European Stars And Stripes (Newspaper) - January 17, 1961, Darmstadt, HesseIt. 161 the stars and stripes Naid plan pres recon in sex id Aid to against an fund for and teach president is expected it widget for re f40 million up $13 eve program Oreon the a act. $173districts or other fed Tell lion for a of the $67 proposal that help to needy Jpe at the More program has promised to Aid Pri for education1 local communities the Federal gov to providing As is a special appointed by Ken need a Federal ice gets f of $1.3 million a the Selee Vrell Supply an men to the armed1 beginning july 1. Men than to according to Fresi budget message an a tf3m7&000 for Selea i for fiscal 19 j2-n in i Over ii year. Outlay of $13 billion a year on a Broad program of education Aid which states could use for classroom construction teachers salaries. Or bbl t twi it tvo twin put 1 tar Lei a. V it 1 Fiji for budget Ike says Washington up presi Dent Eisenhower monday ruled out & general tax Cut for the foresee Able future. Instead he asked Congress to boost the Cost of mailing a letter driving a car and flying a plane. He said this should be done by increasing postal rates replacing a scheduled july 1 reduction in Gaso line taxes with an increase and voting an aviation fuel tax increase that would be passed on to airline customers. Message curbs state dept. Aid increase Washington up presi Dent Eisenhower sharply curbing state department plans for a big increase in foreign Aid sent con Gress a $3.0 billion Aid spending budget up $250 million from this fiscal wealthy nations must and Ike hints . Eyeing troop shift in Europe Washington the United states is considering some changes in the deployment of its troops in Western Europe presi Dent Eisenhower hinted. In his annual budget message to Congress however he promised the United states will continue to provide a fully effective Strate Gic deterrent Force and Wilt con tribute to the Forward deployed forces of in a Section of the message Deal ing with nato the president noted that evolutionary change sin warfare that have taken place Over the last decade have had profound effect on the military plans and programs of the Nort Atlantic treaty nato plans Are being reviewed and studied to take account of new weapons organization and More direct channels of command. J it is expected that the revise military plans for nato will recognize the changes that have taken he said. Will do More to carry the Aid Bur Den he said. He also proposed immediate supplemental appropriations in the current fiscal year of $500 Millionth launch the new latin american economic development officials said that last budget president Eisenhower anti Edthe incoming Kennedy administration record peacetime $803 billion budget. A photo under the new buy american policy in the Aid program nil but about $600 million of the Annu Alaid spending will go for . Arms goods and services. And some of the Money spent abroad will come Back to the United states in com Mer Clyl buying or. Eisenhower held his military id Money request to $1.8 billion the same amount Congress gave him this fiscal year. He estimated actual arms Aid spending of $1.7billion for More than 40 nations a $50 million increase from this year s estimate. He projected a $200 million boosting economic Aid spending. His major new economic Aid fun requests compared in Par in these with the amount actually appropriated follow development loan fund 5700million 1550 million. Defense support financial Hel to economically weak alliess6s50 million $610 million. Special Nasals Lance financial Hel to non shies $298 million $230 million. Technical cooperation Point four11$203 million 5150 minion. Or. Eisenhower also called for Long Range rather than year to year appropriation of economic Aid funds. Relaxation of the Battle act to permit the next administration to extend Aid quickly to countries endeavouring to reduce their depend ence on the soviet authorization for . Member ship in the new organization for economic cooperation and development warns against government by credit card a capsule summary of major proposals cup Here to major proposals in Shower s Federal 1963. Maintain income Cor a de taxes at increase gasoline cent a gallon raise by More than $800 billion up $1.9with most of Tutor defense. Ted Revenue of leave surplus of reduction. Butyl on Congress rates and aviation Nile gasoline taxes. Shore $436.83 a tour if Dott to j4mjss. Avo old oot works out fast my Ilion Popats Totoa next of fiscal inc. Higher fori child coat of the Federal spend fj.1t i it about Millionth Chare the but these of Lott higher. And on us Economy , government could go into red. Outlook despite leveling Outin economic activity in recent months or. Eisenhower foresees Good year in 1961, predicts production and income will Rise to new parting advice or. Eisenhower warned his successor against government by credit admonished that government must live within its Means not try to satisfy All demands at the same otherwise he said red in spending Wilt gravely weaken the nation s Basic strength. Fact to remember president elect John f. Kennedy will Send Congress his own spending propos als which May add up to extensive revision of the Eisenhower budget. Defense outlays for National Security. Including armed forces for eign military Aid and atomic Energy. Increased by $1,5 billion to total of $47.4 billion. Regular armed forces remain at present strength. National guard reduced in size heavy emphasis on missile funds sought for five new Polaris sub marines. Space$200 million boost i spending on space projects. Including Effort to put a Man in orbit this year and to and probes to the Vicinity of Mars and Venus in 1952. Foreign economic Aid up $130million to $1.6 billion emphasis on Long Range development Loans to african and latin american coun tries. Farm program unrealistic Price support Law will boost farm spending by $165 million to a total of $5.1 billion. Veterans benefits will Cost $5,3billion, up ?69 million from this year. About half of world War veterans Over 65 will be receiving pensions by end of i9g2, Many Forton service connected ailments. Health government will spend$1,1 billion to support research on cancer heart disease other major illnesses and otherwise to promote Public health. Outlays for health have doubled in past five years. Education no new programs of Federal Aid recommended. Natural resource record spending of $1.2 billion for water projects increases for National Parks. Welfare $2.3 billion earmarked for Public assistance to aged Blind dependent children other needy. Extension of unemployment insurance to employees of Small firm recommended. new Cabinet department of transportation pro posed. Cuts in Federal subsidies to airlines. Gasoline tax boost Nec Essary to keep interstate Highway program on a self paying basis. Government con Gross should give Kennedy author Ity to reorganize government Agen cies for greater efficiency recommended Kennedy consider establishing a new office of executive management and a super Cabinet official called first Secretary of government to handle top level coordination in executive Branch. Also urged new office building to provide More House staff. Space or White tune Well spent Washington a do you have trouble visualizing a billion dollars to spend nearly $81 bit of president budget would require spending at the rate of $81 a minute throughout almost the entire Christian Era. Lon the amount Eisenhower s 1962 furthermore he said local governments should relieve Uncle Sam of More of the Burden of financing such things As Hood control and Urban renewal he said users of Federal serv ices should foot a bigger Shore of inv Biu. These proposals were a key Parton the president s prescription for keeping the Federal government out of the red and building up a surplus during goof were outlined in his last budget message to Congress., Congress last year ignored Simi Lar Eisenhower the proposal get any More attention this year will de Pend on the stand taken by John f. Kennedy who moves into the White House next Friday. Or. Eisenhower s budget Mes Sage recommended that Congress enact by april 1 legislation to provide an increase of $843 million a y e a r in postal revenues. Or Eisenhower said this was Necef Ary to keep the Treasury out of he red in the current fiscal year and to eliminate the Post office deficit in the next fiscal year Start ing july 1. He. Did t aay How con Gress should parcel out the rat increases which Overall would amount to More than 20 per he said that unless Congress voted the increases in the next 74days, the projected $74 million budget surplus for this fiscal Yea would evaporate. Gasoline tax instead of letting the 4-cent-a gallon Federal tax on gasoline drop to 3 cents on july i. As scheduled or. Eisenhower recommended to be boosted to 4& cents. This would raise about $780 million More inthe next fiscal year and would be earmarked for Highway construction. Impose close to $100 million year in levies on Jet fuels and authorize the air lines to pass the Cost on to customers in higher fares. Aviation gasoline and Jet fuels would both be taxed 4 i cents a gallon. Theta now is 2 cents a gallon on Avia Tion gasoline. There is no Jet fuel tax. Or. Eisenhower said users should pay More of the $600 million year Federal Cost of operating the airways users of Federal serv ices to pay More. Or. Eisenhower said would take some of the Drain off the Treasury. He termed this a saving to the general taxpayer but did not say when this could be translated into a reduction to Gen eral taxes. By adhering to sound fiscal poli cies he said. It eventually willbe possible to provide a tax Cut. In the meantime in the meantime the president told Congress it should postpone for another year tax reductions scheduled for july 1 incorporation profits and on liquor Beer wines cigarettes passenger automobiles and Auto parts travel and local Telephone Calls. These reductions if permitted to take effect would lose $3.7 billion a Yearin Revenue. Tighten up tax Laws governing co operatives to insure that either a Coop or its members pay taxes on its income. Review t a x deductions business for depreciation allowances. Liberalized depreciation allowances would Benefit the. Economy As Well As businessmen or. Eisenhower said. . To buy $2 billion in foreign currencies Washington a the United states expects to buy nearly $2 billion in foreign currencies i fiscal 1962, president Eisenhower s proposed budget budget said . Government agencies will require about $23 Bil lion in foreign currencies and that the Treasury has a total of about$1.1 billion available. However the budget said Les than $200 million of this amount con be used to meet regular need because the availability of Curren cies does not match the needs Ona country by country basis and her cause there still remain restrictions on some of the currencies which limit their use to special programs almost $2 billion of foreign currencies will need to be purchased commercially by our disbursing officers abroad r. "