Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1915-12-09
Will WIDEN
INCOME TAX
Secretary McAdoo Would.
Make it Apply to Many
Now Exempt
MILLIONS WITHHELD


Washington, Dec. 9--Radical chan
ces in the income tax TO reacr 'i'o"'
,.rds not now subject to It's proyi-
sions and to improve the machlner!
of collection were suggested TO con-
rress yesterday in the annual "epor'
Of Secretary McAdoo as means o!
which the greater part OF the aoui'
+;or.l revarue needed to pay fo'
-! the Administration national oe-
fensc nlans can be provided. The Sec
! ret,rv proposed to lower the eHenp
! s;on limits so as to tax married per.
j sons with incomes as low S3,OG0 ana
| single persons with $4,000 incomes
The exemptions now are s4,ooo anc
! $4,000 respectively.
Increases in the collection force ;
requirement that returns must pc
! made Of gross income in place OF ne
: income. and a change so that the tan
! shall not be withheld at the source
! wore among Mr.. McAdoo's other sug
! gest:oHs.
! He made no estimate of the mum
bcr of persons who might be taSe'
| If thc amendments were adopted no
| the amount that might be expected
; bur in connection with his request tol
| larger collection force he pointed oui
! that examination Of the past persona
and corporation returns showed e.
pei. cert. OF those Inspected disclosed
! that additional tax was due the Gov
ernment. On the basis oil the eHamina
ton the Secretary says that apparent
" more than S4.600,000 in persona
/ tax and more than S20,S9l 900 in cor.
poration tax still is due the Gov
ernment.
MANY inaccurate returns are
made" said the report, some dell
beratcly and some ignorantiy. anC
. there are without doubt wholesale
! evasions Cf the law throughout the
country 1t is absolutely certain tna'
the Government is losing through III
accurate returns and evasions OF tn
J law a sum many times greater thai
Tie cost of the necessary field force
to investigate and check the return
; and to bring % account those who ~
! failing to make returns as required
by law"
! In keeping with his recent announ'
cement. Mr.. McAdoo suggested th'
present stamp tax and the existing
, duty on raw sugar should be retained
in force and said again that no issu'
of bonds is necessary either to pro
I vide for current expenses or in an
ticipation of added burdens inc!dcn'
to a policy of military preparedness
"The policy of providing for the
expenditures of the Government by
taxation and not by bond issues. sald
the report, sis undoubtedly SOUND
one and should be adhered to. A ma
tion. no more than an individual, car;
20 constantly into debt for current
expenditures without eventually I'M.
pairinc credit. A wise. sound and per.
manent policy Of raising the addition,
al revenue required for preparedness
and the expenditures of the Govern
ment should therefore be devised and
adopted
I Mr.. McAdoo expressed the 6eliet
that with return Of peace in Eu-
: rope customs receipts. which fell oil
J S6.O00,O0O0 in the last year, will in
crease and that the legislation sug
gesteG, with provision to make
the surtax Of the income tax law ap.
plicable at $4,000 instead of $4,000
the whole of part Of the additional
revenues can be raised. Taxes or
gasoline, crude and refined oils
horsepower of automobiles and "va.
rious other things" are suggested a
further revenue raising measures.
The total estimated appropriation:
for the fiscal year which begins Jul.
!, next Mr. McAdoo puts at 81 ,2s5,
| s57.s0s, including s316,364,a79 fol
the postofice, which is reimbursable
and about s90,000,00O more for TIN
Panama Canal and sinking fund. Re