Evening star., 1947-03-07
First Budget:Cu
Based on Tax
Refund Hope
Se7 Million Slash
Is Approved for
Treasury, Post Office
O., NH
BY J. A. OLeory

Inc house Appropriations
Committee today cut $780,, ,072,-
750 from President Truman's S
budget in reporting out the first
regular appropriation bill for
next year, but 100000, 900 of the
saving is based on a hoped-for
decline in income tax refunds.
For all expenses of the Treasury
and Post Office Departments for the
year starting July 1, the committee
reported out total of $500, ,050, ,750
This first of the annual depart
mental supply bills was awaited with
interest In view of the stand the
House has taken in the budget CELL
ing resolution for an overall cut OF
$4,000, ,000, 900 in the total cost of the
Government next year.
If the anticipated falling of In
194S tax refunds proves correct, to-
days action will prove to be a
substantial start on the economy
drive.
Leaving out this big tax-refund
reduction, however, the bill repre-
sents cut of only $4,000, 900, or 16
per cent, in the ordinary control
label expenses of the Treasury, and
a saving of $14,356, 900, or / per cent,
in the Post Office Department.
The committee made these recon-
mendations for the two agencies.
Treasury: $1,671,317, 500, a reduc-
ton of $832, TIC, $50 from the Presi
dents budget estimates and $1O5O,-
962, $50 less than the department re-
ceived for the current fiscal. year,
The totals are exclusive OF 1885,
17o, ,22l in so-called uncomfortable
Treasury appropriations rncsading in
terest on the public debt, old-age
pension trust funds and the unem-
ployment compensation trust fund.
Post Office Department: $780,
733 ,250, a reduction of $14,356, ,0OC
from the Presidents estimates and
$7,642,069 less than the department
received for the present year.
1t would appear that the start
the House made today toward its
overall budget goal hinges largely
on what the Ways and Means Com
mittee does later in delivering its
promised lowering of income taxes
The House and Senate are still
in disagreement as to whether the
overall budget. cut for the year
should be $4,000, 100000 or $4,50O,-
100000. The conferees have not
had a joint meeting, but the Re-
publicans are reported to have
agreed tentatively to compromise
on $5,25o, 100000.
In allowing the Treasury $1,231,-
000, 900 for tax refunds-$800 900 900
less. than the budget estimated
the committee explained:
with manifestly improved public
education and information concern
ing the procedure and method of
filing income tax returns, coupled
with the expectation Of several mil
lion less taxpayers filing as result
of prospective changes in the tax
laws, it is felt that the reduced
figure would more nearly approx
mate the amount required for these
rebates than the Internal Revenue
Bureaus estimate therefor"
Other Large Slashes
Other large cuts the committee
made in the Treasury budget esti-
mates were:
Coast Guard-For establishing
and improving aids to navigation, a
reduction of $35,904, 400.
Customs Service-A cut of Sc, $685.
600, of which more than half is in
the item for salaries and expenses
and $4,000, 900 taken from estimated
refunds.
Internal Revenue Bureau-For
assessing and collecting taxes, re-
duction OF $50 900 900, which also is
based on the expectation that Con-
(See APPROPRIATION Pp A-4