New-York tribune., 1918-05-10

mont is presented.
Representative Kitchen, of North
Carolina, Democratic leader of the
House. and chairman of the Ways and
Means Committee, said he had heard
nothing about the Treasury's plans, but
if additional taxes were decided upon
the levy of the last tax bill probably
would be doubled. He estimated that
S2,500,000,000 in new taxes would be
levied, but other leaders placed the
probable figure ut from $1,000, 100000
to $500 100000, making total sof
around $5,000,000, 900, based upon the
estimated returns of between $4,000
100000 and $4,500 900 from the
present law.
New Bond Issue Probable
Further bond issues also undoubtedly
will have to be authorized during the
preseno session, according TO Senator
Simmons, regardless of when revenue
Legislation is enacted. The amount of
the issues, however, of course will de-
pend upon the decision as to taxes.
Incomes and excess profits, both Rep
resentativo Ki.chin and Senator Sim
mons indicated. are regarded as the
principal source from which any reve
nue. 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 strong proba-
bility.
Strong Opposition Expected
Strong Republican opposition to any
general revenue legislation at the pres
ent session of Congress is expected
Senators Lodge. of Massachusetts, and
Smoot, of Utah, Republican members
OF the Senate Finance Committee, both
stated to-day that legislation is not
necessary until next December. because
no appreciablc amount of additional
Treasury much before the spring Of
1919. 1t also was pointed out that
while appropriation estimates and
actual authorizations for the fiscal year
beginning July 1 are enormous, drafts
upon the Treasury for actual expendi-
lures probably will not be large before
the beginning of 1919.
Of estimated actual expenditures
next year. of about 1923 600, 100000, in
Guiding loans to the Allies. most mem-
bers of Congress are inclined to raise
about 25 per cent, or around S6,0o0,-
100000, by taxes and the remainder
from bond issues. Some, however,
favor increasing the ratio to one-third
taxes and two-thirds bonds.
Senator Simmons explained tonight
that decision regarding immediate
legislation largely depends on Secre-
tary McAdoo's showing of actual Treas
ury receipts in sight between now and
bill begun next December would be
available. The Treasury Department
recently was authorized to issue $4,
5OO,O0O00O additional bonds, and S.
000,000,0 900 of Treasury certificates Of
Indebtedness to meet the nations eX-
penses, exclusive of provisions for fur
ther loans to the Allies. Congress, the
Senator said, will not risk any Treas
ury deficit and will make sure that am
pie funds are available while it is in
recess.
Estimates Are Increased
The basis of calculation upon which
S23 100000 900 is fixed upon as the
amount needed for next year neces-
sarily is inexact, since conditions
which cannot be foreseen may either
increase or reduce the actual govern
mental outlays For example, the gov
ernment in the fiscal year ending next
June 80 will have spent about $l2,000,-
900, or 100000 100000 less than had
been estimated last June.
The Treasury's estimates of eXpendi
lures in the fiscal year opening next
July l, as made up last June from the
departments forecasts, provided for
only $12,8O4O 900, not including
loans to Allies. 1t placed needs of
the military establishment at only s9,-
600 now asked by the War Depart
ment; the Navy Departments budget
at S816,000000, instead of the $1500,-
100000 carried in the pending naval
appropriation bill, and the Shipping
Board at 100000, 900, instead of the
S2,250,000,000 now sought by the
board.
The need for Congressional action
on new tax legislation at this session.
mainly from the administrative diff
culties of collecting new taxes, ar
ranging the proper forms and issuing
new instructions, if the legislation is
not completed until next December,
when the next session of Congress will
convene. Even if revenue legislation
were given the right of way then it
probably could not be completed for
month or more.
May Adopt British System
Under the present revenue act,
passed last September, the internal
revenue bureau had great difficulty in
passing on most questions, preparing
tax return forms and arranging for
gathering reports in proper time, and
was compelled to postpone the time for
filing returns until April /.
Tax experts Of the revenue bureau
are now at work on a new revenue bill
intended to iron out the administrative
wrinkles in the present law and simpli
fy the complicated method of figuring
taxes due.
Members of Congress recently have
discussed with Treasury officials the
advisabilty of changing the basis of
calculating excess profits taxes by elm
mating provisions for figuring profit
as percentage of capitalization. since
it has been difficult in thousands of
cases to determine fair capitalization.
Serious thought has been given to
the so-called British system, providing
for defining taxable war profits as the
excess of present profits over those of
pre-war period, with certain allow
nnces for increases in capital since the
pre-war time. This would greatly sim
plify the task Of calculating excess
profits taxes, it is pointed out. and
would remove many apparent iniustices
now affilcted on businesses with nomi-
nal capitalization.
Upton Soldiers Fight Fire