Evening star., 1949-01-10
Budqet
Continued From First Page \

a higher level can be expected in
1851.
"The principal objective we should
have in mind in planning for our
national defense at this time" he
amplified. "is to build a foundation
Of military strength which can be
sustained for period Of years
without excessive strain on our pro-
ductive resources, and which will
permit rapid expansion should the
need arise"
In renewing his appeal for
$4,000 100000 tax boost the Presi-
dent said:
"It is not an easy step for me
to take to recommend new taxes. I
do so with a double conviction, first
that under present circumstances
prosperous country cannot afford
an unbalanced budget; and seconds'
that after thorough review of the
cost of each Government program
my recommendations represent a
level below which our responsible
ties will not permit us to go in the
next fiscal year"
The income tax this year-if the
law is not changed-is estimated to
produce-in round figures-S18.5 .500,-
100000, as compared with S21,000,-
100000 last year. In 1850, it is fig
ured, Slightly over $4,000, 100000.
The corporation levy next year will
approximate $12 .250,00O,000, as COM
pared with s11 ,500,000,000 this year
Leaves Method to Congress.
The President has said that the
method Of raising taxes is up to
Congress, although he has pro-
posed that corporations bear the
largest share, with inheritance and
gift taxes and middle and upper
bracket incomes also contributing.
The administration expects that
only about half of the proposed
$4,000, 100000 increase could be OBJ
tained in 1850 because of the lag
in collections
The new social security levy is
estimated at S1,70O 100000. and that
for health insurance at S260,OO0 900.
These would tap pay envelopes and
employers pay rolls, and as the
money is kept in trust funds it is
not taken into account when esti-
mating ordinary Government re-
ceipts.
Under social security, the per
cent tax on pay and pay roll for
old-age insurance would go to IL
per cent on July /. instead of jan
uary l. 1850, as the law provides,
and the ceiling" for the tax would
be lifted, SO it could be assessed
against more than the first $4,000
annual earnings as at present. The
budget message does not specify
what the new ceiling should be.
The administration wants addi-
tional groups covered-for example,
farm labor and domestic labor have
been uggested-and disability pay
also would be introduced Higher
benefits also are contemplated.
Health Plan Details Due Later.
The health plan will be covered
by the President in more detail in
a later message, but tentatively, it
is proposed to finance it by one
fourth of / per cent pay and pay
roll levy.
The only cost to the Government
for programs of this sort is for ad-
lninistration.
The budget also calls for boost
in postal rates on second and third
class matter. with the former, un-
der which newspapers and period
icals are carried, the particular OBJ
1ect of attention.
There is no sound basis for the
extremely low rates now in effect, "
the President said, in pointing to
a prospective deficit in 1850 postal
operations of more than s400, 100000.
The increased revenue sought from
this source is S250,000,000.
Veterans benefits would drop by
about 81 .300,000,000 to S. 5,496, ,000,0 600
in the new budget, rejecting, as the
President points out, declining re-
adjustment aids for the men and
women of World War. II.
However, the long-run trend OF
Long g-Run Trend Upward.
compensation and pension costs anc
of hospital and medical care is
gradually upward he added.
Mr.. Truman made clear that he
opposes class benefits for veterans
as a whole, declaring the necessity
for new and extended help for those
without service disabilities "shoulc
be judged, not solely from the stand.
point of service in our armed forces
but in the light of existing socia
welfare programs, available to all
veterans and non-veterans alike.
In short, that disabled veteran
benefits should be measured by wha
others of like economic status get.
The budget message asks Con