Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1918-11-15
M'ADOO OUTLINES
HIS PROPOSALS. FOR
NEW REVENUE BILL
Secretary of the Treasury
Wants Taxation Set
tied in Advance.
RECOMMENDS HIGHER
RATES ON INCOMES
Thinks Pending Measure Should
Be Passed With Slight
Changes.
ADVANCE MONEY TO ALLIES
Expenses OF Government for Current
Fiscal Year Will BE Only
$lS,OOO,OOO,OOO.
RECOMMENDS HIGHER
RATES ON INCOMES
MONEY TO ALLIES
Expenses OF Government for Current
Fiscal Year Will BE Only
SlS,OOO,OOO,OOO.
tpy Associated pres.

WASHINGTON. November 4-Revi-
sion OF the pending revenue bill with
view TO yielding s6,00o.000.000 pay
able during the calendar year 1919 and
not less than $4,000. 10000 the follow
ing year was recommended by Secre-
tary McAdoo tonight in letter to
Chairman Simmons of the Senate
Finance Committee, setting forth the
Ireasury's financial program for the
reconstruction period.
Ihe Secretary estimated that c1-
ntnditures during the fiscal year end
Ing next June 80 now would be slS,-
ooeo,oo0.ooo instead OF the $4,000, 600
poets of peace. He declared for con-
ttnuation Of the policy of loaning to
me allies for limited time during
them TO purchase foodstuTs. raw ma
!srlals and manufactured products in
this country.
(, Other recommendations were:
Ihst income and profits taxes be
saHrSs n on 1oS Maren enul A. sssssy
and December is. ''e'''e' -
That excess profits tax rates for pay
,sc,nts ncnts due ne1, year he no higher
than those in the existing law
That necessary safeguards be pro-
vldcd for war and excess profits In
inc form OF ADEQUATE provisions for
and inventories and ascertainment or
minimum income which shall be ex-
cmpteo from the tax 10 insure the
able injury.
That war and excess profits taxes
due In 1920. eHeept w,S tSm rsspss. payments its
prohts on contracts during the war pc
That cooperation and indiyiaual in
come tax rates be increased on in
comes OF 1919 payable In 1920. -
Inst the basis for next years taxes
payable in 1920 be determined now.
SECHIsTA
PROMPT ENACTMENT
4 The Secretary also urged prompt en-
actment or the pending. bill. He es-
'hs as Se'd srom the
so1mpared with the ss.ooo.ooo 900 pro. %
House. wh.oh he he declared S sseo lis oS mone one
/ stringent than the changed situation
H will Justify"
= The Its existing law is not satisfactory
he .nr ma. country nor to the Treasury"
Mr.. McAdoo did not refer to the fifth
var var loan. which probably will be
indicated that the size OF this mieht
Ssac,f around 5000. 900 e make UP The
taxes plus ss,sse 600 oo0gs1"ggSo2 gstbersS -o Of
ihe Fourth Liberty Loan and the SIS.
'0TSeo'Sop TSe Sen,,1 OF eFSipenditures.
morrow % Will Examine sannds cGmm,,,e" ~. .aa.s cs
program. Chairman simmons eAaSo aStss
h nudylnE Mt. McAdoo's letter. said in
recommendations. He added that tbeS
al we're along the lines he and the secre-
iary had discussed at repeated con-
A After reporting that government e1-
4 penoltures TOT July. August. September
ana @ October this year amounted TO So
Mr.. McAdoo in his letter said: There
seems every reasons to anticipate a
large reduction in the governments
tHInenditurRE rinf ha b,lo
n fiscal year How great that reduction
III 10 estimate.
ALLIED GOVERNMENTS WILL
M HAVE TO BUY on CREDIT,
The United States will be the for
III tunate possessor OF foodstuffs, raw ma
tcriais and manufactured products OF
are in dire need not ali of the al
III lies can fully pay us in gold. for some
have little and others none to spare:
II Of reconstruction. for some of them
will not so soon be ahie 10 r-e"r,c
normal activities: and the United
therefore, to enable the governments
make purchases ?, Il. on credit. I shall
Elpromntly ask Congress for authority to
lcontinue to establish such credits and
make loans within reasonable limits
TO these governments for purposes
lin 1T Is OF the utmost inheritance that
" such foreign loans should be held down
lto minimum, and as soon as may be,
BILE argument should be pressed upon
tathe governments of the allies to pre-
Rnare tnemsertss I'M yrent % and their people TO
II 1.-The United States by imports into 10
II Hunted States: that is. In effect to make
II Hcash payment instead Of payment by
III Taking up the pending revenue bill,
ne secretary explained his views as
II XCEss PROFITS TAX RATES
,N SHOULD NOT BE GREATER
Nj The excess profits tax rates appli-
tVIable to the calendar year 1918 should
l pot be greater than those provided FOR
|,nd should he payable only in those
EEfases where such excess profits tax
Evonld yield ID larger return than the
Nent war profits tax applicable to the
lEalcndar year 1918 should be retained.
'ontracts have been made during nast
Thonths In the expectations OF n heavy
HEyar profits tax. Every one is arraed
hat war profits should be taxed. They
II, Ia tim. IN ,oc,, head IN ,bc
\ Ntuture OF American business and in
\ llhustry Our tax measures should be
late rather than to burden and re-
NtIbress them. ]. therefore, recommend
1lHhc immediate amendment OF the pend
EUng bill 80 as to provide that, with
Y Dehe collection Of tho taxes levied upoii
|VSyar and excess profits for the cal
EHndar year 1918 and payable TO the
|YRear 1919. the war and excess DroIits
IHaxes shall come to an end, cxcent In.
h Mo far as may be necessarv TO smbinrt
\ Ho these taxes profits which,, though
EBrlsing from contracts entered into dur.
H Hmr tho war pcriod. would. undor gev-
/ k,tinE regulations, technically be prof.
! Its of u 9la and not profits OF 1918 ri
A .It Seems. wise to, provide. with tho
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