Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1915-12-09

CLAIMS MANY ARE
EVADING PAYMENT
Insists That Deficit in U. S.
Expenditures Be Made Up
By Direct Taxation

Washington, D. c., Dec. 8. Radical
changes in the income tax to reach
thousands not now subject to it's pro
OF collection were suggested to con-
gress today in the annual report OF
Secretary McAdoo as 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
$4,000 incomes. The exemptions now
are $4,000 and $4,000 respectively.
Increases in the collection force, a
requirement that returns must be
made of gross incomes in place of net
incomes, and change SO that the tax
shall not be withheld at the source,
were among Mr.. McAdoo's other sug-
gestions. He made no estimate Of the
number Of persons who might be tax
ed if the amendments were adopted
nor the amount that might be expect
ed, but In connection with his request
for larger collection force he pointed
out that examination of the past per-
sonal and corporation returns showed
that 63 per cent Of those inspected dis
closed that additional tax was due the
government. On the basis of the ex-
aminations, the secretary says that ap-
parently more than $4,6O0,00O in per-
sonal tar and more than $40, 1871 900 in
corporation tax still Is due the govern
ment. -ssA-s
Many inaccurate returns are
made" said the report, "some deliber-
ately and some ignorantly, and there
are without doubt wholesale evasiOns
is absolutely certain that the govern
ment is losing through inaccurate re-
turns and evasions Of the law sum
many times greater than the cost OF
the necessary field force to investigate
and check the returns and to bring In
to account those who are failing to
make returns as required by law
In keeping with his recent announce
ment Mr. McAdoo suggested the pre-
sent 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 q policy
Of military preparedness.
"The policy Of providing for the OK
penditures of the government by taxa
ton and not by bond issues" said the
report, 'is undoubtedly 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 expenditures of the government
should therefore be devised and
Mr.. McAdoo expressed the belief
that with return OF peace in Europe
customs receipts which fell of $685.
OO,OOO in the last year will increase
and that the legislation suggested,
with a provision to make the surtax
Of the income tax law applicable at
$40 900 instead of 100000, the whole
or part of the additional revenues can
be raised. Taxes on gasoline, crude
and refined oils, horsepower OF auto
mobiles and various other things" are
suggested as further revenue raising
measures.
The total estimated appropriations
for the fiscal year which begins July |,
next Mr.. McAdoo puts at $1,2S5, ,S57 1908
including 1915 6,364,S79 for the postof1ce
which is reimburseable and about $9O,-
300 900 more for the Panama canal
and sinking fund. Receipts for the
same year based on existing law with
out extension of the sugar duty or the
tax, Mr.. McAdoo puts at
$3.50, 100000 and ordinary disburse-
N ents at $S32,9O1, 900 leaving an ex-
cess of disbursements over receipts if
legislation is not passed to change
conditions, of $2527O1 900. AS explain
I'D in his recent statement however,
that amount would be reduced to about
s5O, 900, 900 by the extension of the
and sugar tax laws.
ELLA FLAGG YOUNG