Evening star., 1953-08-28
BUDGET
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OuOSO1 Al
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not reflect possible further saw
ings resulting from Gen. EiSen-
hower's recent directive to all
agencies to look for further
economies.
New Authority Held Down.
The Budget Bureau also hailed
as significant the fact that the
last session of Congress held
new obligational authority below
the estimated expenditures and
receipts for the first time since
1948. The authority to incur
new obligations was held to
$63.2 billion.
The Budget Bureau called
this development the essential
turning point toward balanced
budget" Because of the time
required to oulld planes, tanks
and ships, Congress for the past
four or five years has been max
ing appropriations far in excess
of annual expenditures. AS
result, the Eisenhower ad-
ministration began this fiscal
year on July l with a carry
over of $81 billion in outstand-
ing commitments for defense
equipment ordered a year or two
ago.
Future Progress Seen.
The Budget Bureau points out
that holding new obligational
authority this year below the
current annual rate of expendi-
ture promises lower spending
figures in future years as we'll as
in 1854.
The new estimates of income
and outgo for this fiscal year
took, into account the tax cuts
that go into effect automatically
in January. At that time the
excess profits tax expires, and
individuals will get 10 per cent
reduction on their 1854 income
tax. i
In April of 1854 the increased
rate of income tax on corpora
tions expires, and excise taxes
go down on alcoholic beverages,
cigarets, gasoline and sporting
goods. But these reductions come
too late to have much effect on
the fiscal year ending June 30.
Secretary Humphrey told re-
porterS yesterday it is too early
to speculate on whether the ad-
miniStration will have to ask for
any new taxes, or whether it can
recommend any further tax cuts
next year
40 Sources Studied.
He pointed out that the Treas
ury is studying 40 different
sources of revenue, but was
emphatic in denying that it has
singled out a general sales tax
for special consideration. He
said that is just one of many
sources being studied. along with
a manufacturers excise tax and
possible changes in the existing
tax structure.
Il am not saying we are or are
not going to present sales tax,
or changes in the income tax, or
other specific tax proposals to
Congress-" the Secretary added
Mr.. Humphrey threw cold
; water on the new Ruml plan,
calling for a dual budget. under
which capital outlay items would
be handled separately from the
Governments ordinary expenses.
1t was proposed recently by
Beardsley Ruml. author of the
pay-aS-you earn income tax
system.
The Treasury Secretary said
his department is mot particu-
larly impressed" with the dual
budget plan. He expressed fear
it might discourage the kind of
economy the administration is
now advocating, and added, lit
is better to have all your ac-
counts in the open in front of
you"
Seek Stabilized Economy.
Although elated over the i'm
provement in the outlook for a
balanced budget, Mr.. Humphrey
cautioned reporters to remember
that the new budget report con-
siSts entirely of estimates based
on present conditions. He said
these prospects could be upset
by an unexpected event that
would either reduce income, or