Bedford mail tribune, medford. oregon
THURSDAY. JULY S. 1962
A 13
interna!
Revenue
(Editor's Note The Inter
nal Rerenue Service ob
serves lis 100th anniversary
Monday. The following dis
patch is for thosa who hava
tht stamina to raad mora.)
By NORMAN RUNION
Washington IUPD - Sure as
death and taxes, no crowd of
well-wishers gathered to sing
happy birthday to a prosper
ous 100-year-old: The Internal
Revenue Service.
But like it or not-and most
people don't-IHS shows every
siRn of entering the second
century of its life full of
health, vigor and our money.
Abraham Lincoln, the
Great Emancipator, linked the
American people's pocket
books to the government on
July 1, 1862, when he affixed
his signature to a bill creating
the office of commissioner of
Internal revenue.
The first taxman was
George S. Boutwell, a former
governor of Massachusetts,
and in his first year IRS pull
ed in $36.6 million to help
Lincoln fight the Civil War.
(94 Billion
Boutwell's 1960 counter
part is Mortimer J. Caplin.
And last year his agents and
forms collected $94.4 billion,
much of it to help pay the
cost of the cold war. This is
proof, if any is needed, of the
truth in a statement by
Thomas Paine:
"War involves in its prog
ress such a train of unforseen
and unsupposed circumstances
that no human wisdom can
calculate its end. It has but
one thing certain, and that is
to increase taxes."
Villified, the butt of count
less jokes, yet indispensible
to the functioning of society,
Internal Revenue faces its
second hundred years wiih
customary aplomb. To com
memorate the occasion, it is
adopting a special symbol, a
"centennial emblem."
According to the IRS, "it
shows the 'Eagle,' traditional
national emblem of strength,
courage, vigilence and author
ity .. . the 'Man,' represent
ing the millions of citizen-taxpayers
who voluntarily assess
their tax under the American
system and, at the same time,
the public servants compris
ing the revenue service . . .
'Industry,' illustrating produc
tive wealth, source of the na
tion's revenue . . . and the
Map,' signifying the nation
and Internal Revenue's mis
sion of fair and impartial ad
ministration." 'Drop Dead'
To all this some of the
American public probably
feels like adding a slogan of
its own: drop dead. Such a
thought probably was in the
mind of one man who filled
out the "occupation" question
on his tax form with the an
swer: "Taxpayer."
Or another who wrote: "I
don't know who will be our
first man on the moon, but I
do know who will be the sec
ond. He will be an IRS income
tax collector."
And there was the person
who's opening yell at a IRS
telephone operator was:
''What makes you people
think I can't add?"
With its vast operations to
day, internal revenue is a far
rry from the makeshift organ
ization that sprung into exist
ence on July 2, 1862.
Sixteen days after Lincoln
signed the law. Commissioner
Boutwell came to Washington,
finding in it every sign of a
nation at war. Long lines ot
troops and horses plodded
down the streets. In the White
House, long Abe Lincoln saw
them from his windows and
brooded on the appalling cost
-in men and money-of the
fateful struggle between
North and South.
By the spring of 1862 the
eost of the fighting was run
ning nearly $2 million a day.
Taking note of this, and being
prodded by Lincoln. Congress
passed the most far-reaching
money-producing measure en
acted in the United states up
to that time.
System Basil
The act, which is the basis
of the present internal reven
ue system, taxed incomes, es
tates, public utilities, banks.
insurance compani adver-
timements, occupations, liq
unrs, and tobaccos.
Under the law. there was
3 per cent tax on salaries
and other income over $600
and under $10,000. and a 5
per cent tax on income over
MO. 000. For the first time In
U S. history, there as also
a provision for withholding
taxes. All government pay
r;ters were required to take
- it !- pro- tax from sal
aries of everyone in the mil
itary, naval, and civil serv
ices of the United States, in
cluding congressmen.
The withholding provision
also applied to tax on inter
est and dividends paid by all
railroads, banks, trust com
panies and fire, marine life,
inland, stock and mutual in
surance companies.
To administer this, con
gress set up the office of com
missioner of internal revenue.
Lincoln, searching around for
someone to take over, settled
on the 44-year-old Boutwell,
who had taught school, served
in the Massachusetts legisla
ture, and been the state's gov
ernor. Reads Law
When Boutwell arrived in
Washington he had only a
bare idea of what he was sup
posed to do. "My first labor,"
he later said, "was to read
the law, which I had not be
fore seen."
In doing so he found he had
the power to assess, levy and
collect internal taxes, along
with the right to enforce the
tax laws through seizure and
prosecution. This "as fine
with Boutwell, but he lack
ed the equipment to do it. He
opened an office on the first
floor of the treasury building
and found one clerk to help
him out.
Six months later his tax
men totalled 3,882, most of
them appointed by himself
because Lincoln was too busy.
The president, in fact, named
only two collectors whom he
knew personally.
Before Boutwell had been
in office five months he had
made more than 100 decisions
Anniversary
relating to general principles
of the w law.
Ke later said that "the pub
lic anxiety in regard to the
construction of the law in
duced a large amount of cor
respondence with persona in
various parts of the country."
Such correspondence, nat
urally, is still coming in. One
puzzled woman inquired not
long ago: "Since 1932 I've
saved nearly three shopping
bags of empiy medicine bot
tles to substantiate my med
ical expenses. My husband
says I'm crazy. Do you think
I'm crazy?"
I In Field
I During Boutwell's reign,
much of the work was done
in the field, whereas a great
er proportion now takes
place in Washington. Assess
ors, paid from S3 to $5 a
day, collected the taxes and
ran the system. As usual, they
did a good job: by 186C. re
ceipts from internal revenue
reached a new high of $311
million.
At first. It was considered
patriotic to pay the ta ep. But
as the war dragged on, and
finally came to a halt, resent
ment grew and early in the
1870 s the whole tax system
was dropped.
It lay dormant until 18114,
when a new law was passed
by congress. This lasted only
one year before the supreme
court declared it unconstitu
tional on the grounds that di
rect taxation was forbidden.
With the needs of a growing
society calling for more pub
lic money, congress acted to
rectify the situation.
In 190!) legislation was set
in motion to amend the con
stitution to give congress 111.'
power to raise ta: es. That
year Alabama became the
first state to approve the
amendment, the 16th to the
Constitution. It was finally
ratified by the necessary 36
states in 1913. Wyoming had
the honors.
$7,000 People
Today the Internal reven
ue service consists of 57,000
people who use highly effi
cient electronic computers to
make sure that Boutwell's
credo is carried out: "The
stability of the system is in
the equal imposition of tax
es and in the Just and im
partial administration of th.
law."
But all of these modern
methods, and the new ones
to come, will never erase that
complaint as old as the times,
the taxpayer's gripe.
Such as the gentleman who
was told he could take a $600
deduction for his child, and
replied: "What? Only $600!
Listen. I'll bring him in and
leave him with you. Let's see
you take care of him for just
$600 a year."
? JfcqtM (fl
irt Family timiem
New Yvk - 4 - At the
time of the 1960 census, the
United S'.atis had total of
45 1 million families, a fain
of 6 6 million since the count
male a decade earlier.
The census repnrt noted
that S7 per rent of the) m
l!;es !- eh:!d'n tinder eje
18 living with e)en ?:
rti-t-hrr is n a)icrreVenf tW
r'ffnl j:nrthe lfW ree
773-7301
117 S. Central
I w; IMIKJIM I JlJiUiLmtl I VurHlLJ
gMHMMMeManaBBMMIHB
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L
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Cold
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34
88
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maintenance-freei
MODERN ALUMINUM SLIDING WINDOWS
Gleaming satin finish is rust
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40
Oft
4. m efcHiMiti .uaeeifc. iwtK-jb At,i
FRIDAY
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0
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YOUR CHOICE
USED APPLIANCES
10:00 A.M.
STEREO-LP
RECORDS
88c ea.
11:00 A.M.
20 VACUCEL
ICE CHESTS
Die. 2
,. 1.44
, 'l-irr.-m .-.:
12:00 NOON
36 RAM ROD RACERS
WITH FOOT BRAKES
Specil WlJJ
1:00 P.M.
STEEL STOOL
11" i 12"
CANVAS SEAT
"SU." 88c
2:00 P.M.
iO t 100W LIGHT BULBS
'uy 6esc
3:00 P.M.
INSTANT CAR WAX
WITH POLISH CLOTH
SAVE N 2-DOOR UPRIGHT FREEZER
12.6'CtMBINATION HOLDS525 POUNDS
Self - defrosting re'rirjrjtor Compact 15' Irtticr le.
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RIMIrf' "'"'" """"
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tat nciuMi) m roemm ,
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1 Freeier Chest 20.00 1 17" TV 20.00
1 Freezer Upright ..45.00 1 17" Table TV 10.00
1 Freeier, Wards 30.00 1 21" Console TV ... 35.00
1 Bad. Radio 9.88 1 17" Table TV .25.00
1 Refer., Wards 40.00 1 17" Table TV 40.00
1 RefiT., Frid. 100.00 1 Sew. Mach 15.00
1 Refer., West. 60.00 1 Sew. Mach., K'more 7.00
1 Range, West 15.00 , Wringer Washer ... 7.00
1 Range, Monarch ... 20.00 , Vacuum cainer
1 Washor, Kelvin. . 30.00 Electrolux 15.00
vei wnKKtmuttunoKBUHKm
Reg. SPECIAL
Sewing Machine and Cabinet 219.95 174.88
Sewing Machine and Base 51.95 47.88
20-Gallon Garbage Can 3.98 2.66
30-Gallon Garbage Can 5.49 3.88
Wire Seal Cushions . 2.49 1.99
Rock Wool Bag 1S5
Firescreen
39x31 Brass 18.95 12 88
39x31 Copper 18.95 12 88
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Double Hung Window. 230 V. Germicidal Filter.
Kitten .jiet Operation f 1 f00
Re 25 95 Amljf
110 Volt TRU-COLD AIR CONDITIONER
I Reg. 239.95
MOW ''
6:00 P.M.
Folding
I Lawn Chair
18 Only
21S9
FOLDING
ADJUSTABLE
CIRCLE CHAIR
Reg 7 88
Spec,, 5.88
7:00 P.M.
PLISSE
In Yardage
Department
39c Yard
SPECIAL
81 0j
36" W&
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Bathroom
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18
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12:00 NOON
CANADIAN PEAT MOSS
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FROM I CU. FT. LOOSE MOSS
100 ONLY
R.e. J 00 I K7
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J.LI. CELACLOUD
36,80"
SLEEPING BAG
"Uf.,9' 7.88
2:00 P.M.
COTTON DUST
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3:00 P.M.
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66c
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d
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M e.S
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3.p9