Evening star., 1953-05-11

House Appropriations Committee
is trying to balance the budget"
by sharp cuts in supply bills for
the fiscal year beginning July /.
He told reporter later that
a tax cut June 80 is still prac-
tical possibility despite a joint
committee deficit for the next
$50 billion deficit for the next
fiscal year. Mr.. Reed is chair
man of that committee. consist
ing of senior members of the
Ways and Means Committee and
the Senate Finance Committee.
It's staff estimated that the def
cit for the current fiscal year,
ending June 80, would be $7.3
billion.
In his House speech, Mr.. Reed
did not mention the Eisenhower
administration by name in criti-
cizing what he called the "sur-
render to spenders." But it was
hard to see who else he might
have in mind.
Pushes IL Per Cent Cutback.
He made clear he believed that
his proposal for an II per cent
cutback in individual incomes on
June 80 would still be feasible
If the administration and Con-
greSS make drastic reductions in
appropriations in the coming
year.
He recalled that the 80th Con-
gress, controlled by Republicans,
took Office at a time when a
$40 billion deficit was threat
ened. He reminded his colleagues
that the budget was balanced
during that session without harm
to the country or to any essen
tial operation of individual de-
partmentS.
I am amazed to see the white
flag run up downtown" he said.
They seem to be surrendering
to the spenders. They'll never
balance the budget until they
remove the shackles from busi-
ness by reducing taxes"
The staff of the Joint Com
mittee on Internal Revenue
Taxation had reported that, on
the basis of spending and income
to date. the deficit at the end
of the fiscal year June 30 will
be $1.4 billion more than the
$50 billion forecast last January
by former President Truman.
But the deficit for the year
ending June 80, 1854, the staff
said, will be 81 billion less than
the 500 billion indicated in the
Truman budget.
Republicans Gloomy.
Those calculations, while ad-
ding to the gloom of Republicans
who have been hoping for a
balanced budget during the
coming fiscal year, were a bit
more cheerful than figures un-
officially listed last week by
some Treasury officials. Those
spokesmen said the deficit June
80 would be at least $6.5 billion
and possibly as much as $8.5
billion. Other fiscal admin
strators placed the probable
deficit at SIS billion.
For the current fiscal year Mr..
Truman last January estimated
$68.7 billion in receipts and $74.6
in expenditures. The committee
staff today. estimated that re-
ceipts will total 1864 billion and
expenditures $73.7 billion.
For the fiscal year beginning
July l, Mr.. Truman. estimated
$68.7 billion in receipts and $78.6
billion in expenditures. The
committee staff estimated that
receipts will amount to $67.6
billion and expenditures $73.5
billion.
The staff explained that it did
not make a detailed analysis of
Government spending. On the
basis of the expenditure rate to
date in the current fiscal year,
the staff said the final figure of
$73.7 billion will be almost 81
billion less than the Truman esti-
mate.
AS for Government income, the
staff provided the following es-
Inmates as compared with the
Truman budget for the current
fiscal year:
Direct taxes on individuals,
$34.2 billion, a drop of $500 mil
lion; direct taxes on corpora
tions, $22 billion, a drop of SIT
billion; excise taxes, $9.8 billion,
employment taxes, $40 billion,
and customs receipts, 5000 mil
lion, all the same as the Tru-
man estimates; and miScellan-
eous receipts, $l.9 billion, or 5000
more.
The overall total would be off,
set by certain deductions and re-
funds, leaving estimated net in
come at 1864 billion, as COM
pared with the $68.7 estimated
last January.
The committee offered the fol-
(See APPROPRIATIONS, A-6.)
Rus wraek K;IIe Eou.