Evening star., 1952-03-09
Gambling Tax Take
Is Running Far Below
Original Estimates

Original Estimates
The current odds are running
about 40 to / against the collec-
tors of the new Federal tax on
gambling.
Based on current payments, the
annual revenue will be slightly
over SO million as compared with
$500 million estimated when Con-
gress passed the law.
In Washington, for example,
only two men have bought their
$50 occupational tax stamps.
Moreover, both of these, accord
ing to Inspector Clarence Lutz,
were arrested on gambling
charges before they took the
plunge.
The inspector said he under
stood several others arrested in
recent weeks plan to pay for the
stamp and file returns on their
annual takes. 10 per cent of which
is taxable.
Purchasers Are Brothers.
The local men who bought
stamps are Samuel L. Parzow, 40,
of the 600 block Of Kensington
place NE. and his brother. Nor
ris Parzow, 81, of Olden road,
Silver Spring, Md.
They were arrested November
IA, two weeks after the Federal
tax became effective. in q raid
on a home in the 1400 block of
Meridian place NV. They are to
go on trial soon in District Court
on charges of operating a numbers
lottery.
Inspector Lutz is of the opinion
that the filing of a gambling re-
turn is insufficient evidence on
which to base an arrest or search
warrant. Such taxpayers, he be-
lieves, are protected by the Consti-
tutional guarantee against forcing
q man to testify against himself.
Nevertheless, the returns are very
interesting information" for en-
forcement officers. 4
49 in ID. c., Maryland.
Only 40 gamblers have bought
stamps in the District and the
whole of Maryland, which are
Jumped together in a single tax
district. They paid $1,304 for
stamps and 1854 on gross in
CONS during the first half of
November and December.
A total of 125 gamblers have
registered in Virginia paying
$3,382 for operations in December
the first month in which this
collection was made in the State,
1t was said.
Meanwhile, gamblers through
out the country paid $907 1854 on
their first full month of operation
under the new levy, the Associated
Press reported. The national total
of admitted gamblers is only 16.-
029 to date, with 2,725 registering
for the first time in January.
Two Reasons Given.
Government officials say revenue
Is running far below original
optimistic estimates because Cd
they haven't enough enforcement
agents, and (2) many gamblers
are quitting the racket rather
than disclose their names and ad-
dresses as required by the law.
The new legislation slapS a 10
per cent tax on all money
handled - not just gambling
profits-plus tax stamp of $50
a year on all bookies, numbers
and lottery operators, and punch
boards, illegal in most states.
It forces gamblers to give their
names and places of business, but
gives them no immunity when
they do.
The latest report shows that
gamblers have registered in all
but three of the 81 revenue col
lection districts. These three are
lower Manhattan, Iowa and Ver-
mont. Fifty-seven of those who
registered have reported no busi-
ness and paid no excise tax as
yet.
Louisiana Booming.
Louisiana gamblers apparently
are doing the Nations boom busi-
ness in betting-they paid $167,-
'987 in taxes on their gambling
take for part Of November and
all of December, indicating they
handled $1,679,870.
Illinois is second with $140,410
in taxes, Ohio third with $136.247
covering operations through De-
cember.
However, in number of regis
tered gamblers Washington state
leads the list with 3,056, almost a
fifth of the country's total. The
reason: Punchboards are legal
there, the gamblers face no threat
from the law on that score.
BY comparison. only two gam
blers have registered in New Mex
leo and Wisconsin, four in Ne
braska, seven in Maine, six in New
Hampshire, nine in Rhode Island,
seven in South Dakota.