New-York tribune., 1909-07-22
Tying BUREAUCRACY
o&,;,r, More Drastic and Taxpayers
0F More Helpless.
LONDON. July :


,,eadiy peO'.-,- ia NJ the income tax does not
TIE increa',l - 5;s+-fbution Of wealth so much
INDICATE Of the assessors and collectors
g. 2 tigh'e' - The forms have been al
rpon tnei' .-o,-ide for complete disclosure
tered 50 ~ ,-co-,e: the regulations have oeeh
ot souTce &c IN take II larger dTaIt Oh
snplihea -. snd the energies Of the Internal
hsh o. a4i - =. arr employed early and late IN
revenue ,f..-ic-e strenuously and IN rolilhs
-E0rkihs .,one the expedients for screwlng
Up Tecsip'1 -.for n the highest notch Is cII-
Up the - ol,tls boarding houses ana locs-
cuaT u -oorirfns managers. secretaries OF
ing houso -,are lists of boarders or iodgers
keeps4' s--,ares under their roofs ana 10 ne
VINO s..,, t,yenty--one days under pehaIS %
tneiH - 4,r neglect With these hsts IN lIieil
heavy LIZ .,,o officials are enabled TO conduct
pess@.,5 m convict those guilty OF e'aoliie
fnaD.''N >. concealrnent Of residence lieSe
The nv a-e common enough in Russia Ger
p'0o'1-z other countries where the ponce VI
msns .t,-i-fas keep track Of everybody pu' II
local N.,.1,- that there has been recourse
Is ohE : .bo United Kingdom Everybody
20 ule1 .-.o-,,a taxation IS now hunted down
liable 20 income
snd hed .o,-a his chances with
2ne T. six months residence can be
-s 'ns sesinst him. he is considered hapIe -
and no exception Is maoe IN ms la' VI
u7 = Zines Al American was not taxed LOT IN
] of' T,ris,d unless he had been dom'clied
cOIl. ~ three years Now he has 10 rei"'l
40 - the British treasury i ne has oeeh III
n1-.u -.,-x six months out OF the t"elNe ia 'lie
ns car He nay have lived IN a dozen Ho-
rs s,.-sing houses. apartments or hooseS' lie
fsiS' -. hee7 4itrinE about the kingdom WITH
ma any fixed abiding place. he may nave
-be ocean several times durlnS 'ile Sea'
oU :. -,oesession of q doDniCile abroad Duh
E'- and collectors viii not loosen ihelr
.,,o, him L they find out that ne mas "ee'
{ -. country six months out OF 'he l"ei' G
:. Ill MT him down as having various IeSi-
- and VIII bleed him as thoroustlY d
r,,e They viii hold him liable Tor ever
he has earned or received during lhe l'S'1i
- although he may have been ou' VI '''
- <o- six months and may not nave any
..-o.s of income within the kingdom ne
.-...,,rs in their zeal for working ti3elr olS-
,-4,-s and obtaining promotion ana hlE'ei
-.,-,ss have already reached point "iieIe
,,sv are prepared 10 make a taxpayer OF eNeiS
N,sr zbo has been in the country al Ieas' "a
-,,.hs and 10 force him 10 contribute 10 lhe
.-,,.r-v q substantial portion Of ms lhcollie-
-,.,o,rb every shilling Of II may nave oe'N
- - .,-oa5. Indeed. hunting the foreigner
,.s-,c n be looked upon ofhclally as 'e'l7i
char despoiling the native
Tho oIdtir1e idea-and there was ana So" i
Sen far ft-was that man could nave oI-S O.'7
soricue. and that SO long as he retained II "e
- -o- he taxed in foreign countries, nor
,onl5 his prcper1y be exposed TO death ana sue
...zo, duties. The Internal revenue officials
E~-a fyTNn
,,-,c,a II he sojourns in the kingdom tempo
-,-lv they want 10 disregard the fact mat ne
s,s oo-nicile abroad and 70 tax him for his
&C.,, Investments and earnings When pro
,ss-, are received. they reply that man may
hs-s residences IN half a dozen countries YET
have full liability for taxation IN England II
he be in tie country six months in the circuit
o.s year BY full liability they mean an OBJ
rrs-,on n make returns annually Of the en-
.-s tnco7fe wherever earned, received or in
bs-tsd. and To pay nine pence or shilling on
Ire pound. with the supertaxes. as the case may
he On the same principle they are prepared, II
the courts VIII allow them 70 do 50. 10 apply
death and succession duties 70 foreign estates.
4 the owner dies in England after a residence
exceeding six months There have been test
cases in the courts. and foreigners have been
sustained when the right OF donicie has been
raised: but IL the practical administration Of
Somerset House there Is an increasing tendency
to employ rule-of-thumb methods and to impose
eTtreme penalties for temporary residence.
officials in dealing with thousands Of cases
naturally fall into tie habit Of applying few
rough and ready formulas and tests They as
sume that the rent paid for residence must
be at least g tenth Of the income; that any
body living six months out OF the twelve in the
United Kingdom al one OF more addresses is
liable 10 income taxation; and that residence
being established. the liability extends TO all
Sources OF income at home or abroad Their
Claims are enlarged, since the inevitable effect
@ enormous levies Of direct taxation is 10 en-
courage investments abroad and concealment Of
ncone; and they are compelled 10 emphasize
ne fact that their nets stretch across seas. and
th1 II is not possible for any one who Is tech
hicslly q resident TO get out Of them Moreover,
uey are administering an intricate system
: Hiach is not readily understood except by So
ActoTs and accountants. There is, for example
q well recognized principle that income expended
a earning income is exempt. That is a far
''ecnlng proposition. which. when applied to or
oaary incomes, involves material reductions;
pt there are thousands Of taxpayers who do
nOt know how 10 make use OF it. and are con-
teQnently overtaxed year after year Assessors
aao collectors. when they are frank admit
really enough that the treasury profits more
A1seiy by excessive payments from taxpayers
u ignorance Of the law than It loses from un-
Ss'sSumstes and evasous. Yet in their zeal
:. ine service they are constantly tightening
as'ier than loosening the screws and are in
Nedsing Tie pressure Of taxation
me system win be rendered far more com
sASaleo Il the present budget be carried with
- material alterations and land taxation. with
a. Na1ricacies Of capital. site. undeveloped and
-1'enlent values. be added TO income taxation.
= y" valuation of land. If IT be sanctioned'by
-Ieeinent, viii be basis for taxation and
ing which will increase the burdens and per
pe1itlas nf L. --..- - i -,..--, - -