Ike Strips Budget to $65 Billion
Washington — (U.P.) — President Eisenhower sent Congress today a bedrock "necessity" spending budget of over $65 billion, which he said was stripped of frills and would protect national safety and prosperity
He outlined $1.2 billion of selective tax relief for some individuals and corporations, but opposed any further general tax cuts this year.
This first all-Republican budget in 22 years was slashed $12.3 billion under the last Democratic budget proposal. It still would leave the government $2,928,000,000 in the red in the fiscal year of 1955, which begins this July 1.
"With the shift in emphasis to the full exploitation of air power and modern weapons, we are in a position to support strong national security programs over an indefinite period with less of a drain on our manpower, material and financial resources."
Concerning the reduction in defense spending, Mr. Eisenhower said:
Mr. Eisenhower said "necessity" —rather than mere desirability— was the test he applied to all proposed expenditures. He said he "firmly" believes his budget "will not only protect our way of life but will also strengthen our economic base and enhance the welfare of all of our people."
As in every budget since the outbreak of the Korean war, national security was the biggest item by far — $44,860,000,000 this time. This was $3,860,000,000 below the latest estimate for the current fiscal year.
Mr. Eisenhower's budget, compared to fiscal 1954, proposed an increase in Air Force spending—from $15,600,000,000 to $16,200,000,000. The Army would be cut from $14,200,000,000 to $10,198,000,000 and the Navy from $11,300,000,000 to $10,493,000,000.
Atomic energy expenditures would go up $225,000,000 to $2.425,-
000,000. A record high.
Spending for military aid for U.S. allies was estimated at $4.2 billion, only slightly more than in the current fiscal year. Other big national defense items: $4,275 million for foreign military aid, $2.4 billion for atomic energy and $85 million for critical stockpiling.
It added up to the biggest air-power buildup since World War II—40,000 planes by 1957 instead of the present 33,000—and the biggest atomic program in the nation's history.
Mr. Eisenhower's proposed spending figure was $5,390,000,000 under
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the latest estimates for the current fiscal year of 1954 and $12.3 billion under the amount proposed by former President Truman just before he left office last year.
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President Eisenhower pledge that his administration "will continue determined efforts for economy to reduce the deficit." Savings will be translated into further tax cuts "as rapidly as justified" in future years.
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He recommended 25 revisions in tax laws. These selective reductions would be divided about equally between individuals and corporations. They would be more than offset by continuation, as requested by the President, of the corporation and excise taxes now scheduled for reduction April 1.
His tax revisions would include changing the date for filing individual income tax returns from March 15 to April 15, more liberal dependency and medical deductions, larger repreciation deductions for business, and deduction of up to 25 per cent of gross income for farm soil conservation expenses. Other highlights of Mr. Eisenhower's budget:
Housing: He will ask Congress in
a special message Monday to authorize "experimental" government insurance of long-term mortgages under which low income families could buy homes for practically no down payment.
Farm: Authority sought to ship $1 billion worth of government-owned farm surpluses to friendly foreign nations over the next three years; the Commodity Credit Corporation, which handles farm price supports, will need an increase of $2.5 billion in its borrowing authority to get through this year and the next.
David T. Mowry, Monsanto Chemical company, will speak on synthetic polyelectrolytes as soil conditioning agents at a meeting of the American Chemical society at 7:30 p.m. today in room 305, Bailey. A film on soil structure will be shown.
Soil Chemistry Talk Set
TVA: The administration wants to require the Tennessee Valley Authority to pay interest on the government's investment in its power dams.
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