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Show ten m IS DISCUSSED BY THE CABINET i Deputation From England Coming Over to State Most Pressing Needs of Entente Allies. 'ArilllXGTON, April G Methods of financing the war with Germany and of extending huge loans to the allies constituted one of the chief subjects considered at today's cabinet meeting. Indications are that the first year's demands upon the financial resources of the country will run far in excess of the $3,500,000,000 already asked of congress and may approximate $3,000,000,000. Bond issues already authorized also were discussed. These total $470,000,-001), $470,000,-001), including the $224,000,000 of Panama Pana-ma canal bonds authorized but not issued. is-sued. Announcement by Secretary Mc-Adoo Mc-Adoo as to the detaiis of one or more of these issues is expected shortly, possibly pos-sibly within twenty-four hours. Financial and other co-operation with entente governments is one of the chief topics under consideration by the council coun-cil of national defense and plans looking look-ing to the issuance of loans to the allies al-lies are expected to take definite form within the near future. Opinions as to the amount of the first loan varv between be-tween $500,000,000 and $5,000,000,000. Conference to Be Held. An official deputation from Great Britain, probably one from Prance and possibly others from other allied governments gov-ernments will visit the United States shortly to assist in formulating a definite defi-nite programme adequate to meet the most pressing needs of the allies aiul at the same time imposing as light a burden bur-den as possible upon this country. - Secretary McAdoo, members of the house ways and means committee and Chairman Simmons of the senate finance committee will begin conferences tomorrow to-morrow on the problem of meeting the war needs of this country. It seemed likely tonight that a heavy percentage of the war bill will be raised by greatly increased taxation and that whatever bond issues are necessary will be placed through the federal reserve board or raised by popular subscription or by both methods, and that there would be no appeal whatever to the big private banking interests of the country to underwrite any part of the issue. Income Tax Revision. Eadical revision of the present income in-come tax is considered as among the probabilities of the war revenue measure mea-sure to be placed before congress. This revision will probably concern both extremes ex-tremes of the scale; involving the lowT-ering lowT-ering of the present exemption of $3000 nnd $4000 on individual incomes, aaid heavy increases in the rate of taxation at present imposed on incomes of $25,-000 $25,-000 and over. The opinion prevails among members of the ways and means committee that the government's revenue from this source alone could be brought without undue hardship to anv one up to $1,-000,000.000 $1,-000,000.000 annually and possibly exceed ex-ceed this sum. The income tax at present pres-ent rates will yield approximately $325,-000,000. $325,-000,000. Revision of the excess pro6ts tax likewise like-wise seems certain. The present measure mea-sure allow-s an exemption of $5000 and taxes net earnings of corporations corpor-ations in excess of S per cent an-nuallv. an-nuallv. This is designed to yield $226,000,000 annually. Experts assigned as-signed the task of devising methods of increasing the government's income have recently been studying somewhat similar methods of taxation in Great Britain and France and a parallel measure mea-sure in effect in Canada which imposes taxes up to 25 per cent on net earnings. One estimate is that the government could obtain $1,000,000,000 annually from this source instead of the $226,000',-000 $226,000',-000 contemplated under the present law. Other proposals included increased taxation on whisky, beer and tobacco and revision of the estates tax. |