Bisbee daily review., 1915-12-09
INCOME TAX INCREASE
 PROPOSED
Secretary of Treasury McAdOO Proposes That Exemption Be Lowered S1000 Respectively for Single and Married Men.
CABINET MEMBER MAKES
 PERTINENT SUGGESTIONS
Assertion Made That an Increase in the Collection Force Will. More Than Repay Itself in Re- turns to the Department.

WASHINGTON, Dec. S.-Radical changes in the income tax to reach thousands not now subject to it's pro visions and to improve the machinery of collection were suggested to Con gress today in the annual report of l Secretary McAdoo as means by which the greater part of the additional rev enue needed to pay for the admins tration national defense plans can be provided. The secretary proposed 70 lower the exemption limits SO as 10 tax married persons with incomes as low as S3OO0. and single persons with S2,O0O incomes. The exemptions now are S4.O0O and S3.OO0 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 al the source were among McAdoo's other sugges- tions. 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 a larger collection force be point ed out that examination of the past personal and corporation returns showed that 68 per cent of those in spected disclosed that additional tax was due the government On the bas is of the examinations, the secretary says that apparently more than S4- 6OO,0OO in personal tax and more than S2O,9l. .OO0 in corporation tax still is due the government
 Many inaccurate returns are made" said the report some delib- erately and some ignorantly and there are without doubt. wholesale evasions Of the la- throughout the country It 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 failing to make returns as re- quired by law"
 In keeping with his recent am nouncement Mir. McAdoo suggested the present stamp tax and the ixist- ing duty on raw sugar should be re- tained in force and said again that no issue of bonds is necessary either 10 provide for current expenses or in aucipation of added burdnes incident Co a policy Of military preparedness.
 "The policy of providing for the expenditures of the government by taxation and not by bond issues,' said the report, lis undoubtedly a sound one and should me adhered to. A na- ton no more than an individual, can go constantly into debt, for current 1 expenditures without eventually i'm 1 pairing credit wise, sound and permanent policy of raising the addi- tional revenue required for prepared ness and the expenditures of the gov ernment should therefore be devised and adopted"
 Mir McAdoo expressed the belief that with the return of peace in Eu- rope customs receipts which fell off
 S6,0OO. .OOO in the last year will in- !. crease and that the legislation sug gested, with a provision to make the
 surtax of the income tax law appica-
 ble at S10,O0O instead of $20o00, the
 whole or part Of the additional rev.
 enues can be raised. Taxes on gasO- line, crude and refined oils. horsepow-
 CT of automobiles and various other
 things" are suggested as further rev.
 enue raising measures.
 The total estimated appropriations
 for the fiscal year which begins July n. next McAdoo puts at S1.285,OOO 900 including s816,S64,879 for the post
 office winch is reimbursable and about
 S9000O.O .O0O more for the Panama Can
 al and sinking fund Receipts for the same year based on existing law | without extension of the sugar duty l or the emergency tax, McAdoo puts at 5 $5SO, 100000 and ordinary disburse- ' ments at SS32. 1901 900 leaving an ex- . cess of disbursements over receipts . if legislation is not passed to change D conditions, of s252,7Ol. .OO0 As ex- 3 plained in his recent statement haw. tContinued on Page Twol