The labor journal. [volume] (Everett, Wash.) 1909-1976, 1916-05-26
Richest are the
Biggest Thieves

The evidence tends to show that
in one case alone-the estate of
L. V. Harkness-the published
facts indicate evasions involving
in taxes and penalties more than
ONE MILLION DOLLARS.
The evidence to show the Rookie
Teller Foundation is a device by
which John D. Rockefeller has
escaped taxation upon more than
FIVE MILLION DOLLARS of his
annual income.
The great frauds in connection
with the theatrical industry and
foreign steamship companies, in
volving millions of dollars in taxes
and thousands of individuals, have
been uncovered.
The evidence reveals the inef-
festiveness of the existing income
tax law and shows the great loop
holes left by "jokers" in the act,
through which hundreds Of mil
lions of dollars have so far sue
ceeded in avoiding taxation.
The utter inadequacy, both in
numbers and ability, of the Treas
ury Departments collection force
is clearly revealed. Not only is
there only one income tax agent
for each 100000 of the population,
but S., ,900-cIerks are pitted against
the shrewdest lawyers and most
skillfuI accountants in the nation.
The Treasury Departments exam
ining system is also defective in
that it detects only the tax losses
arising from cIumsiness and ignor-
ance and is powerIess to prevent
or expose cunning and deliberate
fraud.
But at the base of all the frauds
lies the provision of the law
which guarantees complete Sc
CRECY regarding all income tax
transactions. Under this cloak of
secrecy is concealed not only the
identity of the thieves, but the
very existence of the frauds,
which might we'll have continued
to escape notice for years in the
absence of such prolonged and ex-
pensive investigation as | have
been privileged to make. In the
dark shadows of secrecy not only
is the tax thief concealed, but
there is created a certain breed
ing place for graft and the corrup-
ton of government officials.
President Wilson and Secretary M
Adoo are empowered, by the terms O
the income tax law, to remove thi
mantle of secrecy and make the ia
returns public, so that the tax thieve
may be known and the frauds ended
PUBLICITY OF RETURNS is tn
first essential of efficient collection
During the Civil War the returns wer
published and enormous attempts a
fraud were uncovered. When a reaC
tionary congress at the end of the wa
enacted that the returns should b.
kept secret, because publicity wa
obnoxious to the taxpayer" tn
of returns fell from 94,SS7 il
1870 to 74,775 in 1871, although th
latter year was one of unprecedented
prosperity.
Every man, woman and child in
these United States is the victim
of the tax thieves! If the tax had
been fully paid, the emergency
war taxes would have been
abolished, the tariff on sugar
which has increased the price SO
per cent in a few weeks would not
have been retained, and the Fed
eraI Government Would now nave
in the vaults of the treasury the
millions which must be paid for
the increase of the army and
navy. The very men who have
called Ioudest for great army and
navy expenditures to protect their
property were at the same time
robbing the treasury of hundreds
of millions of dollars.
The income tax must be paid-an'
PAID IN FULL. In the face of tn
array of evidence that has been pre-
sented, PRESIDENT WILSON AM
CONGRESS CANNOT REFUSE OF
POSTPONE EFFECTIVE ACTION.