Fulton County tribune. (Wauseon, Ohio) 1883-1925, 1915-05-14
TAX LAW.

Because of inperfections in the in
come tax law, numerous amendments
will be recommended to- the next
Congress by the Treasury Depart
ment.
Official experts are quietly at work
on this statute. preparing a report on
the crudities, it contains and outlin-
ing proper legislative action to COR
rect them. The law is ~honeycombed
with errors.
A striking illustration of this thread
IF, weakness that runs through the
whole gamut of Democratic legisla-
lion occurs in n of the most vital
provisions of the income tax law. 1t
relates to deduction that shall be al
owed in computing gross income,-a
basic element in this system of taxa
ton.
Paragraph B of the law states Gin
computing income for the purpose of
he normal tax there shall be allowed
as deductions" among other things
"losses actually sustained during the
| year incurred IN TRADE etc. What
IS the meaning of the words Gin
trade?" The courts must decide.
The phase is capable of an infinite
variety of interpretations. AS con-
=trued by the Treasury Department.
deductions from gross income for
iosses Gin trade can be made only
n connection with "that which oc-
| nupies and engages, the time, atten-
| ton, and labor of anyone for the pur-
nose of livelihood, profit or improve
| ment; that which is his personal
concern or interest, employment, oc-
cupation. but it is not necessary that
it should be his sole. occupation or
employment"
For instance, it is said that if a
GROCER has invested in real estate, in
making his income tax return any
real estate profit must be added to
gross income; but losses from real
estate investment must not. be de-
Quoted from gross income.
From every part of the country
bitter complaints have been made
against this ruling. and the question
is to be taken to the courts for final
adjudication. Whether the ruling is
right or wrong, it is the uncertainty
Of the statute that reflects upon the
intelligence of the political party re-
sponsible for it.
Nothing but heedlessness could
nave vel IIlICCSu II. Inc LdA payer
bears the burden of the blunder,, for
it is a maxim in governmental af-
fairs that every doubt in a law is re-
solved in favor of the government by
the administrative officers.
Errors in the income tax law are
too numerous to mention in detail
Witness the fact that in the first few
weeks of its operation thousands of
applications for refund were made.
One of these has just been allowed,
and is a fine example of the laws un-
certainty:
The department refunded to one
man who had paid $500 as income
tax all but $12 of that amount. He
had had the help of a revenue officer
in making his return, yet so indefi-
mite was the law that for fear of
violation he paid the government $500
instead of $12.
Examination of the Department
decision on the income tax law shows
a a of contradictory rulings. Over
and owe again opinions were revers-
ed and ~re-reversed, because the terms
of the law did not admit of clear inter
probation.
Every day additional evidence is
found that adds to the long list of
legislative blunders committed by the
Democratic administration. Future
Congresses and the courts must cor
rect the mistakes, and meanwhile
the people must pay for them.