.. STAN, however, is max
ing his estimates in the customary
way and there is no allowance for
a. marked improvement in business
conditions which could conceivably
increase the gross receipts of the
Government not merely from indi-
vidual taxes but from corporations
and from customs duties and excise
taxes on beverages and various lux
ury articles.
The figures offered by Mr.. STAN
will carry good deal of weight in
Congress because some members
who voted to sustain the recent veto
Of the tax bill did so because of a
fear that the amount to be reduced
would be at least $4,000 900 900 dur
ing the fiscal year that ends June
30, 194s.
So If Congress passes the new
tax bill over an expected presiden-
tial veto. the two houses will, in
effect, be adopting compromise
half Of the $4,000, 100000 instead OF
the full amount.
The plan to apply $4,000, 900, ,00C
to debt reduction presupposes that
the tax receipts expected will exceed
by that amount the Government
expenses planned for the fiscal year
1948. This means that the drive
for economy must be continued
throughout this year and next. 1t
means that Government appropria-
tions must be pruned by the admin
istration so that everything author
lied will not be spent. Each year
there Is a balance of unexpended
appropriations. In fact. there are
huge sums now available for Euro
pean relief which can be handled
out of funds already authorized and
made available from the grants of
preceding years.
Marshall Plan Studied.
The prospect that America will be
called on to furnish many billions
to Europe is apparently not inter-
fering with the plans to hold down
the 1948 budget This is because
there are big sums available through
the World Bank and through the
Export Import Bank and through
unspent relief funds-al of which,
II pooled, could help the European
economy through the purchase by
our Government or needed Ameri-
can goods for resale through loans
to European countries.
Congressional committees have
been studying the scope and pos
sible cost of the Marshall plan. The
sentiment on Capitol Hill is that
whatever aid is given Europe will be
of such an amount as the American
Government can take in its stride
without upsetting the plan to make
some reduction in the national debt
If it comes to a matter of ignor-
ing reduction of individual taxes
altogether or ignoring for year a
further cut in the national debt in
order to help Europe, it may be
taken for granted that Congress will
feel that the debt can wait a year
to help out Europe and that tax
reduction will help maintain favor
able business conditions In the
United States and bolster the ma
tional economy.
fermentation Rights ReServed)