The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-11-17
INCOME TAX RAISE
SURE, LEADERS SAY
Increase in Rate and Lower
Exemption Decided On to
Net $40, 100000.
HIGHER SURTAX ALSO

WASHINGTON. Nov. 16.-That the Ad-
ministration has practically decided TO
recommend amendments TO the income
tax act SO as TO increase tho yield Of
revenue from that source, was the state
ment made by Democratic leaders IN
Congress to-day. A final decision as 70
what changes In the laws are to be sup
ported by Tho Administrator will be
reached within the next ten days.
Administration officials have two pro-
posals under consideration as regards
the income tax. One 10 that the normal
rate of ! per cent. be increased to IN
per cent. and the present exemption Of
$4,000 for married .men and $4,000 for
single men be continued. The alternative
IL that the present rate be maintained
and the exemptions reduced to $4,000
and $4,000 respectively.
The Administration q been urged
by leaders In the House to adopt fea-
lures OF both proposals. This has been
put In concrete form by a House leader.
who suggests that the exemption for
married men he fixed at $4,000; the
exemption for single men at $4,000, that
the normal tax be fixed at Ia per cent.
Instead of 1. the present rate. INT that
there be "A material Increase In the sur
tax that now applies when an income
reaches 10000 or more a year.
Tho surtax at present ranges from 1
per cent. on Income Of $50, 900 to 8 per
cent. on incomes OF $500. 900 and over.
Down To 10000.
The proposed surtax would run as
follows: on incomes In excess OF 10000
up 20 $4,000. I per cent $4,000 20
$4,000, 2 per cent. $4,000 to $4,000.
3 per rent. $4,000 to 800, 900, 4 per
cent. 100000 to 100000. 8 per cent.
5000. 900 to $500. 600. . per cent. 5000
900 TO $500. 600. per cent. 100000
TO sl,00o.0 900. s per cent. more than
100000 . per cent.
Figures prepared at the Treasury
show that II reduction in the exemptions
to $4,000 and $4,000 for single and
married men. respectively. from $4,000
n $4,000, without any change in the
normal rate OF l per cent. or Increases
in surtaNes. would yield less than $4,000
900 additional.
An Increase In the normal rate TO
one and a half. these figures show. would
increase the yield from approximately
$50. 00O, 900 to S1i0, 00O, 900 a year. h
increased surtax proposed would still
further Increase the yield.
1t may be stated on authority that
the Administration IL so far undecided
whether II will recommend an issue Of
bonds to raise additional funds that will
he required to finance the Presidents
national defence plans.
Oppose Bond Issue.
The responsible leaders In Congress
are opposed to a bono issue. either for
national defence or any other purpose.
They assert that the additional revenues
required can he obtained by supple
mental taxing laws, they will en-
deavor TO so influence the Administra-
ton.
Among the proposed items of taxation
now under consideration In official quar-
tiers are an excise levy on gasolene.
automobiles. freight, "A tax on bank
checks and "A laying OF customs duties on
tea and coffee. as well as sugar.
Figures prepared by actuarfes of the
Government show that "a tax OF . cents
a gallon on ~gasolene would produce ap-
proXimately $4,000. 900 a year; Il tax
of 3 per cent. on freight, sos, 600. 600 /;
"A tax Of 10 per cent. on the manufac-
ture OF automobiles, $4,000. 900; u
duty Of 3 cents "A pound on coffee, S26,-
100000 IA duty of 10 cents a pound
on tea, 10000. 900 ! cent Il pound on
sugar. $50. 000. goo a year a two cent
tax on bank checks, &c., 900, 900.
Opposition to the proposal to tax mu
nition of war Is developing among Dem
ocratic leaders. They declare II would
he difficult 10 define In law tho meaning
Of the term munitions"
A meeting OF the Ways and Means
Committee will he held here early next
month to consider plans for raising reve-
nue.. BY that time 1t is hoped the Adj
ministration will have devised a concrete
plan to guide the committee In It's labors.