Evening star., 1949-01-06
EigE1t-Point Program
;Jo,CurtaiI Initiation
Studied by Congress
by Joseph A. Fox

-. Congress today mulled over
the administrations eight-point
!aprogram to check the imitation
sspiral as President Truman pre-
s pared to send to Capitol Hill
tomorrow the report of the
Council of Economic Advisers
which will spell out in further
detail the steps proposed to ward
;uoff a "boom and bust"
ao> On Monday, Congress gets the
budget message. which repeatedly
;ealls for an outlay of sal 900, 900 900
+efn the fiscal year beginning July /
Ia record for peacetime. This will
2!found the Truman fair deal" legis-
lative slate.
10 The economic report, as the Presi-
8 dent explained in the State-of-t
sUnion message yesterday, will dis
aicuss in detail the economic back
ground" for the proposed imitation
,scurbs which include standby price,
wage controls. 1t can be expected
sfalso to deal with the Presidents
Recommendation for a $4,000, ,0O0, ,00C
tax increase-principally on corpo-
rations.
s.e Defense is Biggest Items.
3. u The reported budget figure COM
pares with s39,5Oo,oOO for this year
and incorporates, according to ad-
sministration officials about half a
billion dollars for the new education
ai1ealth and housing program ad-
'vanced by Mr.. Truman.
-, The biggest factor in the total is
FOR "defense"-meaning both mill
tary and foreign recovery expendi-
lures. The President is understood
TO be holding the military budget
TO $15,000, ,000,0 ,000-a Figure that
would allow $500 900, 900 for stockpil-
Ing strategic materials.
The education grants for State
aid for grammar and high school
costs would run around $500, ,OO0, 900
in 1850 and each subsequent year
If they follow the line set out when
the legislation first was introduced
last year.
% The 1ong-range housing program,
which the President said should
provide 100000 low-rent public
housing units over the next seven
years, repeatedly will carry a first
syear price tag of under 500, ,0O0, 900
though the cost would go up later
Has the program unwinds.
Cost Would Increase.
Il, The national health program
.Awould get into the budget for ad-
administrative costs only-not more
than about $20,OO0,0OO the first year,
Officials indicated-but the budget
sum, as in the case of the proposal
to expand social security, does not
shegin to tell the expense story.
=, The budgeted amount would rep
resent only the sum to be taken
from general tax funds to cover
administrative costs of getting the
health program under way.
g The program itself would be set
cup as a trust fund operated by the
Government under the fashion of
old age insurance, getting its pre-
mlums through taxes levied on all
individuals entitled to the medical
benefits contemplated.
Mr.. Truman has spoken in the
past of starting out this program
with a payroll tax of one-half of
! per cent of each beneheiary's pay,
with the contributor" tax sum
jumping after a year or two-pre-
sumably to or per cent.
Health Insurance Bill Offered,
A bill to provide health insurance
for 125 ,000, 900 persons in the Ma
tion's 148,O0OO00 population was in
troduced yesterday by four of the
Presidents strongest supporters.
The four, all Democrats, are Sen
ators McGrath of Rhode Island.
Wagner Of New York and Murray of
Montana and Representative Din
sgell of Michigan.
Their bill also followed up a rec
ommendation of the President by
proposing extension of the social
security old-age and survivors in
ssurance system to 25,000,000 persons