Evening star., 1960-09-27
Revenue Increases
Seen Poyinq Bills

Seen Paying Bills
Mr.. NOvins-Sendtor Ken
nedy, in connection NTH these
problems OF the future that
you spoke of and the program
that you enunicated earlier in
your direct talk, you called for
extending some of the Uelfdre
programs for schools, for
teachers salaries, medical
care, and so forth but you also
called for reducing the Fed
erGl debt, and am wondering
hO,D you, it you are President
in January, Mould 90 about
jGying the bill for all this?
Senator Kennedy did not
advocate the reduction of the
Federal debt, because I don't
believe you are going to be able
to reduce the Federal debt very
much in 1860. /, 2, 8. I think
we have heavy obligations
which affect our security which
we are going to have to meet.
and, therefore, I have never
suggested we should be able
to reduce the deficit in 1860 or
1861 or 1862.
| Mr.. NOvins-I believe in one
of your speeches you suggested
reducing the interest rate.
Senator Kennedy-Not reduc-
ing the interest rate. In my
Judgment the hard money, the
tight money policy, fiscal
policy, of this administration
has contributed to the slow
down in our economy which
helped bring the recession of
1854, which made the recess
sion of '58 rather intense, and
which has slowed somewhat
our economic activity in 1860.
What I have talked about,
however, the kind of programs
that I talk about in my judg-
ment are fiScally sound.
Medical care for the aged I
would put under social secu-
rity. The Vice President and I
disagree on this. The program
of the Javits-Nixon or Nixon
Javits program would have cost
$500 million by the Govern
ment per year and $500 million
by the States. The program
which I advocated, which
failed by votes in the United
States Senate, would have put
medical care for the aged in
social security, and would have
been paid for through the So
cial security system, and the
social security tax.
Secondly, I support Federal
aid to education and Federal
aid for teachers salaries.
think that is a good invest
ment. l think we are going TO
have to do it. and I think to
heap the burden further on
the property tax, which is al
ready strained in many of our
communities, will provide, will
make, insure, in my opinion,
that many of our children will
not be adequately and many
of our teachers not adequately
compensated.
There is no greater return to
an economy or to a society than
an educational system second to
none.
The question of development
Of natural resources, I would
pay as you go in the sense that
they would be balanced, and
the power revenues would bring
back sufficient money to finance
the projects in the same way
as the Tennessee Valley Au-
thority.
I believe in the balanced
budgets and the only conditions
under which would unbalance
the budget would be if there
was grave national emergency
or a serious recession. Other
wise, with a stady rate of eco
nomic growth, and Mr.. Nixon
and Mr.. Rockefeller in their
meeting said a 5 per cent eco
nomic growth would bring by
1862 $40 billion extra in tax
revenues, whatever is brought
in, I think that we can finance
essential programs within a
balanced budget if business re-
mains orderly.
Mr.. Smith-Mr. Nixon, your
comment?