Indianapolis Times, Indianapolis, Marion County, 11 January 1943 — Page 2
t6 Be Spent for Arms; ash Provided Camps,
Training Stations.
ASHINGTON, Jan, 11—It’s a oillion budget, if you're talking t expenditures in fiscal 1944; 87-billion budget if you're talkabout appropriations. ) way it’s the biggest any try has ever seen. | One hundred billion is to be pent for war, It’s a maximum am, the president says; not as ‘as the army and navy wanted, as big as the economy of the ntry can handle at the moment, in e final judgment of his top advisers. Of this hundred billion, $66,000,00,000 will go for munitions, a 50 per cent increase over what we're “spending this ycar. Military and civilian pay, subsist: nce and travel—for war—will in‘crease from 15 billion to 21. The re is based on an army with 500,000 enlisted personnel. Two billion is earmarked for in-
ustrial construction, a third of this|
’s figure, Five billion will be
pent for construction of campsand}
training stations. Other expenditures, including agricultural ‘lendase, will come to 6-billion dollars, Lend-lease munitions are included in figures for the war “8nd navy
2 ”
FIGURES for non-war activities f the federal government are small sompared with these staggering Regular departments will spend $4,124,000,000, the budget bureau mates, or $2,392,000,000 under the D- fiscal year. Of every dollar the government spends in fiscal 1944, only 4 cents will go for “non-war” purposes. nd the president feels that most these “non-war” items are essential to the war. Furthermore, of the “non-war” nding, over 36 per cent goes for of war veterans—Civil war, anish war, World war, and the prans of this war who are reng to be hospitalized.
# ” ”
INTEREST on. the public debt year will take 3 billion dollars, iithough debt-servicing costs are at ) rate less than half that of world days. Government corporation — RFC, mmodity Credit, and others—
spend a little more than $4,700, |
0,000 from their revolving funds. hat makes up the rest of the 109,000,000,000 total.
The president put an estimate parity payments in his budget s year, He has omitted it in cent years only to have congress ist on it. He also made allowfor continuing reduced ini rates on*farm morigages— nother point on which the farm nc has won year after year, : X = 2
LI, CORPORATIONS get a word in the message. The sident says they must be given p war contracts. At the same he asks congress to show as consideration for smaller and gorer farmers as it has showed smaller and poorer industrial pncerns,
Ace
#" » »
VHEN. YOU TALK about all the ple on the federal pay rolls the sident wants it understood: at out of a total 2,850,000 fedemployees, 1,600,000 are buildand loading ships, making guns shells, repairing machines, bu ding arsenals, sewing uniforms,
10
Another 400,000 are civilian emyees of war agencies. That leaves 850,000 (which indes the postal service) engaged i “nonwar” activities. EJ » ”
There'll be no new veteranpital building program .after war if the administration’s ins work out. It wants to conrt army camps and training stans. ” » » ERIOR department—as prelic ed—took the heaviest cuts in ie “nonwar” group, and most of f came from reclamation, despite ie need from growing more food. [nterior will spend $87,000,000 next gar, compared with $120,000,000 this, administrative expenses. Its pub--works spending will be cut from 04 million to 87. Le 2 2 = UDGET has no more emergency s for the president to spend as sees fit. And he trimmed white ge expenses by some $22,000. ” 2 ” PRESIDENT has frimmed ‘highway budget once more—as ‘has tried te do each -year, only have congress override him. He s to spend $69,000,000 for roads fiscal 1944, instead of the $105,B88 they're costing this year— i he wants to cut appropriations $82,700,000 to $40,000,000,
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druggist Jo Tippy’s master. Lieut. Place wrote per- Shopping rush
[F.D.R. Estimates Revenues | And Expenditures in Budget
WASHINGTON, Jan. 11 (U. P.).—Where the money is SmI Jom: the statement of anticipated federal revenues given in the budget for the fiscal year 1944 as submitted to congress today by President Roosevelt. (Note: This revenue statement is based on present tax laws; it does
| not take into account the administration proposal for obtaining $16, 000,-
000,000 in additional funds through new legislation).
Estimated, Fiscal Year 1944 Direct Taxes on Individuals: Income TaX .eceacee
Estate Tax e6s00s00 Gift Tax sesso rseene
$10,286,300,000 Victory Tax o8v0nes (x) $2,800,500,000 $609,300,000 $54,500,000
Actual Fiscal Year 1942
Estimated, ry Bs
$7,262,500,000 $3,262,800,389.86 $534,600,000 $500,000,000
$41,400,000
$340,322,905.08 $92,217,383.01
TOTAL. Direct Taxes On Individuals ... Direct Taxes on Corporations: Income Tax Excess-Profits Tax Declared Value ‘Excess-Profits Tax. Capital-Stock Tax ..
$13,750,600,000
$4,195,000,000 .. (x)$10,270,000,000
$90,000,000 $360,000,000
,
$8,338,500,000 $3,695,340,677.95 $4,015,000,000
$3,069,270,540.87 (x)$5,670, 060,000
$1,618,188,950.87 $85,000,000 $52,219,089.02 $300,000,000
TOTAL, Direct Taxes on Corporations .. Excise Taxes: Unjust Enrichment Tax Liquor Taxes ...eee Tobacco Taxes cececee Stamp Taxes cesene Manufacturers’ Excise TaXeS coeee Retailers’ Excise TaXe$ «coos Miscellaneous Excises eevenceonoed
$14,915,000,000
$1,486,500,000 $948.230,000 $41,950,000 $395,300,000 $137,000,000
$902,900,000
$10,070,000,000 $5,021,578,715.65
- $4,000,000 $1,376,200,000 $919,830,000 $40,800,000
~$4,401,767.86 $1,046,914,613.99 * $780,787,164.21 $41,702,164.92
$468,380,000 $768,262/404.97
$143,400,00C $80,167,124. 16
$725,500,000 $405,305,904.84
TOTAL. Excise Taxes ....... seems. Employment Taxes:
$3,915,380,000
$3,678,110,000 ~ $3,127,631,235.25
Taxes on Employment by Other Than Carriers:
Federal Insurance Ce:ntributions Act. Federal Unemployment Tax Act ....
$1,555,800,000
$170,600,000
$1,105,000,000 $895,618,818.82
$147,900,000 $119,944,146.04
TOTAL Taxes on Carriers - and Their Employees Railroad Unemployment Ins. Act ....
.
$1,726,400,000
$244,500,000 $11,300,000
$1,252,900,000 $1,015,562,984.86
$209,200,000 $170,011,691.46
$10,200,000 $8,472,212.10
TOTAL. Employment Taxes ....es Customs .... Miscellaneous Receipts Total . Less Adjustment to Daily Treasury
Statement Basis 0000000000000 00RCCS
TOTAL a. RECEIPTS ..... Deduct: Net Appropriation for Federal OldAge and Survivor’s Insurance Trust Post-War Credits " for Excess-Profits Tax and Victory Tax eevee.
$1,982,200,000 $204,300,000
$639,215,000 $35,406,695,000 .
$35,406,695,000
$1,525,450,000
$800,000,000
$1,194,046,88.42 $388,948,426.88
$1,472,300,000 $252,600,000
$2717,376,297.34 $13,704,922,241.49
$740,745,000 $24,552,255,000
$37,007,417.65
$24,552,255,000 $13,667,914,823.84
$1,076,180,000 $868,853,202.82
$500,000,000
Net Receipts, General and Special Account ..
$33,081,245,000
(x)—Amounts shown are net of post-war credits claimed for current
use.
2 8 =
Where the money is going: The estimates of federal expenditures
for the 1944 fiscal year in the budget? Estimated, Fiscal Year 1944 Legislative Judiciary Ind. Establishments: Office of President .. Civil Service R. R. Retirement. . Selective Sve. (1).... Maritime Comm, .. Veterans, Adm. ... Other Independent
Total Independent Establishments ..... Federal Security AGENCY ....cco0v00 Federal Works Agency National Housing Agency ..... ees Dept. Agriculture Dept. of Commerce. Dept. of Interior ... Dept. of Justice «..e™
coe
Dept. of Labor ..... Navy Department .. Postoffice .c.eoceecee Dept. of State ...... Treasury Department: Administration and Operation ...... Interest Statutory Public Debt Retirement ...
(2)
Total, Treasury .. War Debt: Military Corps of Engineers Panama Canal ...
Total, War Debt.. General Public Works Program .. District of Columbia
Total Regular Items Supplemental Items: National Defense.. Total Supplemental.
GRAND TOTAL ...
$27,455,600 $12,663,500
$2,524,865,390 $192,623,500 $2178,900,000
$1,300,000,000 $879,360,000 $87,071,000
$5,262,819,890 $717,749,700 $234,568,000
$191,385,000 $2,352,164,558 $214,583,000 $87,505,875 $106,165,000 $24,292,200 $22,000,000,000
$35,415 600 $243,744,000 $3,000,000,000 $5,000,000 $3,428,744,000 .' $61,996,370,000 $35,925,500 $27,505,200 $62,059,800,700
$354,612,300 . $6, 000, 000
Adjustment ........ iii $97,115,924, 923
$17,000,000,000 $13,000,000 $7,013,000,000
$104,128,924,923
Actual Fiscal Year 1942 $217,268,9'73.10 $11,537,736.82
Estimated, Fiscal Year 1943 $27,042,300 $12,118,100
$293,019,231.13 $114,205,285.07 $154,885,667.66 $32,943,304.50 $929,451,002.14 $551,885,187.65 $60,958,602.56
$1,608,686,062 $123,979,000 $229,232,000
$2,000,000,000 $613,806,000 $94,795,636
$4,670,498,698 $2,137,438,370.71
$76'7,691,000 $951,287,755.36
$730,504,700 $1,015,730,618.27 $314,545,252.67 $1,883,818,534.50 $179,535,767.85 $81,951,116.21 $81,832,079.13 $23,777,418.63 $8.579,588,975.68 $17,729,774.85
$816,393,300 $2,814,5694,558 $308,578,600 $120,282,420 $93,197,000 $25,174,134 $117,500,000,000 $3,789,712 $36,544,800
(3)$1,750,113,543(3)$1,011,089,138.74 $1,850,000,000 $1,260,085,336.46
$5,000,000 $94,722,300.00
$3,605,113,543 $2,365,896,775.20 $14,069,958,014.59 $29,607,976.68 $65,048,385.08
$43,961,750,400 $48,406,900 $82,895,400 $44,003,052,700 $14,164,614,376.35 $619,661,880.05 $6,000,000.00 (4) $984,437/56 $32,491,307,397.69
$576,752,350 $6,000,000
$76,207,327,915 $4,100,000,000
$130,000,000 $4,230,000,000
sesssevsscscccsose
$80,437,327,915 $32,491 ,307,9917.69
(1)—Other appropriations and expenditures included under “executive
office of the President.”
(2)—Estimated surplus for 1944 of $3,472,485. (3)—Includes purchases by procurement division under lend-lease
program. _ (4)—Excess of credits: Deduct.
Postoffice Pulled 'a Bone, But 'Tippy' Couldn't Use It
EVANSTON, Il, Jan. 11 (U, P). —~Postmaster George N. Taylor apologized today and said Tippy should have been allowed to cash his Christmas money order even though he couldn't write. Tippy, a 6-year-old dog bearing some resemblance fo a cocker spanfel, presented himself at a postoffice window with Bill Place, 15 last week to cash a 50-cent mone order.. . The order was a belated gift from | Lieut. Charles Place, 23, of the army air forces, Bill's brother and
that he'd Totgotien his dog in the ang ‘had sent the
went into a huddle. They decided.
that the order couldn’t be cashed because Tippy couldn’t signi his name. Bill went home and mailed the
order back to his brother. But when Mr. Taylor learned whal had happened, he notified Bill's father,
[Edwin Place, that the clerks had ]
made a mistake, International Beauty - School itd Senate
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$281,900,134.89|
$22,976,075,000 $12,799,061,621.02/
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$30,076,429.78|
TO BE LARGER _
50 Billion Needed From 2 Sources to Meet Budget Needs.
By MARSHALL McNEIL Times Special Writer
WASHINGTON, Jan. 11.—Brace your shoulders to carry a fotal tax and savings burden of 50 billion dollars. That’s the president's target for fiscal '44, set up in today’s budget message. This year we are paying $34,000,000,000 in taxes. (You begin to feel it this month with the victory tax, but the real bite comes March 15.) The president wants $16,000,000,000 added to that; part in new taxes, which he did not specify, and part in enforced savings—what the budget bureau calls “refundable taxes.” - How the division is to be made, the president didn’t say. p's up to congress. But he did say again that he favored a pay-as-you-go scheme of some sort. Budget, treasury and congressional experts will work that
out.
» » td
The home-front problem is not
"only fo pay as much of the war
debt as we can now, but to sop up the $100,000,000,000 that will -be disbursed next year when it reaches the pockets of the people. In that way, excess buying can be prevented, ceilings maintained, black markets held in check, and the cost of living stabilized. RB ss 8 = HE EPITOMIZED the program this way: “Each increase in taxes and each increase in savings will lessen the upward pressure on prices and reduce the amount of rationing and other direct controls we shall need.” ' 2.8 ” When present taxes become effective, we will be meeting war expenses out of current receipts to the tune of 34 per cent. Mr. Roosevelt said the additional $16,- « 000,000,000 would raise this to “approximately 50 per cent.”
® 2 = THE PRESIDENT wants “taxes on higher and very large incomes . « « made fully effective.” Otherwise he cannot ask congress to tax the less wealthy more heavily. He wants tax loopholes closed. These, also, he did not specify in his message, but elsewhere he indicated that these included: Communityproperty tax privileges of eight western and southern states; percentage depletion allowance given oil-well . and mine ‘operators; taxexempt government bonds issued in the future. He wants the salary limitation ($67,200 gross; $25,000 net) applied to investment income, too. But this, likewise, didn’t appear as a specific recommendation in the message.
THE NATIONAL debt. will be $135,000,000,000 on June 30, 1943; it will be $210000,000,000 by June 30, 1944. He wants the present debt limit of $125,000,000,000, raised soon. “To do this,” he said, “is sound, for such a debt can and will be repaid. The nation is soundly solvent,” In addition to voluntary savings. No matter what the government takes out. of your pay checks for bonds, you'll be expected to continue to buy other bonds and stamps on your own, but not as much, : ” ” 8 THE PRESIDENT is still against a sales tax, although he might take it this time if congress insisted. But, congress having already put excise taxes on pretty nearly everything and with the supply of consumers’ goods dropping monthly, the question will be what to put a sales tax on.
STECKLEY IS_NAMED LAWYER-EXAMINER
Glenn L. Steckley of Bloomington, who went out of office today as a Democratic. deputy attorney general, has been named an attorney examiner | for the state public service commission. It is reported™that Mr, Steckley later will be named secretary of the public service commission, the position now held -by S. Hugh Dillin ef Petersburg. Mr. Dillin has been accepted for volunteer officers’ training and his resighation is to be submitted to Governor Schricker, effective Feb. 1. Mr. Steckley has been a’ deputy attorney general for the ast six
vantages enjoyed under depletion of
(Continued from Page G one)
be the best fed, clothed and housed |: pecple in the world.’ And he said that freedom from want for everyone everywhere no longer was & utopian dream but was an objective to be sought when the peace comes. ‘Mational income in the current fiscal year is expected to reach $135,000,000,000 and to hit a dizzy $145,000,000,000, in- fiscal year 1944. H was around $40,000,000,000 in 1933.
come Mr. Roosevelt desires to take correspondingly big bites in taxes ang forced savings. He was not specific in his tax recommendations, although treasury officials today ‘were emphasizing some kind of “spending tax,” part of which would be refundable, and, therefore, partake of the character of forced savings. ‘Mr. Roosevelt did make these gerieral tax recommendations: 1.- Put taxpayers on a pay-as-you-go basis as far as feasible. 2. Simplify the tax system. 3. Make taxes on higher and very large incomes fully effective by removing the tax exemption from future issues of such securities as now enjoy that exemption. 4, Obtain certain reforms in the’ tax. structure, notably to curtail ad-
reserves provisions and by persons in those few states where married couples are enabled to file joint income tax returns,
Still Opposes Sales Tax Some of the foregoing tax programs were developed at a budget press conference Saturday at which the president discussed his message at length with newspaper reporters.
only in. general terms and Mr. Roosevelt emphasized that the methods of taxation were the problems of congress. But he said he still was against a general sales tax, though indicating that he might go along with a substantial expansion of the existing excise tax structure. An excise tax is a form of sales tax on specified commodities. “The revenue acts of the past three years,” Mr. Roosevelt said, “particularly the revenue act of 1942, have contributed greatly toward | meeting. our fiscal needs.. In the fiscal year 1944, total general and special - receipts under present law are estimated at $35,000,000,000, almost. six time those of the fiscal year 1940. But the increase in experditures has been even more rapid. “I believe that we should strive to collect not less than $16,000,000,000 of additional funds by taxation, saving, or both, during the fiscal year 1944, : “On the basis of present legislation, we expect to meet 34 per cent of total estimated federal expenditures by current receipts during the fiscal year 1944. If the objective proposed in this méssage is adopted,
clerks in-house and senate. Out of this mounting national in-|
It was contained in the message]:
corporate: and
re of those expenditures oe
the fiscal year 1944. The compulsory nature of the suggested savings revenue was de‘veloped in the president's budget press conference. But he em sized that /such revenue ultimately would return to the individual after the war.
The message to congress was not delivered in person but was read by
Income to Top 33 Billion
Mr. Roosevelt estimated net fiscal year income between July 1, 1942 and June 30, 1943, on the basis of present tax schedules at $33,081,245,000, after deduction of more than $2,000,000,000 for reserves required by law. He said the fiscal year deficit would aggregate $71,047,679, 023. He said the national debt would be $210,000,000,000 when the fiscal year ends 18 months hence. It is approximately $13, 000,000,000 today. The overall budget figure of $108, 903,047,923 is made up of: $97,000,Q00,000 in estimated war spending through the treasury; $4,128,924,923 of non-war spending; $3,000,000,000 national debt interest;
.$4.774,123,000 ia war and non-war | outlays of government corporations
and agencies. This latter figure is not included in budget bureau computations striking a balance between treas< ury revenue and expenditures to determine the prospective deficit. I%
is computed in estimating increase
in national debt. : Answers Critics All revenue and deficit estimates
| in over-all reinforcement this year 11 6,000,000 persons and pointed out
)! identical items of ordinary pur-
are on the basis of the existing tax structure and would be changed. in |
proportion to the extent that con- |
gress granted new taxes or imposed additional forced savings in response to the president’s request. At his budget conference he indi-
cated that any additional levies ~
would be largely at the expense of
taxpayers, * To those critics who have been demanding a cut in non-war spend-' ing, Mr. Roosevelt’s message replied that during the next fiscal year he planned to spend from each dollar of revenue approximately 96 cents ‘for the war and 4 cents for other purposes. Mr. Roosevelt said taxes would come down after the war but that there probably never would be a return to the comparatively iow pre-war levels. The message far exceeded the scope of the usual budget report to congress in its discussion of national problems. ‘If stood pat, although without saying so specifically, on the war department’s program to have 7,500,000 enlisted men in the army by the end of this calendar
we shall meet- approximately 50 per
year. The president sgain insisted
individual income
at Sex. race or creed hiring retrictions be eliminated and recomnended for the all-out production fiort & unified and adequate hunan rehabilitation program to make | nother 1,000,000 persons available or war industry and to restore to ivil employment ‘persons disabled n the armed services. He estimated that war industry nd the armed forces would require
hat such expansion will compel curailment of much production of luxirr foodstuffs and goods. }
Urging further immediate efforts|
i0 spread war contracts among me-liim-sized and small plants, the sresident insisted that authority be neintained for the re-negotiation of war contracts to permit recapture »f excessive profits. He said he beieved that contrel of production »oists was equally important,
“837 Million for Farmers
~{e recommended an appropriaden of $837,000,000 for aiding agrizulture in the next fiscal year, but S confident that food production sa Fd be maintained with a limited 1s¢ of subsidies. He recommended ‘hat congress give him authority to :ontinue to incur contractual oblirations for the assurance of parity ces on normal yields from allotier acreages of basic crops. Another recommendation was for 1 850,000,000 reduction in the apsropriation for conservation and use »f agricultural land resources. The food stamp plan—whereby su ‘plus foodstuffs were made avail2le to persons on relief on favorable erms in comparison with the cost
hasers—will be abandoned shortly, he president said. He explained hat there was no longer a surplus ood problem and that relief burens were greatly diminished. He ecommended elimination of the work projects administration and 10t & penny was set up for that rzanization, which at one time was osting billions of dollars annually.
- Asks Debt Limit Increase
Because the national debt hy the “di of the current fiscal year next ung wil lexceed the $125,000.000 :tutory limit by $10,000,000,000, Mr. osevelt said the debt limit would Fe to be increased.. To do this is sound,” he said, i such a debt can and will be aid. The nation is soundly sol1B. vir. Roosevelt said that all the ex‘is in town——congressional and 2cutive—were working on pay-as-urgo tax programs and as the dget was presented to congress > odds seemed to favor enactment some such’ plan before first inne tax payments are due March The president emphasized that '< measures not. only must provide ‘enue but must support the stab‘ation program by soaking up ex5 spending power.
(Continued from Page One)
seas’ invasion. Japan has, in addition, great naval: strengéh. With the occupation by the united nations of bases in North Africa and the Pacific, with the growth of our naval, air and ground strength, the ring around them grows closer and closer. But for some time to conie the war is obviously a war of aggressive attrition and the creation of conditions favorable for major combat blows. That attrition is just: as vital on the home front as on the military front. And our powers of attrition and combat are increasing more rapidly than’ the axis.
Internal Forces Multiply
This process of wearing down the strength of their home fronts is not solely a matter of military attrition, ‘ through blockade, sinking of ships, or air attacks or even through propaganda. There are implacable internal forces which contribute. .
Experience both in the last war and in this war shows that after a certain period steady economic de-
In the earlier years the military strength of each nation grows steadily. - Production of arms increases. But at some stage, probably about two years, the military strength reaches its maximum size and from there on it diminishes. Likewise, at some point, industrial production reaches its zenith. Even more rapidly than armies waste away after their zenith, the industrial machin-
tive capacity of the civilian population wear down. On the home front of all nations, shortages in food and other consumption goods grow progressively
years,
due to diversion of manpower.
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C an We Take It on the Home Front? War a Race of Exhaustior. Hoover Says|
Armed men consume more than when they were civilians. The peo‘|ple must work longer and longer hours at harder and heavier labor, Movement is restricted. Rationing, price and wane reiicins are inevitable. Regimentation becomes steadily more onerous and econoinic dictatorship grows increasingly as war goes on, el
On = the spiritual side grief stretches into every family; emotions become more fragile and in. tolerant; critcism, freedom of spec¢h become more and more frozen.
All these forces are multiplied in civilans by terror of attack from | the air and destruction of their industries.
In the end the multiplication of
ivijan hardships--in some degree riversal to all nations—becomes ‘ace between them toward exhausn. The Germans are in the curth year of war. We have had ne year. And in this race of exhaustion, > home front of the greatest taying power, of the greatest rearces, of the greatest will to enre and fight is a vast support to ¢ military arm. The weak home mt becomes a disintegrating liaility to its military arm. That was 2 case of the gllies versus the catral power in 1918. « 2Jr etaoi shrd cmfw shrd etaoin
(TOMORROW: " Disintegration tf the home fronts in Germany ‘nd Italy.)
NEW DELHI, Jan. 1 w. P)— Fighting continues on both sides of the Mayu river, where British and Indian troops have resumed an advance down the pay of Bengal coast . toward the port of Akyab, a communique said today. British planes bombed Japaneseheld villages in the Akyab area Saturday and Sunday nights, it ‘was said. British and Indian forces are maintaining pressure on Japanese defending the Rathedaung area, 30 miles north of Akyab, and around Donbaik, on the coast just west of Rathedaung, the communique re-
REPORT GIBRALTAR CONVOY LONDON, Jan. 11 (U. P.)~The Nazi-controlled Paris radio reported today from la Linea, Spain, that a large allied convoy was forming at
| Gibraltar.
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