The Waterbury Democrat., 1942-03-04

government.
 Treasury experts have suggested July i as a possible date for start ing collections by the withholding system, although Morgenthau set no specific date.
 Inauguration of the plan on July would mean that taxpayers - except those who pay their entire ! Income tax in one or two inStall- ments-would be paying part or 1941 and 1922 income taxes at the same time.
 An average single man with a sal- ary of $2,500 a year, under this pro- gram, during the final six months of this year would pay $78.90 of his taxes on 1941 income and $3 8 week would be withheld from his salary for part of the taxes on 1942 in- come.
 Married Man, One Child
 A married man, with one child, eaning $3,O00 a year would pay dur ing that six months $3892 on 194l income taxes and $2.10 week to- ward 1942 income taxes.
 First, he must remember to file his tax return on 1941 income by March IS. He has total deductions of possibly SIS - $25 donations to church and charities, $10 union dues, $10 automobile license, $15 To- cal and other federal taxes, and $15 interest on loans. The $2,500 minus SIS leaves $2,425 net income. The personal exemption credit is $750, leaving $1,675 as surtax net income.
 The present Surtax rate for this bracket is six per cent and the sur tax on $1,675 would be $100.50
 For computing the normal income tax, 10 per cent of the $2,425-net income-is allowed as an earned in- come credit and would be $242.50. The $1,675 less $242.50 leaves $1,- 432.50, upon which the normal tax of four per cent is paid.
 The normal tax amounts to $5730. The total tax-normal plus surtax- is $157.80.
 He elects to pay in four quarter 1y payments and still would owe $7890 on July l.
 The treasury withholding plan provides that the taxpayer be given credit for personal exemption and dependents and a fixed percentage allowance for deductions. A maxi mum of 10 per cent of the remainder would be withheld from earnings.
 Single Mans Allotment
 The single man earning $2,500 thus would be credited with $750 for personal exemption, leaving $1,750. He would be allowed possibly 10 per cent-$175-of this for deductions. Subtracting $175 from $1,750 leaves $1,575, of which 10 per cent would be collected at the source. The $157.50 withhold tax would be ap- portioned equally for each of the 52 weeks, or $3 @ week.
 Should Congress enact the treas ury program without change, this taxpayer next March IS would be required to file this tax return for 1942 income:-
 HiD deductics of $75 would leave $2,425 net income. Subtraction of the personal exemption would leave $1,675. He no longer would get an earned income credit on normal in- come tax and would pay four per cent of $1,675, or $67. The surtax also would be computed on the $1,- 675 net taxable income, but rates would have been increased sharply. Instead of six per cent surtax on the entire $1 1,675, the rate would be 12 per cent on the first $500, or $60 plus IS per cent on the second $500 ---$75, plus IS per cent on the third $50O-$90, plus 20 per cent on the remaining $175-$35.
 This surtax would total $260. The total tax-the surtax and the $67 normal tax-would be $327.
 Against this tax liability( the tax payer would be credited with the SIS withheld from his salary-$3 week for 26 weeks-and he still would owe