Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-02-27

industrial which has so deprecated.
owing to foreign conditions, that he
must sell at lower price, he cannot
deduct this loss from his prohts-not
when it comes to making an income
tax return to the Treasury Depart
ment
Perhaps the courts. in the cases now
pending, will hold that he may make
the deduction, but in the meantime the
man who does want to deal fairly and
have no trouble. but does not want to
pay the money, has lovely little ar
gument in applied morality, wherein
he is both Judge and jury.
He knows that his losses in some
stocks have played the mischief with
his profits in the war Brides and so
he argues to himself, usually to his
satisfaction, that if he has to pay an
income tax he should pay II only on
his net income. and he renders de-
cision accordingly. But to accomplish
this he must make an income tax re-
turn, and if that contains truthful
statements-and it must be sworn to
he will have to pay on all his profit.
and since that is what he does not
want to do and feels perhaps that he
is not morally required to do. he is
tempted TO make return which is
true only in some respects.
There Is the time to pause, for II
one does not sometime in the future
when he has almost forgotten his
little irregularity he may-perhaps at
the very time he is starting for prayer
meeting. or poker party. for he is
found in all classes-receive visit
from a polite but insstent man who
will remind HIM Of the incongruities in
the return, and blandly ask how the
mistakes happened.
1t is awkward to have to make the
explanation, and the explanation is
usually awkward. TOO. The revenue
agent is certain to ask the name or
the broker who carried the deal. and if
one says he forgets the brokers' name
he RS " re- Glta
and will persist until ne finds out. But
IL one does tell who purchased the
stock the persistent man proceeds to
summon the broker to appear in court
with his books to tell all he knows
and what the books show about the
transaction.
Then the tax dodeer stands liable to
pay the undeclared tax, a hundred per
cent penalty. perhaps a fine and to
stand trial on charge of perjury.
Aside from any more serious or worthy
feeling, he is inclined to kick himself
for having taken such q risk to save
so little money.
Another class Of man who is liable
to get into trouble is the man who,
quite out Of his usual business, has
made a considerable fortune. either by a
speculation. an unprecedented business
condition or some unexpected commits
sion He. since he does not intend to
spend this windfall. but to invest 1t SO
as to receive rents, interest or cou-
pons. does not regard it as income, but
as principal.
Unfortunately. the Treasury Depart
ment Views this from a wholly differ
ent angle, and holds IT to be money
which was earned and may be used
during the year and therefore income
and taxable. So the lucky man Is quite
prone to fix his return a little bit.
forgetting that it costs money to pay
pensions. maintain courts of justice,
post offices. armies and navies and
field agents and inspectors to look
after income tax dodgers.
But II will be much better for him to
make his return and pay while he has
the money his part of the billion dol