TAXES TO STAY IN U.S.

Chronicle (Levin), 5 August 1946, Page 8

TAXES TO STAY IN U.S.

4 \ TILL INFLATION DANGER GONE Received Sunday, 7 p.m. WASI11NGTON, Aug. 3. Presidont Truman, rovievving tbv Budgot for tlie liseal year of 1947, said tlie. estimated total expenditure was 4 1,500, 000, 000 dollars, aet reoeipts 30, (5(H), 000, 000 dollars and defimt 1,900, 000, 000 dollars. Expenditure for national def'enee, in terest on tlie public debt, tax refunds veterans, international iinance am. .relief absorbed 86- per eeuit. of thi.i Budget. . • , - - - f 4J?li e l ?totAl j- tstl-'eii gth " of the ai'med forces had been reduced from the war time peak of 12,300,000 to 2,700,000 and! would be further reduced by at least another 1,000,000 by, June, 1047. National security and international com : mitments compelled the maintenance ot a strong military establisliment. The af Lermath of war and transition to ; peace were very expensive including the care of war veterans, interest on a huge war debt and other activities requiring ti'Gmendous suins.

President Truman declared that ii view of the present inflationary situa tion, there must be no tax redue tion until the danger passed. It is expected the retirement of the pulilic debt will be more rapid than wa: thought possible last January. It wa; then estimated the debt would bi 271,000.000,000 dollars on June 30, 1947 but it is believed the debt will have declined to 261,000, 000,000 dollars. Consumer incomes for the last hali of the liscal year of 1 046, were at a relatively liigh level. In fact they were not much below wartime. Neverthe less, the current rate of net savings b\ consumers was great ly below t-he war time rate. During the war business accumulated more funds througli, de]vreciation, reserves and undistributed prolits than it spent for capital outlavs bpt this trend had been fully rfevej-ei! thereby intensifying the current infla tionary threat. Privata. en±erpris.e and self-reliance were at work transforming from war to peace economy. "It is our duty to prevent this transformation from degenerating into a spec.ulative boom and subse'quent collapse is o.-cur-red after the last war," President Truman added.