The sun. [volume] (New York [N.Y.]) 1916-1920, 1917-04-06
HOUSE PASSES WAR RESOLUTION BY VOTE OF 3z3 TO so;
RECORD ARRAY OF WEALTH AND MATERIAL BACKS u S.:
GERMAN CENSOR BARS VITAL PARTS OF WILSON MESSAG
1902, 558, ,629 ASKED BY
McADOO AS FIRST WAR NEED
Greatest Part of This Vast Sum to be Used for Army
500, 900, 900 for War Chest-Income Tax
May Reach 81, 500 Salaries

Federal Reserve banks In session to-day
discussed this phase Of tho problem and
virtually agreed thSt a rate Of or 3 y
per cent. would be advisable.
Consideration Of the subject OF add!-
tional taxation to meet the extraordinary
expenditures will be held In allegiance
until more definite estimate Of the
amount to be raised can be made. The
interest on a bond issue of $500. 900. 900
with . per cent. sinking fund would
require an annual expenditure OF anprox-
imately $500. 1000, 900.
Suggestions were made in the Senate
to-day that II financial aid Ia extended
the Entente Allies the amount probably
would be raised by bonds and that the
loans would be secured BY the Obliga-
tions Of the Governments to which the
credit was extended. In other words
this Government would issue Its bonds
and turn the proceeds over to the Allies
in exchange for their bonds bearing the
same rate OF interest.
Concrete Proposals. soon.
Secretary McAdoo, into whose hands
will be placed the task OF suggesting
methods for raising large sums by in
creased taxation. go that the war may
be paid for as far as possible during Its
lifetime. said tonight he expects to have
days with leaders Of the House and Sem
ate. during which an attempt will BE-
made to place proposals In concrete
shape 80 that they may be considered by
Congress.
Representative Ra!ney Of Illinois. rank
ing majority member Of the Ways and
Means Committee, which will have the
final say in drafting the war revenue bill
before Its presentation to the House, said
thaf h., trn fa no
probably amended so as to furnish the
Government with greatly increased rev.
enues during the war
My view Is" he said. that while the
war lasts no man should enjoy an In
come Of more than $4,000 or 500. 900 a
year. and that the Government should
take all over this amount. We could OBJ
tain also sc00.000,00O additional an
nually by raising taxes on whiskey and
taxed In England before the war started.
The excess profits tax now In force must
be graduated. making II heaviest on
largest profits. The tariff Is impossible
as source Of revenue during the wal"
May Tax $1,000 Incomes.
Lowering Of the income tax exemption
to $4,000 and possibly to Sl.50o 10
among the proposals under considera-
tion. What such action would mean. one
official said to-day, in actual revenue
could not be forecast even approximately
because Of lack OF information upon
which to base an estimate. A conserva-
tive view was that at the present rate OF
taxation 100000 900 would be added to
the Governments revenues by lowering
the exemption to $4,000. Some officials
thought that the returns would be
doubled. bringing the total TO approxi-
mately &s50,0o0.oo0.
Proposals under consideration to In
crease the Federal tax on estates to 40
per cent. on very large estates would
swell the Governments revenues II
adopted by hundreds Of millions. The
internal revenue bureau OF the Treasury
Department IL collecting revenue under
peace taxes at the rate OF sI50.ooo. 900
annually This sum could be doubled or
increased by 1000. 100000 by moderate
! increases IN the tax rates on whiskey.
beer and tobacco. the lowering of the in
come tax exemption to $1,000. a gradu-
ated excess profts tax, increased taxes
| on estates and greatly increased taxa
ton on large incomes. Through this
channel alone. II was thought, approxi-
nately l.O00, ,Oo0, 200 annually might be
raised for carrying on the war
Plans for the forthcoming bond issue
were said by all officials involved TO he
purely In n speculative position at pres
ent. The country'S finances were never
before so strongly intrenched as at pres
, cnt, Mr., MrAdoo said.