Capital journal. (Salem, Or.) 1919-1980, 1921-10-20
Rv Milton A. Miller.


In leaving the office OF collecto
Of Internal Revenue. believe tina
| perhaps a brief review Of my ex
perience will prove OF general in
terest, because during the las
eight years, the entire tax system
of the government has been revo
lutionized.
This period has been fraugh
with events Of the greatest conse
quence In history. During tina
time the world war was fought
and this country took its place b,
the side Of the allied nations ant
delivered the blow which spellet
defeat Of autocracy.
Growth of Bureau.
And to effectively carry out tht
great part in which this country
was destined to play, and did
play in the worlds affairs, 1t be,
came necessary TO raise an unpre-
cedented and unthought-of am
cunt of taxation, and to do it with
as little disruption Of business and
vested property as possible.
At the time I assumed the du-
ties Of this office, on August IS,
113, the main sources OF internal
revenue were liquor, cigars, tobac-
co, and a few other inconsequen-
tial excise taxes. The government
depended for the bulk OF its reye-
nue. upon import duties, and the
total collections Of my office bare
ly approximated one million dol
lars annually.
My force consisted Of nine de-
puties, who took care of the office
and field work, and my office oc-
cupied three rooms in the customs
house.
Since that time the force has
expanded so that 1t has averaged
from sixty to seventy-five employ
ees.
The office space has been in
creased from time to time until thf
floor OF one entire wing of the
building, on the second floor, and
large room on the first floor
are now in use, and even this
great space has not been ample al
all times.
Tax System Development.
In October, 1918, the first In
come tax law was passed. and
since that date 1t has been subjec-
ted to so many changes and ampli-
fications that the trainers of the
original bill would see little in the
present measure, that is based up
ON the first enactment.
The income tax law of 1913 was
made retroactive as of March i,
1913, and the work came on us
over night, and found us almost
totally unprepared to meet the re-
quirements Of the law and to dis
charge our duties to the govern
ment and the taxpayer.
But we worked overtime, night
after night, and did our level best
to accommodate the public and
render every assistance possible to
the end that they might under
stand the phases of the income tax
and their responsibilities.
in October, 1914, when the Eu-
ropean war cut down importations
into this country, and practically
nullified the tariff bill as a reve-
nue. producing measure, the gov
ernment was Obliged to enact the
War Revenue law. which provided
stamp taxes on documents, pro-
prietary articles. and wines, and
numerous special or oecupational
taxes.
BY September. 1915, conditions
had so changed that 1t was possi-
BILE to repeal these stamp taxes
and most of the special or occupa-
tional taxes. but the law of Sep
tember. 1916, provided additional
income tax, capital stock tax on
corporations, a tax on estates, and
other important taxes.
By October. 1917, the financial
needs of the government. due to
our entrance in,o the war. re-
Quired the enactment OF further
tax legislation, and the stamp tax
es and special taxes we're restored.
the tax upon estates was increased
and the war excess profits tax es-
tahllshed.
The law remained In effect un-
I'll February "a. 1919. when the
present revenue bill. known as the
Revenue Act OF 1918, was passed.
This retained all of the old tax
L.. A.