The Republican. [volume] (Oakland, Md.) 1877-current, 1954-02-04
Senate Cloakroom
By J. GLENN BEALL
United States Senator from
Maryland

The budget for the operation Of
your government for the next fiscal
year has been presented to Con-
gress, and it differs in two major
respects with the budgets of prcvi-
Gus Presidents
1t differs in its basic philosophy
and approach to government spend
ing and financing. 1t differs in
cost by some five billions of dol
lars. Both will affect your pocket
book.
President Eisenhower's budget
has been called an Armed Peace"
budget-and to a great degree that
is an accurate description. In any
discussion Of our national budget
one of the first things to realize
is that So cents out Of every tax
dollar spent goes to national de-
Tense.
That such a huge expenditure is
necessary is not the fault Of the
Administration. or desire on the
pant Of the American people-it is
dictated by the threat of Com
Imunist aggression.
OF the 81 cents remaining in the
tax dollar, % cents is spent on
charges fixed by law such as vet
Grams benefits, interest, and as
sistance to the various States.
Only 10 cents Of your tax dollar
remains for the operation of your
government and for the services
which the American people want
their Federal Government to pro-
vide. Obviously, if the fixed
charges, and expenditures for de-
Tense, could be cut, the Federal
budget would snap into balance and
the national debt and taxes could
quickly be reduced. Such miracles
are not apt to happen.
OF the tax dollar your govern
ment receives, 43 cents comes from
individual income taxes. 81 cents
from corporate income taxes, IS
cents from excise taxes, six cents
from customs and other taxes, and
four cents from borrowing.
The objective of the Eisenhower
Administration and the Majority
/ in Congress is to balance the
budget, and as Secretary of the
, Treasury Humphrey said recently
You cant change the course of
events Of 20 years in 20 minutes,
or in 20 days on 20 weeks, or I'm
afraid, in 20 months :. this whole
thing has to be taken into account
and moved slowly so as not to up
set the balance in our economy. You
have very delicate machine in
this economic machine Of ours, and
4 if you go moving it too apidly, you
can readily upset it."
Radical changes in any direction
could prove disastrous, so the aim
is for twin goals-taX reductions
and balanced budget.
Cutting expenditures by over five
billion enabled the Administration
to bring the budget within three
billion dollars Of balance. This adj
vance toward a balanced budget
will permit tax reductions totaling
1.25 billion dollars.
These savings and tax reductions
mean that the American people will
have more tak-home pay-the aver
age person will still think his taxes
are too high-no one wants to pay
taXes-but at least he is assured
that progress is being made. That
is a major difference which tax
payers will be aware of during the
next fiscal year.
In the long range view, the diff
ference in basic philosophy between
the New Deal-Fair Deal approach
and the Eisenhower method will
have greater significance.
An economic philosophy uncon-
cerned with taxes, debt, and spend
ing encouraged initiation and COM
PEELED government participation in,
and stimulation of industry. This
necessitated government controls
and planning. Such theories have
been tossed out and in place we
have the economic theory as stated