Evening star., 1936-08-26
PRETTYMAN URGES
, TAX CONFIDENCE
Says Public Cooperation
Depends on Belief Govern
ment is "EntireIy Fair"
ept ciaI Disp atch to The StaI

ept ciaI Disp atch to The StaI
BOSTON, Mass, August 26.-Vol-
nntary observance of tax laws as a
result of belief that the Government
Is entirely fair, impartially firm and
reasonably efficient in handling tax
matters is the only solution for ma
sional tax problems, especially those
relating to income taxes, in the opin-
lon of E. Barrett Prettyman, recently
resigned as District of Columbia cor
poration counsel and formerly gen.
eyal counsel for the Bureau of Inter-
Nal Revenue.
Speaking here today before the tax
clinic of the American Bar Associa-
ton, now in national convention,
Prettyman declared that the great
majority of taxpayers are inclined to
obey the law, and, with proper CO.
operation on the part Of Government.
"citizens will voluntarily observe Gov
ernment regulations and give sympa-
thetic assistance to tax authorities.
Detailed Checking Impossible.
Prettyman brought out the fact
that the Government has not enough
available field men to audit all IN
come tax returns, and that While
more than 100000 returns are filed
each year, the largest number OF field
audits shown in any one year was ap-
proximately $50 900 in 1885. Approx
mately 90 per cent of the Federal in
come tax returns, he said, are closed
annually upon Office audits, largely
upon taxpayers representations as to
what the taxes are.
Successful executive policy" Pret-
lyman said, induces taxpayers to de-
eide debatable minor items rightly as
. matter of honest belief. or at least
to be free and openly frank in sub
mitting their problems and sugges-
tions to Government officials; it de-
creases minor disputes to the mini
mum, and it protects rather than en-
dangers the statute under enforce
ment. All these results in the reve-
nue. branch of administration are de-
pendent upon the attitude of the tax
payers, and that attitude is almost
entirely created by the Government
itself.
Public Observance Necessary.
"In a word, my philosophy of ad-
ministration is that approbative law
observance on the part of the tax
paying public is vital to successful
tax collection, and such observance
comes only when people believe from
experience that the Government is
entirely fair, impartially firm and
reasonably efficient"
He said. every part of the tax ad-
ministrat1on machinery must be
measured oy the standards of honesty
consistency and expedition. He also
advocated a thorough reStatement OF
the law of income taxation. He sug-
pested that the technical features Of
the tax statutes be divided into per-
haps 8 or 10 parts and that one man
or more be assigned to each OF these
subjects to the exclusion of all other
work fof a year or two If necessary,
to anal{ze and digest every known
problem. and decision within the
scope of his subject and then to pro-
duce digested, indexed compendium
OF all known rulings. From these
studies g. completely consistent set OF
rulings tould be promulgated as an
authoritative guide to executive de-
cision in all future cases.
Eldon P. King. special deputy COM
missioner of internal revenue, in
discussion of the British system Of
taxation; said, I'VE study the British
systeh for the wisdom which it con-
tains, after about 100 years of opera
ton. We may find certain
features of their system adaptable
to conditions in this country, but
there will, no doubt, continue to be
many points of difference"
Tax Laws Are Criticised.
Robert N. Miller local attorney.
acting chairman of the clinic. de-
clared, Our tax laws, think, are in
a humber of ways worse than the
British laws, and our administration
of the tax laws is less satisfactory,
botn to the Government and to the
taxpayer. than theirs.
Furthermore, the complications
and inequities are increasing. For
eight or ten years this has been so;
nor can it be said that the revenue
act of 1896, enacted since our last tax
clinic, Is remarkable for either fair
ness or easy inteIpretability."