U.S. BEGINS DRIVE FOR ECONOMIES

Press, Volume LXXXIX, Issue 26968, 18 February 1953, Page 7

U.S. BEGINS DRIVE FOR ECONOMIES

Big Cut In Defence

Allocation

(N.Z. Press Association—Copyright)

(Rec. 8 p.m.)

WASHINGTON, February 16.

The House of Representatives Appropriation Committee today started the Republican economy drive by reducing a 2,313,000,000-dollar supplementary money bill by 60 per cent. Most of the reduction applied to the Defence Department’s requests for extra funds to meet the service pay increases authorised last year by the Democrat-controlled Congress. The committee said that the Defence Department could finance its requirements from that part of the military funds already voted for the current financial year, but not earmarked by the armed services. It also sharply reduced requested allocations for President Eisenhower’s emergency fund and for his council of economic advisers.

The House Ways and Means Committee, by 21 votes to four, today approved a reduction in individual income taxes on July 1. The reduction, if it became law, would amount to about 5j per cent, for most taxpayers this calendar year and double that for 1954. Legislation providing for the cut was approved, despite Mr Eisenhower’s recent statement that it would not be wise to reduce revenues until the extent to which expenditure could be reduced had been ascertained. The Speaker of the House of Representatives supported the President by announcing that the tax-cutting bill would not be called for action until a balanced Budget was in sight.