Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1917-04-10
UNCLE SAM WILLPAY
WAR BILL AS HE GOES
Government Plans to Make
Present Generation Pay
Costs of Struggle.
TO RAISE IT BY TAXATION

WILSON pollSy, outlined III his aQ-
dress to congress, of paying Amer
ica's war bill so far as possible while
the war is being waged, leaving a
minimum debt to posterity, was re-
hected tonight in virtual decision
by leaders in the house and senate to
raise 50 per cent Of the first years
expenditures by taxation.
Under this program congress would
be called on to raise war revenue of
$,750,000,00O through new and in
creased taxation during the fiscal
year ending June 80, 1918. This is ex-
elusive of the $5,0O0,000,000 bond is
sue, authorization for which will be
sought this week. The total demand
upon the financial resources OF the
country during the first year of war
under this program would be $685.
100000.
Three Billions to Allies.
OF the bond issue $3,000,000000, it
was definitely stated tonight, would
be loaned to the entente allies. The
entire issue will bear interest of 5H
percent. 1t is proposed to make the
loan to the allies at this interest rate,
which is lower by far than the rate on
their previous issues.
The remaining $2,000,000,000 will be
applied, as necessary, on the cost of
the military and naval establishments
and other war expenses of the United
States. Indications are that with the
new war revenue measures in effect
the full amount, $2,000,000,000, will
rot be entirely exhausted at the end
of the first year.
In requesting authorization for a
S5,000,0O0,000 bond issue administra-
ton leaders have in mind the neces-
sity ;of allowing for slight margin
of safety so that the work of the War
and Navy departments would not be
handicapped by lack of funds due
to the possible failure OF proposed tax
measures to raise the entire sum OF
50 per cent desired
Details Not All Arranged.
Details of the proposed bond issue
have not been fully disposed of at
present. The proposal that congress
authorize Immediately the issue of
S3,000,000,000 in bonds to finance a
loan to the allies and afterwards take
up the request for $2,000,000,000 for
the army and navy is considered in
some quarters.
In support of this proposal it is
pointed out that the need of the allies
for funds is more Immediately press
ing than American needs, the money
to be obtained for the latter purpose
being expended over a period of four
teen months. A proposal simply to
issue bonds to finance loan to the
allies, it is said, might be passed more
speedily by congress than if it were
coupled with a proposal to provide
for the American war bill at the same
time.
In One Lump Sum.
Indications are strong, however,
that congress will be asked to au-
thorize the S5,000,000000 in one lump
sum. Legislation to this effect will
be- considered by the ways and means
committee, within the next day or SO,
possibly tomorrow, and probably will
be reported to congress for action
before the end of the week.
To Chairman Kjtchin, who was
called to North Carolina by his
brothers death and therefore was not
consulted with reference to the de-
tails of the proposed legislation, will
fall the honor of carrying through
in the house the administrations i'm
mediate financial program. Recalling
Mr.. Kitchin's opposition to the war
resolution, members of the commit
tee are prepared, however, to relieve
him of this duty should he personally
oppose the plan In that event it
probably would devolve upon Repre-
sentative Rainey, ranking majority
member of the committee, or Repre-
sentative Hull of Tennessee to carry
through the program.
Confer With McAdoo.
Chairman Simmons and his COL
leagues of the senate finance commit
tee have been in frequent conference
with Secretary McAdoo during the
past few days with reference to the
program.
Indications are that the administra-
tons financial program will meet
with overwhelming support in both
houses and that the proposed bond
issue will be authorized without loss
OF time.
Considerably more time, it is
thought, will be consumed in the
passage of the war revenue measure.
Sentiment in congress, apparently
crystallized in support of the pro-
gram of advancing an enormous loan
to the allies, varies greatly as to the
methods to be pursued in raising
revenue through taxation.
Income Tax Probably Revised.
In general terms it seems certain
that the bulk of the additional reve-
nue. will be raised through revision
of the income and excess profits tax
laws. 1t is also likely that the tax
on whisky, beer and tobacco will be
raised.
As to what outlines the income tax
law will assume upon emerging from
the committee, one mans guess, an
official said today, is as good as an
others. There appears to be gen.
eral sentiment for lowering the pres
ent exemption and raising the rates
heavily on large incomes. A grad