Evening star., 1953-08-29
The Political Mil
6. O. P. Fiscal Policy
Begins Paying Off
Eisenhower Refusal to Cut
Taxes Credited for Coins
By Gould Lincoln

BY Gould Lincoln
President Eisenhower'S fiscal and
economy policies are paying Off Tax.
paying Mr.. and Mrs. America, in all
probability, are going to owe the Chief
Executive vote Of thanks next year.
For the new budget statement, made
phrey shows the Federal cash budget
practically in balance at the close Of
the present fiscal year, next June 80.
This estimate takes care of and in
cludes the loss of revenue which the
Government will suffer when the sched-
uled tax reductions, on both individ-
ual incomes and on corporations. go
into effect in 1854. The first tax re-
duction for individual taxpayers is
slated, under existing law, to start
January !. It means the elimination
of an II per cent board tax
which has been in effect, and which
has made the tax burden on individ-
uals heavy. 1t affects the small tax
payer as well as the big, and will lift
So billion of the shoulders of the tax
payers.
First Objective.
The President trained his sights on
a balanced budget from the first. He
turned aside all proposals for an i'm
mediate tax reduction, although some
OF the proposals came from his closest
friends and supporters. He opposed
such reductions, too, although they
appeared politically expedient. Gen.
Eisenhower pointed out that he had
made no promise. personally, of an i'm
mediate tax reduction during his 1852
campaign, but rather he had offered
hope of tax reduction as soon as gov
ernmental income and outgo were in
balance.
The most attractive of all the pro-
poSalS for tax reduction this year was
that first suggested by Senator Carlson
of Kansas, one Of the Eisenhower cam
paign managers, and later adopted by
Chairman Reed of the House Ways and
Means Committee. It called for the
elimination Of the IL per cent tax on
individual incomes last June 80, along
with the elimination on the same date
of the excess profits tax on corpora
tions. The President couldn't see it,
however Not only did he oppose the
reduction for the individual taxpayers,
but he insisted on retaining the excess
profits tax six months beyond the date
of it's scheduled death. The estimates
now presented by Secretary Humphrey
show the wisdom of the Presidents de-
ciSion.
Gen. Eisenhower's success in revers-
ing the trend of ever bigger Govern
ment spending-with its inflationary
effects-has been remarkable. The
President and his assistants have in
sisted on economy and careful SPEND
ing, with the Government getting more
for. it's dollar He has had the backing
of the 83d Congress in this economy
program in big way. Indeed, Con-
gress cut the Presidents own budget
by some 81 or So billion. But it also
cut the budget for fiscal 1854, SUBJ
mitted by former President Truman
a few days before he left Office, by $l3
billion-a real achievement.
Experience Pays of.
1t looks, too, as though the Presi.
dents selection of successful business
men to run departments and agencies
of the Government is paying of, When
Gen. EisenhoWer's Democratic oppo.
nent in 1852, Adlai Stevenson, early
in the year delivered speech express
ing fear that the Eisenhower admin
istration might turn out to be the Big
Deal"-in contrast to the New Deal
and the Fair Deal of Roosevelt and
Truman days-the President did not
hesitate to say he had no such fear.
He went further and declared he had
appointed the best businessmen he
could find to head the Department of
Defense and its three component parts
the Departments Of the Army, Navy
and Air Force-becauSe those agencies
were spending the bigger part of all
the Governments money, And when
he called on the heads of these
agencies and others to reduce spending
in the present year-he got action.
And Secretary Humphrey was enabled
to make his present optimistic state
ment on Government finances. -,
A recommendation of the President
to Congress called for an increase in
mail rates, designed to wipe out the
big annual deficit of the postal service.
1t came toward the close of the session
and Congress was unwilling to tackle
it and jeopardize an August / adjourn =,
ment. If it had been enacted. how
ever, balanced budget would have
been all the more certain. Presum-
ably, Congress will be called on to con.
slider the proposal when it reconvenes
Under the administration of Post
master General Summerfield-one of
the successful businessmen picked oy
Gen. Eisenhower for Government serv-
ice-already large economies have been
made.