The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-31
CORDELL HULLs MASTERPIECE.
CROWNS Perception In Lawyers O0ices
Of Deaut les Of the Income Tax Act.

SrOWI08 perception III LaWyert OHces
Of Beauties Of the Income Tax Act.
To THE EprroR or THE SuN--Sir: Al
low me tn thank Won for YOUR recent
| timely editorial warning. without which
many citizens would have omitted to
give timely notice to the source" under
the terms of the income tax law.
Az an attorney I. I'm common with
other ATTORNEYS and with the CORPORA
tions. am necessarily spending much
more time upon the examination of the
law than the amount to be turned over
to the Government would warrant and
in the process am becoming acquainted
with the beauties OF the statute. I do
not know the name of the author of
the bill: he appears to be ono OF those
half baked legislators who believe that
nothing but an act of Congress Is re.
uulred to make water run I'D hill.
wonder what he had in mind when
he constructed the following clause:
| "Nor shall any contract entered into
after this act takes effect be valid in
regard to any Federal income tax i'm
| posed upon a person liable to such pay
, ment," Would that make void n con-
tract which l. departing for Europe
might make with some friend to act as
my agent in my absence to make my tax
return and to pay my tax and II not
why not?
Possibly the idea which he did not
succeed In expressing was TO prevent
corporations from providing in their
| future mortgages that the coupOns
should be tax free or that n Tenant
might not agree to make a payment of
net rent, himself paying the tax as
additional rental II go Il is a. pity he
| had not before him the experience OF
| the late lamented Governor Higgins.
who in 1905 put strenuous provisions
into the mortgage tax bill to prevent
the paying OF the annual one-half Der
cent. tax by the borrower. OF course
the lenders compiled with the law: they
| merely raised the interest rate from 8
per cent. to 5b per cent.
The Federal Government cannot pre-
vent the landlord from renting build
ing for s3,O5O which prior to the en-
actment of the income tax law would
| have rented for 80, geo The tenant will
| pay the $1,000 to the Federal Govern
ment and he will pay to his landlord
1880 additional because he could not
agree with the landlord to make a
| 50. 900 net rental.
Men nave always dealt and always
| will deal in round numbers IL IL alb
surdly unthinkable that from now on
every account book in the country and
every check payment will be full of odd
numbers representing the clumsy at
tempt of the Federal Government to
collect money at the Source"
II would also be as well for those who
do not come within the immediate terms
| ~ the law 10 realize that they are not
| for that reason exempt from tho tax
| imposed The landlord VIII figure It in
along with the coal bills and the water
| rates and the tenant will pay accord
ngly. Even the additional tax will get
| well distributed. The mercst fraction
| OF n cent more a gallon for gasolene
and kerosene will spread the Standard
OIL magnates' tax among several million
persons who were under the delusive
hut pleasing impression that II was not
| their OK that was being gored by the
imposition Of the tax
Some years ago there was an inter-
esting exhibition OF thoughtless clamor
on the part OF the public VINO, with
! little knowledge uf the facts or the
! actual equities. sided with the miners