FISCAL: Shriveled Fruit

The Treasury last week reported on the first full month’s fruits of the billion-dollar Revenue Act passed amid turmoil by the last session of Congress. As a budget -balancer the new measure was falling far below expectations. August collections for July business showed that where the Treasury had counted on taking in an additional $53,850.000 from higher revenue rates, actual receipts were only $22,186,063.

Item Estimate Receipts

Lubricating oil. . . . $2,750,000 $822,775

Malt, wort and grape conc 6,833,333 356,217

Tires & tubes 2,750,000 1,5787,732

Toilet preparations 1,125,000 439,784

Furs 1,000,000 284,812

Jewelry 750,000 81,692

Passenger autos 2,666,667 866,655

Trucks 250,000 101,343

Parts & accessories. . . 583,333 224,241

Radio and phonograph. 750,000 76,445

Mechanical refrigerators 416,667 177,090

Sporting goods and cameras 416,667 135,675

Firearms and shells. . . 166,667 27,673

Matches, wood, paper. 333,333 49,412

Candy and chewing gum 416,666 176,762

Soft drinks 583,333 337,462

Electrical energy 3,250,000 967,612

Gasoline 12,500,000 8,944, 875

Telephone & telegraph. 1,975,000 105,425

Admissions 3,500,000 1,117,479

Stock & bond issues. . . ………………………………541,667 634,270

Stock transfers, conveyances 2,750,000 688,877

Produce futures 500,000 125,161

Pipe lines 666,667 252,178

Safe deposit boxes………………………………………….83,333 180,464

Checks 6,250,000 3,364,251

Boats 41,667 59,701

The Treasury had figured the new gift tax would bring in about $410,000 per month. August collections were $141.02.

On Sept. 16 the 1932 deficit stood at $427,960,154. Treasury officials were disappointed but not disheartened. The new income tax rates, producing half the estimated additional revenue, would not begin coming to the budget’s rescue until after the first payments next March 15.