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OUTLINE OF PROGRAM 1. W. P* A. - #2 billion additional ($3 billion in all)* Relax relief certification and sponsors1 contributions requirements* 2. P. W. A. - Federal Government to pay interest; local bodies to repay principal within fifty years. Amount to be spent in the fiscal year 1938-39, $500 million. 3. Railroads. (a) Equipment Corporation could spend #500 million in first twelve months. (b) Loans and/or purchase of preferred stock by E. F. C. at direction of President for employment-creating type of expenditures. 4. Housing. (a) Exempt income of individuals and corporations devoted to new low-cost residential building from Federal taxation in 1939 and 1940, the proportion of such exBmpti6n to vary inversely with the amount of the individual's taxable net iaeoma, so that unduly large subsidies will not be given to Sh& wealthy. or (b) Exempt income derived from the rental or sale of low-cost residential houses constructed between _ ^ ^ ^ and January 1, 1940, provided such income is derived by the persons or corporations actually constructing such housing. (c) In the case of limited dividend rental housing corporations, now financed on 80 percent insured mortgages, authorize the R. F. C. to put up 10 percent of the appraised cost. (This requires a change in F. H. A. regulations» not law.) 5. Social Security (a) Provide for increased grants for health under Titles V and VI of Social Security Act. Fiscal year 1938-39,-$130 m. (b) Begin payments on Old Age Annuity Account January 1, 1939; increase benefits and make provisions for survivors and dependents. Calendar year 1939- $75 m. (No change in budget). 6. Federal Toll Authority - $50 million in fiscal year 1938-39. SUMMARY OF FISCAL ASPECTS OF PROGBAM. FISCAL TSAR 1959. (In millions o f * ) W, P. A.* P. W. A. R# R. Equipment R. H #f other Toll Authority Social Security Health Old Age Federal Government out of budget NonRecoverable Recoverable 2,850 150 negligible 100 200 (?) 20 Federal under writing, not in budget • (400) State 10 Private 490 400 30 ( 30) 130 yotaj. 3,000 500 500 200 (?) 50 130 75 Housing R* F. (?• ? Tax Exemption 2,980 ? ? 470 (430) 10 920 4,455+ •Program exclusive of W. P. A. Total charge on Federal budget #450 million Total spending #1455 (exclusive of induced expenditures on housing) Heed for a program: (a) Inventories at year end #5 billion higher than at end of 1935. Liquidation of $1 billion more of inventories will offset housing expend!tares this year. (b) Continuing decline in heavy durable goods expenditures. (c) Exports continuing slow decline. 2. Need for getting things under way which will result in increased expenditures in 1939 without entailing charge on the budget and permitting reduction of W. P. A. 3. Various parts of comprehensive program should be incorporated in one bill. 4. Couple desterllization with program. 5. Heed of a popular issue to go into elections«
@FedFRASER