Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-12-08
MADOO URGES
TAX CHANGES
Treasury Secretary Wants
Smaller Incomes to
Be Assessed.
WOULDLOWER BASIS
OF EACH CLASS
Suggests to Congress That Law Be
Changed to Include Married Mons
incomes Of 5000 and Bachelors In.
comes Of $2,o0o-Asks Large Force
For Collection Of Tax-Peace in Eu-
rope to Bring Increased Revenues.

Washing ton, Lee. -o.--ENdulcSil SudASS'
in the income tax to reach thousands
not now subject to its provisions and
to improve the machinery OF collection
were suggested to congress today in
the annual report of Secretary McAdoo
as means by which the greater part of
the additional revenue needed to pay
for the administration national defense
plans can be provided. The secretary
proposed to lower the exemption linn
it's so as to tax married persons with
incomes as low as $4,000. and single
persons with $4,000 incomes. The ex-
emptions now are $4,000 and $4,000 re-
spectively.
Increases in the collection force, a
requirement that returns must be made
OF gross income In place of net income,
and change so that the tax shall not
be withheld at the source, were among
Mr. McAdoos other suggestions. He
made no estimate Of the number of per-
sons who might be taxed if the amend
ments were adopted nor the amount
that might be expected. but in connec-
ton with his request for larger coll
lection force he pointed out that exam
ination of the past personal and corpo-
ration returns showed that 63 per cent
of those inspected disclosed that addi
tional tax was due the government. On
the basis of the examinations, the Sec
retary says that apparently more than
$4,600,000 in personal tax and more
than $50, s91,00 In corporation tax still
is due the government
Returns Inaccurate.
Many inaccurate returns are made" I"
said the report, "some deliberately and
some ignorantly, and there are without
doubt. wholesale evasions OF the Jaw
5thruout the country. It is absolutely
scsrtain ttilat the government is losing
thru inaccurate returns and evasions
;of the law a sum many times greater
than the cost of the necessary field
force to investigate and check the re-
turns and to bring to account those
who are failing to make returns as re-
quired by law
In keeping with his recent announce
ment Mr.. McAdoo suggested the pres
ent stamp tax and the existing duty on
raw sugar should be retained in force
and said again that no issue Of bonds
is necessary either to provide for cur
rent expenses or in anticipation of
added burdens incident to a policy of
military preparedness.
The policy Of providing for the ex-
penditures of the government by taxa
tion and not by bond issues" said the
report, "is undoubtedly a sound one
and should be adhered to- A nation no
more than an individual, can go con-
stantly into debt, for 'current expendi-
lures without eventually impairing
credit. A wise, sound and permanent
policy of raising the additional revenue
required for preparedness and the ex-
penditures of the government should
therefore be devised and adopted"
Place 70 Increase Revenues.
Mr.. McAdoo expressed the belief
that with a return of peace in Europe
customs receipts which fell off $685.
100000 in the last year will increase
and that the legislation suggested,
with a provision to make the surtax of
the income tax law applicable at s1O,-
600 instead Of $4,000, the whole or
part Of the additional revenues can be
raised. Taxes on gasolene, crude and
refined oils, horsepower of automobiles
and various other things" are sug-
gested as further revenue raising
measures.
The total estimated appropriations
for the fiscal year which begins July
next, Mr.. McAdoo puts at S1.285.-
S57,s0S including $316.364,879 for the
postoffice which is reimbursable and
about $90,000.00 more for the Panama
canal and sinking fund. Receipts for
the same year based on existing law
without extension Of the sugar duty
= 49, ~
at $5S0,200, 900 and ordinary disburse-
ments at $S32.s01,000 leaving an excess
Of disbursements over receipts If legis-
lation is not passed to change condi-
tions, Of $252.701,000. AS explained In
his recent statement however, that
amount would be reduced to about
$50, O,Oo0, 900 by the extension Of the
emergency and sugar tax laws.
Secretady McAdoo's report says the
people Of the United States have rea-
son to congratulate themselves on the
financial and business condition of the
country after the serious situation
which confronted them a year ago.
THE European war produced in
evitable suffering in this country as
well as In Europe" said the secretary.
'.Our Industrial situation was, for a
time, seriously hurt. and the cotton
growing states Of the south sustained
heayy losses thru declines in the price
OF cotton. Every power Of the govern
ment was .excrtea ..c mitigate the stu
alton and 1 believe 1t is not inexact to
say that but for the active agency of
the government in protecting and con-
serving the business interests Of the
country during that critical period
grave disaster would have resulted.
.a.aIt ie a, pieaanre to acknoIwvii &c
that the efforts of the government
were seconded and supported by the
earnest and patriotic cooperation of
the business interests Of the country.
During the year there has been a
steady, healthy, forward movement in