The Key West citizen. [volume] (Key West, Fla.) 1879-current, 1954-01-21
President WG,7,s
Against General
Tar Cuts; Broad
Program, Chen
~ FRANK o,sRiEN

ne tal0 z new concept Of "a.
lance upon air power and new
weapons justifies ! 81 billion.
dollar spending slash, mostly from
national security outIays.
Despite the ia per cent spending
cut under estimated 0utlays for
this yeaf-also lowered-the chief
executive told Congress the GOV.
eminent would wind up the NEXT
fiscal year nearly three billion
dollars In the red.
Eisenhower cautioned against
further generalstax cuts, although
ne proposed q broad program Of
tax law changes.
The budget for fiscal 1855, be-
ginning next July /, was the first
prepared by 4 Republican admin
istratiOn In n years.
Air Powsr Emphasized
Throughout the massive docu.
ment, Eisenhower, who has spent
most Of his life in the Army, EN-.
phasized that his administration
has made air power It's chosen
instrument Of free world defense
with other services playing lesser
roles.
Eisenhower said his tax program
would result In about 800 million
dollars tax relief each for indi-
yiduala and for businesses, In add.
ton to the changes that took ef.
feet Jan. /: A 10 per cent cut in
personal tax rates and abolition Of
the excess profits tax on corpora
tons.
But he added:
Il do not believe the budgetary
situation justifies any tax reduc.
tons beyond those involved In the
proposed tax revision and In the
tax changes which occurred on
Jan. T."
National Security
In the national security section
Of the message, Eisenhower de-
clared:
This budget Is based on 4 new
concept for planning and financing
our national security program. Z.
Our military planning in previous
years has been based on several
successive assumed fixed dates OF
maximum danger. :. This budget
} Is aimed instead at providing a
strong military position which can
be maintained over the extended
period Of uneasy peace. "
1t points toward the creation
maintenance and full exploitation
Of modern air power. Our military
planners and those Of the other ma.
tions Of the free world agree as
TO the importance Of air power.
I'VE expect to continue to inn
prove the combat effectiveness Of
our forces by the application Of
new weapons and new techniques.
Shlfs In Emphasis
with the shift in emphasis 10
the full exploitation Of air power
and modern weapons, we are in
position to support strong national
security programs over an indefi.
mite period {. within . lower level
Of total expenditures for national
security
Eisenhower said the total al
Army divisions might be reduced.
but that they would be more dan
gerous, harder hitting and with
more mobility. Military personnel
would sink from the present S.lOO..
900 10 q little over 3,OOO,O 900 by
June 30, 1855. He said this would
result In q 6O0-million-dollar saving
IN military pay and allowances in
fiscal 1855.
Other Suggestions
In the message Of about 1000
words, Eisenhower also:
/. Recommended a 2s.point tax
revision program, calling upon
Congress 10: shift the annual per.
sonal income tax deadline nom
March Is to April Is; liberalize
deductions for family medical
costs; allow limited deductions Cor
child care; give farmers a deduc-
ton for soil conservation: extend
corporation income and excise tax
rates rather than permit them AZ
decline April I to pre.Korea levels:
and enact 4 series Of revisionsI
aimed at tightening and ADJUSTING
the tax load on business.
2 Renewed his plea, stymied IN
Che Senate after the House Okayed
It last year, for a higher leuall
limit on the national debt. While
he used no figure today, his pre-.
vious request was for boost from
the present 275 billion dollars Il
1s0 billions. The debt is now about
27tsl billions.
5 Revised downward budget
estimates for the current fiscal
year which ends next June 50. Hers
Is the comparison between Eisen.
hower's estimates for the currentI
year made last August and nov:
Trimmed Since August
Aug. estimate New estimate
Income
sss.SOS. ooO. 900 $s7. So, ooo. oooI
0utgo
72,iis,oOO. 900 1890. Ooo, COO
Deficit
SSH. ooo, 900 s,27l, OoO .oool
fear-end Debt