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national defense and security.”
Last week President Eisenhower sent to the Congress a message on the budget in which he said: “To reduce expenditures enough to balance the 1954 budget would require more drastic curtailment of our national security programs than we can safely afford in today’s troubled world.”
The President gave figures which indicated that if all the cuts below the Truman proposals which he felt justified in recommending were made the government still would spend $6.6 billion more than it took in during the year starting next July unless existing tax laws are changed.
He recommended letting the excess profits tax run to the end of 1953 instead of the middle of this year, and indefinite continuation of the 5percent super-tax on corporate income, and various war-time excise taxes which were supposed to end next April. He also asked that the scheduled reduction of around 10 per cent of personal income taxes become effective next January, as provided by the present law, instead of being moved up to July, as some members of Congress have proposed.
If these recommendations are adopted, the President said there still would be a bookkeeping excess of $5.6 billion in federal spending as compared with collections during the 1954 fiscal year although the cash shortage would be only $2.8 billion because of collections which would be credited to social security or other special funds.
All of this may be disappointing to pome who leaned too heavily on campaign promises of quick action to balance the budget and reduce taxes but the President’s realistic acceptance of hard facts which were well known to those of us who have had to deal with them on the appropriation committees will make it easier to proceed
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