The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-01-15
NEED MONEY To AVERT
NATIONAL BANKRUPTCY
Problem IL How to Raise More Reve-
nue. TO Meet High Cost of
Government
DEFICIT Is ESTIMATED AT
UPWARDS OF $500, 900 900
Many Suggestions Are Made Toward
solution and Subcommittee 20 SIft
Them Is LkeIy-May Cause Extra
Session.

Washington, Jan 14,--The problem
or raising more revenue to meet the
eNer-increasing expense of running
the government and to avert national
bankruptcy will be taken up seriously
this week by the House Ways and
Means Committee. Representative
kiichin, chairman Of the committee
and majority leader, declared tonight
that definite means OF raising funds
TO meet the threatened treasury deficit
have not yet been formulated The
deficit Is estimated at from 100000
600 to $500. goo COO
An we know, said Representative
kitchin. rs that we must raise more
money. We had 10 have special reve-
nue. legislation last session We face
the same problems this session. and
We probably st4eti4 during the next
Congress. There can be no relief
from the demands for increased leg
islation to raise revenue. now that this
country has been wen started on its
preparedness program. Within five
years time l look for an annual naval
appropriation alone of $500, 100000
All of these additional revenues are
necessitated by the mounting sums APP
propriated for the army ana navy.
May Name subcommittee.
Representative Kitchin said he had
no PldHS VI any SOil 70 lay before the
committee which will meet Tuesday TO
take up the problem. He said that
subcommittee would probably be
named to sift out the mass OF revenue
raising suggestions which have been
submitted to the committee.
These suggestions take a wide range
Representative Garner. of Texas, has
proposed that the present tariff rates
be increased per cent all along the
I'll
free list be taxed 10 per cent when
imported. The administration, FEAR
ing that such a plan would be subject
to possible criticism as a protective
tariff" measure. has rejected this sug-
gestion.
Opposition among members of the
House has also eliminated several
suggested taxes. The breakfast ta-
BILE" taxes, such as proposed consump-
ton taxes on tea. coffee and sugar.
meets with little favor among the
representatives who hear directly
from back home"
stamp Tax Unpopular.
The popular prejudice against
stamp taxes has aroused vigorous OPP
position 10 proposals to raise revenue
through that means. If a stamp tax
can be devised that is not too annoy
ing or hurdensome. it will find favor
with the committee.
A tax on raw wool has been sug-
gested, but the high cost of living"
has aroused considerable opposition.
Proposals to tax the consumption of
raw rubber and mineral ores have
some support in the committee.
Other revenue plans suggested in
clude tax of per cent on business
profits in excess of a dividend OF 8
per cent; further increases in the in
ternal revenue tax on beer and
spirits: a tax on the horsepower of
internal combustion engines, includ-
ing automobile engines: increased in
come and inheritance taxes.
The committee will endeavor to
hasten the revenue legislation through
the House. Unless It Is passed with
in the next seven weeks, an extra
session Of Congress will be, necessary,