The public ledger. [volume] (Maysville, Ky.) 1913-1968, 1916-07-07
TAX BURDENS To BE INCREASED
by s2OO,OOO,OOO THROUGH NEW
REVENUE BILL

washington, July 5-Ine ADMIN
istration's. general revenue bill. de-
signed to produce about 100000, 900
Of additional revenue from increased
surtax on incomes and from taxes on
inheritances and war munitions, was
favorably reported today by the House
Ways and Means Committee and pro-
badly will be passed by the House
Monday
Two Republican members of the
committee. Longworth of Ohio and
Gardner of Massachusetts, voted with
the Democrats for a favorable report
but reserved the right to express dur
ing debate in the House their objec-
tons to the methods of the majority
in framing the measure The other
Republican committeeman, Green of
, Iowa, and Cloan of Nebraska, while
they voted against restoring the bill,
gave notice that they expected to sup
port II on the final roll-call.
General debate is expected to begin
Thursday under a special rule provid-
ing for a final vote before adjourn
ment Monday. That plan was definite
ly agreed on during the day by House
leaders
The committee report says that the
necessity for revenue legislation
grows ont of the extraordinary in
crease in the appropriations for the
larmy and navy and fertilization of our
Icountry."
The fiscal situation is summarized
In this way
Estimated excess of disbursements
lover receipts for the fiscal year ending
June 80. 1917. 1856, 1921 600; additional
receipts under the proposed bill, in
lcome tax, $107,000,O00, estate tax, S17,-
100000 (and it is estimated that the
annual receipts from the estate tax
will amount to S54,00O,O00 when the
tax will amount to $54 000,0 900 when
the law is in full operation), munition
manufacturers tax, 81 100000: mis-
lcellaneous tax, $2,000,000. Total addi-
tional receipts, 1897 100000 Balance
to be taken from general fund $69,-
922, 900.
Fortunately the balance in the gen.
leral fund June 80, 1916, was much
larger than at the end of any fiscal
lyear since 1908. After deducting O59,-
100000 for disbursing officers bal
lsAhNNb Niifi = Ill lIlS Iuuu over
lS177,OOO,O0O. After deducting $69,922,-
900 from this fund, as above there will
still remain June 30, 1917, in the gem
eral fund over $10O,00O,OO0 exclusive
VI the disbursing officers balance. II
is estimated that the total appropria-
ton for the fiscal year ending June 30,
1917, will not exceed $l,579, 000, 900
This includes $125,0O0, 900 to meet the
extraordinary expenses or disburse-
Iments occasioned by the Mexican stu
alton. This and other appropriations
that may be necessary to meet the alb
normal and extraordinary expenses
which may be incurred on such &C
count should be financed by bond is
Isues, as is always done by this and
Iall other nations under similar cir
Icumstances.
'"In estimating the actual disburse.
ments it is proposed to deduct the
lsinking fund requirement included in
the permanent appropriations at $780,
$4,000 for the fiscal year 1917, and al
so the. postal appropriations estimated
at 1924, 723,000 payable from the postal
revenues. 1t is also safe to deduct as
unexpected an equivalent to per cent
of the total estimated appropriations
remaining after these deducations. De-
ducting the sinking fund and postal
appropriations and the 5 per cent OF
the balance as uneXpended and the
ESTIMATED $125,O00,0O0 of bonds to f.
nance the eMXican situation leaves
,015, 10000 as the amount for which
1t is necessary to provide revenue The
ESTIMATED revenue under present laws
Is 74S,200000. Estimated excess OF
disbursements over receipts $266.922,-
0OO."
1t is probable that no other country
derives as much revenue per capita
from the people through consumption
taxes as does the nited States, the
report says. adding that the revenue
System should be more evenly bal
ancced and a larger portion of rev.
enue collected from incomes and in.
heritances of those deriving the mos.
government benefit
Receipts from the income tax under
the bill are estimated at 1927 Oo0.OO
ANNUALLY. The proposed estate or in
heritance tax is to be levied upon
transfer of net estates, after deductine
all valid claims and an addition ex.
emption of $4,000.
Canada. enmark. France, Germany
Great Britain. Italy and Sweden, it is
POINTED out in the report, have laws
similar TO the proposed munitions tax
In approval of section of the Dill i'm
posing special duties on dye stuffs i'm
ports. the reports says the committee
has decided, like Great Britain and
Japan, that this war anomaly as IL
affects dye stuffs can only be dealt
with in a manner that under normal