Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1915-05-10

| nerve-racking study to interpret AIS
terms, as the prevailing income tax
law. 1t is a tumble Of provisions.
rendered doubly complex by a mass
Of contradictory rulings-opinions re-
versed and rereversed, because the
terms of the law did not admit
of clear Interpretation. Numerous
amendments will be recommended to
the next Congress by the Treasury
Department. Official experts are at
| work on this statute, preparing re-
port on its crudities and outlining
proper revisions for legislative action
to correct the honeycomb Of errors.
Yet this is only an illustration Of
l the weakness that runs through the
whole gamut Of Democratic legisla-
ton of the last two years continuous
law making and money-spending.
The most vital evil in the law above
referred to relates to deductions thai
shall be allowed in computing gross
income-a basic element in this sys-
| tenn Of taxation.
Paragraph B Of the law states that
lin computing income for the purpose
of the normal tax there shall be al
| lowed as deductions among otner
things 'losses actually sustained our
ing the year incurred IN TRADE
etc. What is the meaning OF the
words "in trader" The courts must
decide.
The phrase is capable of an infinite
variety Of interpretations. AS con-
strued by the Treasury Department.
deductions from gross income Tor
losses Sin trade" can be made only IN
connection with that which occupies
and engages the time, attention, and
labor of anyone for the purpose OF
livelihood, profit or Improvement, that
which is his personal concern Of in
terest. employment, occupation, but
it is not necessary that it should be
his sole occupation or employment
For instance, it is said that if q
grocer has invested in real estate, in
making his income tax return any
real estate profit must be added .
gross income; but losses from real
estate investment must not be de-
Quoted from gross income.
From every part of the country bit
ter 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
have permitted it. The tax payer
bears the burden of the blunder, foc
it is a maxim in governmental AFFAIRS
that every doubt in a law is resolved
in favor of the government by the ad-
ministrative officers.
Errors in the incom tax law are too
numerous to mention in detail. Wit
ness the fact that in the first fe"
weeks of it's operation thousands of
applications for refund were made.
One of these has just been allowed,
and is a fine example of the laws I'M
certainty.
The Department refunded to one
man who had paid $500 as income tax
all but s12 Of that amount. He hal
had the help of a revenue officer N
making his return, yet SO indefinite
was the law that for fear of violation
he paid the government $500 insteal
of $12.
Every day additional evidence =
Democratic incompetence Is found
additions to the long list of legislative
blunders committed. Future con-
crosses and the courts must correct
the mistakes, but meanwhile the peo-
olo ,,,St NV for them