Evening star., 1932-07-17
Petty Tax Dodging.

In the revision OF tne reueidl taA
schedule to effect an approximately
balanced budget two imposts were laid
upon the people which it was estimated
would yield something over s2OO,OoO,-
600 additional revenue. These were the
tax on checks and the addition OF one
cent to the first-class postal rate. or
all the possible taxes imposed these are
the most easily borne, being widely dis
tributed in small individual amounts
The collection Of two cents for every
check drawn will cost the average per-
son who uses a bank account for the
payment of his bills probably less than
five dollars a year. The addition OF
penny to the first-claSs postal rate,
while actually fifty per cent increase,
is barely felt by the users Of the mails.
Yet the disposition to evade taxes is
so strong that numbers Of both classes
of taxpayers, those who draw checks
and those who use the mails for COM
munication, are now holding out on the
Government by curtailing their use OF
checks or their patronage of the post.
Many are writing postal cards instead
of letters to take advantage Of the lower
rate for that form. Some who use their
bank accounts for bill paying are dou-
bling up on their monthly accounts,
making one check do for two, and in
some cases are seeking to shift the tax
by drawing checks for two cents less
than the amount Of the bill and ex-
pecting the creditor to pay the tax by
accepting this curtailed remittance.
Another form Of tax evasion which
is practiced takes advantage Of the pro-
vision in the revenue law which exemptS
from tax so-called counter checks. by
means of which depositors withdraw
funds which they may then take in
person in payment of bills. This avoids
the impost of two cents on each check
drawn, but entails the expenditure Of
time and energy.
The aggregate of these savings in the
course of year would be very small
sum compared with the service rendered
through the use of bank checks and the
mails. The shifting of the tax to the
payee in the case Of checks written
two cents below the amount Of the bill
is, of course, wholly unfair. If indeed
it is not dishonest. AS well might the
person paying a bill on such a basis
deduct another penny to pay for the
additional cost of mailing the check In
the case of continuing patronage the
payee insistent upon full payment must
carry over from month to month a
balance of two cents to be added to the
next months bill, thus complicating
bookkeeping.
These evasionS are not creditable to
the people who practice them. The
purpose of the additional taxes is to
put the Government on its proper
foundation of solvency, a condition
which every citizen should desire. A
cooperative spirit should prevail to
cause each person to be glad of the
opportunity to contribute thus to the
common welfare on scale that in the
course of year means a total addi-
tional expense of probably less than
ten dollars Making the creditor pay
the tax, by deducting two cents from
the amount of the bill, paying bills in
cash by using counter checks for sthe
withdrawal of money and the substitu-
ton of postal cards for letters to evade
the additional penny for mail carriage,
all these are unworthy devices.