Federal Deficits and Budget Demands
Large 1950 Deficit and Prospect of more Deficits
New Budget estimates on Nov. 1, boosting the anticipated deficit in the current fiscal year to $5.5 billion, served as a sharp reminder that the federal government, despite general business prosperity and large tax collections, is continuing to live beyond its income. Intimations from President Truman that he would seek higher taxes to overcome the deficit met a cool reception on Capitol Hill. Democratic and Republican spokesmen alike held out little hope that Congress would accede to such a request. There was wide agreement, on the contrary, that the problem of balancing the budget must be approached, not by the route of increases in taxes, but by that of decreases in government spending.