Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-05-10
Campaign 10 Slash
U. 5. Spending Gets
Bipartisan Support
by The ASsceiafed Press

SapIl ny FTcolQcI1J 4IuIfldL @OuLl~
ell Of Economic Advisers for q
cut in Government spending.
The council was said to have
held that because Of unsettled
business conditions it would be
safer to trim spending than to
try any sharp tax increase.
Responsible officials said the
economists went even further-tc
suggest the possibility of cutting
some excise taxes and Of delaying
six months q social security pay
roll tax boost scheduled for July /
Each Of these proposals got con-
siderable backing from the law
makers.
Lesser Truman Goal Urged.
But the final decision on which
way to turn in the face of obvi-
ously increasing financial pressure
on the Nations economy rests
with Mr.. Truman. Thus far he
has refused to back down on his
repeated demands for $4,000, 000,-
600 in new taxes.
The economic advisers were
said to have urged the President
TO accept a "lesser goal" than this
Chairman George of the Senate
Finance Committee said the ad-
visory report-delivered to the
White House last week but not
made public-confirms the posi-
ton he has taken.
IF the National income il
shrinking because business Il
shrinking. 1t would be nonsense tc
clap more taxes on falling econ
omy." Senator George told a re-
porter. "Our only hope is to cut
expenditures"
Similarly. Chairman Doughton
Of the tax-writing House Ways
and Means Committee, said he is
encouraged" by the advisory
report.
I'VE should cut expenses all
possible" he said, adding: II agree
that big tax increase might have
Q harmful effect on business"
McGrath Would Heed Advice.
Commenting on the report,
Democratic National Chairman
McGrath observed:
I'm the kind who thinks that
when you hire a doctor. you ought
to pay pretty close attention to
his advice"
The economic advisers were re-
ported to have found that no
major part of the Nations econ
onny is in serious trouble now, but
that there are hazards ahead
which must be watched closely
particularly the possibility of
feurth-round wage increases and
top-heavy crop SURPRISES.
Representative Halleck. Re-
ppblican. of Indiana kicked up q
brief furry on the subject Of
economic conditions yesterday. He
said there's too much Govern
nent spending and mo amount
Of buck-passing or abiding car
hide Truman administration re-
sponsibility'' If depression comes
Representative SABBATH. Demo-
crat. Of Illinois, retorted that
there will no recession, mot
withstanding that the gentleman
from Indiana would like to bring
1t about"
Some lawmakers say they think
the current price slump goes
deeper than Government depart
ment reports indicate.
One of these, Senator Brewster,
Republican, of Maine, remarked
that he believes the advisory re-
port kills any tax bill for this
session"
Senator Brewster, a finance
committee member, has moved to
repeal the is per cent tax on
railroad. airline, bus and ship
tickets. The advisory council said
nothing about this levy, but sug-
gested studying the possibility OF
cutting of the 8 per cent tax on
air, land and water freight.
Senator George said he thinks
Congress also might well postpone
until next January the increase
In social security payroll taxes
now set for July /. The Presi-
dents advisers suggested that this
might be a good idea.
MANY of the excise taxes are a
direct brake on business" Sena-
tor George said. "They should be
subjected to a thorough study
There also is no hurry about in
creasing the payroll tax, which,
OF course. is just as much Of q
drag on the economy as any
other levy"
Senator Ellender. Democrat, Of
Louisiana said he agreed with
the advisers reported finding that
the country can't afford red ink
financing. Is well as their view
that any effort to avoid deficit
by a sharp boost in taxes might
hamper business in adjusting
prices to weaker markets.
81 am glad they are now seeing
the light" the Louisiana Senator
said.
Senator Ellender. o member Of
the Appropriations Committee
said he is going to try to start
this economy wave by proposing
that the $3.50. 100000 authorize.
ton for Marshall Plan aid to Eu-
rope be cut 81 500. 000. 900.
Chairman Mcclellan of the ap-
preparations group agreed that
some cuts can be made in Gov
eminent OUTLAWS.
House Minority Leader Martin
<hsarvad that axve sirnY1lv cannot