Year: 1871

THE 0DIOUS INCOME TAX.


A correspondent called attention in
our columns few days ago to certain
changes in the Internal Revenue Law
which the Assessors have apparently
overlooked in preparing blanks for the
income tax of this year. These changes
are SO important that we may as we'll
point them out again, now that our citi-
zens are called upon for their returns.


THE ASSESSORS HAVE NO RIGHT TO IN
oUiRE INTO THE SOURCES OF INCOME.
The law of 1868 gave the Commission
er of Internal Revenue authority to pre-
scribe the form and manner of making
returns of income, aud under this au-
thority an inquisitorial examination into
the sources of evsry mans gains and
profits was put in force. But there IS
no such authority in the present law
The sources of income which are to be
included are, indeed, defined by the law,
but no one is compelled to disclose them
to the Assessor.


1t is only enacted that every person
liable to the tax "shall make and render
a return X \ + of the
gross amount of his income, gains, and
profits, as aforesaid - and that "the As
sistant Assessor shall require every such
return to be verified by the oath of the
party rendering it." This ''return of the
gross amount" is very different from the
detailed statement of income, gains,
and profits" which the Assessors are now
exacting, and the seventeen subdivisions
of the return printed on page two of the
blanks for this year, as we'll as the fifteen
yexatious questions on page three, are
clearly unauthorized. As the law gives
the Assessor the right to increase the
amount of the return ''if he has reason
to believe that the same is understated,
and the only appeal from this increase is
to the Commissioner, many persons will
probably submit to the imposition rather
than run the risk of more serious annoy
ance bat it may as well be understood
that the examination is illegal.


NO ONE WHOSE INCOME DOES NOT Ex-


cEED TWO THOUSAND DOLLARS RE


QUIRED TO MAKE RETURN.


A still more remarkable disregard of
the alteration in the law is shown on
page four Of the blanks, where the form
of an affidavit is given which "inust be
sworn and subscribed" in the presence of
the Assistant ASSESSOR By every person
whose income last yesr did not exceed
81, 600, and who was, therefore, not liza
| bic to the tax. The act of 1870 is very
clear on this point. No one whose in
come did not exceed 81, 900 is required to
make any return or statement whatever.
/ Sec. XI. reads: at shall be the duty of
every person of lawful age 1chose gross
income during the preceding year exceed
81, 900 to make and render return, etc
That portion of the same section which
empowers the Assistant Assessor to esti-
mate the amount where returns are not
made according TO laus expressly, lixnif:
the authority to the case of ssany person
having gross income as above of So, ,00C
or more" who ''shall neglect or refuse
to make and render such return, or shall
render false or fraudulent return. Per.
sons, therefore, whose gross income dur.
ing the year 1870 was not over $4,000
may safely disregard the Assessors no.
tees. If thereafter they should be as.
sessed and taxed by estimate, the tax
would be in contravention of the law
and the courts would not assist in its col
lection.


THE AFFIDAVIT PRESCRIBED By THE AS


SCISSORS BLANKS NOT OBLIGATORY.


The blanks give notice, it is true, that
'the form and manner of declaring y =
that a person is not possessed OF taxa
bic income" are not prescribed in accord
ance with section 13 Of the act of July
IL, 1870; but that section does not con-
vey the authority which the Commission
er draws from it. 1t provides "that any
person, in his own behalf, or as such fdu-
ciary or agent, shall be permitted to de-
clare under oath that he, or his ward,
beneficiary, or principal, was not pos.
sessed of an income of 50, 900 liable to
be assessed according to the provisions
of this act, or that the tax has been
paid in another district. This is per-
missive not mandatory clause. It ena-
bles man whose chief income is derry
ed, for instance. from dividends of cor
porations which pay the tax in advance,
to be relieved Of all further annoyance
| by swearing that his income .sliable to
be assessed was not above $4,000. The
Commissioner stretches it to mean that
| it obliges every one whose gross income
did not exceed $4,000 to make affidavit
to that effect before the Assistant As
SCISSOR, in spite of the plain fact that the
duty making any return at all is express
ly limited by Section XI, to those whose
incomes did not exceed that limit. Upon
the whole, however, we are not sorry that
these unwarrantable interpretations have
been adopted. Anything that makes the
! Income Tax more odious must hasten its
repeal. 1t has long been regarded as of
doubtful constitutionality. Gen. Pleas
anton pronounces it Improbable. And
now it seems that the method Of its en-
forcement is to be illegal. Can anything
more be done for it.