Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1918-05-10
INCREASE
OF TAXES
PROPOSED
Secretary Wants Immediate
Legislation to Provide More
Revenue; Country Faces
Twenty-Three Billion
Dollar Budget.
(By Associated Press.)

Washington, May o.-Congressional
leaders have been advised BY Secre.
tary McAdoo that legislation at this
session of. congress is imperative to
provide revenire to meet the unex-
pected increases in expenses Incl
dent to the vast expansion of the ma
lions war program. ~,
A statement of the country's finan-
eial situation, upon which the amount
Of additional taxes and bonds needed
may be calculated, has been prepared
at the treasury for submission within
the next two or three days to the
committees of the senate and house.
BLOCKS ADJOURNMENT.
Whether congress will undertake
At the present session upward re-
vision OF the war revenue law of last
fall, leaders at the capitol. said to-
night, depends upon the impression
made by this statement. If it
demonstrates that it is essential to
act now instead of waiting until De-
cember as planned, hope of adjourn
ment by July will go glimmering
and congress probably will be here
until fall.
Secretary McAdoo's belief that
legislation must be enacted at once
was expressed in letter to Senator
Simmons of North Carolina, chairman
of the senate hnance committee.
The Unexpectedly heavy estimates
of expenditures for. the coming year
include the $15,000,000,000 army pro-
gram, about $l,500,000000 fors the
navy, with further estimates expected
and s2,2So,0O0,0O0 for the shipping
board.
May Double Levies.
Senator Simmons said tonight the
tacit agreement to defer further. rsves
nue. legislation until NEXT Dseefisberi
was made before these new estimates,
were submitted. The sitration now,
he said, is materially changed and Will
have to be. considered. in the new
light when Secretary McAdoo's formal
statement is presented.
Representative Kitchin OF North
Carolina, democratic leader, of the
house and chairman OF the ways and
means committee, said if additional
taxes were decided upon, the levy Of
the last tax bill probably would be
doubled. He estimated that $780,
100000 in new taxes would be levied,
but other leaders placed the. probable
figures at from $l,000,000.0O0 to
S2,500,OOO,000. making a total OF
around $6,000,000,00 based upon the
estimated returns of between $4,0O0,-
100000 and $4,500,0OO,OOO from the
present law. =
Will Issue More Bonds.
Further bond issues also will have
to be authorized during the present
session, according to Senator Sim
mons, regardless of when revenue
legislation is enacted. The amount of
the issues, however, of course, will
depend upon the decisions as to
taxes.
Incomes and profits, both Repre-
sentative Kitchin and Senator Sim
mons indicated, are regarded as the
principal source from which any
revenue increase must come. The
former said both can be doubled,
while the latter believes additional
tax burdens should be spread more
generally over the population. More
consumption taxes are regarded as a
strorg probability. $3.50
Republicans Opposed to Plan.
Strong republican opposition to any
general revenue legislation at the
present session of congress is ex-
.pected. 3
Senator Simmons explained tonight
that a decision regarding immediate
legislation largely depends on Secre!
tary McAdoo's showing of actual
treasury receipts in sight between now
and February, when it is assumed a
new bill, begun next September,
would be available.
This basis of calculation upon which
$4,000, 100000 is fixed upon as the
amount needed for next year necessar-
lily is inexact, since conditions which
cannot be foreseen may either in
crease or reduce the actual govern
mental outlays. .e..
The treasury's estimates of expendi-
tures in the fiscal year opening next
July l, as made up last June from de-
partment forecasts, provided for only
$l2, 8O4, 100000, not including loans to
the allies.
It placed needs of the military es-
adjustments at only $o,99l 100000 in
stead of SIS, 100000. 600 now asked by
the War department. the navy de-
partment's budget of S8l6,000.00O. in
stead of the $1,500.000,0O0 carried in |
the pending naval appropriation biil; |
and the shipping board at $780, !
instead of the $2,250,OOO, 600
now sought by the, board. |