The Tacoma times. [volume] (Tacoma, Wash.) 1903-1949, 1916-04-29

FoNV,VVV, VOV--cnouBH 10 pay the
entire cost of preparedness
and that these frauds cannot be
prevented nor the taxes collected
either under the law as it now
stands, or with the existing ad-
ministratlve machinery.
The great question now arises,
WHAT ARE WE GOING TO DO
ABOUT 1T?
These taxes must be collected:
the NATION NEEDS THE REEVE
NUE., AND JUSTICE DEMANDS
THE ENFORCEMENT OF THE
LAW.
I There are only two effective
methods.
FIRST-The adoption and ex-
tension of the plans which are be-
ing urged by Secretary McAdoo,
providing a system of surveillance
over every potential income tax
payer.
SECOND-The adoption of the
simple expedient of PUBLISHING
the income tax returns SO that
the nation may know who are the
HONEST TAXPAYERS and who
are the DISHONEST TAN
THIEVES.
The publicity plan proved its
success as a means of insuring
the payment of the income tax
during the civil war.
Under the civil war income
tax the individual returns
were published and resulted
in the uncovering of large
frauds and deIinguencies.
But in 1870 when congress
reached the lowest depths of
corruption and venaI subser-
viency TO the rich, when the
public lands were being
turned over to the railroads
in return for brides almost
openly given, when Jay
Gould and Jim Fiske were
popular heroes, the income
tax law was amended to
PROHIBIT PUBLICITY.
The only ground urged
was that it was OBNOXIOUS
to those who paid the tan"
What Was The result?
In 1870 when the returns were
published the number showing
income over $4,000 was 1887.
In 1871 when publicity was pro-
hibited the number fell to 74,775,
and to 72,949 in 1872,
The EXISTING system of COM
plete secrecy is at the basis of
the present tax frauds 1t is fund
amentally wrong and un-Ameri-
can.
Tax-paying is public business,
and public business ought to BE
public.
Secretary of the Treasury Me-
Adoo admits and has directed the
attention of congress to the enor-
nous frauds and evasions under
the income tax law.
He does not agree with the
estimates given above as to the
probable AMOUNTS of the frauds,
but he does agree that they ARE
ENORMOUS.
| discussed with Secretary Nc
Adoo upon three occasions what
he proposes to do. This is his an
swer:
There can be no doubt
that thousands of persons
are successfully evading the
income tax and that whOle-
sale frauds are being perpe-
trated in all parts of the
country and among all classes
of taxpayers.
people are not vOluntar-
lily going to pay this tax any
more readily than they do
any other. They must be
MADE to pay 1t, and this can
be done only through very
large increase i'm the number
of revenue agents and EXAM
liners.
I'VE must do more than
simply examine the returns.
We must build up a system
that will give us knowledge
of the identity and probable
income of every person who
ought to be subject to the
tax.
Il am asking congress for
nearly 100000 to increase the
force of income tax agents and
for amendments which will make
them effective.
First, they must he in a posi-.
ton to know who ought to make
a return, and this | am proposing
to secure through an amendment
to the law requiring everyone
with a GROSS income over $4,000
to make a return. Second, they
must have complete powers tC
make an examination of books
and papers, even If no return has
been made.
= "At present only persons with
NET incomes over $4,000 a year
are required to report, and thi,
not only gives a man a chance to
make his own deductions for
what may be imaginary expenses
and losses and thus salve his con-
science, but also opens loophole
for ignorance and plain fraud.
Il wish also to have enough
agents to make it possible to COM
pile and utilize all the informa-
ton that we can get from stock
holders lists, from records OF
mortgages, leases and probates OF
estates, and from all the thous-