Milford chronicle., 1951-02-02
TRuMAN,s BUDGET MESSAGE

The country was prepared for a shock
from Mr. Trunlan's budget measure. 1t got
a sharper one than many had bargained for.
The most striking part of the message
lay in the way domestic projects were lump
ed with the defense effort. AS Wall Street
Journal news account described it, "Pres-
ident Truman is putting the Fair Deal into
uniform. All Of the old familiar ambitions,
from the Brannan farm subsidy plan and
the st. Lawrence Seaway project to estab-
lishment of fair employment practices COM
mittee and Federal health insurance, were
injected into the gigantic defense budget
for 1951-52."
Everyone expected very heavy increase
in spending, due of course, to the war situ-
alton. But Mr.. Truman went father than
was geRerally anticipated His budget en-
visions the spending of ST. ,594 100000 for
the next fiscal year-aS compared with about
$47,21O,000,000 for the fiscal year which
will end next June. And this is not the end
of it. He wants actual appropriations of
$94, ,429, 100000, some of which will be spent
over a period of several years. Then he asks
more than $4,000, 100000 to meet contracts
which were entered into in the past
Finally, Mr.. Truman urged that this
huge budget be balanced through heavier
taxes. The neW'tax loads he intimated, might
be as much as $2O,000,00000O a year. Bv
which Congress voted toward the end of
last year will produce only about $8,000000,-
900. In other words, the President wants
tax increases which will be double, or more
than double, those we have just taken.
So much for the message, which is set
out IN detail in 1908 page book for the
edifcation of Congress. What is Congress-
likely to do?
First of all, there seems hardly a chance
that Congress will go along with the Presi-
dent in his effort to tie domestic and defense
expenditures together as necessary to the
national welfare and survival. A combina-
ton Of Republican and Southern Democrats
with assists from some Northern Demo-
crats-are all set to block that Senator
Byrd is one Of the most fortnight spokes-
men for this group on budget matters He
declared that the Presidents message "rep-
resents the very height of fiscal irresponsi-
bility. He said further that the proposed
budget contains "a great many projects
which are wide open for boondoggle exploit
tatlon Dy Federal agencies, state and local
agencies, and fy-by-night business outfits
all OF which are trying to get into the de
tense act. This view is held by a large and
powerful segment of Congress. Incidentally.
Senator Byrd said on an earlier occasion that
Federal spending could be cut by 81 600. .OOO.-
600 year without touching any defense ap-
preparations.
Next, there is going to be a hsock-down
tight on the tax issue. Senator George who.
as Chairman Of the Senate Finance Commit
tee, is one of the most powerful men in Con-
gress when it comes to fiscal legislation. re-
Gently expressed the fear that taxes NAV
increase to the point where they would Grip
pie our economy. No one doubts that taxes
will go up, but it is extremely unlikely that
they will be raised to the level asked by Mr..
Truman. The tax problem has become fur
ther complicated by the fact that state and
local taxes Of all kinds have risen sharplv
since the last war, are still rising In MANY
places, and the taxpayer has less and less
left that the Federal government can tan
And the present cost Of living, which is at
an all-time high, has added more fuel to this
financial fire.
The best guess is that Congress will shoot
the works on defense, but do some varv
heavy cutting on non-defense items. It viii
carefully survey the whole tax structure. IA
national sales tax is finding support in some
influential quarters.
$500
TO BE REPAID IN FULL