Evening star., 1920-02-05
TICKLE FORTUNE
FAV0RS TO|LERS
High Wages and Profitable
Overtime Put Many in the
Misunderstanding List.

! income. dX.F dyIIly EISl.
| NEW YORK. February 5.-Plumbers
who pay income taxes are no longer
| to William II. Edwards, United States
| internal revenue collector for the sec
ond and third districts of New York,
| in whose districts this year more than
81, 800, 900, 900 will be gathered up for
| Uncle Sam.
| High wages and profitable overtime.
says Mr.. Edwards. have raised to the
/ income-taxpaying list such workers as
! longshoresmen. garment makers paper
! hangers, railroad brakemen, chauffeurs,
sailors. truck drivers and piano NOV
ers. And don't forget the chorus
girls, the movie stars and the hotel
walters" declared the collector, add
| ing that some of the last are making
more than $4,000 a year in tips alone
Conductors and MotOrmen.
Street car conductors apd motormen
in Brooklyn. for instance, he said, nave
made as much as $50 a week, and, II
their yearly income exceeds si.oo9 Tor
of family, they will be required to
contribute their share toward the cost
of running the government.
Mr.. Edwards cited a few instances,
without, of course, mentioning any
names, of bootblacks, milk wagon driv-
in excess of their exemption and who
will be required to file returns.
Payment of the income tax began
on January 1. and will continue until
midnight of March Is. at which time
all returns must be in to escape the
possibility of a maximum of $1,000 fine
for delinquency. While Collector Ed
wards was opening his mail the other
day out fell a check for $2,S83,515.39,
representing the payment of cor
poration tax with penalty and interest.
The next letter he opened was from
MontcIair, N. j., which is also in his
district. 1t had been registered to pay
an income tax of 81 81.
Tax Only Four Cents.
A recent caller at the collectors Of
flee was a woman whose net income
was 65 cents. Her tax amounted to
cents. She wanted to know if she
would be permitted to make the pay
ments Quarterly" When told She
could, she smiled and said she guessed
she would pay it all at once, handed
over four shining pennies and took her
receipt.
Another patriotic citizen-foreign-
born-fled a careful return. showing
that he had no income which was sub
ject to taxation. At the bottom Of his
return was the following notation: 'No
tax due, but would like to pay some
tax and inclose for $780,"
Collector Edwards said that, under
the law, he was not permitted to ac-
cept the check. but that he forwarded
it to Commissioner Roper in Wash
ington to dispose Of as he saw fit.
This year the income tax rate is less
than last, Mr.. Edwards said. the nor
NAL rate being 4 percent on the first
$4,000 of net income above the ~ex-
emption and per cent on the re-
naming net income, instead of and
IL per cent, as in 1918.
Longshoremen Prosperous.
'Offhand." said the collector. "one
would hardly think that a longshore-
man came within the requirements
Of the income tax law. Certainly he
did not a few years ago, when many
ing. In the past year or two, how
ever, many longshoremen have been
making from $4,000 to $4,000 a year"
The income tax also hits some
pretty. hard. Some of these actors.
including motion picture stars, per-
haps make as high as 5000 and $500
a week for six months in the year.
They live well and by the, time their
income tax payment is due may be
out Of an engagement They are con-
fronted witha good sized tax without
any immediate means. 1t is then up
to them to get it,.
Last year my investigators found
many IlicI tS nave Dccu
doing business in this country four
or five years without paying taxes.
We got after them and increased our
returns by more than $1.000,000.
Some of the actresses who were
delinquent last year said they did not
pay because they could not figure
out just how much they were ex-
empt because of the cost of their
gowns, taxicabs and other luxuries.
A so per cent penalty was imposed
because of their failure to pay when
the taxes were due.
Nearly 10000 Fined Last Year.
Income taxes" said the collector.
should be figured as liability, just
as insurance, interest on q mortgage
or your winters coal bill Then when
the time comes for payment it will
not be a hardship. Nearly 10000 per-
sons were fined last year for failure
to file returns. A certain stockbroker
made 100000. He filed his return
showing a tax of $4,000. He de-
faulted in his payment, however, and,
in a personal interview with me, said
he didn't have the money. A per
cent penalty was imposed and he
hustled around and got the money.
His failure to provide. for the tax
cost him just $4,000"
The second and third New York
districts, Mr.. Edwards said, raise
more than one-Quarter Of the total
amount collected throughout the en-
tire United States.