Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-04-16
M'AD0O TAX PLAN
MEETS OPPOSITION
House Members Expected
Rich to Be Harder Hit
by War
ITEMS TO BE ASSESSED

WASHINGTON. April 16.
House leaders who think the rich should |
pay the bulk of the taxes to finance |
Americas participation in the war were dis |
appointed today over the tax plans submit |
ted by Secretary OF the Treasury McAdoo. |
The data which are before the House Ways |
and Means Committee were. however, sub |
mitted by MoAdoo solely for the informa- |
ton of members. No recommendation ac-
companied the list of tax proposals.
While increased income ana excess profits
taxes was feature of the recommends tions
made by the Treasury Department they fall
short of what some members of the House
Ways and Means Committee think should be
the proportion of the war fund raised from
these sources Many members, who insist
that their views are not radical, are declar-
ing that throughout the war period the
Federal treasury should claim 100 per cent
of income in excess of 100000 q year
and an excess profits tax of 80 or 60 per
cent above the present exemption. The
| highest rates on super taxes, according to
the treasury view, would be 40 per cent Of
| all incomes above the million mark,
| Besides new income and excess profits
! taxes, the Secretary of the Treasury sug-
gests stamp, liquor. amusement. sugar, cof
fee, tobacco, soft drinks freight and pas
| sengers transportation receipts and auto
mobile taxes as well as the taxation of any
| imports now on the free list.
| According to some estimates a fifty per
| cent increase on both individuals and cor
| poratons for 1916 to be collected the COM
1 ing June would yield s165 100000. Then
| the way is pointed out whereby the in
| come tax law can be made to produce
| S340, 900, 900. additional in June next year.
| with no change in the corporation tax. This
would be done by lowering the income tax
| exemption from $4,000 y $500 for unmar-
ried persons and from $4,000 to $4,000 for
| married persons and making a material
| increase in the supertaxes. The present ex-
| cess profits tax enacted last winter would
be applicable this year, bringing in an
additional s226.000,000 Increase suggested
for next year would raise the aggregate
from this source to S426.00O, 900 next year
Some of the more important tax sugges-
tions in McAdoo's memorandum and the
estimated revenues from them follow:
Taxes on imports now admitted free
| S2O6, 600, 900 freight transportation receipts
| 500, ,00O. 900 excise tax on sugar, $4,000
| 900; refined petroleum, $75,000,000; stamT
taxes on amusements, S75.000,000 distilled
spirits, s73,O00,000; miscellaneous stamr
taxes, $50, ,OO0, 900; passenger transportation
receipts, s35, 900; smoking and chewing
tobacco. s25,O00,Oo0; automobiles, trucks
and motorcycles. $40, 900, 900 ; cigarettes, SIT.
| 900 900; rectifed spirits, $12.500.000
| cigars s11, 900, 900 excise tax on musica
instruments, $1,000. .000 excise tax on glu
cose, s6,0o0.000; denatured alcohol, $4,000.
900.
The tax bill which the Ways and Mean.
Committee expects to bring into the House
within the next two weeks is calculated t.
raise the moneys to defray one-half of tn,
expense of the first years participation il
the war; or about $500, 600, 900. The othel
half of the cost Of the first year will com,
out of the big bond issue authorized by tn,
House Saturday.