The Barre daily times. (Barre, Vt.) 1897-1959, 1915-12-08
Secretary McAdoo's Scheme
to Gain Additional
Revenue
MARRIED PERSONS
EXEMPTION 1000
And Single Pr >ss $1,000
Secret .o> pposed to
bSeld Issue

Washington, D, c., Dec. S.--RadicaI
changes in the income tax to reach thous-
ands not now subject to its provisions
and to improve the machinery OF collec-
tion were suggested to Congress to-day
in the annual report Of Secretary Me.
Adoo as means by which the greater
part OF the additional revenue needed
to pay for the administration national
defense plans can be provided. The sec
retary proposed to lower the exemption
limits so as TO tax married persons with
incomes as low as $4,000, and single per.
sons with $1,000. The exemptions now
are $4,000 and $4,000 respectively.
Increases in the collection force, a re-
quirement that returns be made OF gross
income in place OF net income. and a
change so that the tax shall not be with
held 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 larger collection force, he
pointed out that examination of the past
personal and corporation returns showed
that GO per cent of those inspected dis
closed that additional tax was due the
government. On the basis of the exam
nation, the secretary says that appar-
emily more than S4,600,000 .in personal
tax and more than S20,S9l 900 in cor
poration tax still is due the government.
Ia fno. 10 ,4o4, ag. mo, -
said the report, "some deliberately and
some ignorantly, and there are without
doubt wholesale eyasions OF the law
throughout the country. 1t is absolute
ly certain that the government is losing
through inaccurate returns and evasions
Of the law a sum many times greater
than the cost of the necessary field force
10 investigate and check the returns and
10 bring to account those who are fail
ing to make returns as required by law"
In keeping with his recent announce
ment Mr.. McAdoo suggested the pres
INT stamp tax and the existing duty on
Jaw material should be retained in force
ind said again that no issue of bonds
s necessary either to provide for current
Expense OF in anticipation of added bur
lens incident to policy of military pre-
,aredness.
The policy for providing for the ex-
'enditure of the government by taxa
ion and not by bond issues" said the
eport. lis undoubtedly sound one and
hould be adhered TO. A nation no more
han an individual, can go constantly
nto debt. for current expenditures with
at eventually impairing credit. A wise,
Dund and permanent policy of raising the
revenue required for prepared
ess and the expenditures OF the govern
ient should, therefore be devised and
dopted"
Mr.. McAdoo expressed the belief that
18th n return Of peace in Europe customs
,ccipt which fell of SS6000D00 IN the
~ war will increase and that the legis-
tion suggested. with a provision to
AXE the surtax Of the income tax appli-
Ible az $4,000 instead Of $4,000, the
hole OF part OF the additional revenue
IN be raised. Taxes on gasolene, crude
IA refined oils. horsepower OF automo-
les and various other things" are sug-
.sted as further revenue raising mess-
'es.
The total estimated appropriations for
e fiscal year which begins july next
r. McAdoo puts az 81 2S5.S57 SOS. in
ndiug s3l63G4.s7o for the postoiice
hich i reibursable and about Se000o.
d more for the Panama canal and sink
e fund. Receipts for the same year
sed on existing law without extension
the sugar duty or the emergency tax.
r. McAdoo puts AZ $3.50 10000 and
dinarv disbursement AZ ss23O0l 000
wing an excess of disbursements over
.cipts II legislation a not pnsscA q
ance conditions. of s252 7Ol 600 A.
planned in his recent statement how
IN. that amount would be reduced -
out s500n0000 hy the extension uf the
.ergency and sugar tax Laws.