Evening star., 1934-01-18
Will Uncle Sam Ring the Bell!

The door bell rings. The housewife
or her maid answers and finds on the
step man who states that he is rep
resentative Of the United States
Treasury Department, specifically the
Bureau Of Internal Revenue. seeking
information regarding the little matter
of income tax returns. He wants to
know If the head of the house, who Is
probably absent from home attending
to his daily business Of gaining an in
come, has paid his taxes. The house
wife receives him, tells him all she
knows about her husbands business af-
fairs, maybe recollects that he has
made out his return and paid his taxes.
but can give no explicit information.
Refers him to the husband, who will
be at home at dinner time, and begs
to be excused from further discussion
Of the matter. Perhaps the call is
repeated in the evening and the sub
ject of the income tax return is taken
up with the head of the house. Pos
sibly it is found that he has paid no
taxes. or has shaded his return. and is
admonished that he is in default and
given to understand that he must come
across, or suffer penalty.
That is about the picture Of the hap
penings under the plan broached by
Secretary Morgenthau yesterday to a
gathering Of internal revenue collectors
and field agents for their consideration
as a means Of getting a more complete
collection of income taxes. Later they
will report their conclusions and make
their recommendations. Meanwhile it
is in order to suggest that such q
method of tax collection is likely to lead
to a great deal Of trouble and add
heavily to the cost Of the administration
Of the law.
It has been estimated that some
5000, ,ooo, 900 in back and delinquent
taxes is due the Government, through
evasion OF making any returns at all,
or in the understatement Of incomes.
No explanation is forthcoming as to the
means whereby this estimate Is reached.
Perhaps it Is just a guess, possibly an
actuarial computation based upon the
supposed incomes of the people OF
this country. It may be questioned
whether any large percentage of this
amount would be recovered by house.
toulouse canvass.
The serious evasions of taxes are not
committed by the people who have small
incomes, but by those in the higher
brackets. They are not committed
through the omission of returns but by
the concealment of items in returns that
are made. Those who could be reached by
house-to-house canvass are as a rule
not competent to manipulate their re-
turns, If disposed to do so in a man
ner to effect an evasion of taxes. They
do not hire experts to write their re-
turns who are adept in the art of con-
cealment and who receive high fees for
their services. Some Of them may shade
their figures in their own behalf, but
the net Of these deductions and the
taxes due thereon are trifiing in amount
and very far short of the hundreds of
millions estimated as the Government
loss from this source Of revenue.
The house-to-house canvass plan
would give work to a great many peo-
pie, for time. and would cost q very
large amount Of money. Perhaps as
relief measure it might serve to pro-
vide employment, but it would cause
much confusion and distress and would
be bitterly resented by several million
people. who are honest and conscien-
tious in their meeting of the obligation
which the Government has put upon
them to contribute from their incomes
to its support. It is to be hoped that
the plan will be dropped as impractical
BILE and unwise
NJ H.