will be noted
that this proviso is restricted to persons who are "liable for the
normal tax only," _i.e._, persons having net incomes under $20,000. It
would seem, therefore, that the taxpayer claiming and securing this
privilege must in some way, without revealing the amount received from
dividends, satisfy the tax assessors that his total net income,
including the dividends (amount not stated), does not exceed $20,000.
Of course a form of statement can easily be devised to cover the
situation. But whether the law will be administered in such a way that
this provision affords some relief from the general obligation of
making a detailed and complete statement of income remains to be seen.

Another exception to the general requirement of a complete declaration
of income covers the case of the taxpayer whose entire income has been
assessed and the tax on it deducted at the source. The law relieves
such persons from the obligation of making any declaration of income;
although it is not certain that this privilege can be secured without
foregoing or sacrificing the benefits of any abatements to which the
individual taxpayer might be entitled on account of business expenses,
interest payments, losses, etc. It seems probable that where the income
is all assessed at the source the taxpayer may obtain the benefit of
the minimum exemption without making a declaration of income.

It appears, therefore, that assessment at the source does not, under
this law, operate in such a way as to afford the taxpayer any
substantial relief from the necessity of making a revelation of his
income to tax officials. Whatever basis there may be for the common
criticism or complaint that an income tax is inquisitorial remains
under the operation of this law to nearly the same extent that it
would if the tax were levied wholly and directly upon the recipients
of the income, with no resort to taxation at the source.

Regarding the assessment of the additional tax not much need be said in
the way of explanation. It is, in theory at least, a comparatively
simple matter. There is no attempt here to make any application of the
principle of collection at the source. The tax is all levied directly
upon the recipients of the individual incomes, and the assessment is
based upon the taxpayer's declaration, which for the purposes of this
tax must cover the "entire net income from all sources, corporate or
otherwise." The tax is thus largely distinct from the