Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1915-12-08
M ADOO PLAN TO
WIDEN SCOPE OF
THE INCOME TAX
IN ANNUAL REPORT TO CONGRESS
MAKES KNOWN PLAN TO REACH
MANY NOT TOUCHED BY TAX.
ARGUES ITS EXTENSION WOULD GO
LONG WAY TOWARD ADDITIONAL
REVENUE FOR DEFENSE PLAN.
Rv Assncinted Press.l }

Washington. Dee. >.-Radlcal chan
.cS in the income tax 10 reach thousands
not now subject 80 it> provisions and to
were suggested tC congress today in the
annual report Of Secretary Mctdoo as
means by which the greater part of the
additional revenue needed To- pay for the
administration national defense plans
can bc provided The secretary pro
posed To lower the exemption limits
as To tax married persons with incomes
~ low ~ 5000 and single persons with
- 600 incomes. The exemptions now are
u 000 and 5000 respectively
Increases in the election force 4 re-
quircmcnt that returns must hp, made ~
gross income IN place of net income and
Il change ~ thar the tax shall not bc
withheld at the source. were among Mr.
Mcidoo'> other SugcSticu>. He made no
estimate Of the number IF persons who
might be taxed if the amendments were
adopted nor the amount that might hc
expected but ~ conna.tioH with his re-
quest for u larger collection force ne
liUinted out that examination of the
past personal and corporation returns
showed that t;' per cent Of those inSpctc-
cd disclosed that additional tax was due
the government. On the basis of the cX-
amlnatiOnS, the secretary SAYS that ap.
parcntly more than II eco 600 in person
al tax and more han 80 >9l 900 IN cor
poratiOn tax still H. due the government.
Many inaccurate returns are made
said the report "Somc deliberately and
Scmc ignorantlv and there are without
doubt Wholesale eVaSiOnS Of the law
throughout the country II il absolute
ly certain that the government i losing
through Inaccurate returns and cVaSionS
of the law sum MANY times greater
than the cost of The necessary field force
To- investigate and check the returns and
tO bring 10 account those who are fail
ing to make returns a> required hy law.
In keeping with his recent announce
mcnt Mr.. MrAdOo suggested the present
stamp tax and the existing duty on Sn-
gar Snould be retained in force and said
again that no issue Of bonds il necessary
either TO provide for current expenses
or in anticipation NJ added burdens in-
e.idcnt 10 Il policy Of military prepared
ness
The policy ofprivo2Sv -pym >hrdIu
'Thc policy of providing for the cS-
pcmditurcS of the government IN taxa
tion not by bond issues said the re-
port "iS unodoubtcdly Il sound one and
Should be added 10. etaoniSbdrluybgqk
than an individual. can 90 constantly
into debt for current expenditures with
ont eventually impairimg credit. \ wise
sound and permanent policy If raising
the additional rcyeuuc required for pre-
parc'!nc~s and the expenditures If the
government should therefore b. devised
and adoptcd''
Mr.. McAdoo expressed The belief that
with u return of peace III Europe Gus
toms receipts which fell of 80 .OO0 600
in the last year vii increase AMI that
the legislation suggested with provision
10 make the >urtaN of the income tax
law applicable 1T $1,000 instead of so
0o0. the whole on part of the additional
revenues can bc raised. Taxes on gaSo-
line crude and refined oils hnrsepow-
cr of automobiles AMI various othel
things" arc suggested ~ further revenue
mraStIY'S.
The total appropriations for the fiscal
year which begins July l. next Mr.. Nc
\doo puts at $50 3uO 0O0 and ordinary
disbursements at $50 lOl nu0 leaving
--'lh.phl.NtF. Tor iNc Ilh>lniiiCt Wnltn l.
reimhur>ahlc and about 500 n00 coo more
for the Panama Canal aud sinking fund.
Receipts for the same wear based on cx-
listing law without extension of the SUI
gar duty or The emergency tax. Mr.. Nc
Adoo puts at $3.50 .0n0 900 and ordinary
au excess of disbursements over receipts
if legislation j. not PASSED ID change
conditions Of ~252. 70l 600. AS explained
in his recent statement however that
amount would hc reduced to about 500
UuO 900 hy the extension q fthc cmcrgcn
cv and sugar tax laws.
Secretary McAduo'S report saws tn,
people Of the United Statr> have reason
Ia congratulate themselves on the finan
cial condition Of the country after ~
serious situation which confronted then
a wear ago.
The European war produced incvl
table suffering III this country aS wei
aS in Europe" said the secretary. 'Oul
industrial situation was. for u time. Sc
ruu>ly hurt. and the cotton CROWN.
states of thn south sustained heavy los
>eS through declines III the price 81 cot
ton Fvers- power of the governmen
was e1ortetl to- mitigate the situation
(COninucd OH page G.