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About Herald and news. (Klamath Falls, Or.) 1942-current | View Entire Issue (April 14, 1963)
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Ml hwiWIHIUtS SMS arm pois-ui floats wrus I MIIOMVdR Happy Birthday, Income-Tax Man By JERRY KLEIN 3 ior! i A 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. t Family Wwkly. April 14. 1M 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 since 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," Miss 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 $253,035 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!
