Detroit evening times. (Detroit, Mich) 1921-1958, 1942-12-30
By WESTBROOK PEGLER

NEW ideas may he presented
y in further debate in Con-
CresS. hut up 10 now the argu-
ment on the Ruml income tax
plan seems complete and the
score stands AT everything in
favor and nothing against.
This plan, SuggcS by
BeardSley II. Ruml, chairman Of
the Federal Reserve Bank of
New York and treasurer Of
Mays store, and certainly an
authority on taxation and the
ability Of people and business 10
pay taxes. would wash out one
years federal income tax and
enable everybody 10 start fresh
and even with the board.
The treasury would appear 10
lose a years income tax reve-
nue.. but, in the long run. the
loss would be strictly theoretical
because the money would con-
tinue 10 roll in every year, as
usual.
II the Ruml plan is not
adopted. either as is or in some
more or less equivalent varla-
lion. many citizen Willie
wiped out by taxes in 1913 and
never will be able 10 get out of
debt as long AS he lives.
There are some whose total
income for 1913 will not equal
the amount they owe under the
higher rates on their 1912 in
come and few will be able 10
pay last years tax out Of their
1913 earnings and put by
enough more 10 meet current
expenses and keep out of debt.
Eventually W hen they die,
their taxes due on [ h o ir last
year of income will become liza
hilities Of their estates in addi-
tion TO the regular inheritance
taxes.
ONE citizen. rising 50 years,
" who has worked faithfully
for IS years of his life. always
saving some and supporting the
old folks AT home, but who los,
most Of his savings in a bank eX-
ploslon 10 years ago. has figured
that TO put himself in current
position in 1913. he would have
TO default his mortgage, stafve
all year and throw his own
parents and his wife's mother on
relief.
He SHOULD be current. Of
course, as all taxpayers should,
but the fact is that few are or
ever were because the income
tax has ways been, in Mr..
Rumls phrase, a dead horse tax.
From the beginning, in 1913,
the federal government has al
ways collected last years tax
this year almost entirely. in the
case of individuals. out OF cur
rent n come. Moreover. tax
rates have been readiuSted late
in the year so that no person.
on January |, could start to
budget with any certainty Of the
amount he would have 10 ear
mark each week or month. The
income tax has been. by popular
habit, and, apparently by con-
gresSional error committed in
1913, of unknowable cunt.
collectible out of next years
pay,
II is hardly enough 70 say. in
favor Of the Ruml plan, that the
treasury would not lose. II may
be said further that the treasury
will lnSe-if il fails, for those who
have old commitments and re-
SponSibilitics and simply cannot
make the grade. will just file re-
turns. unaccompanied by ade-
quate checks and tell Mr.
Morgenthau 10 come and try 10
get IT.
If THEY haven't got il he can't
Il collect. and there Is no prison
penalty for failure 10 pay if the
subject is broke but duly turns
in his reckoning He might. Of
course. become the worlds
greatest holder Of suburban sec
ond or third mortgages and old
clothes.
II stands 10 reason. too. that
many income tax nOViCcS who
are eligible 10 pay on their 1912
incomes, will be hard TO catch