Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-16
Eisenhower Would Use
SURPRISES to Cut Debt
By ROBERT X. WALSH

|SurPluses TO
BY ROBERT X. WALSH
The administration told Con-
gress today that budget surpluses
estimated for the present and
next fiscal years are far too small
to justify cutting Of taxes.
President Eisenhower advised
using the surpluses to make
modest reductions in the enor-
nous national debt. He assured
Congress that his administration
lis well aware Of the very bur-
densome" existing tax levels and
| Is determined TO lower them
when we prudently cam"
The Presidents message and
comments by Secretary Of the
Treasury Humphrey seemed Il
close-but not necessarily lock-
the door to tax reduction pro-
posals by the White House in this
presidential election year.
Mr., Eisenhower declared that
Sin the present state Of our A.
nancial affairs I earnestly be.
lieve that q tax cut can bt
deemed justifiable only when II
will not unbalance the budget.
Under currently prosperous con-
ditions, he added. any tax cut
which upset q budget balance
and caused the Government II
go deeper into debt would be al
1.-THE expense Of our children"
sNot Hiding Anything"
Mr.. Humphrey told reporters
that unless a significant" sur
plus developed in the next fiscal
year he would continue to oppose
q tax cut. He reported that he
sees no signs of-such q surplus.
Unless expenditures are de.
Creased or revenues increase over
these estimates and produce such
q surplus l do not see q tax cut
The said. I'VE are not hiding any
thing in this budget. We are moi
concealing 80 or So billion that
win suddenly be sprung up Later
for q tax cut"
/ The Secretary refused to b.
pinned down on the size. Of Q
surplus that might be deemed
large enough to warrant q tar
reduction program. He remarked
that. offhand. Q surplus Of $2.5
or s. billion could be called
significant" But SURPRISES ot
comparatively few millions. a
ESTIMATED for the 1856 and 1851
fiscal periods, would not be Sig
nificant for that purpose. he
said.
Changed economic develop
ments could lead to revised
budget figures. perhaps as early
as April or May. he conceded
But he maintained that the
prospect Of any major revision
lis remote.
| Asked to Hold Line
Besides taking q firm stand
/ arainst tar cuts that would
endanger the budget. the Prest-
dents message called on Con-
gress to hold the line on exist
ling levies.
He urged that the present 81
Iper cent rate on corporation In
comes and various excuses or
alcoholic beverages. tobacco
gasoline and automobiles be con-
ltinued for another year. Other
wise those rates would drop auto
imatically April ! with q conse-
quent loss Of about So billion In
Federal revenue. Mr.. Eisen-
hover said an extension was
Essential for a balanced budget
! The administrations tax pol
icy. while unfavorable to tar
cuts under present circum-
stances, did not rule out the
possibility Of some increases OF
other changes.
In fact. about $50 million q
Iyear would be subtracted from
Federal receipts as q result Of
the Presidents farm program
provision that would refund To
farmers the money they pay In
Federal taxes on gasoline used
lin their farm operations. Such q
contingency, however, would be
provided for In the budget.
4 On the other hand, congress
'Isional enactment Of q vast high
way building program might
cause q substantial boost In
taxes on gasoline and other
things used by the highway users
The President recommended
that Congress keep in effect the
law passed last year providing