In Defense of a Principle

In his first State of the Union message, President Eisenhower promised to return the nation to the sane policy of living within its income, to reduce taxes "only as we show we can succeed in bringing the budget under control." This week the time came to fight for that policy.

In principle, Congress had applauded the President's tax goal. But in an election year, principles are sometimes easily forgotten. Last week the House of Representatives, by an overwhelming 411-3 vote, chopped excise taxes on twelve items (including furs, jewelry, luggage, cameras, transportation) to a flat 10%, at a loss to the Treasury of $912 million. The Administration, though opposed, appeared willing to accept the cut. But as the excise bill went on to the Senate for almost certain approval, House Democrats turned to the Administration's big (875-page) tax-revision bill, ready with amendments that would deprive the Government of $2.5 billion more. Major amendment: raise personal exemptions by $100. The proposal had strong support.

This week the President went on the air, tried to remind Congressmen (and their constituents) that principle, in the long run, might serve the nation best. Said he:

"Everyone wants tax reductions of the right kind, at the right time. But economic conditions do not call for an emergency program that would justify larger federal deficits and further inflation . . . A century and a half ago, George Washington gave us good advice. He said we should keep a good national defense. He also said we should not ungenerously impose upon our children the burden which we ourselves ought to bear."

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