European Stars and Stripes (Newspaper) - January 16, 1969, Darmstadt, Hesse                              Thur Totey january 16, 1969 the stars and stripes Pfulg 5  highlights  1970 budget i a Yai = Washington up High lights of president Johnson final budget covering the 1970 fiscal year beginning next july i taxes recommended one year Extension of 10 per Cen tax surcharge on individual and corporation income taxes no due to expire june 30, with proviso that incoming president Richard m. Nixon could remove or reduce it at any time i Vietnam peace should reduce government costs. Also pro posed Extension of present 7 per cent excise tax on autos an Telephone service an increase in first class postal rate from 6to 7 cents with airmail category abandoned higher taxes on truck fuel and airline tickets and higher social Security taxes effective Jan. 1, 1970. Revenues if Congress accepts All his tax proposals a very big if government revenues for fiscal 1970 would Rise to an estimated $198.7billion, up $12.6 billion from current year. But the propose tax extensions and increases would represent $12.1 billion of this total. Spending estimated at$195.3 billion an increase of $11.6 billion Over current year and the highest spending figure in  or deficit a budget surplus of $3.4 billion i projected if Congress approves All his tax proposals. If i should reject All of them there would be a deficit of $8.7  the Prospect of a balanced budget hinges on 1 tax hikes 2 spending cuts or 3 a combination of  expected de Esca lation of Vietnam War reflected in budget forecast that War costs will decline from $28.8 billion in current fiscal year to$25.4 billion in the 12 months beginning july 1. Johnson said he was optimistic about the Paris peace talks but budget i based on Assumption War will  renewed his plea spurned by Congress last year for a fair selective service Law under which Young me would be chosen for the draft by a random lottery  outlay of $81.5 billion up $500 million fro current year comprises 41 per cent of total budget. Provision made for increased missile deployment three new nuclear submarines of a very fast Type expanded procurement of helicopters for ground support development of a new High performance air Force fighter to be designated the f15. Space spending pegged at$3.9 billion Down $300 million from current year. Budget provides funds to prepare for further manned exploration of Moon after the first Apollo Landing scheduled this  of nuclear pow ered space rocket engine to get under Way in 1970. Social Security recommended 13 per cent Overall increase in social Security benefits effective next Jan. 1, with a 45 per cent boost for the2 million aged now receiving the minimum Benefit of $80 month. Would be financed by increase in combined employer employee payroll tax from 9.6 to 10.4 per cent and increase i taxable wage base from $7,800 to $9,000 a year As of next Jan. 1. President forecasts $3.4-billion budget surplus continued from Page 1 adjusted for Price increases creation of 10 million More jobs and a $24-billion Rise in corporate profits after  Price rises but Johnson said recent Sharp Price rises underscored the need for a stronger Effort to control inflation. He said this was one important reason for his proposal to continue the surtax. The other he said was uncertainty Over the Vietnam War. Though expressing Hope that the Paris talks will bring peace Johnson said it was still Neces sary to provide funds to continue the War through the next year. Still his proposed outlay of$25.7 billion for Vietnam in Fis Cal 1970 was a reduction of $3.5billion from the current year. Should the War taper off Sud Denly Johnson said it might be possible to make a different decision on the surtax. He recommended that president elect Richard m. Nixon be Given Power to eliminate it or reduce it a developments warrant subject to a congressional  budget sent to the Capitol wednesday covers the 12 month beginning july 1. The figures and programs finally agreed upon will be the result of negotiations Between a Congress controlled by Johnson s democratic party and officials of the Republican administration which takes of fice  could submit Broad new budget recommendations or could Content himself with piece meal suggestions for  benefits in addition to recommending bigger social Security benefits Johnson proposed that medicare be extended to 2 million disabled persons that an addition Al $2 billion be put into the state run medicaid program of health care for indigent families that unemployment compensation payments be in creased both in weekly amount and duration and that new health Protection be Given Low income families starting with prenatal care for a Mother through Complete medical serv ices during the first year of he child s life. His proposal for a 13 per Cen average boost in social Security would include a Basic 10 percent increase for All 25 million americans now on the Rolls alike in the present $55 monthly minimum payment to $80 cover ing 2 million beneficiaries and a $100 minimum for individual who have paid social Security taxes at least 20  finance this the president recommended raising the present $7,800 taxable wage base to $9,000 and advancing Byone year to Jan. 1, 1970, the next scheduled jump in the pay Roll tax rate from 4.8 per cent each for employer and employ Eto 5.2 per cent. Great improvement Johnson s budget figures showed a great improvement inthe government s financial Pic Ture for the current year fiscal1969, As Well As the next. A year ago he estimated an $8billion deficit for 1969, but his new budget projects a $2.4-Bil-lion surplus As Well As the $3.4 billion surplus for 1970. Part of this resulted from booming Economy which led to higher incomes and thus higher income tax yields than originally forecast and part from the $6billion Cut in Federal spending ordered by Congress when i passed the surtax. Johnson emphasized his belie that the Extension of the surtax was essential for a balance budget in the next year. He said its continuation along with Extension of present excise tax rates on autos and Telephone service would bring in an Addi weathermen to be Given More funds Washington up bet Ter weather forecasts Are promised by president John son s fiscal 1970 budget. It provides for a $19-Millionincrease in spending by the environmental science service administration Essa for improvements in Public an aviation weather services particularly in the dissemination of forecasts and  the increase would bring total spending by Essa to $194 million a year. Tonal $9.5 billion in 1970.actually, the surtax will yield considerably More Revenue than that in 1970 because $4.7 billion will be collected by the treas Ury in that year from surtax levies chargeable to income earned before this june 30 but not actually paid until after july1. Scheduled to drop the 10 per cent Telephone excise and the 7 per cent Auto Levy Are scheduled to drop to 5 per cent each Jan. 1, 1970. Johnson recommended that the present rates be kept for another  renewed a previous recommendation for various transportation user taxes to bring in an additional $400 million a  of these would raise the air passenger ticket tax from 5 to 7per cent. Johnson said the higher social Security taxes would yield an extra $1.7 billion in Revenue. But this would be offset almost exactly by the $1.6 billion his pro posed Benefit increases would Cost in 1970.even though he projected smaller outlays for Vietnam inthe year ahead the president included in his budget a slightly increased Overall defense total $81.5 billion for 1970 As com pared with $81 billion in the present  military spending would account for More than 41 percent of his budget. Uncontrollable item sin explaining the $11.6-billion increase in the spending total projected for the next year As compared with fiscal 1969, John son said he faced Many uncontrollable items in drawing up the budget. He listed $8.6 billion of such items including $2.9 billion for payments under social Security medicare and other social insurance pro Grams As More people become eligible for benefits and Cost Rise. $2.8 billion for a pay in crease previously promised fed eral employees. $1.6 billion for relatively fixed charges such As interest on the Federal debt Veteran benefits and Public assistance. -$1.3 billion for outlays Aris ing out of prior year contracts for such things As highways de emphasis due on safety of the Pill Washington up apart of its consumer Protection p r o g r a in the Federal govern ment during the coming fiscal year will give special attention to the safety of Oral contraceptives the special emphasis was noted a president Johnson s fiscal 1970 budget message to Congress. He gave no details of How Uncle Sam plans to police the  spending on consumer Protection which includes Al activities designed to insure purity and safety of foods drugs pesticides and household products would Cost about $51million if Congress goes along. Cation facilities and health and Community development programs. Minimum requirements As in previous budgets John son insisted the amount he was recommending represents our minimum requirements to fill urgent needs at Home and  Are focused on urgent National problems inadequate educational opportunities slum housing increased crime Urban congestion and decay pollution of our air and water Lack of proper health care and hunger and malnutrition he said. Johnson said he carried out fully the $6-billion expenditure Cut which the 1968 Congress or dered him to make. Actually he reported pro Grams covered by the Law were slashed $8.4 billion. But item snot covered chiefly the Viet namese War increased in costly $6 billion Over his estimates of a year ago he , he said there was a net saving of $2.4 billion and his$186.1-billion spending figure submitted in january 1968 for fiscal 1969 now is reduced to $183.7  said a cutback in fed eral employees to june 1966 lev Els ordered in the same Law was not workable. He suggested that it be repealed. Other highlights in other budget highlights the president recommended that the president be give permanent authority subject to congressional veto to raise or lower individual and corporate income taxes by some such Fig-1ure As 5 per cent. J that a new corporate form be set up to try to improve operations of the Post office depart ment in line with recommendations of a special commission which investigated the Agency. That the office of economic Opportunity the Antipoverty \ Agency be extended two More years. That an Urban development Bank be established to provide financing for Public facilities inward pressed cities. That the office of equal employment Opportunity be Given Power to Issue orders against Job discrimination. That a lottery system be instituted in the military draft. That a $1.6-billion supple mental Money Bill be passed soon by Congress for the de sense department in the current year chiefly to pay for higher Vietnam War costs. That $900 million be allocated to various crime control pro Grams now operated by the fed eral government. Postal proposed the abolition of airmail rates with a one cent increase in rate for first class mail most of which now moves by air anyway. Heals urged enactment of Legisla Tion proposed by a presidential commission last year to change Post office department into nonprofit corporation. Cities urged establishment of a government assisted Urban development Bank to Hel meet financial needs of cities. Also sought $750 million for continuation of Model cities program in fiscal 1970. Crime recommended out Lay of $206 million an increase of $165 million to help cities and states fight crime. Said Congress As urgent next step should provide for Federal registration and licensing of guns. Housing Federal outlay would Rise $459 million to $2.8 billion with most of increase going into More housing for Low and Middle income families. Health Cost of Federal health programs estimated at $13 billion up $1.6 billion fro current year with most of Rise attributed to increased spending for medicare and medicaid. Proposed Extension of medicare to 2 million disabled persons under 65. Civil rights Justice department s civil rights division would get an increase of s24million to a total of $110 million to step up attack on Job and school discrimination in Northern cities and expand negro voter registration surveil Lance in  audits internal Rev Enue service budget would be boosted by $47 million to provide for 9 per cent increase in number of tax returns subjected to  safety government would spend $947 million increase of $74 million Over this year to make airways  for about 4,000 new air traffic controllers and new automated equipment. Highways spending would increase $729 million to $4.9 billion to Speed construction of interstate and Urban roads. Farm outlay of $5.1 billion Down $267 million projected for Price supports and other aids to Farmers. Veterans benefits would Cost $7.7 billion about same As current  on debt higher interest rates will Send total Tab up $800 million to $16.9 billion. Foreign Aid requested $2billion, Down $120 million from current year and lowest figure since Aid program launched after world War ii. Nearly one fourth of total earmarked for reconstruction in  total outlay of $5.3 billion up $459 million. Denoted that Federal government once a minor Factor in school finance would be paying about 14 per cent of nation s total educational costs in coming fiscal year and providing 23 percent of All funds expended on College and University Educa Tion. Stewardship Johnson said the nation has made an impressive record in handling Domestic problems since he took office 5 years ago. I that time government spending on social programs has More than doubled Aid to education has More than tripled health outlays have increased four fold and Federal funds for Job training five fold. Johnson said he is leaving to his successor government that is solvent a government that is