Decatur Daily Democrat, Volume 61, Number 14, Decatur, Adams County, 17 January 1963 — Page 8

PAGE EIGHT

Budget Highlights

WASHINGTON <UPI) — Hiplights of President Kennedy’s record high federal budget: SPENDING — Regular budget, | $98.8 billion, up $4,5 billion from ' this year, creating a deficit of $11.9 billion. The bulk of the increase goes to defense and.space. Including trust fund outlays for Social Security, highway construe-, 1 tion and other earmarked pro- ‘ g-ams, spending would be $122.5 billion with a $10.3 billion deficit. 1 INCOME Estimated rev- ] enues of $86.9 billion, of $112.2 billion when Social Security taxes and other trust fund receipts are 11 counted. 1 TAXES — Cut corporate and •

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individual income taxes a net $lO billion over three years. Impose SIOO million in new user taxes on air freight, aviation and barge line fuels. Extend for another year $1.6 billion in existing excise taxes. DEFENSE — ssl billion, up $2.7 billion, to build and maintain a military force “able to resist any opponent, whatever his choice of weapons.” It includes S9OO million as the first installment of a new pay increase for members of the armed services. SPACE — A record $6.1 billion, an increase of more than $2 billion. The largest single item is $2.7 billion for the project to land two men on the ntoon before 1970. HEALTH — A revised medicare program to provide health benefits for 17 million elderly citizens, effective Jan. 1, 1965, to be financed by high Social Security taxes and partly by direct appropriations. Earmarks $1.6 billion for other health programs, up S2OO million, with increases going largely to medical research and construction projects. FOREIGN AID — Spending for military and economic aid to friendly nations estimated at $3.7 billion, down SIOO million. Military aid is being trimmed S3OO million; economic assistance increased by S2OO million. EDUCATION »-■ An increase of $165 million to a total of $1.5 billion; includes $144 million as downpayment on a new school aid program that has not been unveiled yet, and about $lO5 million to stimulate training in sciences. FARM — Slashed the Agriculture Department budget by $928.1 million, to $6.6 billion, with estimated savings to come from expected sales of government-owned surplus cotton, and proposed new program for dairy products and feed grains. WELFARE — $3.1 billion for public assistance and welfare grants to the states; includes funds to provide higher benefits voted by Congress last year for needy addlts and dependent children, also S7O million for aid to Cuban

refugees. URBAN —.Will propose again creation of a rabinet-level department of urban affairs; recommends SSOO million for grants and loans to cities for mass transit projects; an additional SSO million for urban renewal programs. NATURAL RESOURCES —Start 32 new public works projects in- j volving flood control and conser- ' vation at a cost of $348 million. , Overall spending of $2.6 billion for land and water resources develop- . ment. Will propose construction of ’ power lines connecting the Pacific Northwest and Pacific Southwest. Sing Bee Sunday At Greenbrier Church A sing bee will be held at the Greenbrier United Brethren in Christ church Sunday at 2 p.m. Leader of the bee will be Mrs. Susie Oechsle of Wren, O. The church is located miles east of sign on road 49 between Wren and Willshire, then a short distance north. To Install Geneva VFW Officers Sunday Formal installation of officers of Geneva Post 6751, Veterans of Foreign Wars, will be held at 2 p.m. Sunday at the Geneva school. The meeting will be open to the public and a VFW ritual team from Indianapolis wil have charge of theceremony. Fish Fry Friday For Elks And Families The Decatur Elks lodge will have a fish fry for members and their families at the lodge home on North Second street Friday evening from 6 to 7:30 o’colck. Merle Affolder and Floyd Reed are co-chairmen of the committee in charge o fthe family event. The fish fry will be over in ample time for members to attend the Friday basketball games. If you have something to sell or trade — use the Democrat Want ads — they get BIG results.

THE DECATUR DAILY DEMOCRAT, DECATUR, INDIANA

Two Cars Damaged In Accident Wednesday Each of two vehicles involved in an accident at 8:45 p.m. Wednesday received an estimated SIOO damage. Cars driven by Daniel Charles Lose, 16, 816 Winchester St., and Hollis Dale Bonitas, 41, 1005 Russell St., collided at the intersection of Monroe and Sixth streets. Bonitas was eastbound on Monroe street and Lose made a left turn off Sixth street onto Monroe, striking the left rear of the Bonitas car with the right front of his auto. Driver Is Arrested Following Accident Edward Lee Williams, 22, of near Fort Wayne, was arrested for unreasonable speed, following a one-car accident at 5:25 p.m. Wednesday on the Winchester road, about one-quarter of a mile west of the U.S. 7 intersection. William lost control of his auto on a curve on the road, and the vehicle left the road and went through a fence on the Mrs. Roy Johnson farm. Four rods of fence and three posts were tom down by the car, which sufferd an estimated SIOO damage. Sheriff Roger Singleton, deputy sheriff Waren Kneuss, and state trooper Dan Kwasneski investigated the mishap. GOV. WELSH (Continued from Page One) nomic growth, there is no substitute for brains. It is at our universities and colleges we educate and train the young minds that must serve as a basic resource for advancing civilian technology” Welsh proposed $3 million for » “modern type general hospital at the Indiana University Medical Center to provide Indiana with access to the most advanced medical and surgical care. He said i matching -money ‘would be available for this construction. If you have something to sell or trade — use the Democrat Want ads — they get BIG results.

BIGGEST BUDGET (Continued from Page One) lawmakers not to repeat last year’s deep cuts. He said Red China's attack on India and Communist guerrilla warfare in South Viet Nam are “current reminders" of the importance of the program. Kennedy took two approaches to the budget: —A newly emphasized “cash budget” which takes into account collections and payments by the Social Security and highway trust funds. —The old-fashioned “r.dministrative budget" which excludes these items. The President seemed to prefer the “cash budget” approach, pointing out that many non-government groups and scholars believe it provides a “much more complete picture" of federal finances. The two methods gave this view of Kennedy’s proposals as compared with the current fiscal year which ends next June 30: Administrative Budget 1963 (billions) 1964 Revenues $85.5 $86.9 Spending $94.3 $98.8 Deficit $ 8.8 slls Cash Budget Revenues $108.4 $112.2 Spending $116.8 $122.5 Deficit $ 8.4 $ 10.3 Either way, spending would be the biggest ever, topping even the peak World War II year of fiscal 1945 when outlays hit $98.3 billion. The deficit would be the biggest in peacetime save for the $12.4 billion recorded in fiscal 1959 by President Dwight D. Eisenhower. It also was the first time a Chief Executive intentionally had sent an unbalanced budget to Congress since fiscal 1956. Eisenhower predicted a $2.4 billion deficit that year only to have an economic upswing convert it into a $1.6 billion surplus. Kennedy based his revenue estimates on the assumption that the Gross National Product—the total output of goods and services—would rise to $578 billion this year. This would be a relatively modest increase of $24 billion over the 1962 level of $554 billion. MORE MORE But even this, he said, is based on the expectation that the economy will see “some initial-stim-ulus expected from adoption of my tax recommendations.” Without tax cuts there would be slower economic growth and smaller revenues, the President said. “This would indeed be unfortunate,’’ Kennedy added, “both because of the effect on government finances and because of the lost opportunities and the human misr fortune that would accompany a I sluggish economy and growing unemployment.” He noted in this connection that the Treasury ran up • cumulative deficits of $24.3 billion during the past five years even though he and his Republican predecessor in the White House had anticipated surpluses totaling $8 billion. Two Kinds of Deficits “It is now clear?* -Kennedy said, “that the restraining-effects of the tax system Oh the economy were 'hot' adequately realized.” w ■•' ' Hie President told lawmakers skeptical of his philosophy that

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Afthere are ftwo kinds of deficits. He said w is a chronic deficit stemming from anemic economic growth. The other, he said, is a temporary deficit resulting front a tax-spending program designed to spur business activity, provide more jobs and ultimately increase revenues. “The first type of deficit is a sign of waste and weakness," Kennedy declared. “The second is an investment in the future.” While the Chief Executive did not disclose his tax-cutting timetable in advance of his special tax message to Congress later’ this month, he said it would reduce federal income by some $5.3 billion in fiscal 1964. He also indicated that he wants individuals' to get tax relief before corporations, presumably on the theory that they will pump guch funds into the economy almost immediately. Kennedy asked Congress to extend the present 52 per cent tax rate on corporations six more months until Jan. 1, 1964. On the other hand, it was understood he ! would ask that the first cut in personal income taxes be made effective July 1. Proposes Extension The President also proposed another extension of Korean War excise taxes on liquor, beer, cigarettes, and new cars. Otherwise the levies would expire July 1, costing the Treasury $1.6 billion in annual revenues. He likewise proposed raising another SIOO million through new user taxes on air freight and plane and barge fuel. In the field of legislation, Kennedy renewed his appeal for such

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- controversial programs as medical care for the aged under Social Security and aid to education. He again sought a cabinetlevel department of urban affairs to help cities solve their problems. The outlook for both is dim this year although Kennedy partisans hope to salvage at least something in the 1964 election-year session of Congress. The President asked for an immediate extension of the present temporary S3OB billion ceiling on the national debt and said he would seek a further hike later this year, possibly to $320 billion. He said the debt was expected to reach $316 billion by June 30, 1964. Must Be Prepared In outlining his military spending requests, Kennedy said the free world “must be prepared at all times to face the perils of global nuclear war, lihiited conventional conflict and covert guerrilla activity.” As a result, he said, his administration will continue development of strong retaliatory forces, capable of surviving surprise attack and striking back; improved air and missile defenses, stronger and more flexible conventional forces and a civilian fallout shelter program. He said the budget provided for six more Polaris missile firing submarines, procurement of additional Minuteman intercontinental rockets to be dispersed in underground sites, further tests of the Nike-Zeus anti-missile missile and initial development of the more advanced Nike-X. For agriculture and releated programs, the Chief Executive es-

THURSDAY, JANUARY 17, 1963

tlmated fiscal 1964 outlays at $5.« billion, a reduction of sl.l billion from current levels. He said the cutback would result largely from expected sales of surplus cotton acquired by the government this year.

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