Estimates of $6,000,000,000 as the yield of the present revenue law for the first 12 months of its operation will be closely approached if not fully realized. Internal Revenue Commissioner Roper says today in his annual report Payments of the first two instalments, March 15 and June 15, brought into the Treasury a total $2,600,783,000, while reports already in hand of the third instalment payable September 15, fully support the bureau's estimate.
The tobacco industry has developed into one of the greatest sources of federal revenue, the total receipts from this source alone for the fiscal year ending June 30, 1919, being $208,063,000, an increase of $48,800,000 over those of the preceding year, An' enormous increase in the number of cigarettes manufactured was shown by the reports, the total for the last fiscal year being approximately eight times larger than in 1910. In that year, $,500,000,000 cigarettes and 3.000,000.000 cigars ware manufactured, while in the last fiscal year the manufacture of cigarettes had increased to 45.500,- 000,000 while the number of cigars remained practically stationary.
Errect oF PRronieition.
Discussing constitutional _prohibition. Mr. Roper said that probably 50,000,000 gallons of spirituous liquors would remain in bonded ware-houses when the constitu- D tional amendment becomes effective on January 16.
During the year ended June 30, approximately 99,000,000 _gailons or distitied liquor were produced from materials other than fruits, this figure representing a decrease of nearly 75,000,000 gallons from the previous year's production.
The effect of wartime prohibition has presented a problem which is causing revenue officials "serious embarrassment," Mr. Roper said. Holders of heavy stocks of liquor in bond were forced, under provisions of the last revenue act, to pay an additional tax on September 15. The law closing the saloons for the period of the war has left those interests '\with their products and without means of obtaining money to make the tax payments.
"Under the law the discretion of the bureau is limited to extending the time for payment of these taxes seven months," Mr. Roper explained. "Serious embarrassment has resulted as to the course of action whick should be taken in these cases to protect the interests of the government without imposing undue financial hardships on the taxpayers, which presumably were not intended by Congress."
The report reveals an increase in illegitimate traffic in drugs between America and Canada and Mexico.
Expenditures of the bureau during the last fiscal year, Mr. Roper said, were $20,573,771, an increase of $12,003,214 over the previous fiscal year. On this basis, he said, it had cost the government 0.543 per cent. to administer the revenue laws and collect the second greatest. tax bill the nation ever has laid.—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.