The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1922-04-20
SITUATION REVEALED
Is TRULY DEPLORABLE
Abolition Of All Exemptions
Over $500 Is Suggested
by N. Y. Publisher
Editors note. This; is the fourth
of series Of articles dealing
with the federal income tax sit
uation.
BY Bruce Rliven


New York, April 2O-Income tax
lodging exists in the United States
today on scale so tremendous that
one hesitates to describe it.
Millions of persons who should
have paid taxes have failed to do so,
withholding from the government bill
lions of dollars.
Other millions have violated the
law by failing to file income tax re-
turns though they were not obliged
to pay any tax.
Under the law everyone with an in
come of $1,000 or more must file a
return, even though his exemptions
are larger than his total income, and
he, therefore, owes the government
nothing. Through ignorance or indif-
ference, millions Of persons have
broken the law in this regard, and are
liable to fine or imprisonment.
These facts, as they have been de-
Veloped from official government sta
tlstlcs by Jason Rogers publisher Of
the New York Globe, have been set
forth in detail in preceding articles
in the series of which this is the
fourth and last.
Breakdown of Government
The situation revealed is truly de-
plorable. 1t means no less than the
complete breakdown of our govern
ment in one of it's most vital functions
and function which touches the very
heart Of the democratic theory,
What can be done about it? Must
we admit, as the French have done.
that the income tax is an uncollect-
RI tn
sary revenues for government ex-
penses by other methods?
BY no means; though Mr.. Rogers
believes that the situation here re-
vealed is an excellent argument IN
favor of the sales tax.
Now Form of Tax Needed
But his chief interests is in the in
dictated faults in our income tax sys-
tenn. Not the tax itself, but it's pres
ent form is bad, in his judgment.
He would remedy it by abolishing
practically all exemptions on incomes
Of $500 and up. ..
He would begin with flat tax of l
per cent, or some other virtually
nominal amount on incomes of $500
or more. He reasons that an individual
who won't pay IS year toward the
maintenance of his government is a
pretty poor citizen. -
TO raise the amount necessary, he
would tax larger incomes at progress
sively higher rates.
A Hodge-Podge of Compromises
We have all accepted the present in
come tax law, with it's complicated
surtaxes, its numerous loopholes, and
its exemptions, some of which, such
as the exemption of federal and state
salaries are vicious and unfair, as Il
matter of fact, it is hodge-podge of
compromise, most imperfect docu-
ment. Its exemptions place a premium
on lying.
Mr.. Rogers void have the nominal
income tax collected at the source
wherever that is practicable, as it
would be when an individual receives
his income in the form of wages, SAL
airy etc. '7,,
The Cost of Collecting
The argument has been advanced
that almost universal tax lodging
which now goes on cannot be stopped
because it would cost more to collect
these taxes than they amount to. Mr..
Rogers rejects this argument as fall
lacious. A tax should either not be
levied at all, or it should be collected
whatever it costs. But there is no
reason why the government, under the
law, should not assess q small fine on
CONTINUED on Page 81