South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-12-16
Liberty Tax or Indemnity
Tax! Which?

shall we pay our own govern
ment a Liberty tax OF {2.500,0O0,O00
or TO Germany a war indemnity OF
many times that amount? ?"
This Is the real issue presented 10
the American people by the passage
OF the war revenue act. II Is for the
people. who through their represen-
tauves in congress have levied this
tax upon themselves. 10 decide
Can there be doubt that in the
event OF Germany's success in the
war the indemnity demanded Of the
United States by the kaiser would
De so great as 20 cause 70 pale into
Insignihcance the sum total of the
revenues called for by the war rev.
enue act? Remembering Germany's
threats. there is but one answer.
The designation Liberty Tax" is
as applica bic to the revenues TO be
raised BY the war revenue act as
the term Liberty Bond" 20 the two
bond issues to which the people have
subscribed $4,000. 100000. Both are
for the same purpose, the fnaRcing
OF the war. The Liberty tax repre-
ents that portion Of the burden-if
burden it can be caIIed-which we
assume for ourselves, while the Lib
erty loan represents that portion
which it is only fair for Us TO remit
70 those who come after US.
Communities throughout the
length and breadth Of the land We'd
with one another in the purchase of
Liberty bonds, displaying a just
pride when they exceeded their
quota. The man who promptly pays
his Liberty tax may also feel a pride
in the fulhIlment Of @ patriotic duty.
The task of collecting this tax. the
greatest levy ever undertaken by the
United States government, devOlves
upon the bureau OF internal revenue
The bureau is ready 10 do its part,
and 10 every one Of the tax payers,
100000 of whom would never be
fore have paid an income tax, is Civ
en- the opportunity TO cooperate.
Vast Collection Machine.
There is being organized in the
treasury department a vast machine
for the collection Of every penny
called for by the law. The govern
nent is not required to seek the tax
payer. the law providing that re-
turns shall be filed between Jan.
and March / with the district where
he taxpayer lives. The bureau Of
internal revenue. however. has in
the field a large force of agents to
check returns and 20 see that the law
is not evaded.
The information at source" pro-
sision OF the law will give the treas
try department many complete rec
crds.
In accordance with this all indivi-
duals. trustees. guardians and other
.iduciaries partnerships, corpora
tons or associations must file with
the commissioner Of internal revenue
a true report OF the income paid in
rents. interest. salaries. wages or
other fixed and determinable gains
OF $500 or more in any taxable year.
together with the names and ad-
dresses Of persons 10 whom such
payments are made. For the infor-
nation Of employees. employers ev-
erywhere throughout the country
win be asked to post in their factor
les. offices and business houses no
tices that these reports have been
fled In this way the attention Of
employees will oe called TO the fact
hat. In addition TO the returns made
by themselves. the treasury depart
ment has received an accurate state
ment Of the taxable salaries paid 10
each.
Excess Profits Hit Hard.
The largest single item in the Lib
erty tax total is the return from the
excess profits tax. estimated at ST.
coo. geo. 900. In the construction and
Interpretation OF the excess profits
provision OF the law. the bureau is
aided by nine advisers on business
conditions: appointed by Sec'y Nc
Adoo Selected because Of their
ability TO deal with just such prob
lens as are being presented. they
are Rep. Cordell Hull. a member OF
the house committee on ways and
means. T. s Adams. economist Of
Yale university: Wallace n. Sim
mons Hardware Co. OF St. Louis and
Philadelphia; J. F. Sterrett OF
Price. waterhouse & Co. account
ants. New York: s. r. Bertron OF
Bertron. Griscom & Co. bankers.
New York. F. + Meredith. editor OF
Successful Farming. Des Moines. Ia
T. ". Mccullough. editor or Omaha
Or~.h.