FISCAL: Cut & Uncut

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President Truman made crystal clear last week his devotion to a budget policy which might not please practical politicians, but would be applauded by practical fiscal experts. His dicta: no tax reductions for two years; strict economy in Government spending.

He delivered it in a message sent to all department heads by Acting Budget Director Paul Appleby: "For fiscal 1948 [begins July 1, 1947] we must plan not only for a balanced budget but for a ... reduction of the [$268,000,000,000] national debt. . . .We are on the eve of a period of high prosperity and substantially full employment. In these conditions, sizable debt reduction is nothing short of obligatory."

Thus did the Administration bring out as solid policy a compensatory fiscal program (i.e., high taxes in good years with widespread debt retirement, lower taxes in baa years with added debt if necessary). To citizens haunted by the U.S.'s massive debt and tlie inflationary influences of an unbalanced budget, it looked good. But to politicians, a compensatory fiscal program has no campaign sex appeal. By election time Congressmen may decide that a tax cut is a better campaign approach.