The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1915-12-08
OVER TWO BILLIONS
0|FG0LDIN THEU.S.
Secretary of Treasury Nc
Adoo D eals in Big Fig:
uresE in Report.

uIes lltSIsel1OEt. II
WASHINGTON Dec. 81 Radical
changes in the income tax to reach
thousands not now subject to its pros
visions and to improve the machinery
of collection were suggested to Con.
gress today in5the annual report OF
Secretary McAdoo as means. by which
the greater part OF the additional rev.
enue needed to pay orithel administra.
ton national defense plans can be
provided. The Secretary proposed to
lower the exemption limits SO as to
tax married persons with incomes as
low as $4,000, and single persons with
$4,000 incomes. The exemptions now,
are $4,000 and $4,000 respectively.
Increases in the collection force, a
requirement that returns must be
made of gross income In place OF net
income, and change SO that the tax
shall not be withheld at the source,
were among McAdoo's other sugges.
tons. He made mo estimate of the
number OF persons who might be-
taxed II tho amendments were adopt
cd nor the amount that might be ex-
pected, but in connection with his re.
quest for a larger collection force he
pointed out that examination Of the
past personal aud corporation returns
showed that 60 per cent of those in.
spected disclosed that additional tax
was due the government. On the
basis OF the examinations, the Secre.
tary says that apparently more than
81, 100000 in personal tax and more
than $20,S91, 900 in corporation tax
still is due the government.
MANY inaccurate returns are
made" said the report, Some ldeilb.
erately and some ignorantly. and there
are without doubt, wholesale evasions
of the law throughout the country. It
is absolutely certain that the Govern.
ment Is losing through inaccurate re-.
turns and evasions of the law q sum
many times greater than the cost of
the necessary field force to inyesti.
gate and check the returns and to
bring to account those who are failing
to make returns as required by law"
In keeping with his recent announce.
ment Mr.. McAdoo suggested the pres.
ent stamp tax and the existing duty
on raw sugar should be retained in
force and said again that no issue of
bonds Is necessary either to provide
for current expenses or In anticipa.
ton of added burdens incident to a
policy OF military preparedness.
1.-THE policy of providing for the
expenditure Of the Government by
taxation and not by bond issues" said
the report. lis undoubtedly a sound
ono and should be adhered to. A
nation no more than an individual,
can go constantly into debt, for cur
rent expenditures without eventually.
impairing credit. A wise, sound and,
permanet policy Of raising the addit;i
tional revenue required forgprepareds
ness and the expenditures Of the Gov.
ernment should therefore be- devised
andsadopted." & .ss
Mr.. McAdoo expressed the belief
that with return of peace In Europe
customs receipts which fell Soff $685..
100000. In the last year will increase
and that the Legislation suggested,
with a PROVISION to make the surtax
of tho income tax law applicable at
$4,000 instead of $40 ,000r the whole
or part of the additional revenues
can befraised!t r Taxes one4gasoline,
crude andFrefinedi oils, horsepower Of
automobiles and various, other
things" are. suggested as further rev.
enue raising measures.
The total estimated Appropriation for
the fiscal year which begins July J..
next Mr.. McAdoo puts at $1,2s5, s57,.
sos including 1916 1864, $40 for the post.
office which Is reimbursable and
about $90,000,000 more for the Panama
Canal and sinking fund. Receipts for
the same year based on existing law
without extension Of the! sugar duty
OF the emergency tax, Mr.. McAdoo
puts at $3.50, 200 900 and ordinary dis.
bursements at ss39,9o1,0oo leaving an
excess OF disbursements over receipts
II legislation is not passed to change
conditions, Of s252,701 900. AS ex.
planned In his recent statement how
ever, that amount would be reduced
to about s5o0oo,oo0 by the extension
of the emergency and sugar tax
laws.
"Tho financial situation Of this coun.i
try" said MIR. McAdoo, "has never