The Farmville herald and farmer-leader. (Farmville, Va.) 1934-1957, 1954-03-23
Letters TO Editor
Senator Byrd Sees Tax Gut Proposals
As National Fiscal ''lrresponsibility

All three OF any one Of the three
tax reduction plans now being I
proposed by the Republican and
Democratic parties must be imam
ced by borrowed money. All of us
should give due consideration to
the peliis imminent in such a pro-
cedurc.
The Republican sponsored eX-
else tax reduction bill. reducing
federal revenue 81 billion, is now
before the Senate Finance Com
mittee. The President in his re-
cent speech laid out another Re
publican tax reduction program
reducing federal revenues another
81 billion to 81 billion In addition
to these TWO Republican slaShee
into the federal revenue, the Dem
ocrats also are proposing still an
other tax cut by raising eXemp-
Mons on income taxes at further
/ loss estimated at S25 billion for
each $500 increase in personal in
come tax exemptions.
None Of these proposals includes
4 commensurate reduction in feder-
al expenditures. II would be neceS-
sary to borrow money to finance
them separately or collectively
Each Of all Of them would increase
the federal debt which now stands
at S275 billion.
Just as the debt we have already
piled up, this new tax reduction
debt Will be permanent as far as
anyone now can see. We are not
balancing the budget with present
taxes Therefore, tax reduction
under any or all of these plans
would add to the federal debt each
year and pile up interest costs at
the rate of at least 2ia per cent
compounded annually
I advocate responsible tax re-
ductlon Responsible tax reduc-
ton can be accomplished only
through balacing the federal bud
get by reduction Of expenditures.
For this reason. l shall oppose all
tax reductions Republican and
Democratic unless they are made
tlscally sound by reduction in ex-
penditureS.
Our taxes are burdensome. but
We merely increase the burden by
borrowing money to reduce them
A tax reduction now on borrowed
money is simply a higher tax de-
felred. Sooner OF later, one way
/ or another. the American people
must pay the colossal debt we
have already incurred. New tax
reduction debt would make it more
I colossal
| In the past fifteen years. to date
we have added 5000 billion to the
| federal debt. and this deficit
/ spending has been one of the main
/ factors in reducing the value of
/ the dollar to fifty cents or less.
Interest now is costing ten cents
OF every tax dollar The proposed
new. tax reduction debt will tend
further to reduce the value of the
dollar and definitely increase the
cost Of interest
We are victims Of protracted
fiscal Responsibility The time is
long overdue to recognize that we
shall continue on the highway to
insolvency unless we turn around
an insist upon -you-go fl
nancing
We Of this generation are mere
ly trustees for the future. We
have trusteeship to save ourselves
a few dollars at time of relative
ly high prosperity at the expense
Of future generation for whom it
may not continue
especially urged xhat these
proposals. vital to our Tuture So
curity be not decided on the basis
Of partisan political advantage. /
When it comes to our security |
we are all Americans, and no one
can deny that the cornerstone Of /
our future security lies in solvent /
government.
There is nothing before the
country today more important
than balancing the federal budget
by reducing expenditures to a