The Miami times. [volume] (Miami, Fla.) 1923-current, 1957-01-26
Fund Launched TO Pay
Joe Louis Back Taxes

called the Joe Louis Fund, Inc,
and designed to bail the former
heavyweight champion out of his
income tax arrearge with the
government was started here last
week by a group Of Sportsmen.
The fund, set up as noproft
corporation and thus tax free, will
be built up through contributions
by fans in the 81, 81 and SIS de-
nominations. It aims at paying of
the $1,119, 900 in taxes, penalties
and interest Louis owes the gov
eminent.
The fund was formed by John
Younghoin, Norfolk, Neb., and
George Reeves, Jr., Denver, Colo.
Jack Dempsey, former heavy
weight boxing champion before
Louis, has agreed to serve as
national chairman. The publicity
will be handled by the Max
Cooper Publicity agency, which
salso is donating its service. APP
peals will be made by commenta-
tors on TV fight programs and by
emcees on other leading television
shows.
Louis and members of his
family will not take part in the
drive and will benefit nothing
personally from the drive. Thus
the money collected will be turn
ed over to the government with
out any tax attachment.
Aaron Payne, Louis attorney
explained that the chief aim Of
the fund drive is to affect a rea-
sonable settlement with the gov
eminent. 1t was suggested that
settlement might be negotiated at
Is to 80 cents on the dollar. That
means that the fund may not have
to raise the total amount due.
However, it was pointed out that
should the drive fail in affecting
a settlement, the money would he
distributed among the needy aged.
Discussing the settlement phase
of the drive, Payne stated:
'"The last figure received showed
Louis owed $1,119,0O0 in taxes,
penalties and interest. Every day
that increases, since the interest
now amounts to approximately
$278 per day. IF Joe earned
$1,O0O,000 a year, he could barely
pay the interest CATER new taxes)
But it is my opinion that a set
Element can be negotiated at a
reasonable figure"
hnrrr0vynr hos M xxyou IF
earning that much money. His
main income comes from the
$4,000 he gets from the Inter-
national Boxing Club. for publ
city purposes, plus $1,000 per
week from a milk company that
bears his name. Both have
been attached 10y the government.
The Internal Revenue Service
has also ruled that trust fund
Louis set up for his two children,
Jacqueline and Joe, Jr., could be
confiscated for the back taxes.
Meanwhile, Payne explained
how Louis became entangled in
the tax mesh.
"Joe owed $4,000 when he
fought Billy Conn the second
time (June 10, 1946.) Payne said.
$50 he was forced to pay that
before anything else. Then he had
to pay taxes on the purse from
this fight ($591, 116.44)."
He added: '"That put him deep
in the hole and he was never
able to get out" However, a Chi
cago Sun-Times colu n /
brought out another disclosure
He told how the late Mike Jacobs
talked Joe into buying some 10O
tickets at about $4,000 for the
second Conn fight for his war
time cronies. Jacobs, the column
list said, told Louis that the in
vestment would stimulate tickets
sales for the fight and would not
hurt Joe financially, since IL
would be included in a is per
cent tax exemption for charity.
But the government later disal-
lowed the $4,000.
Joe generally has the sympathy
of the public. The Internal Re-
venue Service, however, has not
exactly been considerate.
When told of the efforts to
settle his income tax debt, Louis
told Younghein: "That will make
me the happiest man in the
world"