THE EISENHOWER PROGRAM

After President Eisenhower and G.O.P. congressional leaders completed three days of conferences at the White House last week, the broad outlines of the Administration's legislative program were fairly clear. Main features:

Federal Spending: Having reduced the last Truman budget by $6.5 billion, the Eisenhower Administration will cut another $6 billion, go to Congress with an overall spending program of about $67 billion for fiscal 1955 (beginning next July). Income is expected to be $64 billion, leaving a bookkeeping deficit of $3 billion. The deficit will be caused by funds committed in previous years to be paid out next year.

Military: The new military program (TIME, Dec. 21) will be based on the new weapons of the atomic air age, thus will open the way to better defense at less cost. It calls for a cut in spending from $43 billion this fiscal year to $38 billion next year.

Taxes: Individual income taxes will be reduced about 10% on Jan. 1, as scheduled, and the excess-profits tax on corporations will expire. The Administration will ask Congress to cancel a 5% reduction in regular corporation taxes scheduled for April 1, and will propose a greatly expanded list of lower excise taxes to replace the present high taxes on a smaller number of items, e.g., purses and luggage.

Agriculture: The Department of Agriculture is expected to propose flexible price supports and a two-price system, aimed at giving the farmer parity for products used in the U.S. while surpluses are sold abroad at prevailing world market prices.

Debt Limit: Burdened by expenditures authorized in previous years, the Administration will request an increase from $275 billion to $290 billion in the debt limit.

Taft-Hartley Law: No change will be proposed in the broad principle of the law, but the President will ask for changes in details.

Foreign Aid: The Administration will propose expenditure of $4 billion next year, $2 billion less than this year.

World Trade: Still strong for a broadened foreign trade program, the President may not push this year for more than continuation of the present program.

Social Security & Welfare: The Administration will propose an increase in the minimum wage (now 75-c- an hour), but will leave the figure up to Congress (where there is considerable support for a $1 minimum). It will propose that social security be broadened to cover an additional 10.5 million, including doctors, lawyers, city and county employees.

Housing: The Administration will offer proposals to expand FHA mortgage terms (lower down payments, longer to pay) on low-cost houses.

Internal Security: To strengthen the Internal Security Act, the Administration will propose that the Justice Department be authorized to 1) use wiretap evidence in security cases, and 2) force witnesses to testify about the acts of others in security cases by granting immunity from self-incrimination (TIME, Oct. 26).

Hawaii & Alaska: Statehood will be proposed for Hawaii but not for Alaska.

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