The people's voice., 1944-05-26

self up as tax expert and became
millionaire. He had powerful cor
porate friends outside the bureau ant
friends inside the bureau.
Nowhere is section 722" of the
present law 1t is also a hardship
section. A taxpayer may make {
claim for refund" under that section
Space is limited here but let me brief
ly point out the unlimited field Of
language which permits hardship
claim"
If the ordinary sections of the tax
bill result in IAN excessive and dis
criminatory tax'-that is a hardship
case. If the normal production" was
interrupted or diminished by "events
unusual and peculiar''-that is a hard
ship case. If the business of the tax
payer was depressed by temporary
economic circumstances" and "tem-
porary economic events"-that is a
hardship case. If the business of the
taxpayer was depressed "by reason of
conditions generally prevailing in an
/
a member" and his profit cycle diff
fered in length and amplitude
ever that means-that is a hardship
case
1t is useless to go on. There is
other language SO broad and vague
that the net meaning is that the Com
missioner of Internal Revenue shall
write the tax laws and fix the taxes.
One paragraph was written by a con-
gressman for his friend, a little news
paper publisher in New York state,
and now every big industry is get
ting under that tent. One big copper
company already has gotten under it,
1t must be remembered that the
administration of the tax laws are
secret, that if a clerk in the bureau
should report to friend the frauds
and crimes being committed, he would
imperil his safety A prison sentence
is held over the head of anyone who
revaels any facts about taxpayers
case.
1t must be remembered that after
the last war, these big corporation
cases were often settled with a gov
ernment clerk-paid $4,000 year and
with his wife and children dependent
on that pay envelope on one side of
the table and the most powerful mil
lion-dollar-a-year-lawyers on the other
side-and they were settled in sec
recy.
There is considerable protection
now and help for that little and eco
nomically-weak-go government clerk if
he wants to be honest. That consid-
cradle protection may continue. 1t is
in the joint congressional committee
on taxation and it's opportunity to
Investigate" 1t has cleaned up the
Bureau of Internal Revenue. The bu-
reau is now manned by honest and
honorable men.
But I can see next year, new ad
millions of dollars used
to elect president, demands from cam
paign contributors that they be paid
off in "service'-and the opportun-
tiles for service in very, very con-
siderate administration of our tax
laws 1t happened in 1920 when bill
lions of dollars were taken from the
government. 1t can happen again.
The stage is set for it. Only today,
a lawyer told me one of his big cor
porate clients said the only thing he
wanted out of the next election was
the right to name the Secretary of
the Treasury.
And | can think back to one young
honest lawyer in the Bureau of In
ternal Revenue who came to me one
night and told me about a case 1--WE
got in cold cash for the government in
that case more than 100000, and a
of the house of representa- |
tives is one of the family who had to |
pay and he is one of the most blatant |
enemies of organized labor" and of |
'the administration" and of "the peo- |
pie" there is in congress) and he |
sobbed as he told me his story. He |
knew there was fraud in the case
was proved-he had opposed his SUI
periors many times over and finally |
he had been told that if he wanted |
to retain his job and feed his wife
and children, he had better keep still |
He came to me, quietly, secretly, and |
pleaded for help and protection. The |
government got the money and his |
part was not revealed. He is still in |
the government service There were |
scores of others who came to me in |
similar circumstances.
There is Section 722. There is the |
secrecy" provisions of the law. There |
Is an election coming on in which mil
lions of dollars will be spent to elect |
the right President" And there is
the possibility of the payoff for cam
paign contributions in Section 1927.
And that is only one section of the
aw under which payoffs can be made