The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1916-05-03
SHALL THE RICH PAY THE BILL FOR PREPAREDNESS?
| THEN INCOME TAX LAW MUST HAVE new MACHINERY

make return.
Second. they must have com
plete powers TO make an examina-
ton OF books and papers. even II
no return has been made.
AT present only persons with
NET incomes over $1,000 per year
are required 10 report. and this not
only gives a man a chance 10 make
his own deductions for what may
be Imaginary expenses and losses.
and thus Ealye his conscience. but
also opens a loop-hole for ignorance
and plain fraud.
Wants Income on GROSS"
Nobody can estimate with any
eractne.s what any mans NET In
come IL. after the deductions which
the low allows are made. but in
every community. the men with
GROSS incomes over $4,000 are
well known.
III this change in the law IL
made. II viii mean that we will get
returns eventually from all those
who are subject TO the tax.
With this information as to who
the Taxpayers ought TO be, II Will
be possible for the revenue agents,
II they are given the broad powers
which ] am asking. 20 compel the
revelation OF income from every
source.
Asks Plenty Agents
Il wish also TO have enough
agents TO make II possible TO com
pile and utilize all the Information
that We can get from stockholders
lists. from records OF mortgages.
leases and probates OF estates, and
from all the thousand and one
sources which will give information
regarding tho people who should
pay income tax. and the amounts
upon which they should pay.
II can find the taxpaysrA We
win 90; the tax
This sounds effective and bust.
nessiike-
But there are two inevitable con-
sequences which the American peo-
pie and their representatives in
congress should clearly understand
before they consent TO the extern
sion OF the present system OF Sc
CREcY and ESPIONAGE.
Secrecy Aids Bribery
First BRIBERY and CORRUP-
TON 10 an extent never before
known are inevitable II the govern
ment continues the present policy
OF keeping the returns secret.
while leaving the fixing OF the as
sessments In the hands of revenue
agents and collectors.
Tho profits of evasion are cnor-
nous. the chances OF detection neg
ligible.
There are now so taxpayers who
than $4,000 each per year.
Several OF these same multi-mill-
ionaires have. within recent years.
been detected In attempts TO evade
the customs duties where only a
few thousand dollars were involv-
ed.
| They have demonstrated that
they will resort TO fraud. and, II
necessary. to bribery Five per
cent OF the smallest tax will pay
the salary OF any OF the revenue
agents for a year
To save the taxpayer thousands
OF dollars. the agent need not com
NIT any crime. he need only shut
his eyes for a minute.
The treasury department
needs the publication q the
returns TO keep It's collectors,
Inspectors and agents free from
any suspicion Of graft. Sooner
or later. attempts Will be made
wholesale 20 bride the revenue
| agents to permit fraudulent re-
turns
Graft Turks In Shadow
Sooner or later, the agents
WILL succumb 10 the tempta-
ton, II the transaction can be
hid under the cloak Of secrecy
provided by the present act.
Sooner or later. by force Of cir
eumstances. such graft will, In
tho shadow OF secrecy, reach
even TO some Of the higher off,
clals until system, safe be-
cause Of Its sure concealment,
Will be developed.
II is because we do not wish to
see the treasury department the
scene OF another whisky ring scan
| dal, or of another sugar customs
scandal. that COMPLETE PUB
LICITY OF RETURNS is DE
MANDED
The other inevitable result of
the method OF collection advocated
by Secretary McAdoo Is the crea-
ton of bureaucratic spy system
OF enormous proportions.
Up to MeAdoo
The income tax act places the
| remedy for the existing frauds and
/ the preventive OF the dangers just
described In the hands of the presi-
dent and the secretary of the treas
ury Article ld) of Section G pro-
vides.
1.-THE returns ... shall be
filed In the office OF the com.
missioner OF internal revenue
and shall constitute public rec
ords and be open TO inspection
as such: Provided, That any
and all such returns shall be
open 10 inspection only upon
the order OF the president. un-
der rules and regulations to be
prescribed by the secretary OF
the treasury and approved by
the president"
WHAT WILL HE Do2
WHAT WILL YOU DEMAND
THAT HE Dor
We have the choice between