The Daily Alaska empire., 1950-01-04
Change in Excise Taxes One Suggestion Made by
 Chief Executive STATE OF UNION
 MESSAGE IS GIVEN
Rosy Future Predicted for Nation in Talk Before
 Joint Session
By Ernest B. vaccaro

Dy ETucst ID. VdccdTO WASHINGTON, Jan. 4--tR-Pre- sident Truman advocated "moder- ate amount" of new taxes today in glowingly optimistic state of the Union message voicing hope of an eventual trillion-dolyr economy.
 If America keeps growing as it has in the last 50 years, he told Congress, the total national pro- duction 50 years hence Hlll be nearly four times what it is now, or at the rate of more than one thousand billions of dollars a year.
 Prosperous Nation
 Tn mixture of humility and pride, Mir. Truman said:
 Today, by the grace of God, we stand a free and prosperous nation with greater possibilities for the future than any people have ever had before" The Presidents message was one in which he CD looked far into the futurewhen, he said, the. av- craze family may make the equiv alent of more than $i2,OO0 year and t2) dwclled on what he called the present day reeds for such things as continued rent controls and repeal of the Taft-Hartley labor law
 Reduce IEeluities
 The President ~+1ve no inkling of how much new revenue he wants now or where he would turn to get it. Nor did he disclose what exist ing taxes he would drop or lower to. as he put it, reduce present in- equities" and stimulate business activity"
 He simply said there should be some changes" in the tax system to produce these results.
 His tax proposals will come later, in special message. He is ex- pected to yield to demands for an end of the bulk of the wartime excise levies on such things as transportation fares and telephone bills, provided the loss is more than offset by taxes from corpora tion profits and other sources.
 Budget Message Monday
 MT. Truman said the budget he will submit Monday, for the fiscal year starring July 1, holds spending to the lowest levels consistent with cold wal, requirements and es- sential economic needs at home. He declared that his fiscal pol icy offers "the quickest and safest way of achieving balanced bud- get" but he did mt hold out any hope that government spending can be held withizi income during the forthcoming fiscal year.
 Rel Ink Financing In fact, his talk of moderate tax boosts in the face of continued heavy obligations pointed to an- other year or more of red ink fin- ancing.
 MT. Truman spoke out against the folly of attempting budget slashes which would impair our prospects for peace or cripple the programs essential to our national strength" He laid particular em- phasis on fInds for the European recovery program for non-Com- munist nations.
 At Joint Session
 The President appeared before a joint session of the Senate and House, many of whose members have been demanding sharp cuts both in government spending and in existing taxes
 Chairman Cannon D-Mo) of th0 House Appropriations Committee said in advance of MT. Truman's message the committee will vote to slash spending wherever needed to insure balanced budget.
 In many respects. the message was much like the one MT. Tru- man delivered year ago on the same occasion.
 Repeal T-H Law Again today, he called for re- of Ai,<