Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-11-24
MEN OF WEALTH FEAR GOVERN
MENr RETURNS WILL LEAK
OUT.
LOCAL ASSESSORS MIGHT
MAKE EXTENSIVE TROUBLE
Income Figures not Supposed to Be-
come Public Except on Order Of
Prssidsnt-Frisndly Local Admin.
istrativs Officials Might BE coaxsd
70 Give Out Facts.
Especial correspondence.l

Especial Correspondence.1
washington, Nov. 24.-Can there be
a leak in the income tax returns? VIII
It be possible for the United States.
while making collections under the
new income tax law, Inadvertently OF
otherwise to betray the secrets Of the
tax schedules and thus inform hawk
eyed assessors and other local annoy
ances Of the reluctant taxpayer what
he is worth? These questions, 1t is
learned here. are exciting painful in
terest in Massachusetts, where great
many worthy citizens are trying to
live and do their duty by state and
country without giving up too much In
the way OF taxes Massachusetts lis
ono of the very few states which I'M
poses an income tax, and 1t Is ex-
ceedingly important, from the point
Of view Of the taxpayer. that the re-
turns which he makes to the federal
government upon his income shall cor
respond with those he sends to the
assessors within his state. The Ques-
ton is whether or not any opportunity
will be afforded the local assessors for
comparison Of the two.
Most Unpopular Of Taxes.
No doubt 1t is an open secret that
\ great many men and women sub
NIT to the local authorities schedules
Of their incomes which might very
easily stand additions without going
beyond the truth. The taxation OIL
Gals Of the commonwealth are expert
and efficient, but If they are lenient In
any direction it Is toward the person
who is supposed to pay an income
tax. This is the most unpopular tax
ever devised, and the officials perhaps
are inclined to sympathize with the
views Of the taxpayer that after he mas
been levied upon for his personal prop
erty, his real estate and possible IN
heritance he should not be made to
give up much more upon fourth item
Of personal Income. las matter OF
practice. whom the local officials go at
ter 4 man too hard, in connection with
either personal property or income. he
IL likely to evade their attentions by
moving out Of the state. No doubt the
income tax Of Massachusetts has de-
nonu1ated the commonwealth Of per-
sona.y to q certain degree. as the old
and rigid corporation laws used to
drive corporations away-like the ex-
odussof the American Bell Telephone &
Teleeraph Company from Boston to
New York. The Massachusetts asses
sors. therefore, have used some judy
ment in levying taxes. even tho the
legislature continually has refused to
do away with any possibility OF double
taxation.
To Enforce Law 70 Limit.
Rut a federal income tax Is another
proposition. There can be no doubt
that under the present administration,
Az least the new law will be enforced
to +he limit. It wipes out state lines
ana the man who would dodge Its pro-
visions has no refuge either IN the
United States or abroad. He must tell
the truth about his income or risk
fine OF not less than $40 nor more than
q. 900 or imprisonment for one year,
with costs Of prosecution. II ne lies
~ fha government. AS the income
ts~ will be collected exclusively by
democrats against Chiefly republic
ans the sensational possibilities OF the
situation are apparent.
To Guard Records.
treasury opinion Is un1ualihedly
that the Individual making an income
tar return need have no fear that his
secrets will be betrayed. 1t is pointed
ont that every person In the income
tax division, from collectors and depu-
tv,.co1lectors to clerk Is liable to nne
~ 81 900 or imprisonment for one year
for divulging any Of the facts regard
in1 q person or corporation that may
come to his knowledge. Moreover, 1t
"a nointed out that IN practice the de-
nartment has succeeded in keeping Its
secrets reasonably well and that Moth
ing but actual bribery, which Is rarely
ATTEMPTED. could cause confidential In
formation to reach the pubic. The ma
tional banks are taxable only upon
their real estate and, thru their share
holders. upon their capital stock. But
even the information regarding these
items is not available thru the treasury
denartment. Real estate owned by
hanks obviously IL easy Of local as.
sessment. while the national bank act
provides that every national bank shall
Keen a record Of Ito stockholders at Its
mace Of business, which record at all
esrshall be open to the inspection OF
officers authorised to assess taxes un.
der state authority.
Not long ago q city IN middle west
ern state attempted to require ma.
tional banks to compile a certain state.
ment which would be useful to the los
cal assessors for purposes OF taxation.
The banks refused and congressman
came hot-foot to the treasury depart.
ment. The law was explained to MIN
and he was informed also by the comp.
troller Of the currency that the banks
were justified IN declining to compile
the statement with him on the ground
that ample facilities for legitimate
taxation already were afforded with re-
spect to the items Of real estate and
national bank stock. The congressman
saw the point ana decided that his
community need expect no assistance
in its tax collecting from the federal
government.
Returns Closely Guarded.
The federal income tar law in terms
makes public records, open to inspec-
ton. Of income tax returns. but care
fully provides that such returns shall
be open to inspection only upon tho
order OF the president OF the United
States. under rules and regulations OF
the secretary Of tho treasury. But It
u; evident that the law does not con-
template any real publicity Of private
affairs. least Of all as far ~ the In
dividual IL concerned. On the other
hand. the law~does promise some as
etstnuce q states which impose m