South Bend news-times. (South Bend, Ind.) 1913-1938, 1915-11-12
WEALTHY To PAY
FOR PROTECTION
Plans For Raising Funds Are
Being 0iSCuSSed-SpeCial
Taxes Proposed.

WASHINGTON, Nov. Il. - II was
learned auChOritatively Thursday that
the plan which viii be submitted 70
congress by administration leaders Tor
the purpose Of providing for the IN
auguration OF the presidents prepar-
edness program and Wiping out the
deficit in the treasury will probably be
along the following lines:
Double income tax. producing $780,
0Oe 1000.
TAX freight receipts, three percent,
$50. 100000.
Tax OF one or two per cent on gaso-
line 30 500. 900.
Reduction. OF the exemption on in
cone taxes 70 $2,OOO-$1O,0O .00O-
Ilet'n tion OF the special war taxes
Leaf irritating TO the public, $780,
600. 900.
The total that would be raised in
this manner is 1905, 600, 600.
The amount needed for the army
and navy program for the first year
Is $105, 900. 600 and the deficit, 1T Is
estimated. will be a like sum, making
the total amount needed 500, 600.
other suggestions which viii be
accorded consideration provide for an
inheritance tax and the imposition Of
special internal taxes as permanent
measures, and as substitutes for the
special war stamp taxes.
May Tax Munitions.
Democrats are divided as 10 the ad-
visibility Of taxing the manufacturers
OF munitions. Those who oppose this
say the same end would be accomp-
lished by increasing the income tax,
big war profits thus being reached
through that tax. If munitions makers
are taxed under an excise provisioB
IL is urged, those who make only for
home consumption or for the govern
ment must pay as we'll as those who
are under contracts with foreign gov
ernments. The latter cannot be Sc
lected as the constitution prohibits
an export tax.
All suggestions looking to a revision
of the tariff it is said, will be opposed.
However, the present duty Will be re-
tanned on sugar. which otherwise
would go TO the free list next May.
Tariff experts say that the only
things that would bring in a revenue
now II taxed are raw materials and
il is upon these the manufacturers
count for their materials for war sup
plies. II is believed that even repub-
leans would oppose retaxing such
things.
One prominent tariff expert Of the
house said today that under existing
conditions $3,00O.0 600 could be raised
on iron ore, S20,000,0O on wool and
about $50, 0OO, 900 on coffee and tea
through the imposition of a tax that
would not be onerous. but that would
be exceedingly unpopular. There is
not, this expert said, another article
that is now entering through customs
houses that would yield any Apr CT
able revenue.
Internal Taxes Needed.
For this reason, he said, it is inev-
liable that 10 obtain the required
revenue. internal taxes must be i'm
posed. Whisky and tobacco, il is
said, can stand no more, as they both
carry the maximum that can be col
lected. The prohibition movement also
has made serious inroads in the
whisky taxes, creating a condition that
must be faced by congress in the near
future.
All democrats appear TO agree that
an issuance Of bonds for the increase
Of army and navy is inadvisable, for
bonds al all times, save in the great
est emergencies are most unpopular.
Sec'y HcAdOo has declared against
that policy, but is willing that some Of
the existing war taxes shall be re-
enacted. Democratic leaders are pre-
pared for the storm of Indignation
that will arise at the proposal TO in