The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1953-01-10
Business Has
Double Stake
In New Budget

NEW YORK R-BuSineSSmen
have a double stake in the budget
that Congress will work upon in
coming weeks.
On the spending side-much of
the billions of dollars that will be
spent on defense, public works,
and the like will go directly to
manufacturers and service indus
tries. Billions of dollars that go in
veterans benefits, for farm price
support, for government payrolls,
will eventually find its way back
to businessmen in payments by
their customers.
So business will watch closely
to see where spending cuts are
made.
On the income side-business
puts up directly a large share of
the taxes that flow into the U. S.
treasury; while its customers pay
higher prices for products on which
hidden taxes and excise taxes are
laid (and may buy fewer of the
industry's products in conse-
quence); and customers also find
their purchasing power whitfield
by high individual taxes.
So business will watch closely
for chances of coming tax cuts.
Most businessmen seem conf
dent that Congress will cut the
budget.
Almost unanimously they ap-
prove of economy and less spend
ing in principle-but individually
many of them may protest if cuts
are proposed in the programs
which would give them a good
customer in the government.
Most businessmen seem conf
dent that Congress will let the
excess profits tax expire next
June. And some of them hope that
individual income tax rates and
some excise taxes may be cut at
the same time, thus giving custo-
mers more dollars to spend at the
store.
But how to cut taxes and bal
ance the budget is problem which
businessmen fear will be more
than Congress with its long record
of log-rolling on pet spending
plans) can accomplish easily.
Businessmen look on the Truman
budget as a Stop-gap, until the
Eisenhower budget is ready-prob-
ably weeks away. But they will
find in the Truman budget the
details on spending programs
where cuts could be made-and
can see who would be hurt if they
were made.
Joseph NJ. Dodge, who is to be-
come budget director, already
warns that cutting of expenses
will have to be done slowly, and
perhaps in piecemeal fashion. ,
He appears to favor a policy of
starting no new expensive govern
ment programs, and of trying to
white down those already under
way which he feels are too rich
for the debt-ridden treasury to 90
on supporting in the fashion TO
which they've become accustomed.
Like many congressman, most
businessmen eye as possible places
to cut spending the various foreign
aid programs, the defense pro-
gram $50 long as national security
isn't threatened). and various pub
lie works programs
Uncle Sam has so many irons
in the fire-So many programs al
ready started-that businessmen
doubt if either the Truman or Ell.
senhower budgets Cor Congress)
can cut spending as quickly as the
voters indicated they wished.
But businessmen say they like
the spirit of economy with which
the new Congress appears to be
tackling the problem.
Remember, however, that many
businessmen openly fear a slump
when and if defense spending is
cut back.
They want economy in govern
ment, but some of its effects might
be painful to many industries as
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