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Editorial
January 7, 1953
The Home Journal
Charlotte Amalie, Saint Thomas County, Virgin Islands
What is this article about?
The editorial warns that Republican-led federal budget cuts and income tax reductions threaten the Virgin Islands' reliance on congressional appropriations for essential services like hospitals, urging faster efforts to reclaim internal revenue taxes to secure local funding independently.
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Full Text
Where It Hurts
The Republican majority in Congress is sharpening its meat-axe for a healthy swipe at expenditures. GOP leaders are talking about trimming the budget so that it may be balanced. Every item of expenditure is due to get a thorough and critical going over. Both the Eisenhower administration and the Congressional majority are pledged to work as a team to drastically reduce spending.
We here in the Virgin Islands have every reason to be concerned about this development. We have to go before Congress each year to request deficiency appropriations. This type of direct appropriation by Congress or the operation a territorial government is unique, and has always been frowned upon by certain Congressmen. Although this appropriation has been justified and is not very difficult to defend, it is dangerous to have to rely upon Congressional whim to obtain funds to help to finance our hospital, and other institutions.
The economy movement in Congress makes it more imperative that we accelerate the drive to get back the internal revenue taxes, which would obviate the necessity of making direct appeals to Congress.
Another Congressional campaign to reduce income taxes by as much as 11 per cent is gaining momentum. Any reduction in income taxes will result in a corresponding reduction in local revenue. The Federal income tax, which we are permitted to collect and to retain, is by far the largest source of local government revenue, and a 11 per cent loss would mean either an attempt to tap some other source or to meet the deficit resulting from a reduction in expenditures.
The Republican majority in Congress is sharpening its meat-axe for a healthy swipe at expenditures. GOP leaders are talking about trimming the budget so that it may be balanced. Every item of expenditure is due to get a thorough and critical going over. Both the Eisenhower administration and the Congressional majority are pledged to work as a team to drastically reduce spending.
We here in the Virgin Islands have every reason to be concerned about this development. We have to go before Congress each year to request deficiency appropriations. This type of direct appropriation by Congress or the operation a territorial government is unique, and has always been frowned upon by certain Congressmen. Although this appropriation has been justified and is not very difficult to defend, it is dangerous to have to rely upon Congressional whim to obtain funds to help to finance our hospital, and other institutions.
The economy movement in Congress makes it more imperative that we accelerate the drive to get back the internal revenue taxes, which would obviate the necessity of making direct appeals to Congress.
Another Congressional campaign to reduce income taxes by as much as 11 per cent is gaining momentum. Any reduction in income taxes will result in a corresponding reduction in local revenue. The Federal income tax, which we are permitted to collect and to retain, is by far the largest source of local government revenue, and a 11 per cent loss would mean either an attempt to tap some other source or to meet the deficit resulting from a reduction in expenditures.
What sub-type of article is it?
Economic Policy
Taxation
What keywords are associated?
Budget Cuts
Virgin Islands Funding
Deficiency Appropriations
Internal Revenue Taxes
Income Tax Reduction
Congressional Spending
What entities or persons were involved?
Republican Majority In Congress
Eisenhower Administration
Congress
Virgin Islands
Editorial Details
Primary Topic
Federal Budget Cuts Impacting Virgin Islands Funding
Stance / Tone
Concerned And Urgent
Key Figures
Republican Majority In Congress
Eisenhower Administration
Congress
Virgin Islands
Key Arguments
Congressional Budget Trimming Threatens Deficiency Appropriations For Territorial Needs
Reliance On Congressional Whims For Hospital And Institutional Funding Is Dangerous
Accelerate Efforts To Regain Internal Revenue Taxes To Avoid Direct Appeals
Income Tax Reductions Will Cut Local Revenue From Federal Taxes
11% Tax Cut Loss Requires New Revenue Sources Or Expenditure Reductions