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come Tax Unit, which may decide a given point in a variety of ways, according to the savings which may accrue to the taxpayer. It is most unfortunate that these assertions are taken seriously by the public, even though they contain an element of truth. They suggest mysteries which the law and the administration of the law do not warrant.

One of the obvious results of income tax laws has been the popularization of accounting knowledge. Not only the public but the Treasury Department as well has had to be educated. And in this educational process accountants themselves have not escaped. Cash income and net profits from operations, at one time almost antithetical terms, have now many points in common. Problems of invested capital, still of importance in connection with past tax returns, are now more largely questions of fact than theory.

What the 1924 Revenue Act will bring forth is a matter of much speculation at the present moment. The recommendations of the Secretary of the Treasury will be adopted in part and rejected in part; they are of value at present chiefly as a basis for discussion. There will be little simplification and many new provisions to be interpreted.

The writer is indebted to Mr. E. G. Leander, Mr. Frank P. Schwartz, C.P.A., Mr. Paul Morrison, C.P.A., and his partner, Mr. Paul W. Pettengill, for many helpful suggestions and emendations. To his classes in Northwestern University School of Commerce, however, he must ascribe the principal stimulus for this outline of income taxes. He is deeply grateful for their friendly criticisms.

ERIC L. KOHLER Chicago, Illinois, January 12, 1924

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