The times. [volume] (Richmond, Va.) 1890-1903, 1894-01-04

income tax has been imposed: but II Is
also true that In every such country the
| result has been to put a premium upon
| perjury and TO develop an enormous
| amount OF fraud In our own country.
| as in every other where the experiment
| was tried, the returns Of taxpayers Tor
/ the first year or two were renarkap'y
| full and honest, but az time passed on
| these returns grew more and more frau
| dulent until, In the last two or three
1 years Of the tax the amount OF income
returned from the whole country was
ridculously below what every obserVant
business man knew TO be the truth III
became simply a tax upon honesty anu
truthfulness. a majority OF those whose
incomes were legally taxable made no
returns at all, and a large majority OF
the returns made were not truthful. me
officials who collected the returns, In
many cases. received small bribes IN
consideration of accepting returns which
they knew TO be far below the truth;
and in some cases they even demanded
false returns or made forged returns as
a means of compelling brides from tax
PAYERS. who would not offer them. The
last years Of the American ~. :. Govern
menD income tax were carnival OF
fraud, perjury. and blackmail.
The experience Of other countries IS
but little more encouraging. The honesty
Of officials charged with the collection or
income tax IN Great Britain and Germany
is not suspected. and arbitrary powers Of
assessment are placed in their hands
which would hardly be tolerated in this
country; yet II Is universally admitted
by these officials themselves that fully
one-third OF the income tax due 20 the
government Is never collected. This Is
expressly stated In the published reports
Of the commissioners OF revenue In Great
Britain. Prussia, and SaxOny. aud il is
undoubtedly true everywhere else. About
twenty years ago a number Of wealthy
firms in London. whose business had been
broken up by city Improvements present
ed and ooncluslvely proved claims for
damages, showing that their annual pro-
fits had amounted 20 from three 10 five |
times as much as they had returned for |
income tax i'm the same period. They |
recovered the damages from the city. and /
the only punishment which IL was found !
possible to inhict upon them was the
OF the deficient tax. with the |
legal penalty added. In Italy the income
tax Is VIGOROUSLY a farce. 1t Is not sup
posed that anybody makes "A true return
or one even appTOXmating thereto.
The craftsmanship and ingenuity OF
European governments have been strain
ed to the utmost I'm the effort to produce
different results. but thus far all these
efforts have been in vain, and there is
not the slightest reason To suppose that
hey will ever succeed. Roughly stated,
L may safely he said that the uniform
experience of all governments is that one
quarter 10 one-third Of the returns are
strictly honest. that about as many more
eturn on an average half their real
ncome. and the remainder less than one
quarter.
Thus the income tax, so far as It
depends upon the personal returns Of
taxpayers. is a grievous bur
len upon the honest and a direct pre-
mum TO the dishonest IL is as bad
5 the personal property tax, which is
till maintained by our States generally.
t stands upon precisely the same foot
ig with the abominabc listing system Of Z
ermont, Ohio, Indiana. Connecticut
eorgia, Kentucky. and numerous other 7
tates, where the great majority Of tax
ayers have no hesitation about making !
Use returns. and yet are stupid enough
} imagine that their neiEhbors will not
eep pace with them in lying. :