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Collection basis

Source

Increase (+) or decrease

1943

1942

over 1942

higher consumer income on consumption of taxable prod- increased income levels and the longer effective period of ucts in some cases and the partially offsetting effect of the the increased tax rates and augmented tax bases of the increased tax rates. The net result of these conflicting Revenue Act of 1941, receipts from this group are estiforces is an estimated decrease in manufacturers' excise mated at $582 millions. This is an increase of $165 tax receipts from the estimated 1942 level to $637 millions millions over estimated 1942 receipts of $417 millions. in the fiscal year 1943. This is a drop of $84 millions or The tax on the use of motor vehicles and boats is respon11.6 percent. The gasoline tax receipts are expected to sible for the major portion of this increase. In the fiscal increase in the fiscal year 1943 to $385 millions an increase year 1943 this use tax will be based on the full 12 months' of 3.5 percent. The tax receipts from lubricating oils are period, whereas in 1942 the liabilities are based on fiveexpected to increase in the fiscal year 1943 by $1 million twelfths of the total year. Fiscal year 1943 receipts are or 2.3 percent.

estimated at $162 millions as compared with estimated With the exception of the tax on parts and accessories fiscal year 1942 receipts of $70 millions. Significant for automobiles, tax receipts based on civilian sales of the increases are also expected from the tax on telephone bills, automobile and related industries show the marked effect the receipts estimated to increase $20 millions or 56.4 of military allocations. The tax receipts from passenger percent, and from the tax on transportation of persons, automobiles and motorcycles are estimated at $8 millions, the receipts estimated to increase $17 millions or 82.7 a decrease of $78 millions or 90.8 percent from estimated percent. The increase in the tax receipts from admissions receipts for the fiscal year 1942. The tax receipts from is estimated at $37 millions or 30.2 percent. Total reautomobile trucks, busses, and trailers are affected to a ceipts from the admissions tax in the fiscal year are estilesser degree by allocations, the decrease in receipts being mated at $160 millions. only $2 millions or 12.0 percent. The tax receipts from tires Changes in estimated collections from principal sources and inner tubes are expected to decrease to $20 millions, of miscellaneous internal revenue in the fiscal year 1943 half of the estimated receipts for the fiscal year 1942 and as compared with the estimates for the fiscal year 1942 are 60.0 percent less than actual receipts for the fiscalyear 1941. summarized in the following table: The tax receipts of parts and accessories for automobiles are the only ones of this particular group which increase,

Collections of miscellaneous internal revenue by principal sources

(In millions of dollars) the fiscal year 1943 receipts being estimated at $31 millions—$4 millions in excess of estimated receipts for the fiscal year 1942. In evaluating the effect of curtailed production, it should be noted that estimated receipts in the fiscal year 1943 represent a full year's collections under

Estimated, Estimated, the rates of the Revenue Act of 1941, which are double

(-), 1943 those previously in effect. The fiscal year 1942 reflects only 8 months of these collections.

Capital-stock tax. Several of the other manufacturers' excise taxes show the effect of curtailment of production for civilian consumption. Estimated receipts of these taxes, other things being Tobacco taxes. equal, should have been significantly larger in 1943 than in 1942, as 1943 reflects collections of 12 months' liabilities, whereas the fiscal year 1942 shows only 8 months' collec

Total, miscellaneous internal revenue. tions at the rates specified by the Revenue Act of 1941. Among these excise taxes are the tax on rubber articles, the receipts from which show a decrease of 27.2 percent; Employment taxes. - Total employment taxes are estielectric, gas, and oil appliances, an increase of only 3.1 mated at $1,739 millions, an increase of $550 millions or percent; radio receiving sets, phonographs, phonograph 46.3 percent over estimated receipts of $1,189 millions in records, and musical instruments, a decrease of 8.3 per- the fiscal year 1942. There is no change in the coverage cent; refrigerators, refrigerating apparatus, and air con- of these taxes, so that the estimated increase results partly ditioners, a decrease of 59.3 percent; business and store from a higher level of pay rolls and partly from increased machines, a decrease of 13.2 percent. The yield from the tax rates as of January 1, 1943, affecting receipts of 3 tax on firearms, shells, pistols, and revolvers shows no months' liabilities in the fiscal year 1943 under the Fedchange in the fiscal year 1943; the rate of tax was un

eral Insurance Contributions Act and under the Carriers affected by the Revenue Act of 1941. By comparison, Taxing Act of 1937. taxes which are relatively unaffected by military require- Receipts under the Federal Insurance Contributions ments show very large increases. The tax receipts from Act are estimated at $1,394 millions, an increase of $494 electric-light bulbs are estimated to increase $2 millions millions or 54.8 percent over estimated receipts of $900 or 66.7 percent, photographic apparatus $5 millions or millions in the fiscal year 1942. The tax rate is to in83.6 percent, matches $3 millions or 60.8 percent, luggage crease from 1 percent to 2 percent on both employer and $2 millions or 60.7 percent, and sporting goods $6 millions employee (total from 2 to 4 percent) beginning with taxor 103.4 percent.

able compensation of the calendar year 1943. The inTotal retailers' excise taxes which will be in force for all creased tax rates will affect 3 months of tax liability, 12 months of 1943 are estimated to yield $135 millions, an January-March 1943 (collections April-June 1943), and increase of $62 millions or 84.6 percent over estimated the additional receipts in this account are estimated at receipts in the fiscal year 1942, which represent only $295 millions. 8 months' collections and are estimated to be $73 millions. Receipts under the Federal Unemployment Tax Act are Each of the three sources, namely, jewelry, cosmetics, and estimated at $150 millions, an increase of $33 millions or furs, contributes to this increase.

27.9 percent over estimated receipts of $118 millions in None of the specific sources of miscellaneous tax the fiscal year 1942. The tax rate is unchanged at 3 perreceipts is expected to be affected to any extent by mili- cent of taxable wages with credits to the taxpayer for tary requirements in the fiscal year 1943. As a result of taxes paid to the States not to exceed 90 percent of the

Estate tax.
Gift tax.
Liquor taxes

239. 5
500.0

30.7
1, 195.8
841.4

45.0 637.0 135. 1 581.9

232.0
360.0

150.0
1,095.0
772.1

42.9 720.8

73. 2 416.9

+7.5 +140.0 -119.3 +100.8 +69.3

+2.1 -83.8 +61.9 +165.0

Manufacturers' excise taxes.
Retailers' excise taxes..
Miscellaneous taxes..

4, 206.5

3,863.0

+343.5

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tax, so that the increase of receipts primarily is due to at $10 millions, an increase of $1 million over estimated increased pay rolls.

receipts of $9 millions in the fiscal year 1942. Receipts under the Carriers Taxing Act of 1937 are Customs.-Customs receipts are expected further to estimated at $194 millions, an increase of $24 millions or decline to $297 millions from estimated receipts of $368 13.9 percent over estimated receipts of $171 millions in millions in the fiscal year 1942. The additional closure the fiscal year 1942. The increase is the result both of of sources and restrictions upon shipping caused by the an increase in work hours expected to result from a con- recent spread of the war will lower customs receipts tinued increase of industrial activity and of the increased throughout the fiscal year 1943 whereas only a part of the wage rates for railway labor. For the first time the in- fiscal year 1942 is affected. creased wage rates are effective for the entire year in the Miscellaneous revenues and receipts.—Miscellaneous revfiscal year 1943.

enues and receipts in the fiscal year 1943 are estimated at Railroad Unemployment Insurance Act.-Receipts under $284 millions and represent an increase of $43 millions or the Railroad Unemployment Insurance Act are estimated 18.0 percent over estimated receipts of the fiscal year 1942.

DETAILED COMPARATIVE STATEMENT OF APPROPRIATIONS AND EXPENDITURES

GENERAL AND SPECIAL ACCOUNTS

Narrative Synopsis of Appropriation Estimates

A21

EXPLANATORY NOTE TO STATEMENT NO. 2

The following statement presents in three parallel col- | period of time by virtue of permanent legislation, without umns the appropriation estimates for the fiscal year 1943 annual action by the Congress. Such appropriations may and the actual appropriations for 1942 and 1941. Adja- be either specific or indefinite as to amounts. An example cent to these columns are three additional columns show- of the latter is the indefinite appropriation to cover the ing the estimated expenditures for 1943 and 1942 and the interest on the public debt. This type of appropriation, actual expenditures for 1941. To avoid confusion in while sometimes difficult to ascertain as to amount, does comparing the figures in these six columns the basis upon not preclude an estimated figure for use in the Budget. which the figures are presented should be explained. The Congress makes some appropriations available until

With respect to the first mentioned three columns of expended, or until the object for which they are made is figures, the 1941 and 1942 columns carry the appropria- accomplished. These appropriations are without a definite tions which have already been made by Congress for the time limit and may, therefore, be called "no-year" approvarious departments, bureaus, establishments, and agen- | priations. They are generally for the construction of cies of the Government for these fiscal years. The 1943 public works projects. column presents the amounts for these organization units Turning to the three columns under the caption "Exwhich the President is recommending to the Congress for penditures," the column for 1941 shows the actual expendiappropriation for the fiscal year 1943.

ture figures for that fiscal year. These figures, usually on The appropriations, it will be observed, are of two gen- a checks-issued basis, are adjusted at appropriate totals to eral types-annual and permanent. The annual appropri- the cash (checks-paid) basis, as shown on the daily Treasations, ordinarily found in the departmental supply bills, ury statement. The totals, therefore, are on an actual are voted each year by the Congress. They are usually cash basis. The columns for 1942 and 1943 show the definite and specific as to amounts. They may be obli- estimated expenditures for these fiscal years on a cash gated only during the year to which they relate, but remain basis. The figures in these three columns are those carried available for payment of unliquidated obligations for 2 in totals to the General Budget Summary and supporting years thereafter before any unused balance is covered into schedules. Hence, the Budget is, in effect, on a cash basis the surplus fund of the Treasury. The permanent appro- with respect to expenditures, as well as with respect to priations are automatically renewed each year over a receipts.

A22

STATEMENT No. 2

ESTIMATES, APPROPRIATIONS, AND EXPENDITURES
This statement includes expenditures from prior year appropriations and from allocations of prior year appropriations

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125, 571, 362 3,895, 628.95
6, 620, 000, 0007, 270,000,000.00

115, 159, 022 97, 466, 001.00
152, 500,000 132, 323, 554. 15

33, 500,000 24, 825, 113. 50
858, 840,000 498, 190,000.00
605, 835, 287 577, 860, 582. 03

1,500,000 1, 400, 289.00 1,029, 186, 576 1, 009, 224, 751. 48 1, 136, 115, 005 | 1,678, 303, 003. 44

63, 706, 316 52, 233, 958. 71

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