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Newspaper Page Text
MILLIONAIRES OF U. S. STEAL $320,000,000
YEARLY FROM FEDERAL TREASURY
TO THE AMERICAN PEOPLE:
Three hundred and twenty million
dollars of your money was stolen last
year through income tax frauds and
evasions, involving thousands of
wealthy and prominent citizens and
thousands of the most profitable
The income tax should have pro
duced at least $400,000,000 revenue.
Basil M. Manly
The total collections were only $80,
000,000. Two hundred and fifty thousand
American citizens and resident
aliens, who should have paid income
tax, failed to file a return or a proper
At least ten billion dollars of an
nual income upon which the tax
should have been paid succeeded in
evading the law.
The U. S. income tax is.a failure,
both as a revenue producer and as a
means of making the rich pay their
just share of the nation's burdens.
The income tax law was deliber
ately drafted to permit just such
frauds and to render their perpetra
tors practically secure from detec
tion and punishment.
These are the big facts that stand
out as the result of the first exhaus
tive investigation of the workings of
the income tax law.
I have the facts as the result of an
investigation made especially for The
Day Book, extending over more than
In a series of articles, beginning
tomorrow, I will lay these facts be
fore you clearly and completely.
I will show you:
1. How thse millions were stolen.
2. Who some of the tax thieves
3. How to stop the thefts.
"Preparedness," even on the mod
erate program advocated by Presi
dent Wilson, will create a deficit of
jSlp7,000,000, if the sugar tariff and
stamp taxes are discontinued.
But if the income tax thefts are
stopped and the $320,000,000 stolen
from the treasury are recovered, the
administration will have not only
more than enough to pay the entire
cost of military preparedness, but
also more than $100,000,000 which
can be used for old age pensions,
unemployment insurance and other
social measures, which must form
the basis of any true national pre
paredness and efficiency.
The penalty for failure to make a
return is the addition of 50 per cent
to the tax originally due, and for
fraudulent returns 100 per cent
If the penalties which are now
due upon the $320,000,000 evasions
of last year are collected, the na
tion will have at its disposal $500,
000,000 to spend as it chooses for
national preparedness and social
The committees of congress are
now busy devising new taxes to meej