The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1918-11-22
HIGH TAXES TO BE CON-
TINUED IN DAYS OF PEACE

Washington D. c., Nov. 12-Gov-
ernemnt financial needs for many
years are almost certain to run above
$4,000,O00,000 annually. Treasury
Department experts estimate, and
most of the money will be raised by
taxation. Consequently students of
Government finances think the taxes
imposed last year and paid in June
probably will not be lightened materi-
ally by the advent Of peace.
Secretary McAdoo to-day warned
that taxes necessarily would be high
for many years to pay off war debts,
and that additional Government loans
would be required. He did not at
tempt to forecast how big the vol
ume of taxes would be.
Roughly, Treasury officials and con-
gressional leaders in charge of reve-
nue. legislation figure this way:
Ordinary Government expenses,
which ran around $1,000, 10000 per
annum before the war, now will a
mount to at least $4,000, 100000 an
nually for many years, ard for two or
three years after the war may be
double that figure. If tile $16,S50,-
100000 of Liberty Bonds alreadp is
sued are increased in volume by later
loans to $25,000,000,000, the interest
on this sum would maount to about
81 100000 a year. In addition,
it probably will be the Governments
policy to estblish sinking fund to
pay off the bonds at maturity, and this
would fequire about 81 $50 ,000, 900 900
year. These three items would
make an aggregate of nearly $4,250,-
100000.
Big Interest From Allies
To offset this, there would be near
ly $500,000,000 coming in annually
from the Allies as interest on their
loans, which now amount to $1,000
100000 and are likely to run much
higher, and revenue from customs and
miscellaneous sources, which last year
amounted to about $3.50, 100000.
With allowances for wide varia-
tons in these calculations, there still
would remain about $500, 000,00 to
be raised from internal revenue taxes.
This year, these figures probably will
be more than doubled.
Foctors which make this system of
estimates highly tentative, officials
point out, are that the war is not yet
definitely over, so far as expense is
concerned, and that war debts, both
of the American Government to the
public and of the Allied Governments
to the Unitde States, cannot be figured
yet to be formulated will have much
to do with determining how many eX
listing Government wartime agen-
cies shall be continued, and consequent
thy how ordinary Governemtn expen-
sse will run. Besides, on the condit-
ion of business and foreign trade af
tire the war must depend the weight of
the tax burden which can be borne.
Manner of Application Considered
The methods of applying taxes af-
ter the war also are receiving atten-
ton. If the schedule of income taxes
now being framed in the new revenue
bill works out well, it is considered
probable that the bulk of after-the-
war revenue will come from income
levies, which next year will yield pro-
baby $4,000, 900. Excess profits
taxes probably would automatically
be abandoned after the war, and IL
quor revenue will stop if the constitu-
tional prohibition amendment is rat
fled, and sooner with the passage of
the "war time" prohibition bill. 1t is
almost certain that the multitude of
minor taxes now levied on transpohta-
ton, insurance, admissions, club dues
the excise taxes, stamp taxes and spec
ial taxes on certain businesses, now
yielding comparatively little revenue
and very difficult to administration,
will be abandoned. Tobacco, and es-
tate taxes probably will remain, it
is said Whether tariff schedules
will be raised materially depends on
future formulation of policy.