The Washington herald., 1915-01-29
REVENUES DROP;
ACTION LIKELY
Congress May Be Forced by
War to Pass Additional
Legislation.
SUGAR MAY NOT co FREE
McAdoo Proposes Lowering Income
Exemptons-Says There Should
Be No Fear About Treasury.

Evidences of the serious situation
caused by the falling of Of government
revenues continued to accumulate yester-
day. Prominent Democratic leaders in
Congress now are acknowledging prl-
Vately there will have to be further reve-
nue. legislation IL the war in Europe lasts
many months longer.
In fact. there no longer is any doubt in
the minds of. the most important Demo-
cratic leaders that sugar will not be per-
mitted to go on the free list on May 1,
1916, the date fixed by the Underwood
Simmons bill for the final tariff out on
this important product. One Democratic
leader on the Ways and Means Commit
tee, who already has considered this mat
ter. gave it as his conviction yesterday
that President Wilson himself would sign
a bill suspending the free sugar schedule
for period of five years, or perhaps in
definitely.
1t became known yesterday that
suggestions already have been passing
back and forth between Congress
leaders and administration officials in
regard to possible legislation for in
creasing the revenues OF the govern
ment. For one thing. the suggestion
was made to Congressional leaders that
a resolution be passed giving the
President the right in his discretion to
extend the war revenue tax law for
six months. This tax expires by law
January l. next. and 1t is apparent
that without an extra session the ad-
ministration would be in danger of be-
ing unable to extend the life of the
statute. The suggestion that such a
resolution be put through at the pres
ent session of Congress. leaving 1t dis
cretionary with the President was re-
jected by Congressional leaders. not
only because of the principle involved.
but because they feared it would be
bad politics for the party.
FavOrs Lowering Exemptions.
Another suggestion made by the ad-
ministration, and this is said to have
come from Secretary OF the Treasury
McAdOo. is that exemptions under the
income tax law be decreased from 1900
for a married and 5000 for a single per-
son to 5000 and 5000. This, of course,
would affect thousands with the lower in
comes and the suggestion was turned
down. Democrats realize an extension
of the income tax following so closely
upon the heels of the war revenue meas
ure would finish any chances the party
may have in 1915.
Secretary of the Treasury McAdoo is
sued a statement yesterday minimizing
the talk of the necessity for tariff Iegis-
lation. He said the Cabinet members
had decided the 1916 departmental esti-
mates could not be reduced. He added:
THE attempts to cause apprehension
about the condition of the Treasury rest
on no firm ground. Since the new tariff
and income tax law was passed in 1913
there is deferred until June of each fiscal
year the payment into the Treasury Of
SO, O00, 900 to $50 900, 900 OF corporation and
personal income tax. Previous TO that
time almost the total receipts Of the gov
ernment were reflected in the revenues
collected daily and shown in the daily
Treasury statement. In June, 1915, al
most the entire amount OF corporation
and personal income tax will be paid,
just as in 1914, and what appears to be
a loss in revenue in the meantime will
be overcome.
THE only uncertain element in the sit
uation is the European war, which, as
has been frequently stated. affects the
customs receipts. There Is no occasion
for unfavorable reports about the condi-
tiOn of the Treasury"