The Bemidji daily pioneer. [volume] (Bemidji, Minn.) 1904-1971, 1922-04-18
FIGURES SHOW INCOME
'TAXE BEING EYADED
CONTINUED From Page /

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ably at least $66, O00,O0O,000 at the
present time.
It is hard to say just how much
money remains uncollected by the
government through the extraordi-
nary dereliction of these millions Of
persons. Mr.. Rogers estimates it as
between a billion and billion five
hundred million for the past five
years.
Not all of the millions who broke
the law by failing to file an income
tax return actually owe the govern
ment money.
Many Of them come within that
very large class whose exemptions are
larger than their total incomes. .r.'
However, that fact does not alter
their status as law breakers. If your
income is $1,000 or more, you are
required to file a return even though
you are not obliged to pay any tax.
This fact has been printed so many
times in the newspapers and else
where that there must be compare
lively few persons left who can plead
ignorance of the law,
Manufacturing Group Studied
A realization of this situation may
be hadtby studying the figures for one
particular group in the community.
Let US take, for example, the group
engaged in manufacturing.
The total value of manufactured
products in the United State in 1919
according to the official figures of
The United States Census Bureau was
$62,01O, 100000. From this total val
ue must be subtracted materials, $37-
372 ,5S4 900; wages,$ 10 ,545 ,9O5, 900,
and salaries 50, 1913, O46,00O or a
total Of $50.811, 1856 900. This sum,
Esubtracted from the total value of
manufactured products leaves profits
without counting interests on invest
ments or depreciation) Of $12,O98,-
667 900.
In manufacturing according to the
censuus, there are 9,103 200 wage
earners, This number divided into the
total wages earned, $1O,545, 905 900
gives an annual average wage of ST.
1853.
Yet of this total of 100000 wage
carriers in manufacturing only S.
488 are especially shown to have
made income tax returns in 1919.
One-half Of per cent.
What did the other 5000, 900 people
;do? How did it happen that only one
half of one per cent. of the wage-earn'
ers in industry is specifically shown
to have made returns, when the aver
age wages for the whole industry
were $1,158.
Mr.. Rogers, who worked out these
computations, by no means charges
that nine million persons engaged In
manufacturing arc engaged in tas
lodging. His position is merely that
of asking to be shown what Other
conclusions can be drawn from the
official statistics of the Census Bur
eau.
A similar situation exists among
the farmers, unless the official gov.
eminent reports are unreliable.
Farmers as Tax Dodgers
There are 6,44S,366 farmers in the
United States. The total livestock and
crop value in 1919 was $21,367.l93,.
384. From this total must be sub.
IIdCtcu. Nv ages, pASooVs4Vot9o6 ASA'
tilizer, $326,399,S00, feed, $1,097..
452,l87; making total of $780,
255 ,439. There must also be sub.
Etracted the interest on farm. mort
cages, to the value of $4,000, O00,.
900, which amounts at an interest OF
8 per cent. to $32O,O0O,000. These
items, added together and subtracted
from the total value Of farm products
leave net income of $l8,266 $751;
GAS, or an average income per farm
er which is we'll over $4,000,
Yet in spite Of this fact, only 4l8,.
t945 farmers out Of the total number
of 6,44S,366 are especially shown tc
have made income tax returns. Gre
member, these figures refer only tc
owners or lessees of farms, and dc
not include farm .laborers.
Must Revise Whole System
If these figures are correct-and {
group of the most distinguished econ
omists in the United States to whom
they have been submitted failed tt
challenge them in any important par
, ticular-they carry implications Of
the most serious nature possible.
Not only must our taxation system
be revised from top to bottom, but
we must do soh4e, very serious think
ing about theswhole question of citi
zenship and RESPONSIBILITIES.
Our goVerrffAent is founded on tn,
assumption that most. citizens viii
obey the law, and want to bear theil
just portion of the burden of gov
ernn,ent.y,W What will become of 1
country which reaches point where
these assumptions no longer ,holt
good?
These and other aspects of Thu
whole question will be discussed il
subsequent articles.