Evening star., 1951-07-23
axes
Continued From First Page.)


billion for 1852 could be cut down
by at least SIS billion.
Figures Dispute Theory.
Senator Taft. Republican. of
Ohio gave the committee figures
today, however, which appeared
to explode the theory that the
need for new taxes this year
could be reduced by cutting So
billion from the $8.5 billion for
Ieign aid appropriation.
The Ohio Senator said the ad-
ministration has already scaled
down its estimate of the part of
the $8.5 billion that will actually
be spent in 1852. At one point
he said he understood not more
than $4.5 billion would actually
be paid out on foreign aid this
year. Later he cited a Govern
ment spending table placing the
actual outgo for foreign aid at
81 billion.
Senator Taft'S point was that,
in view Of these slower expendi-
ture rates, you are not going to
cut the $68 billion expenditure
total any by a further cut in the
foreign aid authorization so far
as 1852 is concerned"
Mr.. Alvord argued the fore
cast Of a smaller expenditure un-
der the heading of foreign aid
represents merely bookkeeping
transfer of part of 1T to the mill
ttary budget.
$50 Billion Total Seen.
Government witnesses have tes-
titled that when the defense pro-
gram reached its peak in 1853
the spending total will be between
$50 and 800 billion. Mr.. Alvord
said such a budget would be way
beyond the possibility of pay-as-
tyou-go-it can't be done" He
said Congress will have to bring
spending under control in 1853
tand consider other ways than
taxes of controlling imitation.
The committee also heard for
mer Senator Ball of Minnesota
argue for a relief provision in the
tax bill for unsubsidized shipping
companies which have deposited
more than 5000 million in con-
struction reserve funds under the
Merchant Marine Act of 1886.
Mr.. Ball is vice president of the
Association of American Ship
Owners.
The House bill was called mon
Strosity" by Clarence D. Laylin,
speaking for the Council of State
Chambers of Commerce. Instead
Of higher income taxes, he recon-
mended broad-based excise taxa
tion if more revenue is needed
for 1852.
Mr.. Alvord said that last jan
|uary Treasury Secretary Snyder
told Congress that $16.5 billion
additional revenue was needed to
balance the 1852 budget. Again
the Treasury is precipitate. he
said. .., ,-. ..-
Says Stand Was Justified.
Developments since then" MFR
Alvord continued, Including
changes in official estimates OF
revenues and expenditures. sup
port the position we took that
with feasible reductions in less
essential expenditures. no such
amount of additional revenues as
proposed by the Treasury was
needed" '
eve advocated specific cuts in
expenditures totalling ST billion. .
he said. These included no reduc-
tion in the total of military. ex-
penditures proposed = without
specification - in the budget mes
sage" 81
Mr. Alvord said that the answer
to control of imitation is not to
be found solely in tax increases.
Ihe chamber urges that Con-
gress try realistically to apply the
principle of pay as we go, through
Production of less essential expen-
ditures and elimination of waste, .
he said. po
President Truman discussed
taxes with his legislative leaders
| at their weekly meeting today anc
was told by Senator MacFarland
of Arizona, the majority leader
that he felt confident the Senate
would pass a measure, but he
would not hazard guess as tc
the size Of the levy that would be
aplSroVed finally