Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-11-13
ESTIMATE EXPENSES
At $4,000,0OO,OOO
Governments Financial Needs
Will Be Large for Many
Years.
TAXES WILL REMAIN HIGH
Sum to Raise Will Be Reduced
by S5oo,ooO,0o0 Interest
From Allies.
lRy Associated Press


WASH lN,;TON November lo-C;ov
ernment financial needs for many wears
are almost certain TO run above $4,000
o0o.Ooo annually. the Treasury experts
estimate. and most of the money will
he raised by taxation Consequently.
students o: government finance think
me taxes imposed last year and paid
III June probably Will not be lightcncd
materially by the advent OF peace
secretary McAdoo to-day warned that
taNes necessarily wouldohc high fo-
many years to pay of war debts. and
that additional government loans would
be required. He did not attempt to
forecast now big the volume OF taxes
would be.
Roughly. Treasury officials and con
2resSi"n-.! readers in charge OF revenue
legislation figure this way: Ordinary
government expenses. which ran around
Sl.ooO.OUo.OOh year before the war.
no" VIII amount to at least $1,000. 600,
"oo annually for many years. and for
wv" or three years after the war may
be double that figure If the sI6S5O-
100000 OF Liberty bonds already issued
are Increased in volume by later loans
to $4,000 100000. the interest on this
sum would amount TO about $1,000. 900 :
600 year. In addition. 1t probably
VIII be the governments policy 10 cs-
,abiish sinking fund to pay off the
bonds at maturity. and this would re-
qure about sl.25O 900. 600 year. These
three items would make an aggregate
near Si.o50.0Oo. 900.
ALLIES INTEREST WILL BE
HALF BILLION 4 YEAR
To offset this. there would be nearly
s5OO.oo0000 coming in annually from
the allies as interest on their loans
which now amount to $1,000. 000.0 900. md
are likely to run much higher and
revenue from customs and miscella-
neouS sources. which last year amount
ed TO about s45000O.000
With allowances for wide vTlriat tons
in these calculations there would still
remain about s3.500.00o.o00 TO be raised
from internal revenue taxes. Last year
s3,Gt3,ooo.ooo came from internal rev
enue.
Factors which make this system of
estimates highly tentative, officials
point, out are that the war is not yet
definitely over so far as expense is con-
cerned. Reconstruction policies, yet to
be formulated, will have much to do
government wartime agencies shall be
continued.
METHODS OF Arpf.YING
TANES RECEIVE ATTENTION
The methods Of applying taxes after
the war also are receiving attention
being framed in the new revenue bill
works out well, 1t is considered prob
able that the bulk OF after-the- war
revenue will come from income levies,
which next year will yield probably s2.-
30c.0000oN Excess profits taxes prob
ably would automatically he a bandoned
after the war. and liquor revenue will
stop If the contemplated prohibition
amendment Is ratified. Ii is almost GER
tain that the multitude Of minor taxes
now levied on transportation. insur-
ancc, admissions. club dues, the excise
taxes. stamp taxes and special taxes
on certain businesses, now yielding
comparatively little revenue and very
difficult, of administration. Will he
abandoned. Tobacco and estate taxes
probably will remain. 1t is said.