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Show Secretary McAdoo Makes Suggestions Sug-gestions as to How to Raise the Money. WASHINGTON, April 15. Adrainis-r.ition Adrainis-r.ition suggestions as to possible new'1' sources of taxation through which to raise approximately one-half of the estimated cost of the first year of tho war, or ?1,S07,250,000, wero submitted submit-ted by Secretary McAdoo tonight to the senate finance and tho house ways and means committees. One-half of the cost Is to bo provided by $2,000,-000,000 $2,000,-000,000 of tho bonds authorized by the war revenue bill. Outstanding in the suggestions aro greatly Increased income and excess profit tax rates, (axing of many Important Im-portant articles now admitted free and stamp, liquor, amusement, sugar, coffee, cof-fee, tobacco, soft drinks, freight and passenger transportation receipts and automobile taxes. All of the data is sent to congress for Its-Information and without recommendations. Income Taxes. , Probably tho most far-reaching proposal pro-posal concerns Income taxes. Tho secretary estimates that a 50 per cent increaso on both individuals and corporations cor-porations for 1917, collectable next June, would yield $165,000,000 additional. addi-tional. For 1917 he points out that to lower tho income tax exemption from $3,000 to $l,5u0 for unmarried persons, from $4,000 to $2,000 for married persons, per-sons, to leave the normal tax at 2 per cent, but to raise the super-taxes materially ma-terially would make the law produce $340,000,000 additional in Juno, 1918, without changing the corporation tax. Highest rate on super-taxes under the plan outlined would be 10 per cent of all Incomes over $1,000,000. Increase Excess Profit Taxes. Increases in excess profit taxes both by making the present law applicable to the calendar year of 1916 and applying ap-plying now increases next year, ho thinks, would raise $226,000,000 this year and $200,000,000 additional next year. Other sources, tho secretary behoves, be-hoves, could be mado to yield additional addi-tional income as follows: Taxes on articles now admitted free, $206,000,000; freight transportation receipts, re-ceipts, $100,000,000; excise tax on sugar, sug-ar, $92,000,000; refined petroloum, $75,-000,000; $75,-000,000; stamp taxes on theater, baseball base-ball and othor amusement tickets, $75,-000,000; $75,-000,000; distilled spirits, $73,000,000; stamp taxos, miscellaneou, $51,600,000; transportation receipts, passenger, $35,000,000; fermented liquors, $30,-000,000; $30,-000,000; smoking and chewing tobacco, tobac-co, $25,000,000; automobiles, trucks, motorcycles, $19,800,000; soft drinks. $19,200,000; cigarettes, $17,000,000; rectified liquor. $12,500,000; cigars, $11,600,000; excise tax on musical instruments, in-struments, graphaphones, etc., $7,000,-000; $7,000,-000; wines, etc., $6,750,000; excise tax on glucose, $6,000,000; denatured alcohols, alco-hols, $5,000,000; retail dealers in cigars, ci-gars, cigarettes, etc., $1,800,000; whole-Bale whole-Bale dealers and jobbers In tobaccos, $2,500,000. and snuff, $1,500,000. The revised arrangement of supertaxes super-taxes on incomes as outlined would be: Incomes of $3,000 to $-1,000, 1 per cent; $l,000-$5,000, 2 per cent; $5,000-$10,000, $5,000-$10,000, 5 per cont; $10,000-$20,000, 7 per cent $20,000-$40,000, 8 per cent; $40,000-$60,000, 10 per cent; $60,000-$80,000, $60,000-$80,000, 12 per cent; $80.000-$100,000. 15 per cent; $100,000-$150.000, 20 per cent; $150,000-$200.000, 25 per cent; $200,000-$l,000,000, 33 1-2 per cent; $1,-000,000, $1,-000,000, and over, -10 per cent "This revenue," Mr. McAdoo wrote, "would be. further increased if the income in-come from stato and municipal securities secur-ities and state and municipal salaries were mado subject to income tax. "If tho present excess profits tax of S per cent on corporation and partnership partner-ship profits of more than $5,000 and 8 per cont of invested capital wore made applicable to the calendar year 1916, the secretary estimates, it would yield $226,000,000. Corporations and part-' ncrships would be given until September Sep-tember to pay tho tax. If the oxcess profits tax of 1917, cc" celctablo in June, 1918, were increascc to 10 per cent on profits In excess o; S per cent and not over "V per cent o' capital invosted; to 15 per cent on pro fits in excess of 15 per cent and noi over 25 per cent of capital invosted; tr 20 per cent on profits in excess of 25 per cent and not over 50 per cent of capital Invested, the law, according to the secretary, would yield $-125,00.0,-000. Proposed revenue from passenger transportation roceipts is estimated on the basis of "1 por cent on each 25-cen fare or fraction thereof within the United States, but no tax on fare not in excess of 25 cents." Freight transportal Ion, it Is estimated, estimat-ed, would yield $100,000,000 at 1 por cent on each 25-cont or fraction thereof there-of of each freight bill. An increase of ?2 per gallon on distilled dis-tilled spirits now taxed $1.10, the secretary sec-retary says, would raise $73,000,000. 9. nn |