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

OOG0E
Continued From First Page
attained only with prudent
management of the Govern
ment's fiscal affairs, seeking to
alleviate rather than aggravate
infiationary preSsures. I"
Explaining what this means In
regard to taxes, the President
said:
Taxes must be retained at the
present rates so that receipts will
exceed budget expenditures and
the public debt can be further
reduced. The prospective budget
surplus in the fiscal year 1858
will reinforce the restraining eff
iect OF present credit monetary
policies.
1T is my firm belief that tax
rates are still too high and that
we should look forward to fur
ther tax reductions as soon as
they can be accomplished within
a sound budget policy. . How
ever, the reduction of tax rates
must give way under present
circumstances to the cost of
meeting our urgent national re-
Sponsibilities."
He urged extension for an
other year of present corporation
income tax rates and excise
taxes on tobacco. liquor and
automobiles. due to drop under
present law on April l..
Forsaking custom, he included
several other recommendations
for legislative action in today's
budget message instead of in the
Standardization message he
read to Congress last Thursday.
Most of these renewed proposals
that failed to get through Con-
gress last year.
Backs U. S. School Aid
Among other things the Presi-
dent called again for a special
Federal aid program for school
building, telescoped into four
instead of five years. statehood
for Hawaii and part Of Alaska.
postal rate increases, and for
legislation to free natural eass
producers from public utility
type regulation-similar to a
bill he vetoed last year because
OF what he considered shameful
lobbying pressure at the time.
He described his budget gen.
orally as well adapted to the
needs Of the present and future"
carefully balanced lin its
choice Of programs as well as in
figures.
AS distinct from estimated ex-
penditures. he asked Congress for
appropriations and other new
educational authority totalling
S73.3 billion-some of the money
to be spent in later fiscal years.
This is an increase of S2.8 billion
over fiscal 1857 appropriations
and of nearly $40 billion over
fiscal 1856.
The increase for 1858 over 1857
was nearly the same for both
appropriations and estimated ex-
penditures.
Most Of Increase for Defense
In both accountings. the
President said about seven
tenths of the increase is for the
military, rejecting the higher
costs of producing, operating
and maintaining the complex
new weapons and equipment be-
ing delivered to our defense es-
Enlistment"
Adding such things as foreign
aid to direct military costs, Mr..
Eisenhower figured protection"
will cost the country S45.3 bill
lion in fiscal 1858, or So per cent
Of the total budget. Civil bene-
fits account for "a per cent, in
terest on the national debt for
10 per cent, and civil operations
and administration for only 3
per cent.
In the civil benefits field, the
President said: 1--WE must move
forward in some areas of in
vestment while we hold back in
others. For example, the needs
for schools, highways and
homes are SO urgent that 1 am
proposing to move ahead with
programs to help our States,
cities and people undertake such
construction at a prudent rate"
The highway program did not
figure in the budget as such, be-
cause. under the 1856 law au-
thorizing it. it is being financed
from proceeds of certain excise