Evening journal., 1914-06-18
income TAX AUTHOR
Sees LAWS SUCCESS
Representative Hull Asserts
System VIII Provide
Ample Revenue
RETURNS MADE ON
LESS THAN A YEAR

WASHINGTON. June lS-Repre-
sentative Huh. OF Tennessee, author
OF the income tax act, in a statement
today declared that after careful OBJ
servaton of the operation Of the in
come lax law he feels mo reasonable
doubt as to It's administration and
satisfactory yield OF revenue in the
future This belief was expressed
@espite recent estimates by Secretary
McAdoo which showed that the in
come tax, according TO returns 20
date had produced S23000,000 less
than the Treasury Departments esu-
mates OF S5A 000, 900 revenue from
that source for the first 10 months
Of It's operation.
Should Suspend Judgment.
IN ms statement, Representative
HUI after referring To its success
iul administration in other countries,
SAYS:
lt would be both harsh and unfair
to pronounce permanent Judgment on
the law at the present initial stage.
I 10 place any comprehensive tax Law
upon a satisfactory administrative
/ basis and to secure It's normal yield
oI revenue requires one or two years
The law in it's operation has only an
piled thus far to fractional parts Of
the year 1918.
Many thousands Of taxable per-
sons, both here and temporarily
abroad, have not yet made returns. On
account Of the brief time allowed I'M
which to get familiar with the laws
and the regulations an immense por-
| tion Of the returns that were made
are inaccurate. The method Of with
holding the tax al the source of the
income and paying to the Government.
under which the revenues Of England
were doubled the first year Of its op-
GRAFTON, did not apply to the year 1913.
Shows Six Months Return
While .the law apparently applied
to all taxable income for the last 10
months of 1913, the facts are thai It
only applied for four months OF this
period with respect to all semi-annual
income payable in January and July.
/ This embraces an such semi-annual
rent, interest, salaries, etc, as to the
normal tax, and IN addition to these
classes Of income dividends were em-
braced as to the additional or grad
uated tax rates. The law likewise ap-
4 piled TO only seven months of the year
4 1913 with respect to all the quarterly
/ income payable in January, April
4 July and October. In its effect, there
4 fore. 1t is seen that the entire tax
rates really applied TO these large
4 classes of income only to the extent
/ OF less than six months, on an aver
age, Of the year 1913, instead Of ten
months as indicated on the face Of
the law.
IT has been necessary TO deal Will
the impediments just described al
the outset Of this laws operation BIZ
the fact that they existed at the he
ginning is no reason why they ma
continue 10 exist, and S certainly m
ground for assuming that the Law
viii not operate entirely successful
once il has gotten into thorough oper-
| alton.
Attacked BY Old Opponents.
The few individuals and news
/ papers who have thus prematurely
attempted to discredlt this law are
not supported in their efforts by the
facts, and furthermore, the fact
should not be overlooked that this
recent attack comes from those who
have always bitterly opposed the en-
actment oil any income tax law or
any other honest system of taxation.
There Is no occasion for a bond
issue and the matter has not been
considered" Secretary McAdoo re-
piled today when asked concerning a
rumor that a bond issue was under
contemplation.
Since the announcement that the
amount realized from the income tax
and other sources OF revenue would
fall short OF original estimates there
have been persistent rumors OF prob
able bond issues. The Secretary,
| however, today made il clear that
such a step would not be taken.