Evening journal., 1915-05-22
MORE DEMOCRATIC BLUNDERING.

N VERY day brings to the front more Democratic
Il bundering which vitality affects the people Of the
United States Indeed the mistakes made by the Will
son Congress many and so serious especially
in the matter of financing the national government that
they are the subject OF nationwide adverse comment
Because of imperfectons in the income tax law,
merous amendments will be recommended to the next
Congress by the Treasury Department
Oficial experts are quietly work this statute,
preparing report the crudites It contains and out
lining proper legislative action to correct them. The
law is honeycombed with errors.
striking illustration of this thread of weakness
that runs through the whole gamut Of Democratic egs-
ation occurs in OF the most vital provisions of the
income tax law Il relates to deductions that shall be
allowed ia computing gross ncome-a basic element
in this system of taxation.
Paragraph b of the law states that "in computing
income for the purpose of the 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
"in trader" The courts must decide
The phrase is capable OF an infinite variety of in
terpretations AS construed by the Treasury Depart
ment deductions from gross income for losses 'in
trade" can be made only in connection with that which
occupies and engages the time, attention and labor Of
anyone for the purpose livelihood profit or improve
ment; that which his personal concern or interest
employment occupation, but it is not necessary that 1t
should be his sole occupation OF 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 be added to 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 10 be taken to the courts for final adjudication
Whether the ruling is right wrong, it is the uncer-
tanty of the statute that reflects upon the intelligence
of the political party responsible for IT,
Nothing but heedlessness could have permitted IT,
The taxpayer the burden of the bunder for 1t is
a maxim in governmental affairs that every doubt in a
law is resolved in favor of the government by the ad-
mnistratve officers
Errors in the income tax law are too numerous to
mention in detail Witness the fact that in the hrst
few weeks of its operation thousands of applications
for refund we're made One of these has just been al
lowed and is a fine example Of the laws uncertainty
The Department refunded to one man who mad paid
$500 as income tax all but $12 of that amount He
had had the help of revenue officer in making his re-
turn vet so indefinite the law that for fear OF vio
lation he paid the government $500 instead Of S12
Examination OF the Department decisions in the in
come tax law shows a Of contradictory rulings
over and over again opinions reversed and re-
reversed because the OF the law did not admit
of clear Interpretation.
Every day further evidence is found that adds tc
the long list Of legislative blunders committed by the
Democratic administration Future Congresses ant
the courts must correct the mistakes, and meanwhile
the people must pay for them.