The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1954-01-07

iced government reinsurance serv
ice" to permit private and non.
profit hospital and medical insur-
ance companies now operating "a
offer broader protection to more
Iof the many families which want
and should have It." He promised
TO elaborate in a special message
Jan. Is.
Appealed again for Congress
sional approval Of the ST. Law
renee Seaway as vital to national
security.
Statehood Fer Hawaii
Urged Senate passage Of the
House-approved bill to grant state.
hood to Hawaii.
Eisenhower went before the leg
islators just "A hours after opening
|of the second session Of the S3rd
Congress.
His message, carried to the ma
|tion by television and radio, came
at the start Of . political year
which viii be climaxed by the No
vember Congressional elections.
Republicans now hold only a sli
margin Of control at the Capitol
and the Democrats are hope
full they can slip into the sad.
die. Meanwhile, the administration
must win some degree of support
from the Democrats for any sue
cess in putting thru the program
Eisenhower said has one objective
The building of q stronger
America"
He told the legislators he be-
Ilieves ''both of our great parties
can back it.
On Tax Cuts
As for tax cuts in addition to
the income tax reductions and ex-
piration of the excess profits levy
which were effective Jan. ]. the
President said:
Future reductions in taxes can
and win be made"
But he conditioned reductions on
the spending cuts he predicted. At
another point he declared:
despite the substantial loss OF
revenue in the coming fiscal year,
resulting from (Jan. - tax re-
duction now In effect and tax adj
justments which ! shall propose,
our reduced spending win move
the new budget closer to . bal
ance."
The President said the tax re.
vision program will be set forth in
detail in his Jan. Il budget mes.
sage. Informed sources have pre-
dicted cuts totaling about Ia bill
lion dollars annually.
Calling today for thorough re-
vision of the entire tax structure,
Eisenhower declared:
Removal OF lnequisiss
I'VE should now remove the
more glaring tax inequities, par
| ticularly on small taxpayers; re.
duce restraints on the growth OF
small business; and make other
changes that viii encourage initia.
tive, enterprise and production"
On the other side Of the picture,
however, the President said again
that corporation income taxes
should be kept at the current rate
Of So per cent for another year
instead Of being allowed to drop
to AZ, and that excise taxes on
such items as liquor, tobacco, gas
cline and automobiles-also sched-
uled for an April / cut--should be
maintained at prevailing rates.
On the foreign policy and nation.
al defense fronts, where Eisenhow.
er already has made an open bid
for cooperation from the Demo-
Gratis, he said America has gained
the initiative during the last year
in the struggle against commu-
nism-and means to keep it.
american freedom" he de-
clared, ''is threatened so long as
the world Communist conspiracy
exists in its present scope, power
and hostility"
Asomie Peel
Referring to his Dec. . United
Nations speech calling on Russia
to join with the U. S. and other
atomic powers in creation Of an
international atomic pool for
peaceful use, the President said:
"a truly constructive Soviet re-