the 11e-l-Lii \ eiml the level "I oui Federal
B) this process, the Congress and thc
public would have the means of knowing
our fiscal position and the facilities
would be provided for balancing tlle
budget with reduction in taxes and debt.
\leing with this, I have introduced
legislation giving the President the
authority to veto items w ilhin appropriation bills, thus according him a double
check on log-rolling which mosl oi the
governors in this country have used
for years without abuse.
In slnerl. I advocate one budget with
lull disclosure as to our expenditures,
which fixes responsibility not only for
the expenditures but also lhe administration of expenditure programs; I advo-
e ale a single appropriation bill in which
Congress not only authorizes expenditures but controls them in a manner that
can be considered in view of revenue. A
budget is not a budget unless it has two
sides- expenditure and income. And fi-
nally, I advocate an item veto for the
President, wine i- elected to his office In
all of the people.
W ith these provisions, I believe the
budget can be balanced, the debt can be
reduced and taxes can be lowered.
If. by budgetary and legislative procedure, we could recapture control of
expenditures from the bureaucratic
agencies, there are obvious places where
the) could be substantially reduced ami
eliminated without impairment of any
President Eisenhower has made a geiml
start. Tin- Truman budget for fiscal year
1953 totaled $74.3 billion. Estimates of
lhe Eisenhower budget currently under
consideration total $62.4 billion—a re-
duction of nearly $12 billion. Our tax
im ome is $60 billion. Our deficits are
decreasing, but we are not yel on a pay-
<i--\ nij-go basis.
Mosl of lhe reduction has been in the
military, and this is largely incident to
lhe end of lhe Korean \\ ,u.
The Secretary of the Treasury, Mr.
Humphrey, For whom I have great admiration, and the able Budget Director,
Mr. Hughes, are working diligent]) ami
making substantial progress toward
sounder budgetary procedure ami the
elimination of waste in expenditures.
We are slill practically at the peak ol
expenditures for tl istic-civilian programs eiml proposals, for more- eiii' com
ing forth in a steady stream.
In fact, expenditures l.n strictly domestic-civilian programs now total $21
billion, and this is nion- than three
limes tin- total cost of these programs in
1940, when wc Btarted the World Wen II
Even ihis is not the whole stor) on
domestic-civilian expenditures; because
these figures .1" nol reflect the liabilities
PACTS FORUM NEWS, September, 1955
often want extra copies of Facts Forum
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"I lhe tremendous leeein insurance anil
Nonessentials in these programs must
hi- eliminated and this clearly can be
done, as Mr. Hoover and his two fine
Commissions on Government Organization have demonstrated in nearly 500
recommendations to date — some ol
which have been adopted, while others
-lill etweiil action.
With the pressure for more and more
governmenl which seems to characterize
our limes, I am convinced lhat such
constant examination of government as
the Hoover Commission surveys has become a continuing necessity.
Wilh budgetary disclosure and congressional control, under current circumstances and conditions, we should reject
eill new proposals for federal spending
In facl. lhe budget for fiscal year 1956,
beginning next July 1. could be reduced
$5 billion by eliminating expenditures
contemplated under new legislation and
b) eliminating increases in items under
existing legislation, f woulel oppose all
new proposals to invade the responsibilities "I slates, localities and individuals
eiml starl immediately to liquidate man)
eif tin- programs already in existence.
Ucvond ihis. I would eliminate as rap-
i'll\ ei- possible edl foreign economic aid.
and I would get military expenditures
quickl) in hand through control ol nn
So fat. we- have spenl nearl) $40 billion for foreign economic assistance. Ami
at this late date, afler ten years of postwar foreign aid. the President has pin
posed in increase foreign aid expenditures in ihe- coming Men bv nearly 10
per cenl. and he has asked Congress for
new foreign aid appropri eil ions in
eun.emits nearly 25 per ii-nl higher than
wen' enacted during the pasl year.
We are still employing 562,158 civilians overseas. These people are emplo\ ed
all over the world, including 01 In Cambodia
This foreign aid has gol to stop some
time, and so far as I am concerned the
time to stop so-called economic aid is
No one favors a reduction ol .nn pres
cut burdensome taxes more than I do.
I sit on both sides of the table. As an
individual. I pay substantial taxes on my
business operations. As a member of the
Senate Finance Committee I have the
opportunity to hear testimony of those
who protest exorbitant taxation. But as
anxious as 1 am as an individual for lax
reduction, I am opposed patriotically to
lax reduction which requires us to borrow emd add In lhe public debt. It seenis
to me to be a certain road to financial
suicide lo continue to reduce taxes and
then to borrow tlie money lo make good
this loss in revenue.
V- things are now shaping up. there
will be keen competition between the
tw.e political parties for tax reduction in
the political vear of 1056. If we reduce
expenditures this is all well and good but.
under political pressure, we should not
yield to reducing taxes and slill further
unbalance the budget. Tax reduction
should never be made a political football.
As chairman of the Senate Finance
Committee, I opposed the $20 tax reduction to each individual as passed bv the
House of Representatives this year. This
would have occasioned ei loss e.l $2.3 billion to the Treasury, all of which would
be added to the debt. It would have
given a tax relief of only aboul 7 cents
a day to each taxpayer and would have
removed 5 million taxpayers completely
from the tax rolls.
To borrow money to reduce taxi- i-
not, in fact, a tax reduction. It is merely
a postponement of the collection of taxes
as, sooner or later, the taxes thus re
duced will have to be paid with interest.
There is only one sound way to reduce
taxes and that is to reduce spending
At home we can get along without
Federal usurpation of individual, local
and state- responsibilities and. we can gel
along withoul federal competition in
business whether it he hotels, furs, rum.
clothing, Fertilizer or other tilings.
The Bible sav-: "II thine eye offend
thee pluck it out." 1 say if the federal
government should not engage in such
activities, we should firsl slop new invasions and then gradually, if not abruptly, eliminate the old intrusions, \\ hen
ive do these things we shall balance the
budgel. for lower taxes ami reduced
debt. 'There will be no further need foi
trick budgets and debl ceiling evasions
and hiding taxes. The government will
be honest in itself, and honest with tin-
A balanced budget could be in sight
if la i we do not increase spending, and
hi we do not reduce taxes. Assuming no
further cut in taxes, only a 4 per cent reduction in spending, in terms of I lu-
President s budget, would bring us to
thai highlv desirable goal.