The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-11-11
Wilson Advisers Are Hard
Pressed to Avoid a Big
Bond Issue.
FIGHT on STAMP LEVY
Rep. Garner Urges Federal In
hcritance Tax and Levy
on Munitions.

and progress made with plans Tor
launching IL auspiciously In Congress.
President Wilson will soon turn to the
question OF revenues. Next week he
will take the first step when lie confers
with Chairman Fitzgerald of the House
Committee on Appropf iations and Rep
resentativo shirley. the ranking Demo-
cratic member Of the committee.
Tho Administration revenue plans
are unsettled. Some time ago 1t ap-
peared that the President favored an
issue of Panama Canal bonds to meet
the increases in national defence eN-
pendtures. but II now reems certain
that strong differences OF opinion VIII
arise In the Democratic councils on
this subject.
with bond ISSUE az a basis OF the
programme the tnsk Of raising revenue
at the next Congress would be simple
There would remain only the necessity
Of retaining tn. sugar duties and re-
enactlng the war tax 10 keep the Gov
ernment's Income at existing levels ana
providing additional legislation to cover
the deficit and Whatever increases III
current appropriations might he pro-
vidod ut the next session Of Congress
Secretary of tine Treasury McAdoo
announced some time ago that he would
of the emergency tax law and the siis-
pension of the free trade clause OF the
sugar schedule. 1t now il certain that
the Ways and Means Committee VIII
support the sugar recommends ton, but
its attitude toward the continuance or
the emergency taxes may he less mar
nonious
II was said to-day that Western
Democratic leaders probably would urge
he IprnS IA.
more popular means OF providing needed
revenue than through the continuance
OF the new stamp taxes
There have been Indications recently
that the President may encounter dlhl-
culties within his own party In pushing
"A recommendation for the issuance OF
over s2oO, ,oO0 900 Of bonds to defray the
new national defences expenses. Some
of these leaders. II Is said, believe that
II will he politically unwise TO issue such
a vo' lme OF bonds for expenditures that
will have to be repeated annually for the
next five years according to Wilson,
plans.
Should the Administration abandon
the idea of bond issue the task OF
framing revenu. bills which would fall
upon the Congress leaders would be one
of the first Importance. If the tarin
We're relied upon to provide the $780,
uNU,Unh or more Wliltn IL ~ tSNliiltle
would he needed to meet the Increased
Expenditure OF tn" Army and Navy.
Commerc. and other departments and re-
place the money provided by the unpopu-
lar war tax Democratic leaders say II
would he necessary to raise the duties
as high ~ those levied by any recent
Republican Administration.
Direct Tax system.
Many Democratic leaders are expected
TO favor the substitution OF "A system OF
direct taxation for the present stamp
taxes
Democratic leaders have learned with
interest OF Secretary McAdoo's action
In seeking information as TO the volume
of exports In war munitions with view
TO levying an excise duty on these ar
ticles Many officials believe that such
"A tax would he popular, but, II Is de-
clared IL would he idle to tax the cor
porations from which the Government
would have to purchase the armor plate
and munitions needed to carry out the
national defence plans.
The requirements Of such "A tax. II is
predicted. would be provided for by the
war munitions factories by an Increase
In prices and the result would be that
to "A considerable extent the Govern
ment itself would be doing little more
than taking money out OF one pocket
and putting II into another.
President Wilson has Informed Demo
cratic leaders recently that he intends
to keep his mind open ON plans for rails
ing revenue until he has had ample
time for conferences with the House
committees. Congressman Ktchin.
slated as chairman of Ways and Means,
left Washington to-day without having
gone into the revenue situation in any
detail
Mr.. kitchn has arranged a prelml-
nary conference OF the old members of
Ways and Means for November 20 II
is expected. however, that Secretary Nc
Adoo will have an extended correspond
ence with the Democratic leaders before
that date to ascertain their ideas on a
revenue programme.
Federal Inheritance Tax.
In an interview made public here to-
day Representative John y. Garner Of
Texas advocated the enactment of a
Federal Inheritance tax law to raise
revenue. Mr.. Garner also suggested that
the exemption of the income tax be re-
duced
IL do not believe the wealth OF our
country is paying as much OF our Fed
eral taxes rs II should said Mr.. Garner.
"Therefore | favor levying tax
whereby wealth will pay the larger part
of the sum required for increased pre-
paredness.
"The income tax can be made to yield
double what II does now. I would lower
the exemption TO $4,000 for single per-
sons and $4,000 for married persons and
gradually increase the surtax until il
reached 10 per cent. on incomes above
$500. 900 | would levy an inheritance
tax. Why not? The only reason I have
heard advanced against such tax IL that
Congress might cripple the power of the
States to raise revenue. This is "a far
fetched presumption.
III the Constitution permits / would
rather levy tax on arms and munitions
that are ID to carry on foreign wars.
1t ls "A Democratic doctrine that taxes
should he levied ON those best able to
pay them. A tax on the manufacture OF
automobiles as well as gasolene would
meet with my support,
~ am In favor of keeping the customs
duty on sugar | would not favor a
general revision of the tariff. though the
law Is not what ! would like TO have IL.
would repeal tina. portion of the war
emergency act that irrltates and IL a
great Inconvenience to ordinary business.
"The taxes levied this winter will not
he temporary; they will remain on the
statute books indefinitely"
Mr. Garner will serve on the WAYS
and Means Committee In the new Con-
gress. He is a man of large influence
in the Democratic councils