The Washington herald., 1915-11-22
DEFENSE TAX
CAUSES WORRY
Plan Injured by
Absence of Statement on
Financial Support.
MAY LEVY ON MUNITIONS
Enactment Of Inheritance Taxation Also
Being OBSERVATION-DISCLOSURES
Working on Various Plans.
By JOSEPH r. AMIN.

Authoritative announcement of the
preparedness plans OF the admins
tration and the approximate expendi-
lures involved, without definite pro-
posals as to the method to be adopted
for raising the necessary revenues.
has diminished the measure of sup
port which the plan commands through
the country.
This Is the opinion of a number OF
legislators who have reached Wash
ington recently and who. while de-
termined to support the Presidents
program. are decidedly irked by the con-
slant inflow of inquiries from their
constituents as to the methods to be
employed to raise the necessary ad-
dItional funds.
May Boost Excise Tax.
At present the administration is re-
ceiving reports from accountants
working along several lines. The i'm
portant proposals under considera-
ton include:
l. Excise tax upon certain commod-
tiles that have entered most largely
into the mushroom export trade
built up on the demands OF European
belligerents.
2. Enactment of an inheritance tax.
J. Increase in the normal rate of
lowering of the exemptions. or both.
OF the income tax.
T. Excise tax upon bank checks.
5. Issue OF government bonds.
The best information available indi-
Gates that President Wilson and his
financial advisors are regarding the pos
sibilities Of an excise tax on war NUM-
tIons and the enactment of an inheritance
tax with the greatest interest Bond is
sue proposals have been laid aside. for
- haEH at raf Ia In tinker
ing, with the exception OF legislation re-
talning the tax on sugar. and. possibly.
legislation aimed TO encourage the manu-
facture Of dyestUfrs. Is not being con-
sidered. The so-cslled war tax will be
re-enacted.
Senator Oscar ". Underwood. who
probably will be President Wilson's chief
advisor in revenue matters, figures that
retaining the tax on sugar and re-enact-
ing the war tax still will leave the ad-
.ministration with approximately sss5, Ooo.-
90 to raise for the next fiscal year over
and above the normal revenues Of the
present fiscal year. Republican estimates
are much higher. An indication as to
the wide breach between Democratic and
Republican cOmputors may be gained
from a comparison OF the figures quoted
by Secretary McAdoo. on the one hand.
and former Senator Jonathan Bourne.
ir.. on the other. rega riding the present
condition OF the Treasury Mr.. McAdoo
says the Treasury now has an unexpend-
ed balance OF approximately sI05 .ooo. 0oo
Senator Bourne. after calling in the
services OF an expert accounte Mt de-
cIares that there IL only S6I7.oe7 in the
Treasury. and that unpaid bills represent
the difference between his figures and
those of Secretary McAdoo.
The proposed internal revenue tax upon
munitions contemplates the taxation at
the factory OF such articles as were
carried upon virtually all contraband
lists prior 10 the outbreak Of the pres
ent war. This would exempt foodstuns
and virtually all commodities that are
shipped in their raw state.
May AIIay Some Opposition.
Such a means Of raising the necessary
revenues. both for the expected deficit
and increased expenditures for army and
navy. might be expected TO allay much
OF the opposition expected against the
program from the South
and Middle West On the other hand. &C
cording to its sponsors, the tax would
fall heaviest upon those industries reap
ing the largest profits from the war IN
dustry. and which would be best able
and most willing TO bear the increased
taxation.
The proposed inheritance tax has not
been discussed in detail. One proposal.
which Is expected to command the sup
port Of Senator Robert L. Owen. of
Oklahoma. involves a progressive inheri-
lance tax starting at per cent and run
ming as high as 10 per cent on moderate
the rate increasing in in
verse proportion TO the nearness of the
between decedent and heir.
tax on the manufacture of automobiles.
Il being estimated that such a tax would
produce an annual revenue OF approx |
nately 500 600. The proposal to raise |
The normal income tax from TO IL per !
sent looks to an Increase OF revenue from |
this source from $50, 100 to $40 O00. 600. |
Il is estimated that a . per cent tax on |
bank checks would yield a revenue of Sl0. |
N. 600 a year.