Evening star., 1950-01-24
The Political Mil
Truman Deficit Spending
Held Likely for Years
Again Seeks to Lay Financial Blame
On 6. o. P. S0th Congress
By Gould Lincoln

President Truman has chosen to run the
country on deficit spending basis this year,
next year and perhaps for years to come.
His BUDGET message and his tax message
have both been received by Congress He
does not, in his budget message, propose to
reduce expenditures of the Government to
meet, or even closely approximate, the Gov
ernment's expected revenues. In his tax
message he does not propose to raise revenue
to meet the expenditures recommended in
his budget,
Mr. truman again seeks to lay the blame
on the Republican 80th Congress for the
present financial situation of the Govern
ment. The tax reduction bill put through by
the Both Congress, which he claims caused
all the trouble, was passed over his veto
with lot of Democratic as well as Republi-
can votes in House and Senate. Further
more. Mr.. Truman has never called on Con-
gress to repeal that tax reduction law.
Election in Mind.
In his new message on taxes Mr.. Truman
does not even go so far as he did in the
first session of the 81st Congress. when he
asked for increased taxes raising S4,000,-
100000 in additional revenue. This Demo-
cratic Congress paid no attention at all to
that request last year-and with an election
coming along it was clear it would pay no
mind to such a proposed recommendation if
he renewed it,
On the contrary, Mr. Truman does suggest
the repeal of certain wartime excise taxes
taxes on transportation, on communications,
and on the entire group of retail excises,
including such items as toilet preparations.
luggage and handbags" The Republicans
IN Congress started drive last year for
the repeal of these excise taxes, alleging they
were heavy burden on the people and
detriment to business. But Mr.. Truman
does not want the repeal of these excise
taxes. with the loss of revenue it would en-
tail. unless certain loopholes in the tax laws
are eliminated, which, he says, would make
up for the reduction in revenue Indeed,
the President virtually says he will veto
bill for the repeal of these excise taxes If
1t is sent to him without compensatory in
creases in revenue.
In addition, Mr.. Truman demands certain
increases in taxes levied on corporations and
on estates and gifts calculated to raise a
billion dollars This added billion of dollars,
however. even if his proposed tax increases
should be accepted, scarcely compares with
the $4,000, ,000, 900 deficit which will confront
the country at the close of the present fiscal
year. and another $1,000 900 900 deficit at
the close of fiscal 1851. The President
clearly is bent on a period of deficit spending
not that he likes it, but because he prefers
oenclt spending to retrenching and cutting
Government expenditures
Possible in Hazy Future.
In his tax message Mr.. Truman speaks of
the possibility. in the hazy future of ball
anced budget, with Government spending
not exceeding Government revenues. He
even speaks Of "practicing rigid economy"
But, he continues, lit would be elf-defeating
to cripple activities which are essential to
our national strength. 1t will require wis
dom and courage to find and hold fast to
the course of wise economy without straying
into the field Of foolish budget slashes .'- Ali
OF which sounds very much like telling Con-
gress, which wishes to economic, to hang
lts clothes on hickory limb but not to go
near economy waters
Whlpsawed between President who does
not wish to cut expenditures as they shol1ld
De cut and Congress which will not in
crease taxes, the financial situation of the
government of the United States-and of
tne people themselves-continues In a very
bad way. -' .
Members of Congress have been quick too
70 resent'Mr. Trumans assertion he will not
approve tax bill reducing excise taxes m
less IL Is written as he demands. Under the
constitution. Congress writes the tax laws
not the President. The President NAV And
himself faced with the problem of yetoing
an excise tax reduction bill, and in that case
ne Will have to veto it or swallow his words