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U BS I DEBT WILL SET NEW HIGH F Federal deral Government to Spend a Month to July 1 1935 WASHINGTON Jan 7 i JP Fed Fedral era eral ral spending at the rate of a month during th the first six months of 1935 resulting in a curr current nt t fiscal s l year Car deficit of and andA A a. gross oss debt peak o of was forecast today by Secretary Mor Mor- in the treasury's annual report report re re- report port to congress It is estimated that expenditures for forthe forthe forthe the year yeu would be including in in- eluding for relief offset off oU let set by receipts of The predicted deficit would be in excess of ot the actual deficit at the end of th the l last st fiscal fisca year ear on June 30 1934 The secretary foresaw a continuance continuance ance of ot heavy operating losses due to emergency expenditures He ed cd that the treasury w would uld go farther Into debt during the fiscal year rear 1936 when expenditures would amount to offset in part by receipts receipts receipts re re- of oC resulting in a deficit of and swelling the gross public debt to A sharp paring down in Iii emergency expenditure items in 1936 was as forecast forecast forecast fore fore- cast but an expected outlay of for fox relief relie of unemployment would bring the total o of such expenditures expendi tures to or only half a billion less Jess than expected In In inthe the present pres- pres ent fiscal period The secretary found a cheering possibility pos pos- in the estimate that income taxes in the fiscal year 1936 would improve by over 1935 and amount to This he said would reflect the further gains Rains b because cause of the moderately higher high high- er incomes anticipated for the calendar calendar calen calen- dar years 1934 and 1935 pointed out that Jn h bIew view of the federal tax structure it was not to be expected that revenues revenues would reflect promptly an anticipated Improvement in business conditions Based sed on Volume For example b he he- said collections collee colle of or income taxes during the latter lat ter half of the fiscal year ear 1935 will vill be based on the business volume of oC the calendar year 1934 and income tax collections ons during the fiscal year 1936 will be based on the volume of business busi busi- ness of the calendar years 1934 and 1935 Therefore it is anticipated that the rising level of business activity will increase tax lax receipts only moderately moderately mod mod- during durIn the remainder of the fiscal year 1935 and the fiscal year 1936 Certain miscellaneous internal revenue receipts bl notably estate and arid gilt gift taxes show a lag jag in tax coll collections collections cHons c- c Hons behind changes in general business business busi busi- ness conditions Total receipts from front custom duties and nd internal revenue excluding agricultural agricultural agricultural agri agri- cultural adjustment taxes are estimated estimated esti esti- mated at for the v ne new new- fiscal year beginning next July 1 Uthe if U the temporary taxes expiring June 30 and July 31 1935 are extended This Thi figure represents an increase of over the estimated receipts receipts re re- re- re in the present fiscal year and of over the actual receipts receipts re re- re- re in the fiscal year 1934 said that failure to extend ex cx- tend the temporary taxes would reduce re reo duce the total internal revenue receipts receipts re re- by about and customs customs cus cus- toms joins by about to a total of of or less than estimated receipts from these sources in the fiscal year 1935 The secretary said he expected current current cur cur- rent corporation income taxes to yield in the fiscal year rear 1936 an increase of oC over the expected expect expect- ed return for the present fiscal period and current individual income taxes or an increase of 62 62 over estimate Collections Collections of back taxes on incomes are expected expected ex ex- to bring in an inCrease increase in in- crease of u said the increase in income income in in- income come tax receipts receipt for the present f fiscal fis is- is cal year over last would result from the higher level of corporate earnings the elimination of consolidated returns returns re re- turns the treasury administration of depreciation allowances and changes in the individual income r te r te structure structure structure ture and in the capital gains and losses provisions Total miscellaneous internal revenue revenue rev rev- receipts receipts assuming assuming extension of temporary taxes now du due tO to expire next summer summer are are estimated at 1686 an increase of over the estimate for the fiscal year 1935 Estate tax and gift tax collections are estimated to yield and respectively representing represent in ing inz increases of and 14 Liquor Revenue Rises Revenues from distilled spirits and wines ines and arid from from fermented liquors are arc estimated to show increases of and respective respective- ly y partly in consequence of the antici j paled higher level of Incomes and partly because of the rising trend Inthe in inthe inthe the domestic manufacture and consumption con con- of distilled sp spirits rits and wines Repeal o of the tax lax checks effective effectives as s of January 1 1935 will clip 24 21 from the thc 1936 revenue The secretary said customs receipts in 1936 were estimated at It an n increase of assuring that temporary duties on certain com commodities corn com coal lumber petroleum products copper and products are extended Decreases from this source are expected in collections from Cuban sugar imports and imported liquor A Agricultural lIi cultural adjustment tax receipts re re- were estimated at on on the assumption that it would be necessary to continue the thc work of 01 the agricultural adjustment admin admin- h tiOn on practically the tho sune baW as' as the fiscal yeas year 1935 |
