Milford chronicle., 1953-06-05
ECONOMY is STILL THE WATCHWORD

ECONOMY is STILL THE WATCHWORD
Government officials, both elective and
appointive, almost always pay lip service to
the cause of economy. They advocate cutting
government costs wherever possible and Civ
ing the taxpayers 100 cents worth of value
for each dollar spent. In late years, however
these fine words have rarely been backed up
with deeds.
Now the situation has changed very
greatly. This Administration and this Con-
gress really seem to mean business when
they say they want to cut waste and unneces-
sary spending, balance the budget, and re-
duce taxes. The only major point of differ
ence concerns method and precedence, One
group IN Congress believes that taxes should
be Slashed first and government should trim
its sails to fit the wind thereafter. The other,
and probably the larger, group believes a
balanced budget should precede tax reduc-
ton. The President is firmly on the side of
this latter group.
The Presidents tax message to the ma
tiOn, made on the 18th day of May was a
clear and detailed expression of his views.
His general philosophy on taxation is found
in these words: "We believe that pres
ent taxes are too high. We think they are
becoming a real threat to individual initia-
tive. We believe at the same time, that no
citizen, once satisfied that his government is
operating with honesty and economy
wants any tax saving at the price of essen
tial national security
The program Mr.. Eisenhower outlined
has several phases He advocates that the
present excess profits tax be extended for
SIX months beyond the June Both expiration
date; that current corporation income tax
rates should be maintained and not reduced
for the time being; that the projected in
crease OF One-half of one per cent in the
Old age security tax be postponed that a re-
ductlOn In excise taxes also should be post
pOned; and that the proposed 10 per cent
reduction in individual income taxes should
be effected, but not before January 1st.
Many will disagree with details of this
program. strong case can be made. for
instance that eliminating or substantially
reducing the excess profits tax would in time
increase governmental revenues, by stimu-
latlng business spending and expansion.
And many regard the excise taxes as an
unfair and inequitably levy. Such consider
atiOns as these will be weighed pro and con
Wnen Congress goes to work on the Presi-
dents proposals.
However, the tax message as a whole was
well received by Congressional leaders. A |
typical majority view came from Speaker
OF the House Martin, who observed that the |
Presidents stand is necessary because of !
the mess he inherited" and predicted that
tne budget will be balanced next year and
The people will get tax relief"
There is still another phase of fiscal policy
which the Administration is working on now.
The tax system has grown like Topsy, in
neter-skelter way, and it is full of ineouali-
5es, lnlustices, and plain economic absurdi-
ties. There has long been a need for an ex-
study of the whole system, IN order
70 Jay the groundwork for an orderly and
rational overhaul. A group of qualified ex-
Rerts has been assigned to make such study.
TINS is a long-term proposition of the high
est Importance