Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-09-12


resistance to big and lasting
reductions, he indicated.
Cites Major Factors
He emphasized points in the
revised estimates:
About so per cent Of the $12.2
Billion deficit can be attributed
largely to the business slump
that caused the STA billion
drop in revenue prospects for
the current fiscal year. The
other 40 per cent is traced to
the $5.3 billion increase in ex-
penditure estimates.
Almost every governmental
agency win spend more money
during the current fiscal year
than was estimated last Janu-
AIRY. This is due to some extent
to the fact that pay raises for
Federal civilian employees and
military personnel we're higher
than those recommended in the
original budget.
The Defense Departments
expenditures will be only $500
million more than was esti-
mated in January, but various
other agencies or anti-recesSion
programs had greater increases.
The deficit viii make the ma
tional debt hit an all-time high
Of $3.50 billion by next June 80.
At the close Of the 1858 fiscal
year last June 80, the debt to-
tailed $276.3 billion. Congress
last month raised the legal debt
limit to 1888 billion until next |
June 80 and fixed it at $3.50 bill
lion thereafter.
Defends Estimates
Reporters asked Mr.. STAINS
about signs that the business
recession Is on. the wane and
that personal as well as corpor-
alton income tax revenues
therefore ought to increase.
They wanted to know If it
could be that his estimates Of
revenue were unduly low and
various expenditure estimates
were inflated.
II hope you're right" Mr..
STAINS replied. But he defended
his admittedly pessimistic esti-
mates as being reasonable on
the basis Of conditions as we
see them at the present time.
The revised revenue estimates
look for $50 billion instead Of
the $685. billion forecast last |
January from individual in
come taxes, $16.7 billion instead |
OF $20.4 from corporation in
come taxes, $8.4 billion instead |
of $9.2 billion from excuses, and
$50 billion instead of $6.2 bill
lion from miscellaneous levies.
Congressional repeal of taxes
on transportation Of property
last month will cost the Treas
ury about $500 million this fis-
cal year. Other tax revisions
and some tax relief voted by
Congress for small business will
clip OF approximately $500 mil
lion.
Mr.. STAINS said 1t was unlikely
that those relatively small tax
reductions would result eventu-
ally in more tax revenue be-
cause of improved earnings.
Although the $50 billion re-
vised estimate Of revenue from
individual income taxes is $2.5
billion less than the January
estimate, it would be SIS billion
more than actual collections in
the 1858 fiscal year. The 1857
billion in estimated corporation
tax receipts, on the other hand,
would fall more than So billion
below 1858 collections from that
source.
PessImistic on RevisiOns
The STAINS review was even
less optimistic concerning re-
vised expenditure estimates. He
noted that the estimated $79.2
billion not only is $50 billion
over the January estimate but
also would be $7.S billion over
1858 spending.
Pay raises voted by Con-
kress and approved by the
president added $50 million
than had been anticipated last
January for military person
mel, $500 million more for Gov
eminent civilian employees, and
still another $500 million Of
retroactive pay increases which
were not budgeted last January.
The Defense Departments
budget increase from $40.3 bill
lion to $4O.8 billion reflects the
fact that in April the Presi-
dent sent budget amendments
to Congress primarily for adj
ditional missiles, missile sub
marines and strategic aircraft.
Congress appropriated some
what larger sums.
The largest increase was in
the Agriculture Department
with a SAL billion revised to-
tai, SIS billion more than IN
Sanuary., This increase takes
in higher price support pay
ments, soil bank programs and
in several other programs.
Despite the postal rate in
creases Mr.. STAINS disclosed that
the Post ONCE Department is
financially worse on than be-
fore.
The fiscal plight Of the postal
service was described as fol-
lows:
\ "The Posdohcs DEPARTMENT
: 8