Monday, Dec. 15, 1958

Bipartisan Purse-Watching

Only a month after the congressional elections that some pundits called a landslide for liberal spenders and a month before the President's budget message goes to Congress--a key congressional Democrat and a key Administration moneyman laid down similar, tough arguments against a spending spree. The two:

HOUSE WAYS & MEANS CHAIRMAN WILBUR MILLS: "The question should be raised as to whether an expenditure or a service deemed to be desirable within an overall budget of $20, $30 or $40 billion continues as a desirable, justified expenditure as a part of an $80 billion budget . . . Consistency requires that Government programs be evaluated in terms of what must be given up by the increased taxes necessary to pay for them." Parallel path to an eventual balanced budget is stiffening of taxes in areas where the collector's touch is lightest (insurance companies, oil depletion allowance, farm cooperatives) and a broadening of the tax base to "stand the stress and strain of high revenue requirements."

BUDGET DIRECTOR MAURICE STANS: "Why is it that some business leaders join taxpayers' organizations to bring pressure on the Government to cut expenses, and yet support industry groups seeking more Government subsidies? Why is it that some labor leaders press hard for wage increases to keep up with the cost of living, and then urge a massive program of legislative action which, if adopted, would lead to more deficit spending, higher taxes, and inflation?

"Why is it that some farmers at once embrace the new farm technology which multiplies crop production, and demand a structure of Government price supports and other benefits and services which, at an annual cost to the American taxpayers of between $7 and $8 billion, is exceeded only by defense expenditures and debt service?

"Nobody should be surprised if in the President's coming budget message there are a number of [new] proposals made to scale down or eliminate Government services."

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