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20 Tax Foundation's Tax Review 1 (1959)

handle is hein.tera/tafoutaxt0022 and id is 1 raw text is: TAX FOUNDATION'S JANUARY 1959 Vol. XX. No. I r rf7 /P } Precariously Balanced Budget-An Analysis By Herbert J. liller Executive Director. Tax Fouidaiion. Inc. A NALYSIS of the Federal budget for the fiscal year 1960, submitted by the President to Con- gress on Janlary 19, reveals both plus and minus factors which members of Congress, and citizens, should weigh carefully. The budgct contains heartening proposals to in- voke the basic and permanent mandate to make responsive government responsible government. It translates this mandate by providing: (I) a surplus of revenue as distinguished from a $12.9 billion esti- mated deficit in the current fiscal 1959; (2) a $3.8 billion reduction in expenditures from the anticipated total for the current year; (3) assumption by the state and local governments and individuals of their proper responsibilities, as against reliance upon the Federal government; (4) responsible cost accounting for special services performed by the Federal government; (5) dis- continuance of temporary programs for which emergen- cies have passed; (6) steps toward improved budget pro- cedure permitting better an- nual control of expenditures by Congress, in the frame- work of an overall fiscal pol- icy embracing revenues and debt; and (7) a recommenda- tion for authority to the Exec- utive to veto or reduce items in appropriation bills or in legislative authorizations for expenditures which bypass the appropriation process. While recognizing this sig- nificant progress toward fiscal responsibility, there re- main such disturbing features as: (I) a recommenda- tion for another increase in the statutory debt limit in the months immediately ahead; (2) a level of spend- ing in fiscal 1960 for non-protection programs almost $10 billion above that in fiscal 1954; (3) a mammoth total of' $8.7 billion in supplemental appropriations and other budget authorizations for the current fiscal 1959; and (4) necessity for increasing and extending some taxes. In the light of these disturb- ing elements in the fiscal situ- ation, it is the more urgent that full consideration be given in Congress to the Pres- ident's legislative proposals for long-range economies through 'adapting programs to changed circumstances.' It is feasible to reduce Fed- cral expenditures. Oflicials do not lack knowledge of where to make reductions. It re- quires rather judgment, cour- age, and determination; and in this citizens must share and accept responsibility. It is difficult to understand charges that this budget is un- Copyriqhi 1959 bY Tax Fomidation, Inc., 30 Rockefeller Plaza, New York 20. N. Y. Material maY be re-used with proper credit. 1 This Issue In Brief While there are lea rtelli ng pro. posals il Ihe new Federal budget, tlere .4 reiniU inl it listurbing features. Not th4 lest is a projected nion-pnolection sped:ling. level ahlnost $10 billion above fiscal 1954. It is feasibie Ilys Mr. Miller in this Review to redlice Federal expenditures. Officials do not luck knowledge of where. to make rinlctions. It requires rather juidgient, roirlge ald letermination ; uaul in this citizens must shaire and necept responsibility. The PTreeariouls 870 million sirlus (iun)1 only he achieved, this budget unalysis notes, through favorable action by Con- gress on Presidential proposals involving both reveliues aid spending. Failure of Congress to concur in these recominendations-or' evel sonic of them- coul easily u pset the biget anmce in WalIIs.