Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1918-11-13
McAdoo Points Out That Gov
eminent Expenses Are Ger
tain to Run About -Four BIZ
lion Annually for Years,
ADDITIONAL LOANS
WILL BE REQUIRED
Expected That Bulk Of Gov
ernment Revenue viii Be
Derived From Income Tax
es and Internal Revenue.
10y soss,so JOURNAL SPECIAL LEASED wrREl

10y MORNING JOURNAL SPECIAL LEASED wlREl
Washington, Nov. 12.-Government
financial needs for many years are
almost certain to run above $4,000
900, 900 annually, treasury experts es-
innate, and most of the money will be
raised by taxation. Consequently stu
dents of government finances think
the taxes imposed last year and paid
in June probably will not be lightened
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 reve-
nue. legislation figure this way:
Expenses to Double.
Ordinary government expenses
which run around a billion dollars a
wear before the war. will now amount
to at least $4,000, 600, 900 annually for
many years, and for two or three years
after the war may be double that fig
ure If the st6,s50, 600, 900 Of Liberty
Bonds already issued are increased N
volume by later loans to $25 900, ,00O,-
600, the interest on this sum would
amount to about 81 900. 100000 year
In addition, 1t probably will be the
governments policy to establish
sinking fund to pay Off the bonds al
maturity, and this would require
about SI,250, 100000 year. Thei
three items would make an aggreSa {
near $4.250, 900.
To offset this, there would be neal
~ a half billion dollars coming ir an
nually from the allies as interest OF
their loans, which now amount 4
seven billions and are likely to rur
much higher; and revenue from Gus
toms and miscellaneous sources wllicf
last year amounted to about $3.50,
10000.
with allowances for wide variation
in these calculations, there would still
remain about three and half billion
dollars to be raised from internal rev
enue taxes. Last year $3,64S,00O, ,00l
came fir ON internal revenue, including
s2775,00n.0 900 from income and ex
cess profits taxes This year thse zig
ures probably will be more than dou
bled.
War Dcbts Not Figured.
Factors which make this system o
estimates highly tentative, official
point out, are that the war is not We
definitely over SO far as expense
concerned, and that war debts bot
of the American government, the pub
lie and the allied governments to tn
United States cannot be figured unit
then.
The method of applying taxes afte
the war also is receiving attention
If the schedule of income taxes no
being framed in the new revenue bi
works out well, it is considered prob
able that the bulk of after the wa
revenue will come from income lev
les, which next year will yield prob
ably $1,000, 900, 900. Excess profit
taxes probably would automatically b
abandoned after the war, and liquo
revenue will stop if the constitutions
prohibition amendment isratifted. an
sooner with the passage of the eva
time prohibition bill. 1t is almo'
certain that the multitude of minC
taxes now levied on transportation, ir
surance, admissions. club dues, an
special taxes on certain h'isinesse
now yielding comparatively little reN
enue and very difficult of administrf
tion will be abandoned. Tobacco an
estate taxes probably will remain, it
said.