The Birmingham age-herald., 1916-07-06
Good Increase on Incomes
 and Inheritances, Also
DEBATE TO COMMENCE
Special Rule Issued Providing for Final Vote in House on Monday Before Adjournment-Two Re- publicans Vote With Demo-
 crats in Committee

Washington, July 5.-The adm1niS- tration general revenue bill, designed to produce about s2oo,OO0,ooO of addi- tional revenue from increased surtax on incomes and from taxes on inheri- tances and war munitions profits was favorably reported today by the House ways and means committee and prob ably will be passed by the House Mon day.
 Two republican members of the com mittee, Longworth of Ohio and Gard ner of Massachusetts. voted wi'h the democrats for a favorable report, but reserved the right to express during the debate in the House their ob1ec- tions to the methods of the majority in framing the measure. Two other republican committeeman. Greene of Iowa and Sloan of Nebraska, while they voted against reporting the Dill, gave notice that they would support it on the final roll call.
 FINAL VOTE MONDAY
 General debate is expected to begin Thursday under special rule pro- viding for final vote before adjourn ment Monday. That plan was defin- itely agreed on during the day by the House leaders.
 The committee report says that the necessity for revenue legislation grows out of the extraordinary increase in the appropriations for the army and navy and fortification of our country The fiscal situation is summarized in this way.
 "Estimates excess of disbursements over receipts for the fiscal year end ing June 30. 1917, s266.922.ooo; addi- tional receipts under the proposed bill, income tax, s107,000,0o0; estate tax. $17,O0O,O00 (and it is estimated that the annual receipts from the estate tax will amount to $54.oo0,ooo wher the law Is in full operation); munition manufacturers tax, s71.00o.000; miscel- laneous taxes, $2.000,000; total addi- tional receipts, s197, 100000. Balance to be taken from general fund, $69922.- 900.
 FORTUNATE BALANCE
 "Fortunately, the balance in the gen. eral fund June 30. 1916.. was much larger than at the end of any fiscal year since 1908. After deducting $59,- COG, 900 for disbursing officers balances there remained In this fund over Sl77,- 0o0, 900. After deducting $69,022,0O0 from this fund as above there will still re- main June 30, 1917. in the general fund over 1Oo.o0O.oo0 exclusive of the dis bursting officers balances.
 It is estimated that the total appropria- ton for the fiscal year ending June So, 1917, will not exceed N,579,00O.OoO. This includes s125, ,00O O00 to meet the .extraor- dinary expenses or disbursements occa- stoned by the Mexican situation. This and any other appropriations that may be necessary to meet the abnormal and extraordinary expenses which may be in cured on such account should be fi- nanced by bond issues as is always done lar circumstances
 Tn estimating the actual disbursements it is proper to deduct the sinking fund requirements included in the permanent appropriations at s6o, 727,ooo for the fiscal year, 1917. and also the postal appropria- tions estimated at 32472S,0O0, payable | from the post revenues. It is also safe to deduct as unexpended an equivalent I to per cent of the total estimated ap- propriations. remaining after the deduc- tions Deducting the sinking fund and postal appropriations and the per cent of the balance as unexpended and the estimated $125.0O0,00C of bonds to finance the Mexican situation leaves $1.015, ,122. 900 as the amount for which it is neces- sary to provide revenues. The estimated tContinued on rage Eight,