Evening star., 1947-01-10

eceipts ts-- o,676, 1909
in tax rates which becomes effecti
/, 1947.
control, and for grants to States for
vocational education.
9. The Federal housing program
is estimated at 539 million dollars.
The bulk of the housing expendi-
lures is for purchase by the Recon-
struction Finance Corporation OF
guaranteed home loans to veterans
and for continued operation of rev.
reproducing war housing in over
crowded communities.
Our social security program and
our education and housing programs
can hardly be considered adequate.
improvements in these fields are
seriously needed. Although this
budget does not contemplate major
extensions in the next fiscal year, I
recommend that the Congress lay
the legislative ground work now for
the needed improvements, including
general health insurance and a long
range housing program.
The costs of social welfare, educa-
tion, and housing bring the cumu-
lative total above 35.4 billion dollars.
The remainder of the budget to-
tails 81 billion dollars. Nearly one
third is for war liquidation, includ-
ing the overhead cost of disposing
Of surplus property. The rest, is
for services to business and labor
through the Commerce Department
and Labor Department, for general
functions of the Treasury, the Cen
eral Accounting Office, the legisla-
tive branch, the judicial branch
and the Executive Office of the
President, and for many other items.
These services, with a total cost
of less than per cent of the budg-
ct, are an indispensable part of
the machinery of the Government.
Budget Totals 371l Billions.
The budget total Of expenditures
thus comes to 37.5 billion dollars.
1t always has been the Govern
ment's duty to provide whatever
assistance is required to afford pri-
vate enterprise chance to prosper.
In the 18th century principal eco
nomic service of the Federal Gov
ernment was the opening Of the
West. -
Today, our great new frontiers
are in river-valley developments, in
air transport, in new scientific dis
coveries and in application of the
new science and technology to hu-
man progress. These new frontiers
can be developed only by the Coop
Grafton of Government and private
enterprise.
Our expenditures on develop
mental projects are good invest
ment for the Government. They
increase the productive power of the
country and make for higher living
standards. Directly or indirectly,
the Government RECEIVERS the cost in
the form of either service charges
or increased revenue yields to the
Treasury. "'*
Let me now review briefly the
appropriation side of the budget.
This budget recommends appro-
priations of 31.3 billion dollars for
the fiscal year 1948 under existing
and proposed legislation. It rec
ommends that authority of 15 bill
lion dollars be granted certain agen-
cies to contract for services and
supplies, such as aircraft and con-
struction. Payments under such au-
thority will be financed from ap-
preparations to be made in subse-
quent years.
Expenditures Reflect War.
The expenditures for 1948 still re-
feet a portion of the cost Of our
tremendous war program for which
appropriations were made in pre-
vious years. They also reflect GER
tain large international commit
ments likewise previously author
lied. These two factors In large
measure explain why estimated ex-
penditures for 1913 are so much
more than the appropriations rec
ommended for that year.
As previously indicated, I cannot
recommend tax reduction. The re-
sponsibilities of the Federal Gov
ernment cannot be fully met ir
the fiscal year 1948 at a lower cost
than here indicated.
Even if the cost were less 1t would
be desirable in our present economic
situation to maintain revenues In
order to make a start toward the
repayment of the national debt
At the present time, in my judg-
ment, high taxes contribute to the
welfare and security of the country
Under the wartime tax system
millions of taxpayers with small in.
comes are called upon to pay high
taxes. When the time comes fol
taxes to be reduced, these taxpayers
will have a high priority among the
claimants for tax relief. i" -
/ Our long-run tax program mus
be designed to maintain PURCHASING