Evening star., 1947-04-21

Trumon Budget Error
| Is Seen os Expedient
Prediction Of Deficit in January
Hindered 6. o. p. Tax Cut !.
By David Lawrence
Is the Truman administration engaged
IN . political juggling maneuyer and is 1t
deliberately Withholding information
and misleading the American people
on the subject of the Governments
dnancess
This Is grave question to ask. But
the Presidents revelation over the week
end that the administration has made
; mistake" Of $500. 900 900 within three
and half months presents either
hlunder Of the FIRST magnitude or piece
Of political manipulation that deserves
Nationwide condemnation.
Why did the President ON January I
Of this year say the expenditures would
be 81 ,250, ,0O0, 600 more than he now says
they win be for the year that ends less
than 20 days hencea
Mr.. Truman told the Congress and the
Nation in January Of this year that
there would be deficit of 81, 500, 900 600
by July !, 1s47. Expert statisticians at
the time recognized the figure as .
phoney. 1t was obvious that the admin.
istration had not only oyerestimated ex.
penses but had underestimated receipts.
Was this done for the purpose of soaring
the Republican Congress SO it would not
attempt balance the budget and so
that the speIioa. "hich has fourished
under the New Deal Me.,-- = /. !.
Tax Reduction Was Opposed.
The President came out fatty against
tax reduction in his message last jan
uary. Did he hope by talking about q
$4,000, ,000, 900 deficit to build public opin-
ion against the Republicans 20 they
would abandon their program Of tax
reduction this year, which would mean
that the Democrats could propose 1t In
January, 1913, as something to their own
advantage in the presidential campaign
year?
The public is entitled to know what
was behind the mistakes" In the admin
istration's figuring. 1t is lame excuse
that business has proved more profitable
than expected or that high prices have
contributed to the high receipts. II the
President has any good estimating staff
around him he would know In January
what kind of q business year 1916 was
for taxes in many industries, especially
in the consumer field.
But, even II it be conceded that re-
ceipts from 1916 and the first bali of
1947 were difficult to estimate and that
an error of $4,000, 900 900 in receipts
should be passed by now as inconse-
quential, the fact remains that the Pres
ident on the other hand did not indicate
in his January, 1947, budget message
that an economy of 1850, 10000 could
or would be made on the expense side
before july of this year He was wrong
just $3.50, ,000, ,000-but, in Washington,
billions seem to be trifies.
What really brought the econosniesp
The country Is indebted to Chairman
Taber of the House Appropriations Com
mittee and his colleagues and to the
Republicans on the House Ways and
Means Committee who insisted that
expenses could be cut and taxes re-
duced
Psychological Effect Cited.
The psychological effect Of insisting
hac ekx
Gently among the executive depart
ments and boards and agencies. The
knowledge that the Republicans on
Capitol Hill were in earnest reached
the ears of many bureaucrat and the
savings started to be made. Mr.. Truman
finds himself in the awkward position
Of not knowing in January that by
April he could save $3.50, o,ooo. 900.
The Republicans in the House have
been under constant attack and ridicule
by the New Deal spenders and their
spokesmen in the press. To talk Of
cutting the budget and reducing taxes
has been regarded as 'reactionary"
viewpoint-so accustomed for the last
IA years has official Washington be-
come to the idea that liberalism"
means being liberal with the peoples
money and that it can be issued in
limitless amounts by turning on the
printing presses.
Even when it is reluctantly and grudg-
inely admitted now that the 1">- - =
will bring on July I, 1s47, a surplus Of
81 ESQ 600 900, the Presidel.e :.
tax reduction for this year and shifts
the emphasis to debt reduction, be-
cause, as he said in a recent political
statement, he plans tax reduction "at
the proper time"-which. of course,
means an election year.
The American people cannot long
repose confidence in an administra-
ton which withholds the true figures
on their finances for political pur-
poses. The $3.50, ,000, 900 error tends to
confirm . suspicion that all along the
Treasury experts know the figures but,
like the reports Of the economic ad-
visers, these are being doctored for
political purposes.
tRsproduetion RiEtts Rsserved1
Mumbling Members