Evening star., 1951-03-08
The Political Mil
Congressman Worried
At New Tax Demands
Huge Government Spending
Is No Political Antidote
By Gould Lincoln

The late Harry Hopkins. close adviser
of President Franklin u. Roosevelt. was
reported to have said: "We1l tax and
tax, spend and spend, and elect and
elect" The idea, whether 1t was Mr..
Hopkins or another's, worked. But
good idea can be overdone. Today taxes
have reached so high, and so many
people. that even huge Government
spending is not providing the necessary
political antidote.
Members Of Congress are becoming
more and more concerned over the tax
burdens which they are called on by the
administration to impose on their con-
stituents. They know now that If Presi-
dent Truman's request for an immediate
additional $40 billions of revenue
through new tax legislation Is put
through the Federal taxes for every man.
woman and child in the country will
average $432 for each person. That is
the highest and heaviest tax burden ever
imposed upon Americans. It is 38 per
cent more than the highest per capita
tax imposed during the Second World
War, according to a survey made by
the Congressional Quarterly. That per
capita tax. in 1945, was $312.86.
Condition, Not Theory.
Members Of Congress realize that they
confront condition, not theory; that
they must decide on one of three courses,
the first OF which. is to increase taxes,
as recommended by President Truman.
The second is to slash the Truman
budget to the bone. except for essential
national defense items. The third is
to borrow the money to meet the deficit
Of $16.5 billions. With national debt
Of some $265 billions, the thought Of
adding another $16.5 billions is not only
fantastic. but If carried out, ruinous.
To bolster its demand for additional
taxes the argument is advanced in ad-
ministration circles that more taxes are
needed to keep down imitation, which Is
threatening the country with ruin. The
proposed cure, however, is very like q
proposal to burn out a patients bron-
chial tubes to cure cold.
The third recourse-which to the man
on the street undoubtedly would appear
desirable-is to cut expenditures. The
President says this cannot be done
that his budget is tight one. However,
along comes report of the Committee
on Federal Tax Policy, headed by Roswell
Magill, former Undersecretary of the
Treasury d937-38) and a professor Of
law at Columbia University. The report
points the way to wringing $40 billions
out Of the budget, and gives in detail
just how it can be done, without attack
ing the real military expenditures at all.
It proposes that immediate suspension
of all non-military Federal spending pro-
grams for the fiscal year 1852 be effected.
The accent is on the programs,
and no effort is made to do
away with any essential part or agency
of Federal Government. It shows that
some $24.8 billions are the area in which
the $40 billions reduction may be made.
"Clean Sheet Basis"
In addition, the committee recon-
mends that the Budget Bureau prepare
new budget on clean sheet basis
that is, after the suspension of the oper-
alton of every provision of law now in
force requiring expenditures or appro-
priationS, and that Congress should
permit no additional expenditures, unless
a corresponding cut is made from other
budget proposals.
This is a Spartan proposal. It would
be frantically opposed by many special
groups. It would, if adopted, remove all
the pork" which has been the political
vote catcher.
The report of the Magill committee
points out there are four lines of activity,
by the Federal Government, which
should be examined for cuts. These, and
the amounts involved, are: loans, $21
billions; public works, commodity inven-
tories and equipment. $3.7 billions; aids
and special services programs of State,
local and foreign governments domestic
500 billionS) and international 81 bill
lions; other current operating expenses
Excluding interest on the debit, $24
billions. Together they add up to $248
billions. None of these hit the national
defense and military expenditures.
A major operation is necessary to meet
the situation. Taxes that so beat down
individual Americans and American in
dustry they are unable to buy and to
produce do not seem to be the answer.
Questions and Answers