anaheim-gazette 1949-03-17

WASHINGTON AS SEEN By Congressman JOHN PHILLIPS Several weeks ago, in a radio talk, I broke down the proposed Truman budget, step by step, trying to show what it would mean to the taxpayers, you and you and you, not only this year, but over the next ten years. Some of my friends have asked me to repeat the breakdown in this weekly letter, so they could look at it more carefully, I suppose. Frankly, I don't think its importance justifies their comments, but here it is. The estimated income of the United States for the fiscal year 1950 (July 1st, 1949, to June 30, 1950, which is the budget we're working on now), will be 42.935 billions. I've rounded that off to the nearest million! This presumes that incomes stay up and business conditions good, so that people will have taxes to pay. At the moment, employment is off, and business is weakening in spots, but it'll hold up fairly well. The president's advisors, the three of them, who rarely agree among themselves, but feel competent nevertheless to advise the President of the United States, are divided two to one on this particular issue. Two of them warn inevitable, and is the undoubted objective. We are now taking about 33 per cent of America's income in taxes, national, state and local. Last week this letter broke the prospective federal budget down to a probable deficit of about 10 billions, without including the Truman program, for general welfare and security, for which the President asks additional taxes. That program includes, generally, the following items, with their costs over a 10-year period. Billions Slum clearance program, heretofore carried by local agencies, and historically handled more efficiently by them.....1.5 Public housing, often confused with the above.....1.1 Farm housing, ditto.....3 Nationalization of health, now a recognized failure in Great Britain.....58.0 Federal aids for education, to the states, every one of which has money in its treasury, while the Federal government is 250 billions in debt, and doesn't know how to pay that debt At least .....3.0 Old age pension increases.....15.0 Unemployment compensation proposals .....1.5 The St. Lawrence Seaway.....6 Public works of alleged military value .....3.0 Universal Military Training (estimated) .....20.0 104.0 or about 10 billions a year for ten years. That is the figure to add to the 52.3, computed last week. This puts us about 20 billions in the red every year, and this is the figure hopefully to be covered with the "4 billions in new taxes," for which the President asks. the nearest million! This presumes that incomes stay up and business conditions good, so that people will have taxes to pay. At the moment, employment is off, and business is weakening in spots, but it'll hold up fairly well. The president's advisors, the three of them, who rarely agree among themselves, but feel competent nevertheless to advise the President of the United States, are divided two to one on this particular issue. Two of them warn against inflation; the other against deflation. May we go back for a moment to 1948? On January 6, a year ago, the President sent up a budget request for 32.9 billions. During the session, additional requests amounted to 7.3 billions, mostly for foreign aid. In January of this year (and this has nothing to do yet with the f.y. 1950 budget) the President sent still more requests amounting to 2.6 billions. Thus the 1949 budget, originally publicized as 32.9 billions, actually totals 42.8 billion, or an increase of 9.9 billion over the first request. This is a 30 per cent increase. Unfortunately, that is not unusual. So when we look at the Truman budget, for f.y. 1950, presented to Congress January 1949, aren't we justified in expecting a somewhat similar increase between now and June 1950? The President's requests totalled 41.5 billion, from a possible income, as I said, of 42.935 billion. In addition, however, the President asked for authorities not included in that budget figure. They are: New contract authorizations, 3.857 billions; authorizations to expend from public debt receipts 2.180 billion; reappropriations of unused money, which otherwise could be applied on the public debt .0016 billion; total 6.0386 billion. Suppose we drop off the odd millions, and add 6.0 to the publicized 41.5, we have 47.5 and the United States is again in the red. If we have only a 10 per cent addition during the fiscal year, instead of 30 per cent as this year, we would spend at least 52.3 billions. We would then be 10 billions in the red and this, please note, does not include the President's Program, for which he is asking 4 billions in new taxes. I will analyze that program next week. Like a famous American president, I rise "again and again" to remark that when you take more than 25 per cent of the Public works or alleged military value ... 3.0 Universal Military Training (estimated) ... 20.0 104.0 or about 10 billions a year for ten years. That is the figure to add to the 52.3, computed last week. This puts us about 20 billions in the red every year, and this is the figure hopefully to be covered with the "4 billions in new taxes," for which the President asks. The rising interest in taxes suggests that you might like to know how the budget is broken down into subject expenditures. I will take 4 major subjects and show the appropriations to date for f.y. 1949 (which ends June 30th) and the requests to date for f.y. 1950, which ends a year from then. The figures are in billions and the % is of the total budget: 1949 1950 % % For foreign aid ..... 4.7 13.62 4.9 10.48 For all functions of the Veterans Administration 5.1 14.60 5.7 14.60 For all military, naval, and air defense costs 10.5 30.53 13.9 33.25 For interest on the National Debt, most of which is due to past wars ..... 5.3 15.52 5.4 13.11 (To which should be added the activities of the army engineers in river protection, harbor work, and other public activities, some of which have defense objectives.) % % Civil Functions ..... 1.9 5.54 1.8 4.20 a total of $27.5 79.81 $31.7 75.64 It leads to serious thought when 75% of the tax money of a nation goes to pay for past, present and future wars. BABY GIRL BORN Mr. and Mrs. Pedro Silva of 1015 Kemp street, Anaheim, are the parents of a baby girl born at the Orange county hospital on Sunday, March 13. James A. Rimpau of Los Angeles,, was in Anaheim several days last week attending to business matters. Mr. Rimpau is owner of the Pickwick hotel building and he was overseeing remodeling work on the Pickwick Cafe rooms which were recently leased by Mr.. addition during the fiscal year, instead of 30 per cent as this year, we would spend at least 52.3 billion. We would then be 10 billion in the red and this, please note, does not include the President's Program, for which he is asking 4 billions in new taxes. I will analyze that program next week. Like a famous American president, I rise "again and again and again" to remark that when you take more than 25 per cent of the income from a nation in taxes you have jeopardized the free economy of that nation. Socialism is FIRST IN CALIFORNIA - Immediate Claim Service Thru This Office - Automobile - Compensation - FIRE INSURANCE FARMERS INSURANCE GROUP A. P. PEIFFER, Agent 219 NORTH SPADRA Serving Main North Orange County Office for 16 Years in the First National Trust & Savings Bank Bldg. Call Fullerton 723-W Anaheim Call ZEnith 7230 Passing of State Veterans Bonus Appears Unlikely' Favorable action of the legislature on the question of a state veterans bonus appeared highly improbable after a poll of 40 members of both houses. The results showed 29 members against payment of a bonus by the state, six favoring such a grant, and five expressing no opinion. All are veterans of either World War I or World War II. Meanwhile, assemblyman William Rosenthal of Los Angeles, sponsor of a constitutional amendment which would authorize the state floating of an estimated $300 million bond issue to pay California veterans a bonus, announced he will poll all state veterans on the question. He said he is preparing a questionnaire to be sent to all veteran posts throughout the state asking for a poll of the membership on the question. "Do You Favor a State Bonus?" A second question will be asked in event of an affirmative answer, Rosenthal said, asking the veteran to specify how he thinks the bonus should be paid with several suggested methods of financing. These include a state bond issue, a cigarette tax, additional horse racing or liquor tax, or increased sales tax. Father's Day was first celebrated in the U.S. in Spokane, Washington, in 1910. Gun Registration Bill Withdrawn A proposal to require the registration of all concealed weapons in the possession of California citizens will be withdrawn, the measure's author, Assemblyman William Byron Rumford of Berkeley has announced. He said he has decided to drop the matter after receiving hundreds of letters of protest. "The bill was intended to aid in reducing crime," Rumford explained, "but through misunderstanding the public has interpreted the law as one which would require the registration of all firearms." 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