Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-17
Brave New Budget

The Federal budget-makers have peered
into their crystal ball and have come up
with predicted surplus $500 million in
fiscal 1887 Small wonder that there Is
certain tendency among the admins
tration stalwarts to point with pride! For
this is no mean achievement
One should hasten to add, however,
that the brave, bright hopes Of January
will not necessarily survive the events OF
the Is months which lie ahead. Budget
estimating is very hazardous business.
For example, the estimate year ago was
for $24-billion deficit In fiscal 1856. But
the revised figures indicate $200-million
surplus. The same thing may prove true
Of the 1857 estimate. The surplus may
turn out to be greater than $500 million.
Or there may be deficit. Revenues may
turn downward from the hoped-for 1868
billion. Or expenditures may go above
the estimate Of $65.9 billion. majority
Leader Lyndon Johnson already has been
unkind enough to point out that the 1887
expenditure estimate Is nearly So billion
above the goal set by the President when
he was campaigning In 1882
II the 1857 surplus actually turns out
to be $500 million or whereabouts, the
President thinks 1t should be applied to
debt reduction, not to tax relief. But
this surplus will not materialize, accord
ing to the estimates. unless Congress does
three things: ~ Extends present excise
and corporate income tax rates: (2)
boosts postal rates so as to increase reye-
nues by $3.50 million year, and (3)
resolutely resists the temptation espe-
cially strong In an election year, to reduce
individual income taxes. In the hope Of
getting these things done, the President
has appealed for the utmost co-opera-
ton" between the legislative and exec
utive branches. But he had better keep
his eye on Congress, and not only on the
Democratic side Of the aiSles.
There Is another side to this coin.
II Congress should hold the line on reve-
nue. legislation, 1t still win have to stand
arm against moves for greater expendi-
lures than called for In the budget. And
the urge to be generous with the voter is
also formidable thing in an election
year
Some Of this clamor for bigger spend
ing, as the STRINGS over the farm situa-
ton suggest, will be purely political. But
In the biggest spending area OF ALL
national defense--a fight Is also shaping
UP, and this will be more dincult to cope
with because 1t will not be partisan
thing.
The defense budget-$35.5 billion
is whopper. But the 1857 proposal cuts
military aircraft procurement $3.50 mill
lion below the current year, and about
SIS billion below the fiscal 1855 outlay.
This will alarm a good many dedicated
men who are concerned only with the
security of the country. And this alarm
will not be allayed by the fact that the
total military estimate is UP about 81
billion-much Of this going for an in
crease In work on guided missiles and
similar weapons.
What we have here Is the familiar
argument between those who are con-
cerned with war which may have to
be fought tomorrow with the weapons on
hand. and those who believe that we must
plan our defense programs for the long
pull. In the latter view, calculated risk
must be taken-we must avoid accunu-
lating stocks of planes and other weapons
which rapidly become obsolete at the
price Of making an inadequate effort In
the field of development of new weapons.
Those who support the President believe
these factors have been brought into
reasonable balance In the 1857 budget.
His critics may be expected to say that
the budget provides too little both for
established weapons and for research and
development Of new weapons.
Very few laymen will be foolhardy
enough to venture into this controversy.
AS the debate unfolds, however, 1t should
command the earnest attention of all Of
u.s. On the one hand, 1t poses a threat
to the hope Of balanced budget. On
the other, 1t deals with what could be
a threat to the security of the Nation.
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