Evening star., 1949-01-12
Truman Budget Called
Political Estimate 10
Force Tax Changes
Administration Forces
Seen Out to Place More
Groups Under Obligation
By David Laurence

By David Laurence
Out of a contemplated expendi-
ture of s41,S58, 100000, President
Truman apparently could not find
any way to cut out even 2 per
cent Of the total and consequently
he proclaims that the coming fiscal
year will show a deficit of $873,-
100000.
Expenses are more than in the
preceding year by $1,700,000, 900,
and spending is to go on a larger
scale than any other year in the
history of the United States with
the exception of the years of World
War II.
In one year America is to spend
now more than the amount of
the entire war debt at the close
OF World War I.
The word economy" has dis
appeared from the vocabulary of
the Government, because politics
dictates otherwise.
Promises of Spending.
Having won the election by prom
iSes of more and more spending
and by having told large groups of
voters which had benefited by ad-
ministration favors that the citi-
Zens would be "ungrateful' unless
they voted for the continuance of
the present administration, Presi-
dent Truman probably felt embar-
rassed about reversing his position
and really conserving the Nations
finances
Instead, Mr.. Truman now pro-
poses to increase the number of
groups to be benefited and he pro-
poses to put more groups under
financial and political obligation to
the Government.
The so-called budget for the COM
ing fiscal year is not a true bud
get at all. 1t is political esti-
mate. Actually the receipts are un-
derestimated this time as they have
been right along now for several
years. This is done to force
change in tax rates by threatening
q deficit.
There are evidences that even if
the $41,858, 100000 were spent, the
receipts would be big enough to
avoid deficit. But the fact is the
administration and the Democratic
party in Congress has not the
slightest intention of keeping the
expenditures down to S41,858,OOO.
The so-called budget will wind up
considerably ir excess of that sum.
Merry Co Round Theory.
Hence the administration is call
ing for more taxes. Everybody who
works for living will pay those
new taxes directly and indirectly
The taxes deducted from pay rolls
will be materially increased so that
"take-home pay" will be less.
Then, of course, 1t will be nee
essary to increase wages to take
care Of many of these deductions.
Union leaders will be under pres
sure to get such increases or else
to employ the strike weapon.
With the prospective emascu-
latlon of the Taft-Hartley Act so
that labor union leaders will be
able to do as they please, work
stoppages inevitably Will increase.
The theory that this merry-go-
round and imitation spiral will end
in the near future is hardly plaus-
tble in view of the attack on the
integrity of the American dollar by
the present administration.
The r6nanf fnnHaYou af
markets to rise may not be due to
any removal of fears concerning
radical legislation by Congress, but
to shrewd recognition of the fact
that imitation has by no means
oeen stopped and may indeed be
given another impetus by the
spending program of the Govern
ment
Congress is getting ready to boost
the salary Of President Truman to
100000 and to increase his personal
expense account. He already has all
the expenses OF the White House
taken care Of by separate appro-
priation. But the man who is sup
posed to be close to the people is to
~ pawn a b466C4 odldl v.
Sign to Company Heads.
The increase in the Presidents
pay will be taken as a sign every-
where that presidents of companies
may feel justified in asking directors
for increased compensation. The
pattern might be to raise salaries
upward in private business for the
same reason that it Is being done in
public business-the dollar is losing
its purchasing power. The dollar is
being devalued constantly in terms
OF its real worth in gold.
The American dollar will be meas
ured more and more as the years
go by IN terms Of what the taxation
capacity Of the American people
really is-and not what someone in
the Government figures out with a
paper set of rates.
The request for nearly $4,000, ,OO0,-
600 more in taxes presumably is to
include at least $2,5O0,0oO,000 for
debt reduction, but 1t probably will
not be anywhere near that sum,
The money to be derived from tax
receipts will be spent for new
schemes Of so-called social welfare.
No program Of debt reduction has
been enacted nor will any be at
the current session. The trend is
toward more and more spending
and more imitation until the eco
nomic system will not be able to
stand the strain. Then Congress
may learn the meaning of the word
economy"
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