Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1916-06-10
INCOME TAX GROWTH

recent study OF the returns by experts
of the income tax division Of the treas
ury department has disclosed an even
greater volume Of prosperous business
than the government officials had ex-
pected to find.
Even then it was clear that the total
collections would be at least s25,000,-
900 in excess of the $S5.000,0OO mark,
at which the income tax yield had
been estimated at the outset or the
year Now it is clear to Secretary
McAdoo and his associates that the
total excess revenue over the eStl-
mates will be at least s35,000,000 and
possibly s5,OOOOOO more.
THE enormous increase is due to
two causes said Secretary McAdoo.
First, the great prosperity Of the
country, and, secondly, the vigorous
enforcement of the income tax law"
In this connection it should be ex-
planned that by direction of Secretary
McAdoo, Commissioner of Internal
Revenue William H. Osborn has pur-
sued most vigorous policy in the
enforcement of the income tax law in
the past year. Not only has all of the
available energy Of the Office experts
at the treasury department been en-
ployed in careful investigation of
the income take returns and a study
of other avenues of information, but
special agents of the revenue service
have been engaged in field work, with
a view Of ascertaining if the govern
ment had been deprived of any income
tax revenue collectible under the law.
AS result of this policy, sS,700,000
already has been paid into the treas
ury during the present year.
| In an analysis of the income tax
prospects, in which he limits himself
conservatively to discussion of min
| imum quantities instead OF maximum,
Secretary McAdoo says:
Exclusive of S8,000,000 collected in
July, 1915, the internal revenue bureau
has assessed during the current fiscal
year $4,000, 900 This includes s52,-
127, 60405 corporation income tax and
s61 ,048,324.79 individual income tax,
a total of $113,175,92S.S4 If 10 per
cent of this amount is carried over
for payment during the first 10 days
of the next fiscal year, the collection
of the balance by the government dur
ing this year, together with the $S,000,-
600 paid in July, 1915, will amount to
S110,000,0O0, while only six months
ago it was estimated that the collec-
tons would be only sS5,000,000 for the
year"
Government officials declare it is
difficult to realize the extent of the
expansion of business and private in
comes represented by this increase in
the income tax. 1t must be remem-
bered that the estimate of $4,000, 900
for the years collections was formu-
lated last September, when the coun-
try was in the midst OF an era of
prosperity which many persons al
ready had characterized as unprece-
dented. The estimate of $85,000.000
was based upon prospective continu-
ance and expansion of the prosperity
of which so many signs then were
perceptible. 1t provided for a con-
siderable increase over the collections
of the preceding year. The statistical
experts of the bureau who have sought
to interpret the significance of the
prospective increases in the income
tax collections are almost at loss to
estimate even in round numbers the
volume Of new business which is rep
resented in the increases. Several
weeks ago one of the highest experts
of the internal revenue service ex-
pressed the belief that an increase of
$25, 900 900 in the income tax would
represent an increase of from $780,
100000 to $2,000,d00,000. If the per-
centages employed in this estimate are
; accurate it is to be assumed that the
increase of So, 100000 now looked for
will be from 2,OOO,OOO,OOO to $1,000
, 900 900
The commissioner of internal reve-
nue. has filed with the secretary OF
the treasury the following report on
, the income tax situation:
I I'm the first nine months of this
) fiscal year there was collected on &C
: count Of income tax, s20,90S, 740S5
: This amount includes sS,597 ,2S3 95 col
: lected in July, 1915. Since July
| 1915, there has been assessed by this
Office 54.29S,32479 on individual re-
turns, and this includes the amount OF
s3,02S,016.13 assessed in this fiscal
year as result of revenue agents re-
ports and S31S,143,5S assessed as a re-
suit of audit in this office; it is esti-
mated that there will be assessed on
the April and May, 1916, lists the sum
Of $3.50, 900, making the total assess
ments in this fiscal year aggregate
s61 ,04S,32479
Since July /, 1915, there has been
assessed by this Office 47,127 ,604 05
on corporation returns, and this in
cludes $4,632 ,213.66 assessed as a re-
suit of revenue agents reports, and
s401 ,S13.64 assessed as result of Of
flee adjustments. 1t is estimated that
additional assessments amounting tC
$1,000 900 will be made on the April
and May, 1916, lists, thus making the
total assessments in this fiscal year on
corporation returns aggregate $52,-
127 ,60405
The total assessments in this fiscal
year of income taxes will probably
aggregate S113, zoo, 900. If 10 per cent
of the amount assessed is carried over
for payment in next fiscal year there
would be collected in June this year
approximately $S5,O00,O0O as compared
with $3.50 ,0409O collected in June
1915. Add to this the approximate in
come tax collections for the first II
months OF this fiscal year, $4,000 600
and the total receipts on account oil
income tax would amount to s110,000,-
600 as compared with sS0,190, 693 SO
collected in fiscal year 1915. The in
come tax collections for the first nine
months of this fiscal year exceed the
income tax collections for the CORE
spending period Of last fiscal year by