Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1915-11-26
INTERNAL TAXES
URGED BY NJ 'ADOO
Secretary of Treasury Suggests
Way of Raising Additional
Needed Revenue.
OPPOSES ISSUANCE OF BONDS
Views Not Meant to Be Program
for Congress, but Offered
Merely as Suggestions.

! WASHINGTON. November 25.-In-
crease in internal taxation. rather than
issuance of bonds to meet tho first
years expenses of the Administrations
defense program. is advocated by
Secretary McAdoo. OF tnc Treasury, In
n statement issued tonight giving an
estimate OF tho Federal governments
revenues and expenditures up to the
end of the fiscal year. beginning next
July. Assuming that Congress Will
continue in effect the present cmcr-
gcncy tax law. ana customs duties on
sugar. the secretary estimates that
Sll2,So6,3oi in additiona! revenue will
he needed for the expenditures for 1917.
including sa3. $500. 900 for new measures
for national defense.
This amount" says the statement.
can easily be raised by internal taxa
ton. without apprcciable burdens upon
the American people"
Mr.. McAdoo suggests "A reduction in
the income tax law exemption on
single persons from s., 1000 to $1,000. and
on married persons from $4,000 10
$4,000 changes in the sIrtax imposed
on incomes above a certain figure, and
new taNcs on gasoline, crude ard re-
! fined oils. horse power of automobiles.
other internal combustion engines and
various other things.
The statement says:
I'm view OF the uauy,inaccura,c and
misleading statements which are being
made, either deliberately or ignorantly.
( about the condition OF the Treasury
and the finances cf the government
with respect TO the current fiscal year
and the fiscal year 1917. | feel that
an accurate analysis may be of service
to the public.
I'VE began the fiscal year 1916 tJuly
l. 1850 with Il general fund balance.
not including amounts to the credit of
disbursing officers. OF Sl0i.lT0.l0j.7s.
RESULTS FROM ELIMINATION OF
TWO SOURCES Of REVENUE
Under existing law. the prcscn, duty
OF cent per pound on raw sugar
ceases May J. 1916, and the present
emergency revenue law expires on De-
cember 81. 1915. Assuming that these
two sources of revenue are eliminated,
the following results may be expected
for the fiscal year 1916:
General fund balance I'm the Treas
urH July !. 1915. as already shown,
Si0i.I70.lO5.7S
The estimated total receipts for
1916 are s6'o.363.5cc. Total. s77i.-
535. .605.Ts
Total estimated disbursements for
1916, excluding Panama Canal pay
meEts. s7l6.s9I, 600
surplus OF balance, June 80. 1916
s57.6i4, ,605.7o,
The duty on sugar and the emer-
gency revenue taxes ought to be con-
tinued. If this is done, the additional
receipts from these sources for the
hscal year 1916 should be (S4l 900, 900
from emergency taxes and $4,000. 600
from sugar.. 1000. 900 Balance
sll3,Gii.Goj.7> II may he assumed
that there Will be appropriated by IN.
Congress for supplemental estimates
ana deficiencies for the fiscal year 1915
Il total of $l2.Oo0.0O0. Surplus tor
hscai year 1916 tassuming that cmer-
HehcF taNes and sugar duties are con
tinuedp, >lol.64i,GO5.1s Panama Canal
payments for 1916 are estimated a,
S23,oo",o0o These may be paid by sal,
OF bonds. II paid. however. out of
current revenues. we mus, d,duct
S25.00O.00G
'On this basis, available balance a,
the end of fiscal year 1916 would he
S16.6ii,6 ,605.7S
ESTIMATES CONDITION
FOR FISCAL YEAR IDI7
Now let us consider The fiscal year
1917. which we began with a balance
IN the Treasury OF S56,644. 6O5.7S
Total estimated receipts. ON IN. as
sumption that present. emerrcnc, rev
enue taxes and duties on raw sugar
products are continued, $40 800 uuo
Total for 1917, Ss07. .l4+. .GU57S
lotal disbursements. including Ss3
3o9.vOV new or additional expenditures
for greater national defense or pre-
parcdness, ana excluding Panama canal
payments ss32.a5l.OJ0.
deficiency. 1917, S25So6.39ioo
"Estimated deficiencies and SIM
Elemental appropriations for 1917, 81.
100000.
Add for working balance in treas
ury to begin fiscal year 1915 $50. 100000
Panama Canal payments for 1917 are
estimated at S2j.0U0.O0U. If paid on
of revenues and not from sale of bonds
add S25.ooo.oo1. On this basis the total
new revenue TO be raised for fiscal
year 1917 is $ll2.S0 3g422
IF, however. the Panama Canal nav
ments for the years 1916 and 1917.
amounting to total of $4,000. 900.
should be paid from the proceeds OF
oond sales, then the amount of addi-
tional revenue which must be raised
for the fiscal year 1917 is estimated to
be s"2,SoI.39i.22. II would not be an
unusual thing to finance tho Panama
canal payments by the sale of gov
crhmcnt honds-in fact, $l3S.60U,SGg J2
Oh Panama Canal payments have been
met by the sale Of such bonds.
PANAMA CANAL PAYMENTS