Evening star., 1950-08-20
Congress Near
Budget Action;
ST Billion Likely
New Toxes and Cuts
In Domestic Spending
Appear to Be Certain
By J. A. O'Leoy

spending beyond anything slated
for action at this session will be
necessary if the United States is
to carry out its stepped-up de-
|fense program without huge def
cits for the next few years.
This appears clear as Congress
approaches final decisions In the
next week or 10 days on budget
that may reach the 81 billion
mark for the year ending next
June.
Both Congress and the Presi-
dent have made q start toward
closing the gap between a budget
OF that size and the Govern
ment's present income, which was
about $37 billion for the year
ended last June 80.
The President has asked for,
and the Senate Finance Commit
tee has just approved. higher in
come taxes to yield IS billion more
in full year. 1t will bring in less
for the year already two months
old.
Too Early for Savings Estimate.
The President also has written
to IA major branches Of the Gov
ernment. urging them to restudy
their programs. with a view to
curtailing where possible and CIV
ing priority to defense or security
work.
1t is too early to tell how much
may be saved from this White
House directive, but the various
agencies that specialize in Federal
public works and in procurement
have set the wheels in motion to
find out.
To begin with, no agency win
be certain of how much money it
will have to spend between now
and next June until the House
and Senate reach final agreement
on the omnibus appropriation bill.
The conferees may reach agree
ment by Wednesday or Thursday.
Excess Profits Levy Due.
Both Mr.. Truman and members
Of Congress also have made it plain
they realize the pending IS bill
lion tax bill Is only q first step
toward q tax program adequate to
meet the threat of Communist
aggression.
An excess profits levy, is sure
to be considered this fall or when
the new Congress meets in jan
uary, If it is not added to the
pending measure on the floor of
the Senate during the next two
weeks.
The difficulties of economizing
in an election year were illustrated
last week when the House voted.
264 to 108. for a bill to restore two
mail deliveries a day, thereby off,
setting savings the House had
approved when it cut the Postal
budget in the omnibus appropris-
tion bill. This bill still must get
through the Senate.
On the other hand. some OBJ
servers believe the fact that this
is an election year helped both
houses to write into the omnibus
appropriation bill general economy
amendments.
Economy Faces New Test.
The economy issue will be put
to another test Tuesday, when the
Senate votes on the bill to au-
thorize the regular Federal-aid
highway program for 1852 and
1858. These road programs are
authorized at least a year in adj
vance to guide the State legisla-
lures in planning to match the
Federal funds.
At President Truman's sugges-
ton. the Senate Public Works
Committee Friday cut the author
ization for each of these years
by $120 million, leaving $500 mil
lion a year. But Senator Douglas,
Democrat Of Illinois, who has been
trying all year to get Congress to
economic, will try to cut the road
bill much deeper. Pointing out
that this year Congress appropri-
ated 1885 million for the road
program, Senator Douglas called
1t absurd in view of the Korean
war" to increase it to $500 million,
If there should be a big turn
over in House and Senate seats
in November, it undoubtedly would
make the new Congress more con-
scious of the need for holding
down Government deficits, but a
completely balanced budget seems
beyond attainment while the tense
state of world affairs requires the
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