Tax and Debt Limitation

Archive Report

Tax Revolt and Measures to Ease Tax Load

Budget estimates submitted to Congress by President Truman on Jan. 21 indicate that, without additional taxes, the federal government will incur a deficit of $8.2 billion in the fiscal year 1952 and a deficit of $14.4 billion in the fiscal year 1953. Deficits of that magnitude will raise the public debt from an estimated $260,222 million next June 30 to an estimated $274,922 million on June 30, 1953, The latter sum is within $78 million of the present statutory debt limit of $275 billion.

The President conceded in his budget message that “the increase in expenditures immediately ahead” could not be met on a strict pay-as-we-go basis. He said, however, that the situation called “at the very least ...

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