Evening star., 1937-03-21
HIGHER TAXLEVELS.
FORECAST IN j. S.
La Toilette Tells Bar Unit
Federal Activities Will
Expand.

Government activities must of ne
cessity expand and this entails new
tax program, with higher levels, based
on ability to pay, Senator La Toilette,
Progressive, of Wisconsin last night
told the Committee on Federal Taxa
ton of the American Bar Association.
La Toilette spoke at a session at
the Willard Hotel, terminating con-
ference launched at luncheon, which
brought together more than 200 men,
bers of the legal profession and
guests, many from other cities. The
talk was one of several by Federal
officials.
1T will be necessary to raise taxes"
the Wisconsin Senator said. This
talk Of cutting Government costs will
never accomplish any significant
progress. 1t is certainly true that
there are instances of wasteful ex-
penditure in our Federal budget and
they should be corrected. But sub
stantially the role of Government in
modern society is of necessity becom-
ing more and more important and it
will require more effort, more atten-
ton and more money from the Fed
eral Government as time gees on"
Public Improvements Ahead.
The reason for this, the speaker
explained, is the fact that 'the real
frontier of expanding economic ac-
tivity today lies in the field of public
Improvements" rather than in private
enterprise.
Flood control, highway improve
ment, housing, conservation, school
facilities-all are problems that must
be dealt with. and this sort of cap
ital investment, he said, does not at
tract private capital.
La Toilette argued for the two
amendments he introduced in the last
Congress to broaden the income tax
base. one for increased surtaxes and
the other for reduction Of exemptions.
The two, he continued, were estimated
to raise about S215, 100000 annually.
Il think the time has come for the
Federal Government to adopt a SEN
slble income tax program with a base
broad enough to supply all the reve-
nue. needed and a foundation firm
enough to prove steady, dependable
source of income" the Senator said.
Delay in Collections Hit.
Another speaker at the night ses-
sion, which was followed by an open
forum, was James w. Morris. Assist
ant Attorney General in charge of the
tax division of the Justice Depart
ment, who deprecated the endless de-
lay encountered in tax litigation, de-
claring that the great bulk of our
ordinary run of cases are not closed
until at least 10 years after the date
the taxes were due"
This, he said, lays a cost on both
Government and public that runs into
millions.
Morris said he has no '+ready-made
remedy to Offer-the causes undoubt-
edly are many and complex the
Department is trying to expedite tie
cases.
President RooSevelt's court reform
proposals, in so far as they deal with
the lower tribunals, undoubtedly would
facilitate this sort Of litigation, the
speaker said
Randolph E. Paul, co-author of a
recognized work on income tax law,
also spoke.
Handling of Claims Difficult.
At the luncheon session, Morrison
Shafroth, chief counsel of the Internal
Revenue Bureau, the guest of honor,
told of the difficulties encountered in
handling claims for exemption from
Federal taxation. 1t has even reached
the point now, he said as his audi
ence laughed, that efforts are made to
make receipts from huge foot ball
games tax free, on the ground the
game is function of government"
Shafroth testified to the honesty
of the tax-paying public generally,
declaring there is only an in
flnitesimal group that resorts to fraud
and concealment."
The work of the House Committee
on Ways and Means was outlined in
paper by Chairman Doughton, which
was read by L. H. Parker, chief of
staff of the Joint Committee on In
ternal Revenue Bureau
Judge Benjamin H. Littleton of the
Court of Claims, who formerly was
chairman of the Board of Tax Ap-
peals; Eugene Black, now chairman
of the board, and William A. Schrader,
formerly attorney general of Penn
sylvanla, were other speakers.
Robert N. Miller of Washington is
chairman of the committee.