REPORT OF THE COMMISSIONER OF INTERNAL REVENUE. TREASURY DEPARTMENT, OFFICE OF COMMISSIONER OF INTERNAL REVENUE, Washington, D. C., September 25, 1917. SIR: I have the honor to make the following report of the work of the Bureau of Internal Revenue during the fiscal year ended June 30. 1917: This report also shows the total receipts from the several sources of internal revenue for the three months ended September 30, 1917, compared with the receipts for the corresponding period of 1916. ACCOUNTS AND STATISTICS. The total receipts of the bureau for 1917 amounted to $809,393,640.44, the largest in the history of the bureau and exceeding by $296,670,352.67 the receipts for 1916. Of the total for 1917 there was collected from corporations an aggregate of $179,539,631.03, under the act of October 3, 1913, and at the increased tax of 2 per cent, under the act of September 8, 1916, as compared with $56,972,720.88, collected during the preceding fiscal year, being an increase of $122,566,910.15. Income-tax collections from individuals aggregated $180,108,340.10, as compared with $67,943,594.63 during the preceding fiscal year, being an increase of $112,164,745.47. These receipts from individual income tax during fiscal year 1917 include $12,321,250.71, taxes accruing prior to January 1, 1916 (act of Oct. 3, 1913), and $167,787,089.39 taxes for calendar year 1916 (act of Sept. 8, 1916). The ordinary receipts for fiscal year 1917, exclusive of income tax and emergency and other revenue provided for in the act of October 22, 1914, and subsequent acts, as compared with similar receipts for fiscal year 1916, show the following substantial increases: Distilled spirits... Manufactured tobacco, snuff, cigars, and cigarettes... Total...... $31,003, 348. 25 16, 906, 110. 90 2,072, 085. 59 925, 580. 83 50, 907, 125. 57 The receipts from ordinary and other sources, except excess profits and income taxes, for the first three months of current fiscal year were $139,911,982.62, as compared with $105,531,200.87, for the corresponding period of the fiscal year 1917, an increase of $34,380,781.75. Income tax collected for the first three months of current fiscal year amounted to $20,058,362.35, as compared with $11,853,624.95 for corresponding period of the fiscal year 1917, an increase of $8,204,737.40. I estimate the collections for the fiscal year ending June 30, 1918, distributed as follows: Ordinary collections, $445,700,000; additional revenue (act of Oct. 3, 1917), excluding excess profits and income taxes, $527,300,000; excess profits tax, $1,226,000,000; income tax, $1,201,000,000 (corporation $535,000,000 and individual $666,000,000); making a total of $3,400,000,000. I estimate the collections for fiscal year ending June 30, 1919, distributed as follows: Ordinary collections, $367,462,500; additional revenue (act of Oct. 3, 1917), excluding excess profits and income taxes, $630,537,500; excess profits tax, $1,226,000,000; income tax, $1,201,000,000 (corporation $535,000,000 and individual $666,000,000); making a total of $3,425,000,000. The estimated receipts for fiscal year 1918, except such as relate to the "war revenue" taxes, are predicated in part on the collections for the first three months of that fiscal year and on a continuation of the war and the accompanying industrial conditions without material change in existing laws affecting internal revenue. SOURCES OF INTERNAL REVENUE. The sources of internal taxation producing the largest amounts of revenue during last fiscal year are distilled spirits, exclusive of special taxes, $187,288,082.49; fermented liquors, exclusive of special taxes, $91,094,677.70; manufactured tobacco, including snuff, cigars, and cigarettes, and not including special taxes for the manufacture and sale of same, $102,230,205.36; munitions manufacturers' tax, $27,663,939.63; various special taxes, including tax on capital stock of corporations, and amounting in the aggregate to $23,371,310.39; corporation income tax, $179,539,631.03; and individual income tax, $180,108,340.10. RECEIPTS IN LARGE TAX-PAYING STATES AND COLLECTION DISTRICTS. The States in which the largest collections of internal-revenue taxes were made during the fiscal year 1917 are New York, $189,944,071.68; Illinois, $88,213,200.70; Pennsylvania, $83,402,857.12; Ohio, $51,342,224.27; and Kentucky, $47,117,694.28. Among the States in which the smallest collections were made are Nevada, $173,511.38; Wyoming, $340,336.71; North Dakota, $388,250.53; South Dakota, $432,113.80; Idaho, $474,541.77; and New Mexico, $494,405.45. Of the collection districts, the second New York reported $89,966,762.26; the third New York, $49,156,866.91; and the first Illinois, $42,330,963.51, which were the three largest collections made. The four States in which the largest amounts of corporation income tax were collected are New York, $46,566,951.90; Pennsylvania, $24,238,266.36; Illinois, $14,359,537.16; and Ohio, $12,873,403.13. The collection districts showing the largest collections from this source are the second New York, $31,488,313.25; first Illinois, $13,053,369.95; twenty-third Pennsylvania, $12,002,028.36; third Massachusetts, $9,320,716.63; and first Pennsylvania, $9,205,457.49. The four States in which the largest individual income tax was collected are New York, $81,495,783.31; Pennsylvania, $17,860,341.18; Illinois, $11,739,952.41; and 'assachusetts, $10,959,847.50. The collection districts showing the largest collections from this source are the second New York, $41,925,083.46; third New York, $26,507,320.94; first Illinois, $10,973,029.53; third Massachusetts, $10,959,847.50; and first Pennsylvania, $10,071,214.93. PRODUCTION IN STATES AND COLLECTION DISTRICTS. The fiscal year 1917 witnessed a large increase in the production. and tax paid withdrawal of distilled spirits; a moderate increase in the production of fermented liquors; a substantial increase in chewing and smoking tobacco and in large cigars, with an increase of over 30 per cent in the production and tax paid withdrawal of small cigarettes. During the fiscal year 1916 the total production of distilled spirits was 253,283.273 gallons; in 1917, 286,085,464 gallons, an increase of 32,802,191 gallons. The five States having the largest production of distilled spirits during the last fiscal year are Illinois, 79,320,617 gallons; Indiana, 43.361,276 gallons: Kentucky, 36.441,778 gallons: Louisiana,26,545,833 gallons and Maryland, 24.965,320 gallons. The four collection districts having the largest production of distilled spirits are the fifth Illinois, 62,230,255 gallons; seventh Indiana, 28,949.950 gallons; Louisiana, 26,545,833 gallons; and Maryland, 25,574,133 gallons. During the fiscal year 1917 there were tax paid for bottling in bond 16,512,307 taxable gallons, as compared with 12,578,452 taxable gallons tax paid during 1916, an increase of 3,933,855 taxable gallons. The five States which produced the largest quantity of fermented liquors are New York, 13,198,400 barrels; Pennsylvania, 8,174,457 barrels; Illinois, 6,223,097 barrels; Ohio, 5,458,868 barrels; and Wisconsin, 4,919,014 barrels. The three collection districts which produced the largest quantity of fermented liquors are third New York, 5,295,809 barrels; first Illinois, 5,237,685 barrels; and first Wisconsin, 4,088,032 barrels. The four States producing the greatest number of cigars weighing more than 3 pounds per thousand and the production of each during the calendar year 1916 are as follows: Pennsylvania.. New York.. New Jersey. 1, 955, 169, 488 1, 122, 251, 404 708, 041, 968 533, 089, 455 The two districts showing the largest production of cigars are the first Pennsylvania, 794,955,165, and the ninth Pennsylvania, 701,373,698. The States showing the greatest production of little cigars (weighing not more than 3 pounds per thousand) are: Maryland..... Pennsylvania. New Jersey... 398, 724, 200 290, 556, 840 123, 965, 720 13034°- -FI 1917-48 The greatest production by districts is as follows: Maryland... First Pennsylvania.. First New York... 398, 724, 200 289, 551, 040 123, 965, 720 46,054, 100 The States of North Carolina, New York, Virginia, New Jersey, Louisiana, California, and Pennsylvania, in the order named, show the greatest production of cigarettes weighing not more than 3 pounds per thousand. North Carolina.. New York.. Virginia.. New Jersey. Louisiana. Pennsylvania. 10, 743, 467, 940 7,748, 561, 853 3, 636, 450, 705 1,786, 861, 210 941, 571, 020 307, 737, 825 88,877, 070 The three districts showing the greatest production of little cigarettes are the fifth North Carolina, which produced 6,802,665,240; the fourth North Carolina, which produced 3,940,802,700; and the second Virginia, which produced 3,626,933,505. New York produced the greatest number of large cigarettes, showing a production of 21,164,170, of which number 17,309,705 were manufactured in the third district and 3,780,565 in the second district. The States of North Carolina, Missouri, Ohio, Kentucky, New Jersey, and Illinois, in the order named, were the States reporting the largest manufacture of both chewing and smoking tobacco, the quantity manufactured being as follows:" The cost of collecting the internal revenue for the fiscal year was $9.51 per $1,000, or 0.95 per cent, which is the lowest so far attained. in the history of the bureau. The cost of collection for the previous year was $14.04 per $1,000, or 1.40 per cent. The average cost of collection since the establishment of the bureau is approximately $23.21 per $1,000, or 2.32 per cent. |