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Page 10
THE CAPITAL JOURNAL, Salem, Oregon
Thursday, January 21, 1054,
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Highights of the First Budget of
The Eisenhower Administration
BUDGET HIGHLIGHTS
WASHINGTON W) - Highlights
from the text of President Eisen
hower's message to Congress on
the budget for fiscal 1955:
FIRST GOP BUDGET
This new budget is the first pre
pared entirely by this administra
tion. It provides adequately, in my
judgment, for the national defense
and the international responsibili
ties of the nation responsibilities
which we must undertake as a
leader of the free world. On the
success of this leadership depends
our national security and prosper
ity. NATIONAL DEFENSE .
The recommended budget con
tinues 'the strengthening our mili
tary posture; our progress in the
development and production of
atomic weapons; the expansion of
our system of continental defense;
assistance in the development of
the military strength of friendly
nations; and programs for rapid
' mobilization if an emergency
should arise.
ATOMIC ADVANCES
Authority is recommended for
new and advanced work on the
peacetime uses of atomic energy
in the earnest hope that present
international relations can be im
proved and the wonders of nuclear
power can be turned gradually to
the development of a more abun
dant life for ourselves and ell
mankind.
TAX REDUCTION
The reductions in expenditures
already accomplished, together
with those now proposed, justify
the tax reductions which took ef
fect Jan. 1 and the further tax re
visions I am recommending . . .
an amount approximately equal to
the savings is being returned to
the public in tax reductions and
tax revision.
BOLSTERING PROSPERITY
These lower taxes will encourage
continued high capital investment
and consumer purchases. Despite
the substantial loss of revenue
caused by these reductions, we
have moved closer to a balanced
budget.
ESSENTIALS, NOT "Desirables"
In preparing this budget the ad
ministration has directed its at
tention to essential activities and
programs rather than to those
which some might consider desir
able and appropriate, at this time,
for the federal government to undertake.
FUTURE BENEFITS
But as we continue to reduce
and eliminate the less desirable or
the unnecessary government ex
penditures, it will become possible
to turn to other purposes which
are the most desirable In terms of
their benefit to all of the people.
Partnership,- Not Paternalism
This budget marks the beginning
of a movement to shift to stats and
local governments and to private
enterprise federal activities which
can be more appropriately and
mora efficiently carried on in the
way ... in those cases where fed'
era! participation is necessary, the
eiiort oi this administration is to
develop partnerships rather than
an exclusive and often paternal
istic position for the federal gov
ernment.
THE BUDGET
(IN BILLIONS OF DOLLARS)
(Truman's) 1954 1955
Receipts 68.0 67.6 62.7
Expenditures 77.9 70.9 65.6
Deficit 9.9 3.3 2.9
1954's RECORD
The current estimates of the 1954
budget show that the requests for
new appropriations were reduced
about 12.5 billion dollars, new ob
ligational authority was reduced
more than 11 billion dollars, and
expenditures were reduced 7 bil
lion dollars below the totals esti
mated in the 1954 budget document
of the previous administration.
19.15'i OUTLOOK
Similar reductions continue in
the budget recommended for the
fiscal year 1955. Recommended
new ohligational authority is 4.4
billion dollars less than the cur
rnit estimate for the fiscal year
1954, 15.5 billion dollars less than
recommended for that year in the
1954 iTmman) budget document,
and 23.9 billion dollars less than in
195.1.
RAVINGS
Thus, new ohligational authority
has been reduced 15.5 billion dnl-
tars and estimated CNpcnriiturrs
have been reduced 12 3 hillinn dol
lars since this administration took
nlfice.
FIVE BILLION DOLLARS
Without tax reductions, a buried
surplus was in sight for the fiscal
year 1955. Together these tax re
ductions will total nearly 5 billion
dollars.
DEFICIT
We will still have a budgetary
deficit of slightly rss than 3 hit'.
lion dollars fur Mm lii-nl v-.f In-.-. '
as now estimated. Hut we will i nn.
tmuc determined efforts for rconn- i
my lo reduce that deficit during 1
the 1955 fiscal vear.
MORE MORE MORE MORE MO
CASH SI RPLl S
Furthermore, despite the loss of
rash revenue from the lax reduc
tions and revisions, the total rash
transactions of Ihe government
with the public are now estimated
to show a small rash surplus for
the fiscal year 1955. iThe rash
accounts consider social security
contributions as government re
ceipts; the conventional budget
does not.)
nEFKNSR COSTS
Expenditures for major national
security programs for the mili
tary functions of the Department
of Defense, the mutual military
program, atomic energy, and
stockpiling of strategic materials
dominate the budget and are es
timated at 44.9 billion dollars in
the fiscal vear 1955. This com
narcs with a presently estimated
48.7 billion dollars in 1954 and 50.3
billion dollars in 1953.
MORE DEFENSE, LESS COST
Proposed reductions in major
national security expenditures in
1955 represent the largest single
element of reduction from the cur
rent year's level of expenditures.
I emohasize. however, that these
savings result from revisions in
programs, from shifts in emphasis,
from better balanced procure
ment, and from improved man
agement and operations. Our se
curity is being strengthened not
weakened.
ATOM AND AIR POWER
Proposed 1955 expenditures for
the Atomic Energy Commission
and for the mutual military pro
gram will be at the highest levels
since the initiation of the two pro
grams . . . Expenditures on be
half of our airpower will be the
largest since World War II. Allo
cations of expenditures for our
continental defense program will
be greater than in any previous
year.
TAX PROGRAM
I am anxious to have taxes re
duced as fast as that can be done
without building up inflationary
deficits . . . The objective will be
to return to the people, to spend
for themselves and in their own
way, the largest possible share of
the money that the government
has been spending for them.
STARTING POINT
The start toward tax reductions
is justified only because of suc
cess in reducing expenditures and
improving the budgetary outlook
. . . These proposals are directed
toward removing the most serious
tax hardships and tax complica
tions, and reducing the tax bar
riers to continued economic
growth.
STOPPING POINT
I do not believe that the bud
getary situation will permit furth
er reductions of taxes at this time
Hence, I repeat my recom
mendations of last May that the
reductions in the general corporate
income tax be deferred for one
year; that the excise tax rates,
scheduled to be reduced on April
1, including those on liquor, tobac
co, automobiles, and gasoline, be
continued at present rates; and
that any adjustments in the other
excise taxes be such as to main
tain the total yield which we are
now receiving from this source.
NATIONAL DET
Nearly three-quarters of the debt
were inherited a year ago matures
within less than five years or is
redeemable at the holder s option.
Too large a proportion is in the
hands of banks. These policies con
tributed to cheapening the dollar.
DEBT LIMIT
The national debt is now close to
the legal limit of 275 billion dollars
... In the second half of the
calendar year, when tax receipts
are seasonally low, there will be
no way of operating within the
present debt limit. For these rea
sons, I renew my request to the
Congress to raise the debt limit.
PART II
TAX PROPOSALS
Our whole system of taxation
needs revision and overhauling. It
has grown haphazardly over many
years, lhe tax system should be
completely revised.
THE OBJECTIVES
Revision of the lax system is
needed to make tax burdens fairer
for millions of individual taxpay
ers . . . It is needed to restore
normal incentives for sustaind
production and conomic growth.
TAX REV'SIBON .
I believe that this proposed tax
revision is the next important step
we should take in easing our tax
burdens. After it is completed
further reductions in expenditures
can be applied to our two object
ives of balancing the budget and
reducing tax rates.
1. Children Earning Over $600
I recommend that a parent
should be permitted to continue to
claim a child as a dependent re
gardless of the child's earnings if
he is under 18 or away from home
at school.
2. Heads of Families
I recommend that widows and
widowers with dependent children
be allowed to split their income as
is now done by married couples.
This same lax treatment should
be authorized for single people
supporting dependent parents.
3. Foster Children
At present, foster children and
children in process of adoption
may not be claimed as depend
ents. I recommend that such child
ren be allowed as dependents.
4. Expenses of Child Care
Some tax allowance can properly
be given for actual costs of pro
viding care for the small children
of widows or widowers who have
to work outside the home. The
same tax privilige should be given
to working mothers who, because
their husbands are incapacitated,
provide the principal support of
their families.
S. Medical Expenses
I recommend that a tax allow-
ancc be given for medical expen
ses in excess of three per cent of
income instead of five per cent as
at present. 1 recommend further
that the present ceiling of $1,250
lor a single person with a maxi
mum ceiling of $5,000 for a family
should be doubled.
. Sick Benefits
Insurance and other plans
adopted by employers to protect
their employes against the risks
of sickness should be encouraged
by removing the present uncer
tainties in the tax law.
24. Administration of Tax Law
I recommend that the parts of
the law. covering assessments, col
lections, interest and penalties, the
statute of limitations, and other
administrative provisions be sim
plified and brought together in one
place. . . The regulations and ad
ministration of the tax laws are
being tightened to prevent abuses
by which a small minority of tax
payers avoid their fair share of
taxes by misuse of expense ac
counts and other improper prac
tics.
25. General Simplification
The entire Internal revenue code
needs rewriting and reorganiza
tion. Jointly, the Treasury De
partment and the staff of the con
gressional committees have de
veloped many recommendations
for changes other than those which
I have described here.
PROBLEMS AHEAD
There still are heavy national
security requirements. Substantial
expenditures are by law relatively
nondiscretionary. The far-reaching
activities of the federal govern
ment are extremely complex.
PROGRESS TO DATE
Despite these inherent difficul
ties, we have made great prog
ress. Federal expenditures have
been cut substantially, tax reduc
tions have been made justifiable,
and the budgetary deficit has been
sharply reduced. Wc have, further
more, made appropriate provis
ion for our national security and
for our international obligations
and we have been able to propose
certain increases in federal ex
penditures to advance our domes
tic well-being and to foster eco
nomic growth. ,
CONCLUSION
I firmly believe, therefore, that
this budget represents a plan of
government which will not only
protect our way of slifc but will
also strengthen our economic base
and enhance the welfare of all
bur people.
Dwight D. Eisenhower
$31 Million of Highway
Contracts to Be Let in '54
, The Oregon Highway Commis
sion will award 31 million dollers
worth of contracts this year to
improve 425 miles of roads, and
then it will have to come down to
earth again.
Since 1951, the commission, with
72 million dollars worth of highway
bonds, has been carrying on its
emergency construction program
to eliminate the worst bottlenecks
on the highways.
1 his whole program will be un
der contract by next July. 1, except
for a few small jobs to be awarded
late this year.
After this year, the commission
will have to go back to its normal
spending rate , of 15 to 18 millions
a year for construction. That's all
the money that is available from
normal revenues.
Last year, the commission award'
ed 38 million dollars worth of con-
tracts, but this year, it is tapering
off to 31 millions.
This bond program, with federal
matching funds, is enabling the
By PAUL W. HARVEV JR.
Associated Press Correspondent
FRENCH FEARS ALLAYED
TANGIER Morocco W-Reliable
information reaching here Thurs-
aay discounted French fears that
a gathering of Moslem religious
and civil chiefs in nearby Spanish
Morocco threatens a step - up in
terrorism in neighboring French
Morocco. The leaders gathered in
Tetuan, capital of the Spanish sec
tion of the divided North African
protectorate.
ASPIB1M
: FDR CHHPRfJL
msxauna
DOCTORS
AEPHOVt
NOW mw, Mf mm drop for children.
Contolni nto-ivnophrlno. ife, We sliti.
sr. joiira ten mom rii ihiisiw.
Not only relieves
coughs colds but.
V Loosens slirky phlegm and thus
"Brcaks-up" coughing spelis.
r" Contains no narcotics.
No wonder so many doctors have
prescribed PERTUSSIN for
coughs of colds for all the family.
commission to spend a total of 150
millions for the emergency pro
gram. When it is completed. Ore
gon still will need around 250 mil
lion dollars worth of road building
to get a modern system.
No more bonds can be issued,
because the state is virtually at
its bonding limit.
Much of the bond money has
been used to modernize the Colum
bia River and Pacific Highways.
But all of the highways are getting
some benefit from this source .
During the first six months of
this year, the- commission will
award 29 million dollars worth of
contracts, of which 17 millions is
bond money. This will improve 375
miles of roads.
In the last half of the year, the
total contracts will be only two
millions, of which half will come
from the bonds. This will improve
50 miles of highways.
After all these contracts are
awarded, it still will take until
early 1956 to get the construction
done.
Of the 29 million dollars worth
of contracts to be awarded in the
first six months this year, about
half will be spent to improve 82
miies 01 me Pacific Highway.
These Pacific Highway jobs In
clude $4,875,000 on 25 miles in
Douglas County, $3,480,000 on 30.5
miles in Lane County, and $4,735.-
uw wr 24 miles of the four-lane
expressway between Portland a
Salem.
Personal
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