Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1922-03-03
Income Tax

By March is you must have your
income tax statement and, at least,
the first payment in the hands of the
Government agents. It is. the claim
OF the Government that no other
country collects it's revenue at SO low
a cost. The official statement is
that it cost only eighty-eight cents
to collect every 500 for the year
ended June 30, 1921, and fifty-three
cents on the 500 previously.
In 1914 only 357,5l5 individuals
paid personal income taxes. In 1917
the total was 3,472890. in 1919 it was
5332760.
The gross personal income on which
tax was paid in 1919 before deduc-
tions, was $22,437 ,685, 1925.
The statement of the Government
that sno country collects it's revenue
at so low a cost is misleading. The
Governments estimated cost per 500
will be much higher this year than
last, but that is only a small item
III the real cost to the taxpayer,
Nobody in Washington knows the
income tax in all its pha~,e. No
one on earth knows it or ever will.
interpretations of the law are SO
changing that the Treasury Depart
ment issues a new book every week
on new rulings ON the tax.
There are tremendous costs of which
The Government takes I'd az, cunt.
The biggest item is what you have
to pay in work or money to prove
to the Government. you do not w
what 1t says you do. In this there
enter various details Of time, paper,
Investigations, lawyers charges, hear
lngS, postage, court fees tax experts
appraiSalS etc.
The Government assumes that all
taxpayers are dishonest. In MANY
caSvs it is able to prove its contention.
In many more it is not, but the bur-
den of proof is IN the taxpayer ard
II the Government is in error, the
taxpayer still must pay the lawyers
bin.
Here IS an~eXamplc in the case of
q small corporation. The Government
sent two agents to examine the books.
They claimed $685. 00 additional tax
was due, When they departed, the
president Of the corporation hah to
engage experts ard lawyers to dis
prove their charge, They did, but
they had to wade through a mountain
of papers. After that there was vol
luminous correspondence. The Govern.
ment confessed it was in error. but
10 cost the CORPORATION $4,000 to
prove II didn't owe the $105,O00 There
are thousands Of eases like this each
wear. The cost t1ould be on the
Government when it makes the error
, -tut the cost is put on the TAXPAYER
Some Of the fees LAWYERS get Of
hose taN eases are staggering. The
income tax has been a boon to The
legal fraternity, but a horror to thc
/, business man.
One Of the worst clements in the
whole tax situation is that of doubt
There is no certainty Of the return
e VOW make being right Decisions OF
I various ouostjhns are subject t,
] ""o"ge Within n few weeks there
, is to be issued a new volume q
b. rru'ations, This will probably b,
500 or more pages
No. matter how scrupulous YOU ma,
be, you are not safe. If the Govern
p ment challenges your return, it doe;
not admit possibility of error on it
part, but upon you the burden o
proving your innocence. Under tn,
; law you have to pay the tax in full
; before you can bring suit to get an!
of it back. Then if the Court de
u cides in your favor, the Government
may offer to compromise or it ma,
/ appeal. The Government rarely pay
r any attention to adverse decisions i
! lower courts, ~disregarding everything
i of that sort until the case finally get
to the Supreme Court of the Unite
= States. That mean years of delay
l. Also it mearS great expense fo
lawyers and for other things, not tn
least, in time, worry and the loss G
= YOUR money, Then, if you finally vii
I'd the question is to collect. There al
" unpaid claims against the Governmer
dating back Ia the Civil War and loi