The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1953-05-01
FRESH TAX CUTS UNLIKELY
Ike Tells Neavs
Confab Budget
Probably Won't
Balance In SO
By JACK BELL

WASHINGTON Up - President
Eisenhower's statement that his
administration sees no way to bal
ance the budget for the next fiscal
year appeared likely today to de-
lay indefinitely any fresh tax cuts.
Eisenhower told a White House
news conference yesterday it will
be impossible to bring expendi-
lures completely in line with reve-
nue.. Sen. Taft (R-Ohio) said Con-
gress may have to approve new
appropriations without any final
spending estimates for the fiscal
year beginning July 1.
To Sen. George (D-Ga), an old
hand at fiscal matters, this spelled
delay and possible no tax reduc-
tons at all beyond the already
scheduled death of the excess prof
its levy on July / and a 10 per
cent decline in individual income
taxes set for next Jan. /.
Commenting on the presidents
statement, George said: 81 don't
see how it leaves any leeway for
a tax reduction"
Some House leaders, however.
chung to hope they will pass a
tax cut this year, although they
agreed with the President that
tax reductions should not be con-
sidered until a balanced budget is
in sight.
Republican leader Halleck (Ind)
said in an interview, Il still
wouldn't rule out any chance of
a tax reduction. don't think there
viii be any big fight with the
administration but we may cut
appropriations even below the
administration requests"
And House Speaker Joseph Mar
tin (R-Msss) said:
"I'm still hopeful we can make
the appropriation cuts that will
justify a tax reduction"
Eisenhower declined to speculate
on possible additional tax reduc-
tons and Taft. the Senate Repub-
lican leader, significantly withheld
any predictions on this score.
But the Ohio Senator said in an
interview he doubts that any firm
estimates will be given Congress
in the present session on federal
spending, which he said "will de-
termine tax policy and whether
there is a deficit"
Many Republicans promised a
balanced budget and reduced levies
in last years political campaign,
but Eisenhower has said he made
no pledge to cut taxes.
eisenhower announced he will
ask Congress to vote ga billion
dollars less than the $72, 900, 900. 900
in new appropriations former
President Truman had recon-
mended for the coming year.
But Eisenhower declined to saw
how much of that would be repre.
sented in actual savings at the
Treasury's pay-out window. al
though Rep. Short (R-Mo) pre-.
viously had estimated the amount
at 81, 400. 0o0, 900.
1t is the Treasury's actual In
come and outgo--not what Con.
gress appropriates for this and
future years-that determines
whether the budget is balanced.
The government can spend more
than is appropriated because more
than 100 billions voted in previous
years has not yet been paid out.
Noting that Truman had pre-
dicted the nation will 60 into the
red $500. 900 900 In the new fiscal
year, Eisenhower said it just
wouldn't be possible to wipe this
out because Of commitments al
ready made-iargely for military
equipment.
Although the President gave no
figures on the overall appropria-
tons cut, members of Congress
said about five billion less would
be asked In new money for the
military. $500, oOo. 900 less for for