New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-02-14
Revenue Likely to Fall Far
Short of the Estimated
S8O,O0O,0OO.
ONLY 1000 RETURNS
MADE BY CITIZENS
Officials Figure 100000 Persons
Are Liable and Should Act
Before March |.
LE.rnm rhe TrIbune Bures !

Washington. Feb ia deficit IN the
estimated revenue from the income tax
il feared as the result or confusion over
the operation Of the law and the una
mlliarltv OF the public. and even govern
ment officials, with its provisions
Democrats who handled the income tax
legislation estimated that the law Wouid
Weld revenue OF about 100000 from
800 900 persons but it seems lneNltap'e
that the actual collections will ran fdf
short Of that estimate. and PROBABLY re-
suit in big deficit in the government
annual revenue That the income tax VIII
not Offset the reduction Of tariff revenue
made by the Democrats is the contention
of many Of those competent TO estimate.
Grave fear IL entertained by those re-
sponsible for the finances Of the admins
traton that the party has been precipi-
tate not to say foohardy in ruthlessy
exchanging tariff duties Of known ceVe-
nue. producing power for an income tax
of purely estimated revenue potentallty.
In fact. the suggestion is heard in inner
circles that it would have been far wiser
TO enact gradually diminishing tariff
rates. somewhat after the manner in the
sugar schedule. so that the admnistra-
ton could have determined beyond per
adventure the revenue producing capacity
Of the income tax before the final reduc-
tons Of the tariff went into effect.
Obstacles confronting the Treasury De
partment in putting the law in operation
are looming up daily, and the Ineffective
ness OF the system OF collection IS en-
phasized most forcibly by the confusion
or the public in interpreting the provisions
Of the act and the regulations promul-
gated by the department
The law provides that ION or before the
first day OF March. 1914 and the first day
of March in each year thereafter, true
and accurate return under oath or affir-
nation, shall be made by each person of
lawful age, except as hereinafter pro-
vided, subject 10 the tax imposed by this
section. and having net income or NOD
or over for the taxable year, 10 the
collector Of internal revenue for the dis
trict I'm which such person resides or has
his prin cipal place Of business
penalty of not less than so nor more
than $1,000 is provided for the refusal or
neglect OF a person TO make the return
AT the time specified.
$. :. Boyd, chief OF the Income Tax
Division OF the Treasury Department. ad-
mitted to-day that the collectors Of in
ternal revenue have thus far sent to the
department only about 2,0l9 returns from
persons subject to the tax. although he
explained that collectors have not re
ported all returns made to them. lie
declared that the department had esti-
mated that about 100000 persons were
subject TO the tax.
A modified bill. 10 repeal the collection
at the source feature OF the income tax
law. was introduced to-day by Repre-
sentative Cantor. OF New York. The
measure. after abolshing collections at
the source. would have the person who
under the existing law, would deduct the
income furnish 70 the government infor-
nation in detail as to amounts and per-
sons so that the Treasury Department
might collect