The daily Gate City and constitution-Democrat. (Keokuk, Iowa) 1916-1922, 1918-08-21
BILLION DOLLAR
TAX DODGING
Everybody Must Make Out Income Re
turn Whether or Not You arc
Liable to tho
Tax

Omitted Press Leased Vile Service
WASHINGTON, Aug. Ala billion
dollar drive on income and excess
profit tax slaokers, will be authorized
In tho new revenue bill.
To prevent future tax lodging, Sec
rotary of the Treasury McAdoo has
asked congress for authority to force
every person In the country to make
an income tax return whether or not
he is liable to the tax.
These two moves to set every pos
sible dollar to carry on the war, were
revealed today in statments OF Intern
al Revenue Collector Roper before the
house ways and means committee.
Roper assured the committee that II
he was given s1O.00o,o00 to hire the
necessary force Of accountants he
could collect $1,000, 100000, the sum
he estimates the government has been
cheated out Of in 1916 and 1917 alone.
The committee authorized the ap-
preparations immediately following
Ropers statement Coal companies
are among the principal tax dodgers.
Roper showed.
Auditing has been done by a force
Of thirty-ive men working from June
to Aug. 10. Farmers are also under
suspicion because Of the fact that only
ID, 900 in the entire nation submitted
tax reports last year, Roper's report
shows. 'i~ssS
Only about two per cent OF the ma
tons saloon keepers made returns.
Movie stars and actors are also go
ing to be asked to verify press agent
reports OF fabulous salaries. ROPER
told the committee he plans to organ
lie twenty auditing units OF expert
accountants, each unit to go into the
returns Of all companies In certain
lines OF business to get every dollar
due the government.
The plan to force every person to
submit tax returns would, according
ITO Roper, apply to the revenue bill.
the same principles now applied in the
draft
This is aimed at income tax payers
who are In the twilight gone"
Thousands OF persons OF small In
comes who arc Just on the tax Dor
der line have been escaping because
the department at present has no way
of checking on them, Roper said.
Roper also plans to send through
out the country thousands OF workers
to explain the new revenue bill to the
people.
An important part Of the campaign
is the preparation OF farmers ac-
count book, prepared by the depart
ment Of agriculture to enable farmer
to keep closer tab on his actual IN
come.
The house ways and means commit
tee today tentatively adopted an eigh'
ty percent war profit tax and fixed ex-
cess profit tax rates for the new rev.
enue bill
The war profit tax takes eighty per
cent Of all earnings OF corporations IN
excess of their profits for the years
1911, 1912, 1918.
ia corporation, however, earned
less than ten per cent on invested cap
ital during those years. 1t is given flat
ten per cent exemption before the war
tax becomes operative.
The excess profits rates tentative
lily adopted gives eight per cent exempt
ion and taxes according to the follow
ing rates:
All profits from eight to fifteen per
cent are taxed thirty-five per cent;
profits from fifteen to twenty, fifty
Per cent and all profits above twenty
per cent are taxed seventy per cent.
The corporation will pay under the
war profits or excess profits tax &C
cording to which will bring the most
money.
The new rates, committee men said,
will be put into the bill finally as the
treasury department approves them.
The adoption Of the two sets of prof
It's rates today completed the new
revenue bill.
Other details OF the measures have
been previously published by the Unit
ed Press.