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Show 7Atr RUD RUDDR DR W , ( A ON ONTREASURY TREASURY COUPLEXTAX COMPLEXTAX S CO-UPLEX CO UPLEX CO'IPLE COIPLE COMPLEX ' - PROBLEMSEd TAX PROBLEMS PROBLEMSblEd blEd ( Ed Note-In Note In Note - - In Drew Drcw Pearson s a sa absence sabsence sence Fred M 1\1 1 hi \ " % Vmson IDson mson sec- sec - sec - retaryof retary retaty secretary secretaty of contributes the treasury contrib contrib- - - utes a guest ofthe column on one of the ofthe : most Important problems of the oftreasurytax treasury-tax treasury tax treasury - tax evasion ) WDrew Drew Pearson has offered me his W Washington hisWashington hisashington ashington col"ran colran column Merry Go Hound Round col umn " to present any subject of m in departmentand terest mterest interest to th the e t treasury reasury department and to the American knowof people I know of no subject of immediateconcern more Immediate concern than the treasury scam s cam camPaign palgn paign scampalgn campaign against agamst tax evasion . . . situationthe Here in a nutshell nutsheII is the situation situatione the th thHere e treasury facesIn faces facesIn individual indlv1dual In 1940 there were 4 4999999 999 999 in dlv1dual dividual taxpayers Today there aremore aremore are aremore more than 50 000 . " 000 In an effort tohandle to if " toif " , handle the vastly vastlyincreased vastlyi increased mcreased task of ofB ' < < - s ' processing processmg returnsand returns B and collecting colectmg ] taxesX66 taxes I l X66 X66the / ' ' : . - the . personnel _ of the * - u ' j i-- i ii - - - ? i - - " . , < : bureau of mternal internal mternalj internals internalrevenue ' revenue was increased in H'l Hl J : j s , \ " f , fcreased S creased from aboutt about t , C < A 22 22000 000 to about 50 50I 50L I , I 000 000With 4 4WIth With the manpow manpowFred manpowFred rnanpowFred Fred Vmson Vinson er or shortage the bureau bureau bu bureau reau could not ex expect expect expect pect to increase its forces propor propor110nately proportionately propertionately 110nately tionately with the number of tax taxpayers taxpayers taxpayers payers And in many respects bu bureau bureau bureau reau employees found their work workincreased workIncreased workIncreased increased out of proportion to the thenumber thenumber thenumber number of returns Under the WIth WIthholdmg withholding withholding holdmg holding program a large part of the thework thework thework work formerly done by the taxpay taxpayer taxpayer er is now done In the bureau The Theprocessing Theprocessing Theprocessing processing of wartime tax relief pro- pro provisions provisions pro provisions - visions also threw much additional additionalwork additionalwork additionalwork work upon the bureau Under 0 U tl fse eec fsecondItions eecconditions weconditions condItions the normal investlgaijve investigative investlgaijvework investigativework lnvestigatvework } work of the bureau inevitably sur suf surfered suffered suffered sufferedThe fered feredThe The bureau has always proceed proceeded proceeded ed upon the theory that the average averageAmerican averageAmerican averageAmerican American is honest and that a small smallbut smallbut smallbut but efficient force could dealWIth deal WIth WIththe withthe withthe the dishonestBut dishonest dishonestBut But millions of us are now tax taxpayers taxpayers taxpayers payers and the honest must be pro- pro protected protected pro protected - tected aga nst not those among us who whotempted whotempted whotempted tempted by v w . war ar swollen incomes and andshortages andshortages andshortages shortages in civilian goods and serv services services services ices would cheat the rest of us No NoC1ty Nocity Nocity C1ty city however small can afford to tobe tobe tobe be without a police pollee force And no nocity nocity nocity city which has experienced a popu populallon population population lallon lation increase mcrease of more than ten tenfold tentold tentold fold told in a five year period penod would wouldthmk wouldthink wouldthink thmk think of ot trying to get along WIthout WIthoutenlarg withoutenlarg withoutenlarg enlarg ng its law enforcement enforcementgroups enforcementgroups enforcementgroups enforcementgroupsThat groups groupsThat That is why the treasury is bUIld bUIlding building building ing up its investigative mveshgatlve forces Our OurobJect Ourobject Ourobject obJect is to recruit and tram train 5 000 000men 000men 000men 000menThis men menThIs This will be no Gestapo It will be bea bea bea a taxpayers law enforcement group groupprotectmg groupprotecting groupprotecting protectmg protecting the government s interest interestin interestIn interestIn in taxes and at the same time tune pro protectlng protecting protectmg tectlng tecting the honest taxpayer agalDst against agalDstthe againstthe againstthe the black market operator the rack racketeer racketeer racketeer eteer and every other kmdof kindof kind kmd of tax taxevader taxevader taxevader evader And it will be good busl busy buslness busyness business ness too We expect to collect $20 20 $20for $20for $20tor 20tor $ for every one spentShen spent spentWhen $20I I When "hen hen Shen " taxes are evaded the thehonest thehonest thehonest ' honest taxpayer loses since ev evcry every ery cry dollar dollu evaded increases IDcreases by bythat bythat bythat that much the burden borne by byother byother byother other taxpayers In many cases casesthe casesthe casesthe the honest taxpayer has especial espe espe- especial especial - - cial reason to welcome the tax taxevasion taxevasion taxevasion evasion campaign A reputable reputablefurrier reputablefurrier reputablefurrier furrier or jeweler for Instance Instancecould Instancecould instancecould could not continue In business If Ifa ifa Ifa a next-door next door - - - competitor should shouldbe shouldbe shouldbe be permitted to sell sen fnrs furs or Jew Jewelry Jewdry Jewdry elry dry without withont collecting excise excisetaxes excisetaxes excisetaxes taxes Any business firm wlrieh whack wlriehcheats whackcheats whichcheats cheats the government c vemment by fall fail fallIng failhog fallIng Ing hog to pay for the services which whichgovernment whichgovernment whichgovernment government provides Is engaged engagedIn In dishonest competition just jnst as asmuch asmuch smuch much ss as 11 If It cheated the land landlord landlord landlord lord out of his rent or workers workersout workersout workersont out of their pay Taxes are high highbut highbut highbut but they must mast be collected fair fairIy fairIy fairly Iy And so 150 long as a9 any subs substan substanttal substantial tan tantlal tlal ttal portion of the taxes due dueremains dueremains doeremains remains uncollected It operates operatesto to defer the reduction of o ( tax taxrates taxrates taxrates taxratesMuch rates ratesMuch Much more than expedience di directs directa direels rects recta this tax evasion campaign campaignFundamental campaignFundamental campaignFundamental Fundamental morality is involved involvedThe involvedThe involvedThe The man who evades taxes picks pickshis pickshis pickshis his neighbor s I pocket And In these thesetimes thesetimes thesetimes times when we are asking so much muchtrom muchfrom muchfrom trom from the men In uniform any pock pocket pocket pocket et picking at their expense becomes becomesunthinkable becomesunthinkable becomesunthinkable unthinkable As President Truman Trumanhas Trumanhas Trumanhas has said We saidWe are not fighting fightmg tghtmg this war to tomake tomake tomake make millionaires and certainly we weare weare weare are not going to allow the black blackmarket blackmarket blackmarket market operators or any other rack racketeers racketeers racketeers eteers to be in a favored class when whenthe whenthe whenthe the men In the armed forces andnir and andour andour our citizens gen-rally gen rally gen.rally genrally generally - . are sacrific acrlflc Ing so o heavIlyMy heavilyAll heavily heavilyMy rightMy My readers may say sayTax ay All rIght rIghtTax rightTax Tax evasion Is indefensible How Howbad Howbad Howbad bad Is it ? What are re you doing aboutIt aboutit about 11 It 11The ? , The answers to the two Questionsgo questions questionsgo go together The treasury Is gath Bath gathering Bathering gathering ering from trom many sources informa tnforma tnformalion informatlon information tlon lion that will give the entire picture pictureof pictureof informa informs informatlon informstson Information of tax Sax evasion That same tlon tson will serve as * < evidence to bring bringtax bringtax bringtax tax evaders to justice The treasury treasuryIs is enlarging its Investigating forces forcesas forcesas forcesas as I 1 have noted to handle a tremen tremendous tremendous tremendous dous backlog of fraud traud cases accu accumulated accumutated accumulated mulated mutated during recent year yean years * and the thecases th thcases > , cases now piling pilmg In |