New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-12-09
Would Levy on $4,000 of
Married Men and $4,000
of Bachelors.
URGES COLLECTION
FORCE INCREASES
S25,OOO,O00 Still Owing to the
Government, Treasury Head
Says in Report.

to improve the machinery of collection
were suggested to Congress to-day 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 defence
plans can be provided. The Secretary
proposed TO lower the exemption limits
go as to tax married persons with IN
comes as low as $4,000 and single per
sons with $4,000 incomes. The exemp-
tons now are $4,000 and $4,000 re-
spectively.
Increases in the collection force,
requirement that returns must be made
of gross income in place of net income
and q change so that the tax shall not
be withheld at the source were among
Mr.. McAdoo's other suggestions. lie
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 eX-
animation of the past personal and
corporation returns showed that 63 per
cent of those inspected disclosed that
additional taxes were due the govern
ment. On the basis of the examina-
tions the Secretary says that apparent
ly more than s4,600,000 in personal tax
and more than S20,S9 900 in corpora
tion tax still is owing.
MANY inaccurate returns are made,
said the report, "some deliberately and
some ignorantly, and there are without
doubt wholesale evasionS OF the law
throughout the country. II is abso-
lutely certain that the government is
losing through inaccurate returns and
evasions Of the law sum many times
greater than the cost of the necessary
field force 10 investigate and check the
returns and to bring to account those
who are failing 70 make returns as re-
quired by law"
In keeping with his recent announce
ment Mr.. NcAdoo suggested the pres
ent stamp tax and the existing duty on
raw sugar shoull be retained IN force,
and said again that no issue of bonds
was necessary eithe~ 20 "rovide for
current expenses or in anticipation OF
added burdens incident 10 policy OF
military preparedness.
with a return of peace in Europe Gus
toms receipts. which fell off sS6,OOO,OOO
in the last year, would increase, and
that by the legislation suggested, with
a provision to make the surtaX of the
income tax law applicable at $4,000 in
stead Of $4,000, the whole or part of
the additional revenues could be raised.
Taxes on gasolene, crude and, refined
oils. horsepower of automobiles and
various other things" are suggested as
further revenue raising measures.
The total estimated appropriations
for the fiscal year which begins July
next Mr.. McAdoo puts at 81 ,2S5, 50 ,SOo,
including 1916 .364.879 for the postotfice,
which is reimbursable, and about $780,
600 900 more for the Panama Canal and
sinking fund. Receipts for the same
year based on existing law, without ex-
tension of the sugar duty or the emer-
gency tax, Mr.. McAdoo puts at $780,
100000. and ordinary disbursements at
1892 ,901 900, leaving an excess Of dis
over receipts, If legislation
is not passed TO change conditions, oil
$685., 70l 900. As explained in his recent
statement, however, that amount would
be reduced to about s50,000,000 by the
extension Of the emergency and sugar
tax laws.
Secretary McAdoo's report says the
people of the United States have reason
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 inevl-
table suffering in this country as well
as in Europe" said the Secretary, "Our
industrial situation was for time seri-
ously hurt, and the cotton growing
states of the South sustained heavy
losses through declines in the price Of
cotton. Every power Of the government
was exerted TO mitigate the situation,
and ! believe il is not ineXact TO say
that but for the active agency OF the
in protecting and conserv-
ing the business interests of the coun-
try during that critical period grave
disaster would have resulted.
at is a pleasure to acknowledge that
the efforts of the government were sec
onded and supported by the earnest
and patriotic cooperation of the bust
ness interests of the country. During
the year there has been steady,
healthy, forward movement in every
line OF activity, until now prosperity
has been firmly established through
out the country"
Mr.. McAdoo included letters from
agencies TO support his
statement. and quoted figures on rail
road and other business operations to
show increased activities.
"The financial situation of this coun-
try" he continued. "has never been so
strong and favorable as now. Our
financial resources are the greatest in
our history, and our banking system.
the creation Of the Federal
reserve system, is now the strongest
in the world In every respect the eco
nomic and financial condition of the
is extraordinarily sound. II is
greater than that Of any other nation,
and il we use our resources and our
intelligently and wisely,
we shall establish the prosperity Of
this nation upon an impregnable
foundation for many years to come
The method Of leRislating for public
buildings in an omnibus bill received
the Secretary's disapproval, and he
asked that il be discontinued. Need
less waste Of public money, he said.
will be avoided if Congress will here
after not authorize the acquisition OF
public building sites until authorize
lion is made for the buildings 70 go on
the sites. lie asked that the Secre-
tary Of the Treasury be authorized TO
m the building TO the city, and not to
make il Just as imposing as the sum
under the present system
will permit.
Mr.. McAdoo asked for two cruising
cutters for the coast guard service on
the Pacific Coast, 10 cost 100000;
barbor cutter for New York, to cost
sI2b 900. and one for San Francisco, to
-ost $4,000. lie says that in plans for