Evening star. [volume] (Washington, D.C.) 1854-1972, 1957-01-16

equipment, am not recommend
! ing some other desirable con.
! struction projects. and I have
asked the head of each Fedora
agency to watch closely the tim
ing of construction and to post
pone work which can be approp-
riately put off until a later date
I 1t is also important to hole
to a minimum any increase ir
/ Government personnel in the
coming period.
! -. About seven-tenths of the
estimated increase between 1885,
and 1858 is for the military
functions of the Department Of
Defense. rejecting the higher
costs of producing. operating
and maintaining the complex
new weapons and equipment be-
ing delivered in growing quanti-
ties to our defense establishment
Other major increases are fol-
/ the Department of Health, Edu-
cation and Welfare including
my proposal for aiding schoo
construction, and for the Atomic
Energy Commission.
/ The figures contained in this
budget for the fiscal years 1857
and 1858 are not precisely COM
parable to the actual figures fol
prior years. Under the provisions
of legislation enacted last year
the financial transactions fol
the greatly expanded Federal
aid highway program are in
cluded in a elf-liquidating trust
fund and are not in the budget
totals.
Revenue POlicy.-It is my firm
belief that tax rates are still toe
high and that we should look
forward to further tax reduc-
tons as soon as they can be
accomplished within a sound
budget policy. :. However, the
reduction of tax rates must give
way under present circumstances
to the cost of meeting our urgent
national responsibilities.
For the present, therefore,
ask for continuation for another
year of the existing excise taS
rates on tobacco, liquor, and
automobiles, which. under pres
ent law, would be reduced next
April /. I must also recommend
that the present corporate tax
rates be continued for another
year.
Relief for Small Business
/ In the area of taxation, l am
especially interested in the prob
lens of small business. :. Some
relief in the tax burden affect
ing small business which
will give help with a minimum
loss Of revenue should have early
consideration by the Congress.
/ The present estimates OF
budget receipts for 1858 are
based on the assumption that the
Nation will continue to have a
high level of business activity
with increasing national income,
and that the present tax rates
will be continued. They are the
best estimates we can make at
this time. but, since they relate
to a period 6 to 10 months away,
significant changes may take
place before the fiscal year 1853
is ended.
Debt Policy - The successive
reductions in the debt from 1856
Through 1858 are modest in
relation to its total size. Never
theless. I hope that these reduc-
tons, plus the collection of COR
poration tax payments on a
more nearly current basis
will make it unnecessary to ask
the Congress again for a tenn
porary increase in the legal
limit of $275 billion to cover
seasonal borrowing during the
coming fiscal year.
/ Receipts from and payments
to the public-The restraint on
inflationary presures which will
be exerted by the budget sur
plus in the fiscal year 1858 will
be reinforced by net accumula-
tons in the trust funds which
the Government administers
These trust fund accumulations,
such as those for highways and
for old-age and survivors and
disability insurance. are the eX-
cess of current receipts over cur
rent payments. The receipts
from the public are estimated to
exceed payments to the public
by SO billion in the fiscal veal
1858.