Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-06-29
Underwood Attacks All Talked
Of Deficit Caused by Income
Tax Failing to Bring as Much
Revenue as Expected
SUPPORTS AMENDMENT TO
SENATE APPROPRIATION
Customs Receipts to Show a
S22,000,000 Balance Above the
Estimat e-Expects More
From Income Tax Next Year

WASHINGTON. June 2S.-Fortified with
official figures from the treasury de-
partment, Democratic Leader Under
wood told the House Saturday there
would be no deficit in government
finances and that any prediction OF
one was a dream, based on wishes
springing from political antagonism.
In an analysis of the government 8
financial situation, he announced that
the total receipts for the fiscal year
ending next Tuesday would aggregate
S733, 000, 900, leaving a surplus of $780,
100000 and that with only half
years operation of the income tax.
That did not include Panama canal
expenditures, estimated at s35,000,000.
Next year, he declared, Panama ex-
penditures would practically pass
away, and the canal receipts would
pay running expenses.
Mr.. Underwoods speech was in sup
port of the Senate amendment to the
legislative appropriation bill to an
crease the treasury fund for collect
ing the income tax from 81 900 to
slS,5o0,0o0, which the House finally
agreed to. Mr.. Underwood explained
that the increase was for collection
of the income tax from persons and
corporations trying to evade it.
For next year." he predicted. I'VE
can be assured of collecting more than
100000. 900 from the income tax, even
If no more proportionately is collected
than was collected this year and more
proportionately will be collected
Mr.. Underwood said customs re-
ceipts were producing in the current
year s22,000,000 more than the Ad-
ministration had expected and that
the Treasury Department reported to
him these figures of the total reve-
nues for the current year just ending:
Income an corporation tax, $4,000, 900,
which had been estimated at s95,00o,-
900.
Internal revenue, s3oa, 900. 900, esti-
mated at 1912, 100000.
Customs receipts, s292,0o0,000, esti-
mated at s27o,0o0,0 600.
Miscellaneous receipts, s57,ooo,00o,
estimated at s59,000,000.
There will be no falling off in the
income tax receipts next year" he
said. "A large proportion of the in
come aecrues and is payable in jan
uary and February of the year, but
the income tax became operative as to
the normal tax in March and as to
the supertax or additional tax, not I'M
til the bill became a law in October.
Probably one-half of the dividends
and coupon interest on bonds are pay
able in January and February of each
year, and of,course they are not in
cluded in this years returns of the
income tax So it is fair to say that
only one-half of the year has been
available in which to collect the in
come tax.
Il think the corporation tax this
year will show an increase of about
$4,000, 900 or s5,000,0o0 over the last
year of the Payne bill" continued Mr..
Underwood.
That may be due to its natural
growth, but to a large extent to the
fact that we have cut out of the cor
poration tax the exemption of $4,000
and required all corporations to make
a return"
Representative Payne of New York,
author of the last Republican Tariff
law commended that the Republicans
should have been credited some of the
receipts of the current year, as the
reduction in the tariff rates under the
Underwood bill did not cover the en-
tire fiscal year.