Evening star., 1935-08-06
RICH MUST TAKE
BURDEN Of TAXES,
DECLARES
Indicts Tax Structure as
Working Against "LeSs
Able to Pay"
EVASION PRACTICES HIT
BY REVENUE COUNSEL
Democratic Leaders Ready to Halt
Bonus Riders-Agree to Bill
at Next Session.
BY JOHN C. HENRY.

Indicting the entire Federal tax
structure as it now operates and
scoring harshly the practices Of evasion
as followed by individuals with large
incomes, Robert H. Jackson. counsel
for the Bureau of Internal Revenue,
injected new strength today into the
administrations present tax plans
Appearing before the Senate Finance
Committee at hearings on the $3.50
600, 900 measure passed yesterday By
the House, Jackson opened with the
reading of long. prepared statement.
Committee members for the most par.
listened quietly. but, once or twice
Senator La Toilette. Progressive, OF
Wisconsin. who has announced plans
to seek broader tax measure. asked
for supplementary information to that
included in voluminous tables intro
duced by Jackson.
In the course of his testimony. Jack
son termed the present Federal tax
structure ''out of balance" In its op-
Grafton, he said. the trend Of tax
burden has been toward those "lesS
able to pay" and this trend should
be reversed"
Stave Of Bonus Rider.
While the committee was hearing
Jackson. Senate Democratic leaders
took steps to block efforts to attach
bonus payment or other "extraneous"
issues tn the taY hill
At the same time, they agreed to
give bonus legislation preferred status
at the next session of Congress. Ex-
pressing hope this would speed ad-
journment. Majority Leader Robinson
said many bonus advocates felt a tax
bill amendment would not develop the
full strength that the proposal might
muster if offered separately next
January.
The Democratic chieftains decided
that bonus or other riders offered 10
the tax bill would be tabled This is
a method rarely used to dispose OF
unwanted legislation.
Prior to the leaders decision. Sena-
tor Thomas. Democrat, of Oklahoma
had planned to offer the Patman
bonus bill, which the Senate refused
to pass over President Roosevelt's veto
as a rider. Senator Frazier, Repub-
hcan. of North Dakota also planned
to offer his bill to refinance farm
mortgages with a SO 900, ,000, 900 issue
of new currency.
Before the Finance Committee Jack
son revealed that a detailed study
has been made by the Treasury De-
partment of the income returns of
So persons exceeding Sl,000.O00 From
this study. evidently involving the
thrifty" persons referred to recently
by President Roosevelt, the witness
deduced stubborn evidence that
wealth is concentrated in q few
hands
Readjustment Urged.
Declaring large estates mot only
perpetuate themselves, but are larger
as they pass from generation to gen.
eration," jackson said these groups
should have their tax burden read
justed to help meet the costs Of pro-
tecting the social order in proportion
to the advantages which they enjoy"
Speaking sharply on the matter of
evasion, the bureau counsel reviewed
numerous practices followed by those
Of large income who are guided by
clinic of able counsellors.' In con-
trast to this facility of evasion, he
said, is the plight of the small tax
payer who has no reliable avenue of
evasion open.
In connection with these evasion
attempts by big income individuals,
Jackson declared the device of per-
mitting a litigation of tax first and
payment afterwards is proving
so costly as to present challenge to
effective enforcement"
Inability of the Board Of Tax
(See TAXES, Page A.