South Bend news-times. (South Bend, Ind.) 1913-1938, 1916-05-24
RAISING REVENUE
BIC HOUSE JOB
Ways and Means Committee
Must Provide S250,000,-
600 More This Year.


mittee estimate that they Will be
called sn TO raise for the fiscal year
beginning July s25O,OOO,OOO more
for the maintenance Of the govern
ment than was provided for the
present year. This sum is said to
represent the greatest increase in
appropriations ever made by the
congress in any one year. and mem
bers OF the house committee, on
which practically all Of the respon-
sibilitv for providing means of rails
ing revenue rests, admit that their
job this year is the hardest they
ever have been called on to under
take.
The committee has been working
quietly and informally for some
time. however and the democratic
members think they have figured
out the means 10 raise the extra
$3.50. 900. 600 OF revenue. OF course.
they are not at all certain that some
unlocked for large appropriation
might not upset all their plans, but
their present rough estimates the
means to provide additional rev.
enue..
The estimate of S25O.OOO.OOO ad-
ditional revenue to be raised is
based on an estimated additional
appropriation OF S75.OOO.OOO to 500,
600, 900 for the army, depending on
the action taken finally by the con-
ference committee; 100000, 600
for the navy: $1O.OOO.O00 for forti-
hcation; S5,OOO.OOO for good roads
and other increases of minor i'm
portance.
Covered by Panama Canal Bonds.
Two large increases in appropria-
ton which will not worry the COM
mittee are the S2O,OOO,0OO for a nj
trate plant and whatever money is
necessary for the shipping corpora
tons. Both Of these items will be
taken care Of by the Panama canal
bonds, S15O,OOO,OO0 OF which re-
main undisposed of. The $1,000
600 for the armor plate plant will
not have to be raised this year.
The extra expense of the punitive
expedition into Mexico, and of pay
ing the militia, which has been call
ed out. also viii have to be met
through action by the ways and
means committee. although mem
bers of the committee are frank to
admit that If the expendition ever
should assume the proportions of
Intervention, the committee simply
would take care of the expense at
one sweep by use of the Panama
canal bonds, or, if they are not suf-
ficient. a new bond issue altogether.
However, if the expedition remains
of the same character as it is at
present. the expense will have TO be
met by taxation. and this now seems
10 be one Of the biggest worries of
the committee.
Four Methods Are Devised.
For meeting this S25O,0OO,0OO
extra expense. the committee has
devised four principal methods.
They are: The income tax which
will he increased so as to bring in
ap proximately 100000 600 addi-
.'onal revenue; an inheritance tax
OF inheritances of more than $780,
Geo. which would bring in approx
mately S5O,OOO,OOO; a munitions tax,
which would bring in approximately
$50, 100000 and an increase in the
tax on whisky from S1.10 TO $1.25
a gallon, and an increase in the tax
on beer from $3.50 TO $1.75 or 81 a
barrel.
The srincipal weight OF the in
come tax will rest on those whose
incomes are from $4,000 a year up.
Small increases will be put on the
first grade Of incomes. from $4,000
and $4,000 to $4,000. but the class
es after this one will be divided in
TO smaller parts and the tax raised
materially.
Our general idea is that the rich
ought 10 bear the extra expense of
preparedness" said one member of
the committee. and I do not anti
cipate there will be any great OBJ
lection TO this"
The committee has for some time
been working on plans for an in
heritance tax Some democratic
members of the committee at first
opposed il. but later gave in when
il was shown what a revenue pro-
Queer this tax would be. This tax
will interfere with the inheritance
laws of most Of the state The tax
will start either at one-half or one
percent and will go as high as eight
percent on great inheritances.
The taxes on beer and whisky are
those Of last resort and will not be
used unless absolutely necessary.
Strong protests are expected by the
committee when the information
concerning these proposed taxes be-
comes public but this. it is said, will
not alter the position Of the COM
mittee. The committee also realizes
that If the war should end sudden
~. the munitions tax might not raise
much revenue.
Another cOmplicating feature of
the revenue situation is the fact the
democratic members Of the COM
mittee determined dong ago 10 abol-
ish all the stamp taxes passed in
December. 1914. if il were at all
possible 20 do so. The committee
steadfastly has held 10 this deter
mination in the face Of the fact that
these taxes are bringing in approx
mately $50. 600. 900 a year revenue.