Evening journal., 1918-11-15
ASKS congress TO
CUT WAR TAXES
McAdoo Urges Reduction
to Four Billions for Levy
to Cover 1919
IDEA is TO MEET
PEACE DEMANDS

WASHINGTON, Nov. ia new
financial program. aimed to meet the /
conditions arising from the transition
from war 20 peace has been laid before
Congress by Secretary McAdoo. In
effect 10 discards the whole program OF
war taxation which has been under
consideration Of Congress.
In a letter 10 senator simmons (N.
C.I. chairman Of the Finance Committee,
Mr.. McAdoO recommends that the new
revenue bill be cut to s6O00O0OOOO for
the present fiscal year and that pro
vision be made for reducing this the
next year TO Si,000O00,OOO
summed up. the letter put the ma
ti0n's financial problem before Congress
in this way:
4. The existing revenue law Is not
satisfactory 10 the country nor TO the
7 Administration and the pending revenue
bill Is more stringent than the situation
now jusiilles.
?. While expenditures for this fiscal
year. had the war continued, would
/ have reached the estimated amount Of
! S2i.OO0O0O,O0O, Il is now estimated that
they will reach only sisOOOOOOOOO by
June 30, 1919, though a decrease In the
Governments expenditures. while great
cannot be at a very rapid rate.
3. Congress Is asked for authority TO
continue extension OF credits and loans
TO the Allies even after the peace proc
lamatlon.
&. The excess profits tax should not
be greater than In the existing law and
should be paid only when Il would yield
greater revenue than the war profits
tax. while both war and excess profits
taxes should end after the collections
for the calendar year 1918 are made.
3. II It is necessary for the calendar
year 1919 TO increase corporation anc
individual income normal taxes 20 bring
revenue up 70 Si.00OOOO.O0O after the wal
and excess profits taxes are abandoned
this action should be taken.
g. While there Is some uncertaint,
in foretelling the Governments revenu'
, needs when the country returns 70
real peace basis the necessary eXpendi
lures by the Treasury Department max
il appear that an annual revenue o
si,O0OOOO.OOO seems very moderat
one"
s 7. Adequate safeguards TO bushes
In the form OF liberal amortization Ia
I exemptions are recommended for In
( corporation in the revenue bill and
{ plan for spreading income and profit
s tax payments over the whole year
= quarterly payments on the fifteenth da
=. OF March, June. September and Decen
Der is suggested. This would also giN
relief 10 taxpayers during the readJus
ment period.
The fact that Mr.. McAdQo estimat
= that expenditures for the present flsc
lv year by the Government will amount
sOOOOOOOOO and that ne desires q
~ revenue bill to raise 0O0.000O0O is
terpreted 20 mean that throughout I
lv remainder OF the business year and un
a real peace basis is reached 10 Is {
o., Administration plan 90 maintain .
ratio Of paying One-third OF the natiOl
- bills through taxation. II the McAdO,
d" estimate Is correct, II means also On
%, only s6.OOOO0OO0 more in bonds "
have 90 be sold instead OF the estimat
Of nine and ten billions which ha
been made.
The plan OF providing virtually "
~ revenue bills in one In the cOmil
tax measure as foreshadOwed ye
d terday Is urged, Mr.. McAdoO G
planned in his letter. in order that bu:
~ ness may know we'll in advance the q
-, burden 10 viii have 70 bear, and mi
~ know also that It's taxes will be lower
instead OF increased.
W According 10 the Secretary Of q
Treasury 10 is impossible at this Tin
TO state exactly how fast the eXpens
ne OF the Government can be decrease
The process Of liquidating contracts
d. a time may result in an actual accelel
tlon Of expenses instead Of a dlmin
to ti0n, the Secretary pointed out. T
letter pointed out that many heavy {
en- penses must continue for months
gardless Of the cessation OF hOstilitie
is The necessity Of continuing cred
and loans 10 the Allies Is 4 very n
We one. Mr.. McAdoo declared Tile All
cannot pay in gold for all Of their 81
le- plies from the United States. II
country has foOdstuffs. raw materi
ne and manufactured products OF wh
Europe and the whole world are In d
ng need.