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Editorial
October 7, 1925
Americus Times Recorder
Americus, Sumter County, Georgia
What is this article about?
Editorial citing Julius H. Barnes explains how tax-exempt bonds allow wealthy individuals to avoid federal income taxes, increasing the burden on other taxpayers, exemplified by a man who evaded $850,000 in taxes since 1916.
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Tax-Exempt Bonds Beat Government
How tax-free bonds increase the burden of taxpayers is set forth in a striking way by Julius H. Barnes, former Federal Grain Administrator. He puts it thus:
'A man worth over $5,000,000 died last year. It developed he had paid no federal income taxes since 1916, and legally so. Instead, he bought tax-exempt bonds of his state and city, yielding 4 1-2 per cent.
But for this he would have contributed over $850,000 toward the expense of his Federal government.
'Federal expenses were not one dollar less because he did not pay.
'Who did pay the $850,000?'
How tax-free bonds increase the burden of taxpayers is set forth in a striking way by Julius H. Barnes, former Federal Grain Administrator. He puts it thus:
'A man worth over $5,000,000 died last year. It developed he had paid no federal income taxes since 1916, and legally so. Instead, he bought tax-exempt bonds of his state and city, yielding 4 1-2 per cent.
But for this he would have contributed over $850,000 toward the expense of his Federal government.
'Federal expenses were not one dollar less because he did not pay.
'Who did pay the $850,000?'
What sub-type of article is it?
Taxation
Economic Policy
What keywords are associated?
Tax Exempt Bonds
Income Taxes
Tax Burden
Federal Expenses
Julius H. Barnes
What entities or persons were involved?
Julius H. Barnes
Federal Grain Administrator
Editorial Details
Primary Topic
Critique Of Tax Exempt Bonds
Stance / Tone
Critical Of Tax Exempt Bonds
Key Figures
Julius H. Barnes
Federal Grain Administrator
Key Arguments
Wealthy Individual Avoided Federal Income Taxes Since 1916 By Buying Tax Exempt State And City Bonds Yielding 4.5%
This Avoidance Resulted In Over $850,000 Not Contributed To Federal Expenses
Federal Expenses Remained The Same Despite Non Payment
The $850,000 Burden Shifted To Other Taxpayers