Evening star. [volume] (Washington, D.C.) 1854-1972, 1951-02-06
The Political Min
People Still Not Awake
To Tox-Roise Proposals
Aroused Congress, However,
To Go Slow on Big Spending
The Political Min

NiOuSSu SOIyISSSs tiOwSVStS
To Go Slow on Big Spending
By Gould Lincoln
The American people have not yet
awakened to what President Truman's
proposals to increase Federal taxes by SIS
billions plus will mean to them. On Capt.
tol Hill, however, Congress members who
are face to face with the Presidents
demands both for increased taxes and
for increased appropriations-are begin
ming to shout to the housetops that the
budget must be pruned. Senator Byrd Of
Virginia, Democrat, and Senator George
Of Georgia, chairman of the Senate FL
nance Committee, are among those who
say that the budget not only can be cut.
but must be cut. Senator Byrd actually
has produced a reduced budget for the
President-reduced by SO billions. The
Georgia Senator believes that the budget
may be cut by IS billions or So billions.
Cuts Of such proportions would mean
that the proposed tax increases could
be reduced drastically. The demand for
slashing the budget is no longer con-
fined to Republicans and Conservative
Democrats. Two ardent Fair Dealers,
Senator Douglas Of Illinois and Senator
Humphrey Of Minnesota, are lifting their
voices in support Of reduced expenditures
for everything except national defense.
Senator Douglas has been a shouter for
governmental economy for a long time:
Senator Humphrey is new at it. The fact
Senator Humphrey is now demanding q
slash in appropriations must mean some
thing to the administration. Congress L.
going to sign no more blank checks than
it can help.
Haste Held Unlikely.
In his recent message to Congress, Mr..
Truman proposed two-package increase
in taxes-the first package carrying $40
billions in tax increases, divided as fol-
lows: Personal income taxes, 81 billions:
corporation income taxes, SO billions.
and excise taxes, SO billions. The Sec
ond package to raise another So billions.
Mr.. Truman proposes to send to Congress
later, ostensibly to give an opportunity to
see how appropriations go and defense
needs are met. The President spoke Of
the need Of haste with the first package
bill.
There will be no haste, however. And
the probabilities are there will be sin
gle tax bill-not two-and that it will
not become law until sometime next
summer Members of Congress are de-
manding they first have an opportunity
to trim the Presidents budget, which
calls for ST. billions plus for 1852. and
for $98 billions plus for the next 1S
months. And why shouldn't it be
trimmed? In the budget is an item Of
$40 millions for starting the proposed
ST. Lawrence seaway. Those who want
the seaway are arguing it is needed for
national defense-despite the fact It
would be frozen for five months of the
year. Also this project will cost the PEG.
pie billion dollars before it Is finished
and take years to complete. This is
merely an example Of what may be done
about cutting the budget.
Mr.. Truman, in asking for increases
In taxes, has properly said that the
national defense program should pro-
coed on a pay-as-you-go plan. Many
members of Congress are ready to go
along with that idea. But the total cost
of the program is something else. They
want to do all that is necessary for
national defense and to do it fast. But
they do not intend to have any more
billions Of dollars wasted than they can
help. They know that q lot of things
are being demanded Of them in the
name of national defense-which are not
necessary at all-among them socialized
medicine and the Brannan farm plan.
They see requests for hundreds Of mil
lions Of dollars in lump sums. and they
want those proposals justified.
Arms to Get Green Light.
The strictly military appropriations,
for men and munitions, including planes
and ships and tanks and arms Of all
kinds. recommended by the highest
military officers, will get go sign from
Congress. It's the half-brother and dis
tant-cousin defense proposals for appro-
priation that will be given q thorough
going over before they are permitted to
pass Congress. AS things now stand, q
tacit understanding exists that it will
take the House Ways and Means Com
mittee a couple of months of hearings
on the tax bill and further time to put
it into shape and through the House.
The Senate Finance Committee Is not
likely to be more speedy than the House
committee, and it will be amazing if the
tax bill gets through the Senate a.
speedily as it passes the House.
The House committee might, If it de-
sired, bring out bill increasing excise
taxes speedily, so as to begin getting
revenue which would otherwise be lost.
The excise taxes are sales taxes, no more.
no less. With those already in effect.
and those which will be proposed the
country will approach pretty nearly
general Federal sales tax-which causes
Mr.. Truman and other political leaders
shudders and shivers.
It might be of benefit to the individ-
ual income taxpayers If the new In
creases were put through quickly, since
the withholding taxes, If in operation
early, might spare them sufferings Of
the pocketbook later. But even so, the
best information on Capitol Hill Is that
the imposition of large new taxes Is 60
ing to take time.