The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1915-12-09
As Proposed by Mr.. McAdoo,
Secretary of the United
States Treasury.
WIDER RANGE OF PERSONS
Various Other Questions Of
Vital Interest Are Treated
on in Annual Report.

70, Assee,Arse ssIssi
WASHINGTON. Dec. 9.-Radica
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 in the annual report Of
Secretary McAdoo as means by which
the greater part OF the additional
revenue needed to pay for the admin
istration national defense plans can
be provided. The secretary pro-
posed to lower the exemption limits
30 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 So
600 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 es-
innate of the number OF persons who
might be taxed II the amendments
were adopted nor the amount that
might be expected. but in connection
with his request for a larger collec-
ton force he pointed out that exam
nation Of the past personal and cor
poration returns showed that So per
cent Of those inspected disclosed that
additional tax was due the govern
ment. On the basis of the examina-
tons, the secretary says that appar-
emily more than $4.6O0,000 in per-
sonal tax and more than $2O,S91 900
In corporation tax still is due the
government.
Many inaccurate returns are
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 government is losing through in
accurate returns 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 account those who
are falling to make returns us re-
CURED by law"
In keeping with his recent an
nouncement Mr.. McAdoo suggested
the present stamp tax and the exist.
Ing duty on raw sugar should be re-
tanned In force and said again that
no issue OF bonds is necessary either
to provide for current expenses or
in anticipation of added burdens in
cldent to policy of military pre-
paredness..
THE policy of providing for the
expenditures Of the government BY
taxation and not by bond issues"
said the report, "is undoubtedly a
sound one and should be adhered to.
A nation no more than an Individual,
can go constantly into debt, for cur.
rent expenditures without eventually
impairing credit. A wise, sound and
permanent policy of raising the add.
tional revenue required for prepared
ness and the expenditures Of the GOV.
eminent should therefore be devised
and adopted"
Mr.. McAdoo expressed the belief
that with a return Of peace in Eu-
rope customs receipts which fell off
sS6.000.00O in the last year will in
crease and that the legislation sug-
-gested, with provision to make the
surtax Of the income tax law applica-
BILE at $4,000 instead of 100000,
the whole or part of the additional
revenues can be raised. Taxes on
gasoline. crude and refined oils,
horsepower of automobiles and "yar.
ious other things" are suggested as
further revenue raising measures.
The total estimated appropriations