Burlington weekly free press. [volume] (Burlington, Vt.) 1866-1928, 1915-12-16
M'ADOOS SUGGESTS
RADICAL CHANGES
IN INCOME TAXES
Treasurer's Annual Report Rec.
Ommends Taxing Married
Persons Incomes as
Low AS $4,000.

Washington, Dec. S.-Radical changes in
the income tax to reach thousands not now
subject to it's provisions and to improve
the machinery Of collection were suggest
ed to Congress to-day in the annual re-
port of Secretary McAdoo as means by
which tho greater part OF the additional
revenue needed to pay for the adminis-
tration national defense plans can be pro-
vided. The secretary proposed to lower
the exemption limits so as to tax married
persons with incomes as low as 5000, and
single persons with 5000 incomes. h
exemptions now are 1900 and 5000 re-
spectively.
Increase in the collection force, a 70.
quirement that returns must be made OF
gross income In place of net income. and
n change so that the tax shall not be
withheld at the source, were among Nv.
McAdoo's other suggestions. He made no
estimate of the number of persons who
might he taxed if the amendments were
adopted nor the amount that might be
expected, but in connection with his re-
quest for a larger collection force he point.
ed out that examination OF the past per-
sonal and corporation returns showed that
63 per cent. Of those inspected disclosed
that additional tax was due the govern
ment. On the basis of the examinations,
the secretary says that apparently mora
than A.6c0,nO in personal tax and more
than S20,S9I, 90 in corporation tax still Is
due the government.
MANY inaccurate returns are made"
said the report, some deliberately and
come ignorantly. and there are without
dOnht. WhnlpSn1a eyaQj0ps rf tho J,o,
throughout the country. 1t is absolutely
certain that the government is losing
through inaccurate returns and evasions
of the law a sum many times greater than
the cost of the necessary field force to in
vestigate and check the returns and to
bring to account those who are failing to
make returns as required by law"
In keeping with his recent announces.
ment Mr.. Mc-Adoo suggested the present
stamp tax and the existing duty on raw
sugar should be retained in force and said
again that no Issue OF bonds is necessary
either to provide for current expenses or
IN anticipation OF added burdens incident
to a policy OF military preparedness.
THE policy of providing for the ex-
pendltures OF the government by taxation
and not by bond issue" said the report.
is undoubtedly a sound one. and should
be adhered to. a nation no more than an
individual. can &c constantly into debt
Tor current expenditures without event.
ually impairing credit. A wise. sound and
permanent policy of raising the additional
revenue required for Preparedness and tho
expenditures OF the government should
therefore be devised and adopted"
Mr.. McAdoo expressed the belief that
with a return of peace in Europe GUS
toms receipts which fell Off 5000. 900
in the last year will increase and that
the legislation suggested, with a pro-
vision to make the surtax of the In
come tax law applicable at $40. 900 In
stead of 100000. the whole or part of
the additional revenues can be raised.
Taxes on gasoline. crude and refined
oils, horsepower of automobiles and
various other things are suggested
as further revenue raising measures.
The total estimated appropriations
for the fiscal year which begins July
1 next Mr.. McAdoo puts at s1.2s5.-
S67.SOs. including 1916. 364.s79 for the
postoffice. which is reimbursable, and
about Q 100000 0O more for the Pam
anna canal and sinking fund. Re-
ceipts for the same year based on ex.
listing law without extension of the
sugar duty or the emergency tax, Mr..
McAdoo puts at $3.50. 200, 900 and orr
binary disbursements at $500, sol, 900,
leaving an excess OF disbursements
over receipts if legislation is not
passed to change conditions. of $751;
100000. AS explained in his recent
statement. however. that amount
would be reduced to about $50. 00O,-
600 by the extension Of the emergency
and sugar tax laws.
Secretary McAdoo's report says tho
people Of the United States have rea-
son to congratulate themselves on the
financial and business condition OF
the country after the serious situa-
ton which confronted them a year
ago.
The European war produced inevitable
suffering in this country as we'll as in
Europe said the secretary. Our in
dustrial situation was. for a time. SER
iously hurt. and the cotton growing
States Of the South sustained heavy losses
through declines In the price OF cotton.
Every power of the government was
exerted to mitigate the situation and I
believe 1t is not inexact to say that but
Tor the active agency of the government
In protecting and conserving the busi-
ness interests OF the country during thai
critical period grave disaster would have
resulted.
1T is a pleasure to acknowledge that
the efforts of the governments were
seconded and supported by the earnest
and patriotic cooperation OF the BUSH
ness interests of the country. During thu
year there has been a steady, healthy,
forward movement in every line OF
activity, until now prosperity has been
firmly established throughout the coun-
try"
Mr.. McAdoo included letters from mer.
camille agencies to support his statement,
and quoted figures on railroad and other
business operations to show increased
activities,
The financial situation Of this coun.
try he continued. has never been SD
strong and favorable as now. Our
financial resources are the greatest in
our history. and our banking system.
through the creation OF the federal
reserve system. is now the strongest in
the world. In every respect the economic
and financial condition of the country ia
extraordinarily sound 1t is greater than
mat OF any other nation and II We use
our resources and our opportunities IN
telligently and wisely. We shall establish
the prosperity of this nation upon an
impregnable foundation for many wear,
to come"
In that connection the secretary's "a.
port showed the stock of gold In cha