Arizona republican., 1918-11-13
TAXES ID BE HIGH FUR SEVERAL YEARS
 F|NANC|ERS ADMIT

WASHINGTON, Nov 12-Govern- ment financial needs for many years are almost certain to run above four billion dollars annually, treasury ex- perts estimate, and most of the money will be raised by taxation. Conse- Quently. students of government finances think the taxes imposed last year and paid in June, probably, will not be frightened materially by the advent of peace.
 Secretary McAdoo today warned that taxes. necessarily would be high for many years, to pay off war debts. and that additional government loans would be required.
 Roughly, treasury officials and con gressional leaders in charge of revenue legislation figure this way:
 Ordinary government expenditures. which ran around a billion dollars q year before the war. will now amount to at least 5000, o0O 900 annually for many years, and for two or three years after the war may be double that fig ure. If the s16, $50, ,OOo,00Q of Liberty i bonds already issued are increased in volume by later loans to $25,000, 100000, the interest on this sum will amount to about s1000 100000 a year. In ad- dition, it probably will be the govern ments policy to establish a sinking fund to pay off the bonds at maturity and this would require about $1,250, | 000,000 a year. These three items would make an aggregate near $4,- 25O, ,O0O GOO.
 Vast Debts to Be Paid
 To offset this, there would be nearly a half billion dollars coming in annu- ally from the allies, as interest on their loans, which now amount to seven billions and are likely to run much higher; and revenue from cus- toms and miscellaneous sources, which last year amounted to about four hun dred and fifty millions.
 With allowances for wide variations in these calculations, there would still remain about three and a half billion dollars to be raised from internal revenue taxes. Last year s3,64S, ,000,00( came from internal revenue, including PITS, ,000, 900 from income and excess profits taxes. This year these figures will be more than doubled. Factors which make this system oi estimates highly tentative, official: point out, are that the war is not ye definitely over, so far as expense i: concerned, and that war debts botl to the American government thu public and the allied governments tt the United States cannot be figured until then.
 Income Levies Will Prevail The method of applying taxes afte the war also are receiving attention If the schedule of income taxes, nov being framed in the new revenue bill works out well, it is considered prob able that the bulk of after the wa revenue will come from income levies which next year will yield probabl. $2,300 900, 900. Excess profits taxe probably would be automaticall, : abandoned after the war, and liquo revenue will stop if the constitutions prohibition amendment is ratified am sooner with the passage of the 'wa
 time" prohibition bill. It is almos
 certain that the multitude of mino !. taxes now levied on transportation
 insurance admissions, club dues an special taxes on certain businesse:
 now yielding comparatively little reve
 nue and very difficult of administra
 tion, will be abandoned. Tobacco an
 estate taxes probably will remain,
 is said.