Evening journal. [volume] (Wilmington, Del.) 1888-1932, 1915-08-14
SATURDAY AUG. Ia. 1915
INJUSTICE UNDER INCOME TAX Law.

INJUSTICE UNDER INCOME TAX LAW.
TN all sections of the United States complaint is
heard against the Income Tax law Those
plants may grouped into two separate classes One
class complains about the injustice that law works
upon many taxables. The other class has to do with
the atmosphere Of uncertainty relative to many its
provisions There is widespread feeling that Con-
gress should lose time in eliminating from the
statute its unjust features and that It also should
make amendments which will clarity the act and make
It easier to understand To bring about those results
the voters in each Congressional district should urge
their Representative to work energetcay their
half and TO insist upon fair and a clearlaw.
Some time ago the National Tax Association ap-
pointed special committee TO investigate the Income
Tax law Edwin r. A. segman was made chairman
Of that committee II has framed and submitted its
report to the association at its ninth annual confer
ence in San Francisco. Seventeen suggestions are
made for the improvement of the law. They
follows:
That part OF the act which requires the collection
OF the tax at thes source should be modified
troduced
Partnerships should be required to ne substantially
the same kind of returns corporations are required
10 file and to pay the normal tax corporations do
individuals should be permitted TO deduct all losses
including a reasonable allowance for depreciation in
CURED in the business, trade profession in which
they engaged, and including also losses OF prop
srty used for investment or speculative purposes
where the gain If any. would be subject 10 tax.
Expenses incurred by individuals in making invest
ments and managing property with respect to which
the income is taxed should be permitted as are ex-
penses OF carrying business
Allowances for the depreciation of property and for
the depletion OF natural should on basis
which will permit the return Of the capital invested
therein free from tax nearly possible concdent
with the ohsoescenoe OF the property the exhaus
ton Of the resources.
Individuals should be permitted to deduct taxes paid
within the in foreign countries upon the property
OF business from which the taxable income de-
rived.
The specific exemption should be lowered and the
language OF paragraph &C" should be clarified
individuals having gross income equal to or ex-
eeeding the minimum exemption should be required
10 make returns
Taxpayers keeping books or account in accordance
with statutory requirements we'll recognized meth
thereon.
Every corporation should be permitted to deduct
al amounts received by within the year dividends
upon the stock Of other corporations Joint stock COM
panies or associations, subject TO the income tax
The parent and its subsidiary corporations should
be recognized single entity for purposes of the re-
turn in cases where they constitute single operating
system or where In determining net income for their
purposes recognition in accouptine is made of
the subsidiary companies distinct operating unities
in all cases where all the stock Of the subsidiary
company is owned by the parent company a cor soil
dalton OF figures should be allowed in appropriate
cases subject to the approval Of the Department
Taxpayers should be permitted with the approval OF
me commissioner OF internal Revenue TO adopt the
practice OF determining and reporting gains or losses
by annual inventory Of values
Application for refund Of taxes with consequent
right OF appeal from decision OF the Department
should be allowed not only as at present within two
years from date OF payment of the tax but also as
matter of course at time without limit as an OFFSET
where additional tax for any is claimed by the
government
The permission granted to officials of states
levyng income tax 10 inspect the returns of cor
porations should be extended 10 the returns Of indi-
Viduals
It is recommended finally that provision should be
made for elaborate publication and analysis
u income tax statistics
The committee reported that it found no widespread
demand for a repeal Of the law II discovered how
ever, general dissatisfaction with its complexity and
pronounced objection which work hardship upon the
people and violate the principles Of just taxation
The criticisms and recommendations made bv IN,
committee should be read understandingy by ever,
member Of Congress. They should lead to corree
tive legislation Partsanship should not be permitted
70 enter into the matter There should be an earnes
desire on all sides TO do what right and Just in be
hat Of those taxabes who, under the best of circu
stances are compelled submit 10 Federal fnouir-
into their private affairs and to pour millions of dol
lars into the national treasury az penalty for be
ing rich well-to-do