Evening star., 1960-01-18
Continued From First Page


and the broad field of welfare"
programs.
The President also made his
annual request, which Congress
in the past has granted with a
minimum of grumbling, for ex-
tension of corporation and eX-
else tax rates increased during
the Korean War. These extern
sionS, postponing scheduled rate
cuts, would provide $2.7 billion
of the budgeted revenues. Con-
greSS voted last year to repeal
the excise tax on local phone
calls and to halve the 10 per
cent levy on passenger travel.
effective July l.
Underlying the forecast of
$84 billion in revenues is the
assumption that "our economy
will continue to move forward
with strength and that sub
Stantial gains, in employment
and incomes will be achieved"
Secretary of the Treasury An
derson told news conference.
The $5.4 billion increase in
revenues above the current
year, he said, should result
from expansion of the gross ma
tional productive total value
of all goods and services pro-
duced-from $480 billion this
year to $50 billion next year.
Mr.. Anderson said he is flgur-
ing on personal income in
creasing from $3.50 billion this
year to S402 billion next year,
and corporate profits rising
from $48 billion to $51 billion.
Mr.. Eisenhower was tenta-
tive about prospects for tax
cuts, saying: If expenditures
are held to the levels I am
proposing for (f1scaD 1861 and
reasonable restraint is exer-
cised in the future. higher rev.
enues in later years will give
the next administration and
the next Congress the choice
they should rightly have in de-
Gliding between reductions in
the public debt and tightening
of the tax burden, or both"
He seemed to imply that he
will not propose a tax cut in
the budget he will submit next |
January, just before he leaves
Office, but instead will let the
new President and the next
Congress decide.
Stans' Opinion
Budget Director Maurice H.
Stans gave a news conference
his personal opinion" that a
tax cut will be possible" in
the 1861 session of Congress.
Disclosing a difference of en-
phasis within the administra-
ton, Secretary Anderson said
it is impossible to forecast
when it may be prudent to re-
duce taxes.
Last year ended with a def
icit of S12.4 billion. Mr.. Eisen-
hover has had four deficits and
two surpluses, for a net deficit
of S19.3 billion, during his six
full fiscal years in Office. If his
estimates for this year and
next are accurate, the net def
cit for his tenure will be $14.9
billion.
The budget provides for ap-
preparations and other new OBJ
ligational authority-as distin-
guished from expenditures-of
$79.4 billion in fiscal 1861, COM
pared with $79.7 billion this
year. The Government each
year spends money obligated
during the current and previ-
Gus years.
Big spending increases be-
tween fiscal 1860 and 1861 in
clude 500 million for mutual
security foreign aid, up to a
new total of $3.5 billion; $433
million for veterans pensions,
to S3.8 billion; $116 million for
water resource projects, to $1.2
billion; S123 million for promo
ton Of aviation, to $3.50 mil
lion: $275 million for space
programs, to $500 million; $140
million for the Housing and
Home Finance Agency, to $500
million, and $3.50 million for
farm price supports, to $2.3
billion.
The big spending reductions
include $128 million for vet
erans readJustment benefits
down to $440 million, and S555
million for the Post Office De-
partment's deficit, down to $40
million.
Details of budget programs
for defense, space, science the
District and Civil Service are
reported elsewhere in The Star.
Summaries of other programs
follow: