The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1920-11-16
CAN'T POSTPONE THE
DECEMBER INCOME
TAX PAYMENTS
By DAVID LAwRANcH.
Copyright. 1920, by The Intelligencer.

WASHINGTON, Nov. Is. - Should
corporations and manufacturing oon-
Germs which haven't the money 10 pay
their last installment OF income taxes
on December Is be allowed TO postpone
payment until they have more cash on
hand or should Uncle Sam insist that
the business houses which haven't saved
up enough money to pay their taxes
suffer the consequences OF their mis-
take?
This question is being put up 10 the
treasury department. because or the
fears Of certain textile concerns that
unless the government helps out oy
postponing the December payment on
income taxes there will be bankruptcy
proceedings in many large business
establishments.
But the treasury department has no
discretion in the matter and officials
there say congress alone can authorize
postponment Of any payment on income
taxes. Inasmuch as congress meets on
Monday, December ., the new law would
have to be passed Immediately because
the present law requires payment on
December Is and provides penalties Tor
failure to pay. II is doubtful whether
any satisfactory measure would be JAM
med through I'm week for II opens up
the whole subject OF taxation. The
most that might be accomplished Is a
simple amendment to existing revenue
u
temporary discretion to act IN cases
whore the facts prove postponement
Is absolutely essential TO prevent ruin.
Not Practical.
Officials who administer the Income
tax laws, however, are afraid OF such a
proposition. They say 1t would require
a huge staff and lots OF money to deter
mine what Is q meritorious case. The
income tax bureau has hard time
handling the present provisions OF the
law without new burdens yet OFFICIALS
recognize the emergency and realize
hoy serious the consequences may be
20 the public u many concerns are forc-
ed into bankruptcy. Income tax execu-
tives say they are losing men as fast as
they employ new ones. Government
salaries are not comparable - the
attractive offers made by the business
world. Yet the Republicans being pledg-
ed to economy and the cutting down or
governmental expenditures are not In
the mood to increase the payroll.
AS q matter Of fact. It isn't the fault
OF the government that ousiness houses
have failed to accumulate q reserve
wherewith to pay income taxes. Many
corporations did make provisions Tor
their December taxes but the money
market became 80 light that they coule
not borrow FUNDS To carry On the nsoai
roWed from themselves-they used up
money that should have bAen kept Tor
income tax payments. Daniel C. Roper.
former commissioner Of internal rev.
enus. who fayors postponinx payment,
OF ,jncosns taxeS ;hisis& tSe' ns - S
il required an interest," rate or eight
per cent on deferred, payments, THIS
would be higher than market rahes on
interest and would tend to riscooraSe
too much borrowing from corporatio.
funds that should be ser asioe ioF in-
come tax payments
where Can ths Itas DS Drewuf
Yet the entrance Of Uncle Sam into
the commercial world as lender or
money to private business concerns ls
a new thing and the chief difrlcoits
about Il all Is the discrimination made
necessary by such step. where can
the line be drawn? Many an individual
who pays a small income tax Will want
to postpone payment especially since cne
rate of inteeest will not be disturbing
factor TO him. The leSisRtion VIZ nave
to be broad enough to cover those VINO
pay small as we'll as large income taxes.
Treasury officials are not prepared 10
saw what the effect upon government
finance this postponement OF revenus
collection will make. The United states
government has been counting upon coll
lecttons from income taxes In oroer u
pay its own obligations.
Congress will be plunged into a dis.
cussion Of the whole tax problem the
moment the December session begins.
The excess profits tax Is bound to be
rspealed or modified. Even inside the
government where this tax has been
lookedw upon as splendid money-getter
converts ave btfng made daily to the
view that the excess profits tax mas
outlived it's usefulness. ut what shall De
nut on In its place? The tax experts are
FAR from unanimous in their suggestions.
The demand Of few business concerns
that they be permitted to postpone pay
meut of December taxes is but a. symp-
tom Of the intense agitation ~nich Is
expected from the remainder OF the year
on the subject OF taxation. 1t will nor
be surprising II the tax question takes
even more time than the old controfer-
sizes on the tariff which used to consume
a whole session Of congressto tne ex-
cIusion Of other important legislative
proposals. More individuals and more
interests are affected by taxation than
by ali the tariff laws OF history ana the
sums TO be raised nowadays are many
times greater than the largest tarati
law congress ever passed.