Evening star., 1952-02-29
$40 Billion Cut
Held Necessary
In 1853 Budget
Slash Is Needed 10
Avoid Gosh Deficit,
o'Muhoney Declares
BY J. A. o'LeoN

| aShAetaSh ASh pkV
billion cut In the Governments
proposed S96.4 billion budget fol
next year Is being considered seri.
ously by the Joint Congressional
Committee on the Economic Re-
port, In order to maintain O pay
as-you-go system during the de-
Tense build-up.
Chairman o'Mahoney said "the
committee Is In pretty solid agree
ment Congress should not aban-
don the pay-as-you-go system,
and seemed to feel that In the
present situation at least a $40
billion cut in the cash budget
should be affected"
In making public today O
working draft of the committee 9
annual report, Senator O'Ma-
honey emphasized 1t has not been
adopted and that members will
have a week In which to suggest
changes in 1t.
Against General Tax Rise.
As to President T'ruman's rec.
ommendatiot1 for another tax In.
crease Of about $4.5 billion at this
session, the tentative draft Of the
committee report says iteduities
In the tax structure should be
eliminated and tax admihistra-
ti0t1 tightehed, but 1t recommend.
ed against general rate increases
at this titie
"1htte befhg tib possibility that
this t6hstess viii Increase taxes
as teHuested The baysasay0u-su
ahtilitihatibhaty btosfstti tati BE
| preserved 6h1y Nv L sttffieieht tez
dttti6ti III expenditures t6 eiitfiis
Hats the cash deheitO teads The
teHtHtlte dtaft IA Reduction 81
appf6klhla teiy Si6 bllIi0fi W6Hld bB
Heetssaty u accomplish This pHfE
B0seiU
lFhe President Estimated In
HsvdstEBsssat #lfA'Esst s$a s$a16 BHe
Y h9h "A. aethHeelt !4H AsEal war AHd
MAfe than Sll bllIl9h IN JHHfl
|tIglAssL ,Hhless m9Fe taSes Rfe
me eSBeFts ri the ggInt EGar
namle p9mmlttee GaHnt A RHFplHs
W government tFHsb RefeHBts IN
REElVlHg. Nv 4 eRsh dehGlt NJ 4nlV
WV bllll0n fnr next year, Thlk
same anpr9aeh WaHld make THE
eAsh deAGlt tHF The GuFreDt year
W Bllll9n lRsteRa Gf ~ bllllen,
RIfApBltles Cited,
To show how difIiGVlt large
scale Understanding viii be, the
Gommlttee points out that nearly
all OF the Presidents SR6,l BILL
Hon spending total Is either for
war-conneCted functions or for
domestic programs TO which Con-
gress has committed the Federal
Government 10 definite obligations
by law. The defense budget
Items not subject to some definite
legal obligation amount 10 only
SO billion, the report said.
ITO save the pay-as-you.go gys-
TEN for fiscal 1858, and the com.
mittee believes II should be saved,
It is obvious that the Congress
would have TO cut go billion from
the major national security pro.
gram or from the non-war.con.
nected expenditures authorized
by law, which only the Congress
and not the President can repeal
or modify" the report continues
The report says that. to &C.
compllsh such O reduction, Con.
gress would have TO scrutinize
every dollar Of military expendi-
ture ;. to be certain that the
expenditure projects :. are justi-
fed by the scientific, chronological
and military facts Of 1858, rather
than by traditional concepts and
conventional methods inherited
from past wars"
Land Army Held WastcfuI.
In this connection, Chairman
O'Mahoney, who also heads the
Senate subcommittee on military
appropriations, expressed the per.
sonal view that building up q
land army is wasteful expendi-
ture." II there is a third world
(See BUDGET, Page Atty