Show 1 Sounds Sounds' En W Warning py ft r j 7 3 V t 4 I I rf Henry SENATE TE GETS SIX BILLIONS DEFICIT HINT Says Full r Roosevelt Tax Plan Needed By Associated Press WASHINGTON April 30 30 A treasury deficit of the the biggest in peacetime peace peacetime time history was history was vas forecast by Secretary for the current fiscal year today in urging congressional enactment enactment enactment enact enact- ment of President Roosevelt's full tax program said prepayment of the bonus was partly r responsible for the huge figure by which h he be said expenditures would exceed income income in in- come como in the 12 months ending June 30 In recommending that the senate add to the house bouse tax bill the temporary processing taxes asked by President Roosevelt Mor also estimated that the 1937 deficit would be Bonus Blamed He said that except for the bonus payment vote voted by congress there would have bavo been declining deficits in both years In his budget message message message mes mes- sage Mr Roosevelt had bad emphasized that the treasury deficits were de do- clining deficit estimates given as he was questioned by the senate finance committee tee after reading a statement advocating advocating advocating advocat advocat- ing ing- enactment of ot the chief tives tive's tax ta recommendations recommendations' in or order order der to protect federal credit Appearing as the first witness ss as the finance committee opened hearings bearings on the bill passed yest yesterday yesterday yester yester- r- r day by a to 93 house vote the treasury chief said federal credit depended upon scrupulous adherence adherence adherence ence to an orderly program looking to a balance of the federal budget just as soon as the needs and abilities abilities abilities abili abili- ties of our people make that possible possible pessi- pessi ble and thereafter upon a steady reduction in the public debt Processing Taxes President Roosevelt's suggestion for temporary processing taxes did not even r receive committee approval approval ap approval ap- ap in the house turning to the presidents president's presidents president's presidents president's dents dent's proposal for taxing corporations corporations corporations corpora corpora- on a basis of percentages of undistributed income center of the controversy over the tax measure said it was merely an extension of tho principle of taxation according according according accord accord- ing to ability to pay which he be said had tho the undoubted and unquestioned unquestioned unquestioned indorsement and support of the citizens of this this' nation It must be recognized he ho said that the choice of an income tanas tax tan as the means for raising additional revenue necessarily involves a delay delay delay de de- de- de lay in realization of increased re re- re- re Receipts from taxes on corporate corporate corpo corpo- rate incomes for the calendar year 1936 will vill be collected in the main during the calendar year 1937 and will be divided between the two fiscal years the fiscal year 1937 ending June 30 30 1937 and the tho fiscal year 1938 The Tho net additional revenue to tobe tobe tobe be expected from tho the application of the corporate Income tax is estimated estimated estimated esti esti- mated to be in the fiscal year 1937 The full additional annual annual annual an an- nual revenue would be collected Inthe in inthe inthe the fiscal year 1938 Without referring specifically to plans of some senators senators notably notably LaFollette P. P Wis and King D. D Utah Utah Utah-to to propose a general boost in individual income taxes Mor Mor- said What are the dimensions of tax avoidance with which we are dealing dealing dealing deal deal- ing A few simple figures tell the story It has been estimated by the treasury department that under the present tax law the income tax liability liability lia lia- ha- ha of corporations on the basis of ot 1936 1930 earnings would approximate approximate mate |