The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1915-05-08
WILL AMEND
INCOME A LAW


Because of imperfections in the in
come tax law, numerous amendments
win be recommended to the next Con
gress by the treasury department.
Official experts are quietly at work
on this statute, preparing a report on
the crudities it contains and outlining
proper legislative action to correct
them The law is honeyeombed with
errors.
A striking illustration of this thread
whole gamut of Democratic legislation
whole gamut Of eomeratic legislation
occurs in one of the most vital pro
visions of the income tax law. 1t re-
lates to deductions that shall be al
lowed in computing gross income,-a
basic element in this system of taxa
ton.
Paragraph b Of the law states that
Gin computing income for the pur-
pose of the normal tax there shall be
allowed as deductions among other
things ~''losses actually sustained dur
ing the year incurred IN TRADE
etc. What is the meaning of the words
Gin trade? The courts must decide.
The phrase is capable of an infinite
variety of interpretations. As con
strued by the treasury department, de-
auctions from gross income for losses
Gin trade' can be made only in con
nection with ''that which occupies and
of anyone for the purpose OF hveL
hood, profit or Improvement; that
which is his personal concern or inter
est, employment, occupation, 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 in
vestment must not be deducted 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 adjudica-
ton. Whether the ruling is right or
wrong it is the uncertainty of the
statute that reflects upon the intelli-
gence of the political party response
bic for it.
Nothing but heedlessness could have
permitted it. The taxpayer bears the
burden of the blunder for it is a max
i'm in governmental affairs that every
doubt in a law is resolved in favor Of
the government by the administrative
officers.
Errors in the income tax law are too
numerous to mention in detail. Wit
ness 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 law un-
certainty.
Thu department refunded to one man
who had paid $500 as income tax all
but $l2 of that amount. He had had
the help of a revenue officer in making
his return yet so indefinite was the
law that for fear of violation he paid
the government $500 instead of $12.
Examination of the department de
cisions on the income tax law shows
a mass of contradictory rulings Over
and over again opinions were reversed
and ~rereversed, 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 plumbers committed by the
Democratic administration Future Con
crosses and the courts must correct the
mistakes, and meanwhile the people
must pay for them.