Catoctin clarion. [volume] (Mechanicstown, Md.) 1871-1940, 1917-01-11
THURSDAY, JANUARY II, 1917.
WAYS To Meet Deficit.
Treasury Department Submits
Numerous Suggestions to Ways
And Means Committee.

Washington, Jan. s-A tax of 3 per
cent. upon the profits of all business
which are in excess of per cent. is one
of the methods suggested by the Treas
ury Department as means OF raising
money to meet the threatened deficit at
the end of the fiscal year of 1918. 1t is
estimated that such tax would produce
5000, 900, 900 in new revenue.
Framing of revenue legislation to meet
the prospective deficit will be undertaken
tomorrow by Democrats of the House
WAYS and Means Committee. Tentative
plans, including proposed bond issues to
cover extraordinary expenditures of the
army and navy and special taxation. al
ready have been drafted by individual
members. Treasury Department officials
have submitted a number of suggestions
to the Ways and Means Committee in
addition to the tax on business profits,
which is now very popular in war strick-
en- Europe.
The deficit in the Federal Treasury at
the end of the fiscal year 1918, it is esti-
mated, will be $279, 900, 600, which, to-
gether with 100000, 900 working bal
ance, makes it necessary to raise $685.
OOO, 900 in new revenue. The depart
ment favors the issuance of bonds to
meet 1884, 256, 900 of the expenditures
money needed to finance the Mexican
border patrol and the building of the
Alaskan railway. If this is done it will
leave about 1874, 600, 900 to be raised by
taxation The per cent. tax on bust
ness profits would make it unnecessary
to lay additional taxes on objects already
taxed.
Other suggestions for raising money,
submitted by the Treasury Department,
included stamp taxes on checks, mort
cages and one-half cent tax on refined
sugar, an estate tax, an increase in the
tax rate on distilled spirits, rectified
spirits and denatured alcohol, and a new
tax on fermented liquors.
1t has also been proposed to raise $42,-
OOO, 900 from tax on soft drinks, miner
al waters and the like, and to collect
additional from taxes on cigars, tobacco,
cigarettes and snuff. Another suggestion
calls for the raising of $50, 900, 900 from
a tax on internal combustion engines, in
Guiding automobiles, motorcycles, motor
boats, stationary engines and traction
engines, at the rate of 81 per horsepow-
er. A fiat tax of 3 cents on oleomarga-
rine is proposed which would raise 49,
$4,000; tax on copper, pig iron and
aluminium, which would bring to the
Treasury $51, 2OO,O 900. Moving pictures
are suggested for raising $4,000, 900;
candy $4,000, 900; glucose SIS. 600, 900; ad-
vertising on billboards and in street cars
So, lbs, 900; photograph or graphophone
records 1867, 900, and increases in Gus
toms duties.
1t is also suggested that tariff duties
be laid or increased on 10 articles, includ-
ing coffee, tea, cocoa, chocolate, rubber,
silk, cotton, bagging and burlap, jute,
wool, metals and lumber. 1t is declared
that duty on these articles would raise
approximately $95, 600, OOOin new revenue.
The Treasury Department officials in
submitting this list of articles for taxa
ton, leaves the whole of it to the Com
mittee on Ways and Means to decide
which plan would be the best to accept.
The means for raising new revenue, sug-
gested by the Treasury officials, would
bring into the Treasury 1864. 600, 900, just
three times too much if bonds are issued.