Plentywood herald. [volume] (Plentywood, Mont.) 1908-current, 1937-06-24

1t looks as if the general tax revi-
sion, which congress leaders had
hoped TO postpone until the next
session, may be the live issue which
this session of congress will have to
deal with. The presidents action in
calling attention to instances of tax
avoidance by certain rich men, and
asking for a congressional investi-
cation, has brought the subject of
"loopholes' in the tax laws sharply
to the fore. 1t has. indeed, taken the
place which Mr.. Roosevelt's supreme
court reorganization plan has occu-
pied for more than three months as
the main topic of interest on Capitol
hill.
While the president has not re-
coded from his belief that the SUI
preme court needs new blood, it is
the best opinion here that his plan
will not be adopted, at least at this
session. 1t might be possible for a
compromise measure, providing for
two additional judges instead of six,
to get through the senate, though
that is questionable, but the opposi-
ton in the house is now regarded
as strong enough to block action.
Not Evasion, but Avoidance
The whole point of the tax loop
holes is that the revenues which
were expected from the undistrib-
uted earnings tax, enacted last year,
have failed to m~aterialize, and the
treasury experts who guessed wrong
about that tax are trying to find an
Tout for themselves by blaming
the failure of revenue upon men
and corporations which have taken
advantage of holes in the income tax
laws to pay less than the treasury
thinks they ought to have paid.
There is no direct assertion that
anyone has done anything Illegal.
The unnamed individuals are not
accused of tax evasion which is
illegal, but of tax avoidance" by
methods which may be morally de-
plorable but which are entirely with
in the law. The trouble Is with the
tax laws, and the present effort will
be to plug up the loophoies of which
these individuals have taken advan-
tage.
Men whose income Is so large
that the payment of taxes upon 1t is
a serious matter. can afford to hire,
legal experts to show them how they
can avoid payment of taxes which
the ordinary citizen has to pay be-
cause 1t Is not worth the cost to go
to the trouble of avoiding them.
And one of the big problems is
how to plug up loopholes through
which a few rich men a crawl
without inficting h%ardships upon
the vastly larger number of taxpay-
ers who do not try to dodge.
To Make Names Public
One result of the sudden interest
in tax-avoidance will be to bring
out before a congressional commit
tee the names of men who are ac-
cused OF taking unfair advantage Of
weaknesses In the tax laws. Gossip
around Washington Is the admins
tration hopes particularly to show
UP a large motor manufacturer, sew
eral members of a very wealthy
family and the heads of three i'm
portant chains OF daily newspapers.
1t remains doubtful how far con-
gress will go In that direction, but
1t is a reasonable certainty that GER
tain practices which the present tax
law permits will be made illegal,
and that the pressure for a complete
revision of the tax laws will become
stronger. Tax avoidance alone would
not account. experts say. for more
than 100000 900 OF the $500 ,00O.-
600 shortage In this years esti-
mates, II that much.
RlliOn-and-a-hAlf Relief Stands
The prospect grows strong for the
enactment at this session Of q new
wage-and-hours bill, which will spe-