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11 Tax Foundation's Washington News 1 (1959)

handle is hein.tera/wingnews0013 and id is 1 raw text is: January 2, 1959                     Vol.     No. -
920 Washington Building
Washington 5, D. C.
The first session of the 86th Congress will convene here next '4ednes-
day facing many controversies. But the one issue which seems certain to
command even more of the spotlight than usual will be this year's battle
of the budget. The President insured that this would be the major contro-
versy in 1959 when he jumped the gun and announced two days before Christ-
mas that he would present a balanced budget for fiscal 1960, in the neighbor-
hood of $77 billion.
The reaction to that announcement has followed an interesting pattern.
There was praise, of course, from Administration supporters, and Senator
Byrd (D-Va.) said he would support the effort, though. wanting to see the
budget details. In general, however, the initial reactions were punctuated
with howls of anguish. The new budget--before the details were even known--
was denounced as both inflationary and ndeflationary, as unrealistic,
cheapskate, a gimmick, and as political, among other things.
Whether or not a political effect was intended the PresidentIs announce-
ment has had an impact, and with the passing days the attacks on the budget
have noticeably quieted down. The grDwing public concern over inflationary
dangers, and the unwillingness of politicians to be charged with fiscal ir-
responsibility with the 1960 Presidential elections looming ahead, have been
given by many observers as the reasons for the quieting down of the budget
attacks. In deciding upon this early budget announcement the Administration
may have put the spenders on the defensive.
This does not suggest, however, that the pressures for increased spend-
ing will not be great as the new Congress settles down to business. Every
day brings announcements of plans to push quickly for some new or expanded
Federal program. School aid advocates are planning early consideration of
their proposals (see page 2); Federal aid airport and depressed area aid
bills, vetoed by the President last year, are expected to be among the first
orders of business; a huge new housing measure is already being discussed, etc.
Efforts to increase spending levels proposed in the budget are certain t,
come, and this, plus a Congress' unwillingness to go along with certain
economy proposals expected to be included in the budget document could help
defeat the President's balanced budget objective.
In any event, the Chidf Executive by his early announcement has set
the stage for what may become one of the sharpest budget battles of recefnt
years. The result will depend--as usual--upon the response of the people
back home, whose voice, in the next two years, will be listened to with
even greater than usual interest.

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