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10 Tax Foundation's Washington News 1 (1958)

handle is hein.tera/wingnews0012 and id is 1 raw text is: January 3, 1958 Vol. _1Q_ No. 1 920 Washington Building Washington 5, D. C. The Second Session of the 85th Congress will convene on Tuesday next (January 7) in a now familiar atmosphere of crisis - in the national de- fense area because of the Sputnik successes, and in the domestic area because of fears of a business turndown. 'ith 1958 an election year, many Capitol observers expect one of the most controversial Congressional ses- sions in many years. On January 9 the President will deliver his State of the Union Mes- sage; the new budget (for fiscal 1999) is scheduled to be submitted Janu- ary 13 - earlier than had been expected; and the Economic Report is due by January 20. Congress, however, is not waiting, as usual, for the sub- mission of the Administration program, with a number of hearings already scheduled (see page b), including three separate investigations of our defense program. On the domestic front demands fdr all kinds of new spending programs -- justified either on defense needs, or upon the bolster the economy argument -- are heard daily. Chairman Cannon (D-vco.) of the House Appro- priations Committee took note of these developments yesterday, warning against a Federal spending spree under the guise of national defense. Vilhile agreeing that we must provide all the money necessary for legiti- mate defense needs, Canncn declared: That's no reason why we should get hysterical and spend vast sums of money that aren't necessary. In addition to defense requirements in this new era of missiles and satellites, Congress faces other tough decisions. Certain to generate controversies are the proposals for extension and expansion of the foreign aid programs, extension of the reciprocal trade agreements program, revis- ion of existing farm legislation, expected recommendations aimed at tighten- ing veterans' benefit programs, and the proposals for Federal aid to educa- tion, to name a few. Efforts to increase social security benefits, despite speculation as to an 0ASI trust fund deficit (see page 4 ) also are antici- pated. Current speculation sees the new budget to be submitted January 13 in precarious balance, at about a $7 billion level. Some observers, however, believe that the balance may be based upon overly optimistic revenue estimates. In any event, it seems safe to predict that the a- chievement of a balanced budget will depend in large measure, upon the support which Congress receives for (1) eliminating or curtailing nondefense, and lower priority military spending; and/or (2) stand:,ng firm against election year demands for increased expenditures, either under the guise of national defense or pump priming.