Carbon County news., 1937-06-25

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basis upon which
Seek NeCO to expect present
Tar Sources returns Of federal
taxation to pro-
duce sufficient funds to maintain the
administrator rate of spending,
the President and the Treasury are
peeping into every corner for new
sources of money. They have al"
ready recommended to congress
that the present nuisance taxes be
:re-enacted to bring in some five
hundred million a year and they are
casting their eyes elsewhere for
other tax receipts.
In addition, and as part Of the
general pinch that the Treasury now
feels, Mr.. Roosevelt has asked con-
gress to revise certain provisions OF
income tax law to close up loop
holes and prevent escape from taxa
ton. The Presidents message to
congress on this point was quite bit
ter and, many observers thought
rather unfair but, nevertheless, he
told congress that it was up to the
legislative branch to see that there
was no tax avoidance.
The Presidents message dealt
with an alleged moral phase of tax
avoidance and that part of his mes
sage has provoked much criticism
of the Chief Executives attitude.
He sought in his statement to the
congress to make it appear that
many wealthy persons had avoided
taxes and that, by so doing, they
had Sinned.
Now, the Presidents view is en-
titled to consideration and his
charge that there is tax avoidance
is correct. Indeed, I believe no one
can successfully dispute the charge
that there is tax avoidance of a
wholesale character in the United
States. But when the matter is
placed in the category of moral
issue, it must be examined in a
different light. The President did
not talk about tax evasion in his
message; he talked about tax avoid
ance. Tax evasion is illegal and
immoral. Tax avoidance is purely
and simply the arrangement by an
Individual so that he pays the low
est tax he can and still complies
with the law.
I am inclined to side with those
in congress who have criticized the
President on the attitude he as
sumed. AS long as congress tells
an individual, through the language
of a law, that he must pay so much
tax and prescribes the conditions, if
that individual complies with that
direction of congress, he does not
commit a crime when he pays only
that much tax.
I am constrained to support my
view in this instance with the lam
guage Of the late Mr.. Justice Oliver
Wendell Holmes who, as a member
Of the Supreme court Of the United
States, gained probably as much
respect as any man who ever sat
on the highest bench. Mr.. Justice
Holmes said in a decision of the
court 81 years ago and now strange
Iy apropos the following words:
1--WE do not speak of evasion, be-
cause, when the law draws line,
a case is on one side of it or on the
other, and if on the safe side it is
none the worse legally that a per-
son has availed himself to the full
of what the law permits. When an
act is condemned as an evasion,
what is meant is that it is on the
wrong side Of the line indicated by
the policy, if not by the mere letter,
of the law"
Again and again, courts have held
that citizen may employ "any le-
gal means" available to him to di-
minish the tax which he must pay.
It would seem then that Mr.. Roose-
velt's message used rather i'll cho-
sen and i'll advised language when,
in dealing with questions of tax
avoidance, he sought to make it ap-
pear that it was wrong for citizen
to try to save his own money.
It has been rather interesting to
note the type of outbursts, editorial
and verbal, that
Message has come as a re-
Causes Stir suit of Mr.. Roose-
velt'S tax mes
sage. These outbursts have contin-
ued partly because the President
asked congress to make an investi-
cation of tax avoidance where some
very large taxpayers are involved.
Of course, congress is going to do
that because it NSl give congress,
or at least certain individual men,
bers, an opportunity for publicity.
And they do not overlook opportu-
mites for publicity.
Since the discussion of tax ques-
tions has continued on the basis of
the projected investigation, it has
given plenty of writer's an opportu-
nifty to express their opinion in de-
tail. Many of these critics have be-
come quite personal in their assault
upon Mr.. Roosevelt and their biting
observations are doing him no good
noliticallv at all, In fact, I have