The Key West citizen., 1954-12-15
|keTo Ask
OfTaxCuts

WASHINGTON, RHPresident Ell
senhower said today he will ask
the new Congress to postpone the
scheduled April l cuts-estimated
at three billion dollars-on corpor-
alton and excise taxes.
The President told his news con-
ference the budget deficit makes
it necessary for him to make such
a request.
He said that when you have the
government going into the red, fed
eral income must be kept up.
Under present law corporation
tax rates are scheduled to 60 down
from So per cent to At per cent on
April /.
That would mean an estimated
loss of about two billion dollars in
revenue.
Excise taxes on liquor, tobacco,
automobiles and some other items
are slated to return to pre-Korean
war levels on April l. That would
cause an estimated loss of one bill
lion dollars in revenue.
The President aSo dealt with
these other matters:
COoperation-The President ex-
pressed confidence he will have
very real cooperation from the
Democrats as well as the Repub-
hcans on foreign policy, national
defense and mutual security mat
ters.
The President said that by and
large he would expect maximum
cooperation from Republicans on
other matters.
National Defense-He indicated,
but did not say so specifically, that
the administration might be think
ing about a further cut in the
strength of the armed forces.
He was asked to comment on a
report that Army strength will be
reduced by an additional 100000
men, and that the 1st Marine Div
iSion will be withdrawn from Ko-
rea.
The President replied any full
exposition would take a good deal
of time. He went on to say, how
ever, that development of the long
range bomber and atomic weapons
has made it necessary for the
United States to concentrate first
on continental defense, and second
ly on preventing strategic areas
such as Western Europe from fall
ing to an enemy attack.
He said that in doing those two
things, the nation can cut back on
its active forces so long'as it. has
an adequate trained military re-
serve.
Plans to build that reserve, to
be sent to the new Democratic
controlled Congress, are a far cry
from Universal Military Training,
he said. But he left it to Secretary
of Defense Wilson to answer ques-
tions about details at a news con-
ference Friday.
Second Term-The President
drew round of laughter in saying
that he defends the right of White
House press secretary James c.
Hagerty-or any other staff men,
ber-to say it would be foolhardy
for Republicans to fail to nominate
Eisenhower for a second term.
Hagerty made that remark in a
radio interview Monday night.
Labor Relationship said the
question whether to ask Congress
for an increase in the 75-cent-an-
hour minimum wage is under in
tenSive study. He recalled he told
Congress in his last economic re.
port that the administration does
favor an adjustment in the wage
floor at the proper time-a time Of
expanding economy.
AS to whether the right 10
work" laws of various states should
be repealed, the President said he
has reached no irrevocable deci-
sion. He noted that labor unions
are against such laws-which out
law such things as union shops
and that many of the states favor
the statutes as reflection of their
inalienable rights in such fields.
Secretary of Labor Mitchell has
called for repeal of the right t1
work. laws. Eisenhower told his
news conference last week Mitchell
was not necessarily expressing ad'
miniStration policy.
Again today the President de.
Tended what he termed Mitchell S
right to express such views. He
said in response to a question, that
Mitchell is his chief labor adviser
Eisenhower stressed that in all
cases ne has the final decision
regardless of recommendations
from his Cabinet members.
ClO president Walter Reuther
has said Eisenhower repudiated
Mitchell on the issue of the right
to work laws.