The Yale expositor., 1918-06-13
M'ADOOLAYS PLANS
FOR 8 BILLION TAX
CONGRESS HAS BEEN STUDYING
THE SYSTEM USED IN ENGLAND
ON WAR TAXATION.
PASSENGER AUTOS TAX HEAVY
Every Effort Will Be Made TO Raise
Three-fourths BY Means of Taxes
On War Profits and Incomes.

Washington Secretary McAdoo
made his recommendations concern
ing the new war revenue bill June
g. They virtually have the approval
OF congress in advance, for members
of the house and senate charged with
framing the new law have been work
ing on identical lines with those laid
down by Mr. McAdoo.
The following outstanding features
in Secretary McAdoo's recommends
tions probably will be adopted with
out opposition:
Raise Taxes Ope-Third.
That the new bill be drawn to raise
$4,000, 100000 annually by taxation as
one-third of the war expenditures
That a real war profit tax be en-.
acted that will reach and tax up to
80 per cent profits made out of the
war.
This tax should be superimposed
upon the existing excess profits tax
in such a way that the taxpayer
should be required TO pay whichever
tax is the greater.
Heavy taxes perhaps as great as
war tax profits, on unearned in
comes.
Passenger Auto Tax Heavy.
Luxuries will be taxed heavily and
there is a disposition on the part Of
some members OF both house and SEN
ate to regard passenger automobiles
as Injuries and to include in the new
war revenue bill license tax ranging
from $50 to $500 annually.
AS all automobiles already are IL
censed through the different state
governments, federal license tax
could be collected almost without eff
fort and the proposal meets with con-
siderable favor in many quarters.
Congress, in advance of Mr.. Nc
Adoo's recommendations, has been
studying the English system of war
taxation which levies heavy taxes on
war profits and unearned incomes.
Definitely committed to the policy
that the greater burden of the new
war taxes should be imposed upon
Injuries, war profits and incomes, the
ways and means committee of the
house will hold it's first meeting June
z to frame the $S.000,000,0 900 measure.
Benjamin c. Marsh, a representative
OF the New York Tax association, will
be the first witness. 1t is understood
he will give the committee some ideas
about methods of taxing incomes.
The members of the committee are
firmly of the opinion that consump-
tion taxes on articles such as coffee,
tea and sugar should be imposed only
as a last resort Every effort will be
made to raise at least three-fourths
OF the $4,000, 100000 by means OF
taxes on war profits and incomes.
Too Repeal old Law.
Incomes in excess Of $4,000 will
bear the brunt OF the increase. To
make up the balance the rates on
all other articles now included in
the taxation measure will be doubled
or trebled.
In a general way the rates will
be raised to the point of diminishing
returns, beyond which there would be
no profit in collection. To simplify
the collection and computation OF in.
come taxes the law of 1917 will be re
pealed and the income tax provisions
will be entirely rewritten.
The treasury departments esti
mate of the amount that will be col
lected on income and excess prof
its this year is $2,775, 1886 Mem
bers OF the committee thoroughly un
derstand that from these two sources
almost three times this amount must
be collected.
1t is not likely that any attempt
will be made to change any existing
tariff rates. Republican members 81
the committee will offer notifications
OF the tariff law to raise a large par
OF the necessary revenue, but the ma
ority members are opposed to open
ing up the tariff question at this time