Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-12-09
EMERGENCY TAX
UNTIL WARS end


mendations. He suggests to Congress
that the war revenue tax law should
not expire December 81 1915, but that
/ its operation should be extended until
| the end of the European war, by
proclame ton of the President.
Discussing the income tax law the
secretary advocates a change in the
law so that persons having gross
income of $4,000 be required to make
return instead of those persons with
a net income of that amount or over
Suggests Income Tax Amendment.
"Such an amendment" he says,
would mplify the administration or
thu law, assure more complete returns
and mat Tally increase the income
tax revenue, and save an immense
amount of expense to which the gov
eminent is now subjected in main
tanning sufficient corps OF inspectors
and investigators to hunt out the peo-
pie who have failed to make returns.
| He recommends also the repeal OF the
provision by which taxes do not ac-
crue until ten days after the close of
the fiscal year and would make them
accrue July each year.
Although the law did not produce
the revenue expected, the secretary
says, it has proved satisfactory and
explains the administration OF law
of that character has many obstacles
to overcome at the outset and that
folk are unaccustomed and must be
educated to it.
Taking the tables of returns. Mr..
McAdoo infers that there must be
many who failed to pay the tax.
ut is clear" says he. that there
were thousands of persons who failed
altogether to make return as re-
: quired by law The remedy for this.
of course, is to have the collectors OF
internal revenue in each disrr ct make
an assessment upon those who, in the
opinion of the collector, are liable to
the tax, and, in addition, to make
such Investigations as may be neces-
sary to determine who in each dis
trict have failed to make proper re-
turns. The experience of the depart
ment shows that many erroneous and
faulty returns have been made. The
work of discovering such cases, he
adds, is being pushed forward with
all possible rapidity.
1.-The collection of revenue for the
fiscal year ended June 30, 1914" says
Mr.. McAdoo, Show the success of
this tariff act of october 8, 1913, as a
revenue measure" He goes on to
show that this act was estimated as
the producer of 1910 100000 in its first
year, and that there was actually col
'ected 1922. 320,o14. That, however, in
Guided nine months under the new
law and three months under the
Payne Aldrich law. He shows that
the total raised under the new law,
with it's corporation and income tax
features, was 1868, 701 ,2S9, or S9,S03,593
in excess of the previous years re-
ceipts under the preceding revenue
measure.
How War Affected Revenue.
1.-THE European war;" said the Sec
rotary, seriously affected the rev.
enues of the government from i'm
ports. The revenue from customs
for October, 1914. was $16,271 S29. and
for October, 1918, it was $50. 13S, 049,
a decrease of 1886, 220. The re-
duction is solely due to the falling
off In importations. The estimate
made by the department Indicated
yearly decrease of between S60,O00,-
900 and s100,000,000. 1t is obvious that
these estimates cannot be accurate
as no one can forecast the course of
events while the titanic struggle in
Europe is in progress. To keep the
treasury in strong condition in these
abnormal times was obviously the
first duty of the hour. Upon Ii largely
depended the safety of business and
finance in this country"
Mr.. McAdoo again recommends TO
Congress the consolidation of the
revenue cutter and life saving SER
vices, to bear the name coast guard
service" He urges the building of
two more revenue cutters and the
appropriation for a leprosarium for
the use of the public health service.
He announced that the treasury de-
partment is making study of the
facilities of the parcels post in the
transportation of money and securi-
ties between the treasury. sub-treas-
uries and banks. He points out that
the total payments for such service
tn express companies during the last
three years have averaged 1915, 900 and
expresses the hope that pan for
| the use of the mails of their use In
| conjunction with the express COM
panies can be worked out to affect q
| large saving and also to insure a
much faster delivery service. He
| asks Congress once more to give him
a CONTINGENT fund of $4,000 TO make
effective investigations. eradicatine
abuses, etc. Summaries of reports o.
his bureau chiefs are included in tht
report. United States Treasurer Johr
Burke advises the authorization of {
SIS gold certificate. The revenue cut
ter service asks for cutter for us'
near the Panama canal zone. Secre
tary McAdoo noints out that the Fed
eral Reserve Board will make {
separate report.
Receipts and Disbursements.
Secretary McAdoo estimates the re
ceipts of the government for the MS
cal year 1915, ending June 30, a
s72S. 900, 900, including $220,000,000 from
customs and $54,000.000 from thu
emergency war tax. Exclusive of tn
Panama canal. he places disburse
ments at $710.000,000 for the curren
year. Counting upon S2S,OOO,00O 10
the canal out of the treasury's gen
eral fund, he places the excess o
disbursements at $10,000,0OO.
For the fiscal year which ends jun
30, 1916, Mr.. McAdoo says he expect
receipts amounting to S735,0OO,OOO
with customs bringing $240,OO0,0 600 an,
the emergency war tax $44,0O0,0ot
The secretary places ordinary ex
penditures for that year at $713,765,
los, with $19,000,000 additional for tn
Panama canal, leaving slight sur
plus.
In his estimates Mr.. McAdoo put
the return from the income tax TO
the current fiscal year at 9S0,O0OO00
SAC, 00O, 900 each from individuals an
corporations. For 1916 he expects tn
same tax to produce $s5.OOO00O, hal
to be paid by individuals and hal
by corporations.