Shenandoah herald. [volume] (Woodstock, Va.) 1865-1974, 1923-09-21
THE TAX DODGERS /;

ing in Virginia to issue $50. 000,.
BOO of tax exempt road bonds, the
article published in the Saturday
Evening Post of September 9Th
TAX Dodgine De
Luxe" will be of interest. Elk
planning the efforts made BY lie
rich to avoid the payment of the
income tax. the author of iais
article says in part:
There are between eleven
and twelve billions of dollars in.
vested in tax-exempt bonds, ex-
elusive of such Uuited States
issues as are partly exempt.
This is about two aud a half
times as much as was invested
in such securities ten years ago.
Municipal bonds are coming out
at the rate of considerably over
billion dollars a year. and in
addition large amounts of farm
loan bonds are also issued. On
the income from these on tax
will be paid, and of course tine
| principal purchasers are pre-
ciselg those very men whose in.
comes it was chiefly desired to
ltax. You cannot blame anybody
for buying bonds which not only
are safe but will yield a bigger
net income to the holder than hi
lean get from railroads or indus
trial bonds or mortgages OF
which he would lose from IS II
loo cent per of the yield in taxes.
II ION the other hand, if nothinl
r is done to check inyes: .nent ii
$ tax-exempt bonds. the F-dera
and those state
1 which have an income tax vi
receive less revenue than the
a are really entitled to from in
i comes. A particularly bad featur
s lis that, owing to the demand fo
: tax-exempt bonds, dealers VIII
e specialize in such issues ar
S going about encouraging village
e aud counties to issue bonds fo
schools and other in
Improvements, whether these b
,Ireally needed or not. 1t is S
z easy to get the money these day
that there has been an appalling
. amount of extravaganza for whicl
: the people-all the people, poo
/ as well as rich-will have to pa
; in the end"
II The United States Governmen
has issued $4,000, 900 Of to
tally tax-exempt bonds and SIS,
. 000,000.000 of partially tax
exempt bonds, making a total
Including the assurances made b
cities, counties and States o
approximately $50. ZOO, 900, 900 O
. totally or partially tax.exemp
bonds.
Il It is natural that those witt
large incomes, and therefore bes
able to pay taxes, should inves
in these bonds and thus avoi
1.-THE payment of the income taz
An inventory of the estate O
, levery rich man shows grea
holdings of tax-free securitie.
. William Rockefeller, who die,
recently, had an estate of nearl
1870, 100000, of which 100000,
1000 was invested in tax-fre
bonds. If the rich are freed O
taxes, as governmental expense
must be paid, the burden will
. fall more heavily on those o
moderate incomes and less abb,
to pay. The continued issuanc,
Iof tax-free securities is building
lup an aristocracy of tax-free rich
| Realizing the evils of tax-fret
securities, Senator Carter Glass
when Secretary of the Treasury,
Recommended Federal amend.
ment to prevent the issuance oil
tax-exempt securities. President
Harding and Secretary of the
Treasury Mellon have made
similar recommendations. The
Treasury Department recently
ANNOUNCED that largely because
of tax-free securities. the number
of taxable incomes of over $780,
600 was reduced from 5000 in
1920 to 1900 in 1921. In 1916.
zoo persons had taxable incomes
lOf over ST 600 600 Tn 1000 all,