FOREST INDUSTRIES AND INCOME TAX 331 



In the year 1916 the income tax was doubled in percentage. It was 

 still very low, however, only two per cent, and everyone paid the tax 

 and let it go at that. This increase was occasioned by the decrease in 

 revenue from other sources. About this time the tax revenue from 

 liquors besides othef items declined. 



Now we have come to the year 1917 and what that meant to the 

 nation. The United States declared war on the Imperial German Gov- 

 ernment and went as completely at that conflict as it came gloriously 

 through it. This meant great expenditure of funds on the part of the 

 Government, and we came late in the year 1917 to a sharp_ increase in 

 Federal taxes ; to a really heavy income tax rate. Not only was the 

 rate of income taxes increased, but the excess profits tax was added. 

 There was at this time a marked reduction of exemption allowance to 

 both individuals and corporations. 



Following this, we have what is known as the Revenue Act of 1918. 

 This act prescribes the tax for the year just passed and the present 

 year. These are also really heavy tax years, and we know, too, that 

 heavy tax years are to follow, even though we are not quite sure just 

 what particular form the tax program will take. 



Perhaps the history of what these taxes really mean and what they 

 accomplish is best illustrated by a few figures. In the year 191-1 income 

 taxes amounted to less than 61 million dollars. They made up approxi- 

 mately fifteen per cent of the Internal Revenue collections. In the 

 year 1918, however, income taxes amounted to almost 3,000 million 

 dollars and they made up approximately eighty per cent of the Internal 

 Revenue collections. 



All this has placed the Bureau of Internal Revenu-i squarely against 

 one of the largest tasks of its kind in the world. It has been necessary 

 to increase the force very materially and a complete reorganization of 

 the Bureau in its several subdivisions and sections has been required. 

 All of this takes time because it is first necessary to be reasonably sure 

 that the organization which is put into effect will be able to satisfactorily 

 redeem its responsibility. 



The Bureau of Internal Revenue has not only been assigned the 

 task of collecting the tax, but has been furnished ample authority and 

 power. It is the duty of the Collector of Internal Revenue, in case an 

 assessed tax is not paid, to secure a distraint warrant for any property 

 and sell it. A distraint warrant is the equivalent of execution on a 

 judgment. If the tax has been erroneously assessed and collected, claim 

 for recovery may be made and after a lapse of six months sui^" brought. 



