The circle banner. [volume] (Circle, Mont.) 1914-1939, 1915-12-03
ADVOCATES INTERNAL TAXA
TON RATHER THAN lSSU-
ANCE OF BONDS FOR PRE-
PAREDNEsS PROGRAM.
ESTIMATES $112,806, 1894
MORE REVENUE NEEDED
Secretary Says Amount Can Be Raised
Without Appreciabe Burdens to
PeopIe-Suggests Reduction In
Income Tax and New Taxes
on Oils.

Washington, Nov. 27.-Increases in
internal taxation rather than issuance
of bonds for the first years expenses
of the administrator defense pro-
gram were advocated by Secretary Nc
Adoo of the treasury, in a formal
statement giving an estimate of the
federal governments revenues and ex-
renditures up to the end of the fiscal
year beginning next July.
Assuming that Congress will con-
tinue in effect the present emergency
tax law and custom duty on sugar, the
secretary estimates that $112,806,394
In additional revenue will be needed
for 1917 expenditures, including $685.
100000 for new measures for national
defense.
This amount" says the statement,
"can easily be raised by internal tax
alton without appreciable burdens
upon the American people"
Suggests New Taxes.
Mr.. McAdoo suggests a reduction in
the income tax exemption of single
persons from $4,000 to $4,000 and on
married persons from $4,000 to $4,000;
changes in the surtax imposed on in
comes above certain figure and new
taxes on gasoline, crude and refined
oils, horsepower Of automobiles; other
internal combustion engines and vari-
GUS other things.
The statement says:
"In view of the many inaccurate
and misleading statements which are
being made, either deliberately or
ignorantly about the condition of the
treasury, and the finances of the gov
eminent with respect to the current
year and the fiscal year of 1917, l feel
that a true and accurate analysis Of
the situation may be Of service to the
public.
THE estimated total receipts for
1916 are $670,365,500. Total $774,536,--
505.78.
Total estimated disbursements for |
1916, including Panama canal pay
nents, s716,S91, 900.
Surplus or balance June 80, 1916,
Isl, 644, 605.78.
Would Continue Sugar Duty.
The duty on sugar and the emer-
,ency revenue taxes ought to be
continued. If this is done the addi-
ional receipts from these sources for
SIG should be s56,000,000. Balance,
115, 644 ,605.7S. 1t may be assumed
hat there will be appropriated by
congress for supplemental estimates
nd deficiencies for the fiscal year
916, total of S12,000,000.
Surplus for fiscal year 1916 (as-
uming that emergency taxes and
ugar duties are continued) $101,6 44,-
05.78.
Panama canal payments for 1916
re estimated at $25,000,000. These,
nder existing law, may be paid by
ale of bonds. If paid, however, out
current revenues, we must deduct
25,000,000.
ION this basis available balance at
le end of the fiscal year 1916 would
e 1854, 405.78
Total New Revenue Needed.
The total new revenue to be raised
" the fiscal year 1917 is $112,806,-
)4.22, in which is included the sums
$93,800,000 for preparedness or
ew measures for the national de-
nse.
IF, however, the Panama canal p.
ayments for the years 1916 and
III, amounting to a total Of $4,000
10, should be paid from the proceeds
bond sales, then the amount of ad-
tional revenue which must be raised
r the fiscal year 1917 is estimated to
} $62,806,3 94.22.
1T is, of course, the function of
,ngress to determine what revenues
all be raised and how, and these
ews must not be considered as
ogram but merely as suggestions for