Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1915-12-08

In sixty-two millions for deficiency APP
propriations and a safe treasury balance
at the end OF the year. a total deficit
of some one hundred and twelve millions
The obvious moral OF the figures Is that
II Is a plain counsel of prudence to con-
tinue all of the present taxes or their
equivalents, and confine ourselves to
the problem of providing one hundred
and twelve millions OF new revenue
rather than-two hundred and ninety
seven millions.
New Taxes Proposed.
How shall we obtain the new revenue7
We are frequently reminded that there
are many millions of bonds which the
treasury is AUTHORIZED under existing law
TO sell to reimburse the sums paid out
OF current revenues for the construction
of the Panama canal; and 1t is true that
bonds, to the amount of approximately
s222, 100000 are now available for that pur-
pose. Prior to 1918 s1s4.6s1.990 of these
bonds had actually been sold to recoup
the expenditures at the isthmus; and now
constitute a considerable item of the
public debt. But I. for one. do not be-
lieve that the people of this country APP
prove of postponing the payment of their
bills. Borrowing money is short-sighted
finance. 1t can be justified only when
permanent things are to be accomplished
which many generations will certainly
benefit by and which it seems hardly
fair that q single generation should pay
for. The objects we are now proposing
to spend money for cannot be so classi-
fled, except In the sense that everything
x.rtao aoua h.a uofH 90 ha In
the interest Of posterity as well as In
our own. 1t seems to me clear dictate
Of prudent craftsmanship and frank
finance that in what we are now. I hope.
about to undertake we should pay as we
go. The people of the country are
entitled to know Just what burdens OF
| taxation they are to carry. and to know
from the outset. now. The new bills
should be paid by internal taxation.
"To what sources, then, shall we turn
This is so peculiarly question which the
gentlemen Of the house of representatives
are expected under the constitution to
propose and answer to that you will
hardly expect me to do more than discuss
1t in very general terms We should be
following an almost universal example OF
modern governments II we were to draw
the greater part or even the whole OF the
revenues we need from the income taxes
BY somewhat lowering the present limits
Of exemption and the figure at which tbs
sur-tax shall begin to be imposed. and BY
increasing, step by step throughout the
present graduation. the surtax itself. the
income taxes as at present apportioned
would yield sums sufficient to balance the
books of the treasury at the end Of the
fiscal year 1917 without anywhere max
| ing the burden unreasonably or oppres'
sively heavy. The precise reckonings are
! fully and accurately set out in the repor-
of the secretary OF the treasury which
will be Immediately laid before you.
other Sources TO he Tapped.
'And there are many additional sources
of revenue which can justly be resorted
to without hampering the industries OF
the country. or putting any too <greai
charge upon individual expenditure. A
tax OF cent per gallon on gasoline and
naphtha would yield. at the present esti
mated production, s10.0Oo.oOo; a tax OF 81
cents per horse power on automobiles
and internal explosion engines, s15,000.0 900
stamp tax on bank checks. probably
S1s,oOo.OOO; a tax Of Is cents per ton OF
pig iron, $10.0Oo.0 900; tax OF % cents pei
ton on fabricated iron and Steel prob
ably $10,0OO.Oo0 In a country Of great in
dustries like this 1t ought to be easy T.
distribute the burdens OF taxation with
out making them anywhere bear too
heavily or too exclusively upon any one
set OF persons or undertakings. What q
clear is. that the industry Of this gener
alton should pay the bills of this genera
Il ton.