Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-07-06
Special Rule Adopted Calling
for Final Vote Mon
day Afternoon.
$125,OOO, 600 REQUIRED
FOR MEXICAN TROUBLE
Necessity for Legislation Grows Out
of Increases for Army and Navy,
Committee Reports.

Debate on the administration
general revenue bill began today
in the House under agreement tc
reach a final vote Monday. The
measure, reported favorably yes
terday by the ways and means
committee, provides a'method OF
raising S2oo,ooo,ooo additional
revenue from taxes on inheri-
tances and war munitions profits
and by increasing the surtax on
incomes.
Large appropriations for army,
navy and fortifcations are the
principal factors making neces-
sary the increased revenue pro-
vided by the bill.
Representative Garrett of Tennessee,
acting chairman of the House rules COM
mittee, reported special rule for lmme-
diate consideration and expedition OF the
revenue bill 1t proposed general debate
until pm. Friday. reading Of the bill
and amendments under the fiSe-minute
rule and final vote at pm. Monday. Mr..
Garrett explained that extraordinary con-
ditions, with which the country was IA
miliar, had required expenditures beyond
the ordinary expenditures of Congress;
that to meet these expenditures the Treas
ury must have money, and that the demo-
cratic majority party, willing and ready
to meet its responsibility, has formulated
plans for raising the additional revenue.
He contended that the rule reported was
plain. simple and liberal.
Representative Bennett of New York,
republican, attacked the rule and the
democratic party. He said the rule showed
1.-The evil effects of persistence and bad
party in power was resorting persistently
to rules to pass bills. Many members on
both sides engaged in the discussion over
the rule.
After the House had adopted the special
rule by a vote of 124 to 112, Democratic
Leader Kitchin made the opening speech
on the bill.
He contended that the republicans
and democrats having voted for the
national preparedness measures with
out regard to party affiliations, they
should likewise eliminate party con-
siderations in voting to raise the rev.
enue to meet the preparedness expendi-
lures. He charged that it was unfair
finance the government under the pres
ent extraordinary situation He chal-
lenged the republican minority to point
out better or wiser way to raise the
revenue, and declared that they could
not do it by raising the tariff.
Mexican Affair Necessitates Issue.
An estimate of s125, 100000 worth of
bonds. to be issued to finance the
uation. is contained in the report from
the ways and means committee.
The committee report also says that
the necessity for revenue legislation
grows out of. the extraordinary in
crease in the appropriations for the
army and navy and fortification of our
country"
The fiscal situation is summarized in
this way:
ESTIMATED excess of disbursements
over receipts for the fiscal year ending
June 80. 1917, 1886. 900; additional
receipts under the proposed bill, income
tax. s107, 900, 900; estate tax. 1000, 900
(and it is estimated that the annual re-
ceipts from the estate tax will amount
operation): munition manufacturers
tax. $71,000,00o; miscellaneous taxes.
81. 100000. Total additional receipts,
s197 100000. Balance to be taken from
general fund. s69.922.00o.
Fortunately the balance in the gen.
eral fund June 80, 1916, was much larger
than at the end of any fiscal year since
1908. After deducting $4,000, 900 for dis
bursting officers balances, there remained
In this fund over s177. 100000
after deducting S69. 9.52Z000 from this
fund as above there will still remain June
80. 1917. in the general fund over S100.-
900. 900 exclusive of the disbursing officers
balances. 1t is estimated that the total
appropriation for the fiscal year ending
June so, 1917, will not exceed S1,579 00O-
900. This includes s125, 900, 900 to meet
the extraordinary expenses or disburse-
ments occasioned by the Mexican situa-
ton.
This and any other appropriations
that may be necessary TO meet the alb
normal and extraordinary expenses which
may be incurred on such account should
be financed by bond issues. as is always
done by this and all other nations under
similar circumstances.
I'm estimating the actual disburse-
ments it is proper to deduct the sink
ing fund requirement included in the
permanent appropriations at s60.727, 900
for the fiscal year 1917, and also the
postal appropriations. estimated at
$324,72s.O60, payable from the postal
revenues. 1t is also safe to deduct as
unexpended an equivalent to 5 per cent
of the total estimated appropriations
remaining after these deductions De-
Quoting the sinking fund and postal ap-
propriations and the 5 per cent of the
| balance as unexpended and the esti-
mated $125. 100000 of bonds to finance
the Mexican situation leaves s1015,-
122,000 as the amount for which it is
necessary to provide revenue. The es-
| timated revenue under present laws is
$74S. 200, 900. Estimated excess of dis
bursements over receipts, 1856, ,922, 900 "
| 1t is probable that no other country
| derives as much revenue per capita
from the people through consumption
taxes as does the United States, the re-
port says. adding that the revenue sys-
| tenn should be more evenly balanced
| and a larger portion of revenues col
lected from incomes and inheritances
Of those deriving the most government
benefit.
| Receipts from the income tax under
annually. The proposed estate or in
heritance tax is to be levied upon
transfer of net estates. after deducting
all valid claims and an additional ex-
emption of $4,000.
! Canada, Denmark, France, Germany
Great Britain, Italy and Sweden, it l.
pointed out in the report, have laws
similar to the proposed munitions tax
In approval of a section of the bill i'm
posing special duties on dyestuffs, the
report says the committee has decided
like Great Britain and Japan that this
war anomaly as it affects dyestuffs car
only be de8t with in manner that