Omaha daily bee., 1915-11-26
M ADOO ADVOCATES
INCREASED TAXES
TOPAY FOR DEFENSE
Secretary Of Treasury Urges Raising
Internal Levies Rather Than
Issuance of Bonds for
the First Year.
OVER 100 MILLION NEEDED
No Appreciable Burden on American
People to Dig This Up Says
Exohquer Chief.
GIVES OUT FULL STATEMENT

WASHINGTON, Nov. 25.-In-
creases in internal taxation, rather
than issuance of bonds to meet the
first years expenses Of the admins
tration's defense program are advo-
Gated by Secretary McAdoo OF the
treasury, in formal statement is
sued tonight, giving an estimate of
the federal governments revenue
and expenditure up to the end of the
fiscal year beginning next July.
Assuming that congress ilwl con-
tinue in effect the present emergency
tax law and customs duty on sugar,
the secretary estimates that S112,-
SO6,S94 in additional revenue will
be needed for the expenditures for
1917, including $93.SoO,OOO for new
measures for national defense.
This amount" says the statement,
can easily be raised by internal taxa
ton without appreciable burdens upon the
American people"
wouId Reduce Exemptions.
Mr.. McAdoo suggests reduction In
the income tax law exemption on single
persons from 5000 to 5000 and on mar
rled persons from 1900 to 5000; changes
in the surtax imposed on incomes above
certain figure; and new taxes on gas
cline. crude and refined oils, horsepower
of automobiles, other internal combustion
engines and various other things.
The statement follows:
| ''In view OF the many inaccurate and
misleading statements which are being
made, either deliberately or ignorantly
about the condition of thetreasury and
the finances of the government with re-
spect to the current fiscal year and the
fiscal year 1917, feel that true and &C
curate analysis of the situation may bs
of service to the public. The question oi
the national finances 10 so intimately re
lated 10 other vital problems which mus
be settled In the interest OF the Amer
lean people that every fght-minded cit
lizen should want the truth In order thai
he may help form that intelligent public
opinion out of which alone can arise
sound and just conclusions.
Information submitted.
with this in mind l desire to submit
to the public the following information
1--WE began the fiscal year 1915 July
1919 with general fund balance, not In
GLIDING amounts to the credit OF dis
bursting officers, OF S1O4. liz. .iO5.7s. Com
pared with the balance shown In the dali!
treasury statement of June 30. 1915, thiI
is composed Of the following; Balance II
general fund June 90 1915, as per treasur!
daily statement, ss2,025. 1868. Add ma
tioral bank note redemption fund, which
Ly law, Is a part of the public debt ant
rot to be set up as a liability OF the gen
eral fund SIS, 800. 1850. Add cash deposit
during the year 1915 and included in th'
revised totals. advices OF which were re
ceived at tho treasury after June 30, 1915
g., ,75a, ,04L25. Balance in general fund jun
81. 1915 (revlsed basls). $i04,17O 1OO.d.
Duty on sugar.
Under existing law the present dut!
OF cent per pound on raw sugar cease
Nay 1. 1916. and the present emeTgenc!
revenue law expires on December 81, 1915
Assuming that these two sources of rev
enue are eliminated, the following result
may be expected for the fiscal year. 1915
General fund balance in the treasur,
July l. 1915. as already shown, 1lo4l7O,
l05.7s.
THE estimated total receipts for 19i
are $50, ,365. 500
Total, ST74535, ,605.7S.
Total estimated disbursements for l91i
excluding Panama canal payments, s715.
6g1 900.
Surplus or balance June 30, 1916. t57,
CA. COSTS.
! The duty on sugar and the emergenc
revenue taxes ought to ben continued. ]
this is done the additional receipts fror
these sources for the fiscal year 1sl
should be Cs4l 100000 from emergenc
J taxes and $4,000, 900 from sugar. $4,000 90
Balance. sl13.644. COSTS.
1T may be assumed that there will b
CONTINUED on Page Two, Column one.