Evening star., 1949-12-05
Budget Meeting Due
Today as 0'Mahoney
Opposes Tax Increase

Opposes Tax Increase
Senator OMahoney. Democrat,
of Wyoming has Joined those who
believe raising taxes in 1850 would
be a mistake.
He believes q better plan would
be to revise the tax laws with a
view to giving business an in
centive to expand. which would
lproduce more revenue without
raising rates.
The Wyoming Senator's views
are important because he is chair
man of the Joint House-Senate
Economic Committee. which will
recommend broad policies the Gov
ernment should follow to achieve
maximum employment and q
stable economy.
Meeting to Be Held Today.
One of Senator O'Mahoney's
subcommittee, headed by Senator
Douglas, Democrat, of Illinois, will
hold a closed session today with
Budget Director Pace on the Gov
ernment's income and outgo.
Another subcommittee, over
which Senator O'Mahoney will pre-
side, is preparing to start separate
hearings this week on the supply
of investment capital. ,..
Although Senator O,Mahoney
said he regards it as "a practical
impossjbility" to raise taxes now,
he also contended cutting the
Federal budget will not be easy.
Says Some Waste Can BE Cut.
The committee chairman said
he has no doubt that some waste
full spending can be eliminated
by Congress. But he added that
as an Appropriations Committee
member he had found it easier to
talk about budget cuts than to
make them. .,
"Any attempt to balance the
budget by cutting of Government
expenditures for such things as
highways and fighting stream
pollution inevitably would reduce
the opportunities for business and
cast wet blanket over the econ
omy." he said.
"The only substantial way of re-
ducing expenditures beyond what
the President has attempted is
by further curtailing necessary
outlays to contain Communism, to
prepare for National defense and
to meet obligations arising from
past wars"
Represent 1876 of Costs.
He said National defense, in
|ternational payments. veterans
benefits. and interest on the pub
lie debt now represent rs per cent
of the budget whereas 10 years
ago they accounted for only 20
per cent. He said Congress mas
difficulty in pairing these items.
The Wyoming Senator said.
however. that surveys by his COM
mittee indicate excellent" gen.
eral prospects for 1850. and that
more revenue could be raised by
wise adjustments In the tax laws.
Meanwhile. former President
Herbert Hoover made plans to
come back to- Washington with
his plea for economy In Govern
ment by reorganization.
To Speak Monday Night.
He will speak next Monday |
night before the National Reor-
gaIlization Conference. His theme
wiIf be one that some Republican
Party members are voicing as q |
rallying cry for the 1850 congress
sional campaigns-a contention
that excess spending and high
taxes are threatening the exist
ence of the republic. /
Speaking at non-partisan
forum, Mr.. Hoover is expected to
stick to his main topic that wide
spread savings can be made by
reorganization Of the Government.
In a preview Of his speech in
New York last week, however, he
covered a broader field. He said
that the principal danger to the
republic lies in the attitude Of
many groups in the country who
think they ought to be fed by the
taxpayers instead Of making liv-