The Hawaiian gazette., 1915-12-17
TARIFF ON SUGAR
IMPORTANT ITEM
FOR MORE MONEY
Secretary M'Adoo, IN Annual Re-
portIeIls How To Increase
National Revenue
g.
ADDITIONAL TAXATION
INCLUDED IN PROGRAM
No Issue Of Bonds Necessary To
hMeet Expense incident 4.
To Preparedness
nv Associated Press. J

WASHINGTON, December s.-Radi.
cal changes in the income tax to reach
thousands not now subject to its pro-
visions and to improve the machinery
of collection were suggested to CON
gress today in the annual report of Sec
cretary McAdoo rs means by which
the greater part of the additional rev.
enue needed to pay for the administra-
tion national defense plans can be pro
vided. The secretary proposed to low
er the exemption limits so as to tax
married persons with incomes as low
as $4,000, and single persons with $1,000
incomes. The exemptions now are a.
600 and $4,000 respectively.
Increases in the collection force, a
requirement that returns must be made
of gross income in place of net income,
and a change so that the tax shall not
be withheld at the source, were among
Mr.. McAdOO s other suggestions. He
made no estimate of the number of
persons who might be taxed If the
amendments were adopted nor the
amOunt that might be expected, but in
connection with his request for a lar.
MI tOilNNblOh HOlhttu Oul NHdl
examination of the past personal and
corporation returns showed that So per
cent of those inspected disclosed that
additional tax was due the government.
On the basis of the examinations, the
secretary says that apparently more
than $4,600,000 in personal tax and
more than $20,s91, 900 in corporation
tax still is due the government.
Inaccurate Returns Made
MANY inaccurate returns were
made" said the report, "some DELHI
erately and some ignOrantly, and there
are without doubt, Wholesale evasions
of the law throughout the country. 1t
is absolutely certain that the Govern
ment is losing through inaccurate re-
turns and evasions of the law a sum
many times greater than the cost of the
necessary field force to investigate and
check the returns and to bring to ac-
count those who are failing to make re-
turns as required by law"
In keeping with his recent announce
ment Mr.. McAdoo suggested the pres
ent stamp tax and the existing duty on
raw sugar should be retained in force
and said again that no issue of bonds
10 necessary either to provide for cur
rent expenses or in anticipation of
added burdens incident to a policy of
military preparedness.
"The policy of providing for the ex.
penditures of the government by tax
alton and not by bond issues said the
report, ais undoubtedly a sound one
and should be adhered to. A nation no
more than an individual, can go con-
stantly into debt, for current expendi-
lures without eventually impairing
credit. A wise, sound and permanent
policy of raising the additional revenue
required for preparedness and the ex-
penditures of the Government should
therefore be devised and adopted. "
Increase Expected After War
Mr.. McAdOo expressed the belief
that with a return of peace in Europe
customs receipts which fell off $40, 000,-
900 in the last year will increase and
that the legislation suggested, with n
provision to make the surtax of the in
come tax law applicable at 10000 in
stead of $4,000, 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.
TIE total estimated appropriations
for the fiscal year which begins July !,
next Mr.. McAdoo puts at 81 ,2S5, S57 sos
including $3l6,S64,S $40 for the postoffire
which is reimbursable and about 800
000, 900 more for the Panama Canal and
sinking fund. Receipts for the same
year based on existing law without