Arizona sun., 1947-01-10
Expect Little Immediate
Change in Financial Policy

M/ AAh. Tie AO1lUdy SCoSon w.
w and official Washington wind
ing up the most brilliant social sea-
son since before the war, replete
with diplomatic receptions, White
House functions, state dinners and
various other social gatherings, the
new 80th congress buckled down to
the actual business of setting up
policy and adopting the legislation to
make that policy function for the ma
tion during the next two years.
Most of the pickering as to COM
mittee assignments and other prob.
lens attendant to the reorganization
Of congress under the new con-
gressional reorganization act have
been settled or at least bottled-up
for the time being, with the new COP
leadership firmly in the saddle. And
it would be nice to report that the
spirit of the Christmas season has
left congress with feeling of peace
on earth to men of good will. How
ever, that would not be objective
reporting.
Whatever the reaction to the
Presidents state of the union mes
sage, congress, Democrats and Re-
publicans alike, can be sure that this
message, unlike seme previous ones,
represents the Presidents own think
ing. His proposals reflect his own
viewpoints and they are not the ideas
and ideals Of the New Deal which
President Truman inherited, and
with which he had to 60 along up
until the time the people cast over
board this theory of government at
the recent election.
The new congressional reorgani-
zation act, If the COP leadership
follows the spirit and letter of the
law, is providing some obstacles,
apparently not foreseen by some of
the newly elected or reelected con-
gressmen. to the carrying out of
their pet ideas. For instance, Rep.
John Taber, New York, is bent upon
arbitrarily slashing some nine bill.
lion dollars from the federal budget.
At the same time, Rep. Harold Knut-
son of Minnesota is determined to
bring about a 20 per cent reduction
in individual income taxes as well
as corresponding cuts in corpora
ton taxes and abolishment of the
various excise taxes
OutgO Tied to Income
This would be fairly easy under
the old procedure which has been in
effect since about 1865. The house
ways and means and the house ap-
preparations committee simply
would meet and, with the over
whelming COP majority, would just
vote the cut through. Not so, how
ever, under the new act. It is based
on scientific study Of government
and not on the basis of levying taxes
without regard to appropriations.
or vice versa. The new law pro-
vides that the house appropriations
and the house ways and means COM
mittee, together with the senate f.
nance and appropriations commit
tees, shall meet jointly at the begin.
ming of the session . F.. . that they
shall consider the Presidents budget
recommendations and report '"leg-
islative budget for the ensuing fs-
cal year, including the estimated
overall federal receipts and expend-
itures for such year =. that such
a report shall contain a recon-
mendatiOn for a maximum amount
to be appropriated and an amount
to be reserved for deficiencies
that if the report estimates the pro-
posed expenditures will be less than
the estimated. government tax re.
ceiptS, then there shall be a recon.
mendatiOn for reduction in the
public debt that this report
shall be made by February Is
that the report from the joint com
mittee shall be accompanied by 9
concurrent resolution adopting sucl
budget and fixing the maximum
amount to be appropriated for ex
penditure that if the repOr
shows that estimated expenditure:
shall be greater than receipts, the
concurrent resolution 'shall in
clude" section substantially as fol
lows: That it is the sense of con
gress that the public debt shall b,
increased in an amount equal to thu
amount by which the estimated ex
penditures for the ensuing fsca
year exceed the estimated receipts
such amount being So"
Balanced Budget Dubious
So under this law all appropria
tions and expenditures must be con
sidered in the light of the govern
ment's needs, as outlined in tn,
Presidents budget. and not by tn