The Washington times., 1925-05-26
BUT COURT
R(JLING|S
UPHELD
aorah and Other Senators
Approve It-Seen as Rem
edy for Evasions
By WILLIAM K. HUTCHINSON.

By WILLIAM K. HUTCHINSON.
Movements for repeal Of the
publicity provision of the income
tax law and for its extension to
other forms Of taxation got under
way simultaneously here today fol-
lowing the decision of the United
States Supreme Court legalizing
previous publication of tax pay
ments.
Another fight over this question
Ia the next session of Congress
appeared certain.
Ruling Meets Approval.
The courts ruling met with in
slant approval in Congressional
circles although Republican leaders
were reticent as to their future
attitude toward continuing the law.
The Independent progressive bloc.
however, hailed the decision as q
victory and launched plans to ex.
tend the publicity clause to other
forms of taxation.
1t was indicated they would even
seek to force publication of tax
hearings before the Treasury De-
partment and on all tax settlements.
Administration officials meanwhile
indicated the Treasury Department
would ask Congress to repeal the
publicity clause.
This would be in line with the
known opposition OF Secretary OF
- rEF6n q.
nounced publicity as without bene
fit to the Government and as in.
furious to private business.
Secretary Melons Views.
The Secretary was quoted as say
ing; Publicity serves one purpose.
It gives to business rivals and those
having some Interior motive infor-
nation which is OF value to them
solely to the extent it is detrimental
to the taxpayers. They gain by the
taxpayer being hurt"
Mellon also was said to feel that
income tax publicity was q 'spur
to the efforts of taxpayers to avoid
a large taxable income.
To preserve business privacy, it
was added, many rich men sought
to escape the returns by Investing
their funds in tax-exempt securi
ties.
I'VE may promptly expect" was
the treasury's warning, renewed
use of the many means of tax
avoidance with the consequent de-
crease in the productivity OF the
income tax
The Administrations attitude to-
ward recommending repeal of the
publicity clause, however, will not
be determined until public reaction
to the courts decision has been felt.
It was said the Administration
conduct would be influenced en-
tirely by public opinion.
Wider Publicity Predicted
The progressiveS or Congress
erected the decision as the opening
wedge for wider tax publicity.
sIncome tax publicity is here to
stay" said one Senate Independent.
"An effort undoubtedly will be
made to extend the publicity TO
other forms of taxation.
For instance, the Couzens COM
mittee has found numerous sharp
practices on the part of big business
men in eyading their Federal taxes.
Other colored transactions have
taken place in the refunding Of old
taxes.
"If all these transactions were
open to the public inspection and
to newspaper publicity, instead OF
being hidden in secrecy. those rich
men would not dare to evade their
taxes.
Complete publicity for all tax
hearings and on all tax settlements
will stop these evasions and such a
move undoubtedly will be made
when Congress reconvenes."
The Treasury Department incl
dentaIly announced that the 1924
income tax payments will be re-
leased for publication some time
between August 1 and September
Is.
Officials explained that returns
both for the calendar year of 1924
end for the fiscal year ending
June 30, 1925, will be included in
the payments published. A denial
was also issued that any undue
delay had been permitted in the
hope that the Supreme Court
would hold the law unconstitutional.
Congressional sentiment mean-
while was revealed by Senate lead
ers.
'I think the court quite correct
In its construction of the income
tax publicity law said Senator
Borah Rep.) of Idaho. "I don't
see how it could have decided
otherwise as to do so would be to
say that newspapers cannot print
the news.
THE decision undoubtedly means