The Birmingham age-herald., 1918-11-13
McAdoo Warns That Taxes
 Will Be High for Years ]. and Additional Loans Necessary
WAR FAR FROM
 OVER so FAR AS COST CONCERN ED
Methods of Applying Taxes After the War Already Receiving Con- sideration by Government
 Officials

Washington. November r. Government financial. needs for many years are almost certain to run about S4,000,. 000,00o annually, treasury ex- Iperts estimate, and most of the money will be raised by tax. ation. Consequently students of government finances think the taxes imposed last year and paid i'll June probably will not be lightened material ly 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. He did not attempt to | forecast how big the volume of taxes would be.
 Rnpghly, treasury officials and com lgressional leaders in charge of revs- nue legislaGon figure this way; TENTATIVE FIGURES Ordinary government expenses, which Iran around l,ooo,000 J00Na yeas before | lthe. war, now will amount te sasS lSess g. 0o0, ,000.000 annually for many Years. and for two or three years after the war may be double that figure If the $16,S50, ,000 900 of Liberty Bonds already issued are increased in volume by later loans to S25,000 000.00, the interest on this would amount to about $l,0o0,00o,- GOO a year. In addition, it would be prob- ably the governments plan to establish e,t., ,lxi iaer fi,f11 tn taaN n a maturity, and this would require about I$1, 250. .000,000 year. These three items would make an aggregate near $is250,- 00o, ,000.
 To offset this there would be nearly $500, 900, 900 coming In annually from the allies as interest on their loans, which now amount to $7,000, 000, 900, and are likely to run much higher; and rev ienues from customs and miscellaneous sources. which last year amounted to About s450, 100000.
 MUCH REMAINS
 With allowances for wide variations ! in these calculations there would still remain about $500, 900. 900 to be raised from internal revenue taxes. Last year 1 S3, ,643, 900. 900 came from internal reve-' nues, including s2,7I5,0000 900 from in come and excess profits taxes. This
 year these figures probably will be more than doubled.
 1 Factors which make this system or estimates highly tentative, officials point out are that the war is not yet idehnitely over so far as expense Is
 concerned and that war debts, both of the American government to the public and of the allied governments to the United States, cannot be figured Iuntil then Reconstruction policies, vet to be formulated. will have much to do with determining how many exist ling government wartime agencies shall be continued. Besides, on the icondtion of business and foreign trade lafter the war must depend the weight lof the tax. burden which can be borne
 CONSIDERING METHODS x
 The methods of applying taxes after the war also are receiving attention lIf thes chedule of income taxes now being framed in the new revenue bill works out well. 1t is considered prob able that the bulk of after the war in come levies, which next year. will Yield i probably s2, 300,000.000 Excess profits taxes probably would automatically be abandoned after the war and liquor
 revenue will stop if the contemplated prohibition amendmen. is ratified and
 sooner with the passage of the war - ttime" prohibition bill. It is almost cer- tain that the multitude of minor taxes
 now levied on transportation, insur-
 ance admissions, club dues; the ex- taxes on certain businesses. now .ield- ling con paratively httIe revenue and livery difficult of administration. wtll
 be abandoned.
 i Tobacco and estate taxes probably
 will remain, 1t Is said, Whether tarin
 schedules will be raised materially de. bends on future formulation of policy.