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Sign up freeSummit County Labor News
Akron, Summit County, Ohio
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Critique of Internal Revenue Bureau rulings: one allows surgeons to deduct kickbacks to doctors as tax expenses; another disallows deductions for corporate ads urging votes for specific candidates, but ignores indirect political spending.
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The Internal Revenue Bureau needs a far-reaching reform.
Just look at two of its recent rulings:
In one, the bureau practically gave the "green light" to surgeons who engage in the crooked practice of paying "kickbacks" to doctors who send them patients. The bureau ruled that "individual circumstances in each case must be considered in determining whether a surgeon may deduct such payments from his taxable income." Also that "as a general rule such payments are tax-deductible."
In another ruling, the bureau said that in the future corporations which use newspaper or magazine advertising, radio or television programs to urge votes "for a particular candidate" will not be allowed to deduct the cost from their taxable income.
Such a ruling is not only belated, but also dodges the real problem of "political advertising" by corporations. They don't boost "particular candidates" directly. They spend huge sums to help "particular candidates" indirectly, by prejudicing voters against the opposing political party and its program. The tax bureau says they can continue to charge the cost to Uncle Sam.
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The Internal Revenue Bureau issued rulings allowing surgeons to generally deduct kickback payments to doctors and disallowing corporate deductions for direct candidate advertising, but permitting indirect political spending against opposing parties.