| Show A te Tows R in WASHINGTON By Walter Wolter Shead t Corr x t nf Washington Bureau Burua 1616 ISIS Ere Ey St. St N. N W 11 Expect Little Immediate Change in Financial Policy WITH ITH the holiday season over vv and official Washington wind wind- winding winding ing up the most brilliant social sea season season son since before the war replete with diplomatic receptions White WhiteHouse WhiteHouse WhiteHouse House functions state dinners and various other social gatherings the new congress buckled down to the actual business of setting up a policy polley and adopting the legislation to tomake tomake tomake make that policy function for the na na- nation nation na- na nation tion during the next two years Most of the bickering as to committee com com- committee committee assignments and other problems problems problems lems attendant atte ant to the reorganization of congress under the new con con- congressional conI congressional I gressional reorganization act have been settled or eat least up bottled-up for the time being with the new GOP leadership firmly in the saddle And it would be nice to report that the spirit of the Christmas season has left congress with a feeling of peace on earth to men of good will Ho Hoever How How- However However ever that would not be objective reporting Whatever the reaction to the Presidents President's state of the union mes mes- message message message sage congress Democrats and Re Re- Republicans Republicans publicans alike can be sure that this I message unlike some previous ones represents the Presidents President's own think think- ing His Dis proposals reflect his own viewpoints and they are not the ideas and Ideals deals of the New Deal which President Truman inherited and with which he had to go along up until the time the people cast over over- overboard overboard overboard board this theory of government at atthe atthe atthe the recent election The new congressional reorganization reorganization reorganization act if the GOP leadership follows the spirit and letter of the law is providing some obstacles apparently not foreseen by some of the newly elected or reelected con- con coni congressmen i gressmen to the carrying out of their pet ideas For instance Rep John Taber New York is bent upon arbitrarily slashing some nine bil bil- billion billion bil- bil billion lion dollars from the federal budget At the same time Rep Harold Knut- Knut Knutson Knutson Knutson son of Minnesota is determined to bring about a 20 per cent reduction in individual income taxes as well as corresponding cuts in corpora corpora- corporation corporation corporation tion taxes and arid abolishment of the various excise taxes Outgo Tied to Income This would be fairly easy under the old procedure which has been in effect since about 1865 The house ways and means and the house ap ap- appropriations appropriations ap- ap appropriations committee simply would meet and with the over over- overwhelming overwhelming overwhelming whelming GOP majority would just vote the cut through Not so how how- however however however ever under the new act It is based on a scientific study of government and not on the basis of levying taxes without regard to appropriations or vice versa The new law pro pro- provides provides provides vides that the house appropriations and the house ways and means com com- committee committee committee together with the senate fi finance fi- fi finance finance nance and appropriations commit commit- committees committees committees tees shall meet jointly at the begin begin- beginning beginning beginning ning of the session that they shall consider the Presidents President's budget recommendations and report a leg legislative legislative legislative budget for the ensuing fis fis- fiscal fiscal fis- fis fiscal cal year including the estimated overall federal receipts and expend expend- expenditures expenditures expenditures for such year that such sucha a report shall shan contain a recommendation recommendation for a maximum amount to be appropriated and an amount to be reserved for deficiencies that if the report estimates the pro pro- proposed prof I f posed expenditures will be less than the estimated government tax re receipts re- re receipts receipts I then there shall be a recommendation I for a reduction in the I public debt that this report shall shan be made by February 15 I that the report from the joint com com- committee comI committee I shall shan be accompanied by a concurrent resolution adopting such budget and fixing the maximum amount to be appropriated for ex ex- expenditure expenditure expenditure that if U the report shows that estimated expenditures shall shan be greater than receipts the I concurrent resolution shall in include in- in include include clude a section substantially as fol fol- follows follows fol- fol follows lows That it is the sense of con con- congress congress congress gress that the public debt shall be increased in an amount equal to the amount by which the estimated ex ex- expenditures expenditure's I s for the ensuing fiscal year exceed the estimated receipts such amount being S Balanced Budget Dubious So under this law all appropriations and expenditures must be con con- considered considered considered in the light of the govern govern- governments government's governments government's governments government's ments ment's needs as outlined in the Presidents President's budget and not by the desire of any congressman however worth while The size of the public debt is fixed as congress goes along So whether congress can balance b the th budget at this session is a matter for conjecture Despite many de de- demands demands de- de demands mands by the new Republican ma ma- majority majority majority for an immediate balance Sen Robert A. A A Taft Ohio considered the deepest financial thinker in the senate said said as quoted in the Con Con- Congressional Congressional Congressional gressional Record of May 14 1945 It seems to me that the most conservative government cannot hope to balance the budget until ap ap- approximately approximately ap- ap approximately proximately three years after the end of the war with Japan c |
