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Happy
Birthday,
Income-Tax
Man
By JERRY KLEIN
I bbbt f I aW aaal saat.
Tomorrow is the deadline
for filing your return;
don't send a 50th anniversary
card just money
No dancing in the streets, please, but this
is the Golden Anniversary of that golden
institution, American income tax.
Uncle Sam's collector of internal revenue doesn't ex
pect you to mail him a Happy Anniversary card, of course.
Just your 1962 return and, if necessary, the full payment
due and you'd better have it in the mail by midnight
April 15, or he'll be terribly upset.
It was in 1913, "after a generation of agitation and
effort," that the 16th Amendment was ratified, making
income taxes a Constitutional and apparently permanent
fixture on the American scene. To be sure, we had taxed
income a few times previously, but the Supreme Court
had ruled out the levy.
Those pre-World War I taxpayers dwelled in paradise
and didn't know it. They had to fork over from 1 to 7 per
cent of their earnings. Today's Social Security tax alone is
higher than that.
As the Internal Revenue Service puts it, the income tax
has since "changed its morning coat for overalls." About
62 million Americans file returns these days and ante up
some $50 billion a year, compared with the $28 million
"contributed" half-a-century back. In 1913 only one in 30
citizens filed a return, and persons earning more than
$100,000 accounted for three-fourths of the total collected.
Family WMkly. April M, IMJ
There were plenty of opponents to the Constitutional
Amendment introduced during the first Wilson adminis
tration. They pointed overseas and said we would become
"as decadent as Europeans" if we paid taxes, that our
whole moral fiber would collapse, that our independence
would be sold in the market place.
But income tax was born and has been growing ever
aince not without continued opposition, however, from
bent but unbowed enemies. Even the collector of internal
revenue under the Eisenhower administration got into the
act a couple of years ago. T. Coleman Andrews', after
several years of enforcing the nation's tax laws, called
for repeals on the basis that they were among the most
inflationary of all evils besetting the shrinking dollar.
A former Utah governor, J. Bracken Lee, adamantly re
fused to pay part of his 1955 income tax because he ob
jected to the money being used for foreign aid. The revenue
agents simply attached his bank account for the remain
ing taxes. Undaunted, Lee went to the U.S. Supreme Court,
but the Court wouldn't even let him file a suit. Like many
a taxpayer who has fought a noble but losing battle with
the tax man, Governor Lee packed his gear and concluded :
"I'm goin' fishin'. "
Famous TAX battlers don't really give up, though.
Viewers of the defunct television show, "The $64,000
Question," may remember Vivien Kellems, owner of a
factory in Stonington, Conn. She chose the tax category
and promptly got into an argument with the master of
ceremonies, claiming his charts were wrong.
When finally she was cajoled into answering a question,
the m.c. declared her wrong. "I am not," Hiss Kellems
replied and refused to leave the stage.
It was only after some conferring that Miss Kellems
was ushered away from the tv cameras, with the m.c.
perspiring as many a tax man had before under Miss
Kellems' obduracy. But while she never has had the last
word with the tax man, she got it on tv. As the m.c. flashed
a toothy though rather wan smile, her voice could be
heard off stage:
"You're still wrong!"
Another battle that is as old as the income tax is the
one between loophole seekers and Government loophole
pluggers. Even into the 1930s, a tycoon like J. P. Morgan
was able to find legalistic loopholes to avoid paying his
taxes. That's not so easy nowadays, but people still try.
One imaginative American an undertaker listed his
personal grocery bill as a deduction on grounds that
his wife met potential customers while shopping. Another
tried to charge off a swimming pool as "a scientific ex
periment in water purification." "
Ingenious is the word for the stamp collector who
bought $2,700 worth of rare specimens and tried to charge
them off to his business' postage account. And let's not
overlook the housewife who deducted $500 as a bad debt
"I know that debt won't ever be paid," she explained, "be
cause I owe it myself. I haven't paid any of it for two
years, and I don't intend to!"
On the other hand. Uncle Sam doesn't always emulate
Simon Legree at income-tax time; he can be sweetly rea
sonable, too. For example, he allowed one company to de
duct $187,417 to maintain a hunting lodge for customers.
He permitted another firm to charge off $253,036 for
operating a yacht
This April 15th still finds many forces of tax reform
and reduction clashing in Washington and the national
debt continuing to climb despite our income-tax load. The
country's red-ink-filled pen now is hovering above the $300
billion mark.
That's quite a larger tab than we had in George Wash
ington's day, when a prosperous New Englander named
James Swan generously paid our entire national debt out
of his own pocket slightly more than $2 million. Never
shall Uncle Sam look upon his likes again!