Evening star., 1942-08-20
U.S.. Losing Million
Each Day Tax Bill
Waits, George Says
Pending Measure Should
Have Been Enacted Lost
Spring, Senator Declares
Hv the Associated Press.

Ry the Associated Press.
Chairman George of the Senate
Finance Committee indicated TODAY
that the Government was losing
more than million dollars a day
because increased excise taxes have
not been put into effect. and de-
clared the pending tax bill should
have been on the statute books by
last March or April"
But even so. Senator George told
reporters. the loss is not more than
one-thlrd or one-half that Of last
year, when Treasury officials esti-
mated similar legislative delay was
costing about $1,000 900 a day.
The loss is lower this year than
last, he explained, because most of
the contemplated new excise money
will come from increased rates on
articles already taxed. and because
the Federal Government now buys
tax free-about half of everything
produced in the country.
Retroactive tax legislation always
Is bad the Georgian remarked.
"Of course. excise taxes can't be COL
lected retroactively. Further.
retroactive tax bill is especially bad
when you're doing anything except
merely changing the rates This bill
proposes doing great many other
things"
Bill May Serve Throughout War.
He said there was chance that
the bill, as finally worked out be-
tween the Senate and House, would
serve throughout the war, with
minor changes
Senator George declared politics
should not enter into the considera-
tion OF the bill, which is now be-
fore the Finance Committee. nor
should any attempt be made to de-
lay the final vote until after the
general elections In November.
The Finance Committee also had
before 1t a suggestion by Treasury
of1lclals that a "pay-as-you-go in
come tax collection proposal might
be modified so as to cancel part, but
not all, of the taxes on 1912 income
falling due next year.
Beardsley Ruml, chairman OF the
New York Federal Reserve Bank,
had suggested that 1912 income tax
liabilities simply could be wiped
out as far as individuals were con-
cerned, and that the taxes collected
next year could be credited against
l943 income.
Cancellation Change Suggested.
While not indorsing the plan. the
1reasury's general counsel, Ran
doiph Paul, suggested that the COM
mlttee consider modification under
which the tax would be forgiven
only so far as the normal levy and
first bracket of the surtax were con-
cerned.
Larger income taxpayers would be
required to pay the balance of the
surtax over period of two or three
years, under Mr.. Paul's suggestion.
II the modified plan were put into
effect, no 1912 tax at all would be
collected from single man who
made less than $2,750 net income
ts75o exemption plus the first $4,000
bracket to which the first surtax
rate applies. Neither would l942
taxes be due from a married man
who made less than $500 net. nor
from married man with one de- !
pendent who made $4,000 or less.
1t was estimated that 80 or 30 !
per cent OF all individual taxpayers
would be included in those cate
gories.
In all, Mr.. Paul estimated, about
81 ,400, 900 900 in 1912 taxes would be
while another $2,6O0. .OOo.-
900 in higher bracket surtaxes would
be collected within two or three
years.