Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-12-18

ened to scuttle that package,
however.
The White House decision.
sketched In for o bipartisan group
Of Congressmen last week, was to
spend more money. particularly on
defense. foreign aid, farm subsidies
and school aid. That did not mean
necessarily that the Humphrey fac
ton had lost. For the boom, II It
continues In 1866. will increase reve-
nues over the anticipated levels and
still-President Eisenhower indi-
cated-permit q balanced budget.
Whether the tax cut can follow
was left unsaid. Administration
spokesman guessed that no decision
win be made until more accurate
predictions on budget balancing
can be made-perhaps after Con-
gress indicates how 1t will vote on
fiscal 1857 appropriations. That
will be late next spring.
Tox Issue
Taxation. meanwhile. shaped up
as one Of the prime congressional
issues for next year.
Senator Walter r. George, Dem
ocrat Of Georgia and q key figure
on the Finance Committee, said
tax cut Of as much as $3.5 billion
can be voted. He wants to raise
the present $500 exemption at least
to $700 a person This would spread
the tax relief among the greatest
number Of taxpayers and would be
most helpful to ow-income fami-
lies.
Speaker Of the House Sam Ray
burn. however, said he was not so
sure a tax cut will be feasible. The
revenue situation" he said. "is
desperate" The Texas Democrat
said he feared that defense and
foreign aid commitments will have
to be increased In the next fiscal
year.
Defense Costs Up
The defense budget, 1t was re-
ported after the White House chats,
will total more than $35 billion,
some $700 million more than spend
ing in the current year. Secretary
Humphrey had urged reductions in
defense spending last summer. re-
portedly as low as $685. billion.
But the increasing cost Of hardware
makes 1t necessary to spend more
bucks for the same size bang,
White House conferees were told.
Details of the defense budget were
not disclosed.
Just what the administration
wants in a new foreign aid appro-
priation was more obscure. The
White House conference apparently
was given to understand that for
eign aid expenditures in the next
fiscal year would be about the same,
or slightly higher, than the current
year-that is. about $27 billion o.
$2.8 billion.
Meanwhile there were report
that higher appropriation request
WAA Nc AAAnSC AACht JCuA--WO bAAAAOll
was one figure used. Official sources
had no comment to make on that
figure. Foreign aid spending in re-
cent years has been rather steady.
however as contrasted with several
ups and downs in appropriations
And the administration hopes tt
Keep spending on an even, or slight
y upward keel.
So the answer may be that tn
administration hopes to make W
for this years $700 million cut ii
its requested appropriation by al
increased request next year. Actus
spending, meanwhile, might remain
about the same.
More money also will be asked fo
agriculture. the Lawmakers learned
The specific nature Of the new pro-
grant, was not revealed. but it was
known to include q rather expen-
sive ''soil bank" plan that might
cost about $500 million (for pay
ments to farmers who take land out
Of production).
The President said his farm pro-