U.S.A. DEFICIT

Hokitika Guardian, 11 December 1931, Page 5

U.S.A. DEFICIT

HIGHER TAXES INDICATED.

(United Press Association.—By Electric

Telegraph.—Copyright.)

WASHINGTON, December 9

The Administration’s recommendation for raising taxes went to day to Congress, and at once met with Democratic opposition.

Mr Hoover and Mr Mellon presented a dismal story of Federal finances, along with the budget deficit, verging on four billion dollars. The President detailed the need lor meeting the deficit, that promises to exceed that figure by the end of the fiscal year.

Air Alellon advocated higher taxes to take effect next month and to apply to tin’s year’s incomes. The Administration place calls for increased taxes on personal and corpor atioii ihconies, inheritances, tobacco and capital stock sales. New levies would be imposed on automobiles and cable messages, amusement tickets, cheque drafts and realty sales. Postal charges would be boosted and the exemption from income taxes would be lowered to include one million seven hundred thousand new individuals. With one billion three hundred and ten million dollars to be raised by the plan in the coming eighteen months, Air Alellon termed it legislation necessary to meet a real emergency. The tremendous deficit figure, however, was_ arrived at by adding 902 million dollars unfavourable balance last year to 2,1*23 millions expected this year, and the estimated hundred and forty-one million seven hundred thousand in 1933. Balancing the budget for the present year was out of the question.

Air Hoover wrote: We should endeavour by an increase in taxes and rigid curtailment of expenditure to balance the budget for the next fiscal year, except to the extent of the amount required for statutory debt requirements. AVe should assure its ballance, including statutory requirements for the fiscal year following.

The increased taxation is proposed for a thirty months’ period. The indications were that the plan will he sidetracked in the Democratcontrolled House, where revenue legislation must originate.