Possible Course: No Deficit

There is no sense in debating whether an income-tax cut or a balanced budget should come first, the U.S. Chamber of Commerce said last week. The two "should go hand in hand." To achieve this happy combination, the chamber proposed that the $9.9 billion deficit in the budget submitted last January by Harry Truman can be wiped out as follows:

P: Since they are just bookkeeping items anyway, take out of the budget the $1 billion in interest the Government pays itself on bonds held by its own agencies and the $2.3 billion it allocates to its own trust funds.

P: Assume that Truman underestimated revenues for the coming year by $1.5 billion.

P: Limit foreign-aid spending to $5 billion, instead of the $7.6 billion proposed by Truman.

P: Chop $2.2 billion off Truman's requests for civilian agencies.

P: Trim a piddling $300 million off the military budget.

Presto! No deficit, and any further cuts in the military budget can be used to reduce taxes.

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