Detroit evening times. (Detroit, Mich) 1921-1958, 1942-09-26
Vandenberg
Amendment
Gratifying
Prevents Added Burden
p on Social Security
BY GEO. ROCKWELL BROWN


tee divided, z TO A, when IL wrote
into the pending tax bill the
highly important and very in
telligent amendment offered by
Senator Vandenberg Of Michi-.
gan, TO prevent social security
taxes from being doubled auto
matically. under the existing
law. on January l.
That is one of the most en-
couraging votes the finance COM
mittee has taken since the tax
bill came over from the House
more than two months ago.
Unfortunately, the finance
committee has not divided, on
highly controversial proposals
under this bill, by any such
satisfactory margin as that by
which the Vandenberg amend
ment was accepted.
On the contrary. most OF the
decisions, which The members OF
finance have reached in their
secret committee meetings, have
been so close as 10 precipitate
a serious situation at the Senate.
TIVE bill in its present form
Il it will be reported to the
Senate according to present
plans week from Monday
is by no means as good bill
as the high caliber Of the MEM
bers of the Senate finance COM
mittee might reasonably have
led the people 10 expect.
Some of the most indefensible
proposals have been written into
the bill by the narrow margins
OF one or two votes, and by the
same token some of the reme-
dial proposals advanced by the
conservatives have been rejected
by the same close shaves.
For instance. the Ruml plan.
II is understood. although the
proceedings have been in secret,
was turned down by the narrow
margin of one vote.
That one vote was cast by
proxy. in the absence Of the sem
ator, who thus. determined, per-
haps, the fate of the great mid
die class OF America which today,
as il confronts an unprecedented
and unpredictable tax burden in
the future. desires above all else
10 put its income tax obligations
10 the government on a "pay-as-
you-go' basis.
EEARFUL that the Ruml plan.
Il designed TO safeguard and
protect this great American
middle class. might be written
into the bill by Senator Georges
committee. the treasury EEK
perts," with view 10 heading
II Off. made their only sensible
suggestion since this tax meas
ure was first taken up by the
House ways and means commit
tee. late last year.
This counter proposal sug-
gested the levying of a Is per
cent Withholding tax on earned
incomes in 1913. But to prevent
the burden Of double taxation
being made too great to be
borne, the treasury suggested
the coupling Of the Withholding
tax with 10 point-not 10 per
contradiction on 1912 net in
comes.
Members Of the finance COM
mittee are agreed that if this
compromise had been accepted.
II would have had the effect of
putting about 50 per cent OF in
come tax payers on a "pay-aS.
you-go" basis.
II IS understood that this.
treasury compromise was lost by
the sllmmest of margins, moth
ing like The 7 TO 4 vote by which
the Vandenberg amendment was
adopted. freezing social security
taxes at the existing level of !
per cent on both employers and
employees.
LOW is this close division
II within the finance commit
tee likely 10 affect the final
form of the bill, when il comes
10 vote in. the Senate?
1t is likely 10 have a very bad
effect. IL may mean that even
strong proponents of the RUM
plan will hesitate 10 offer that
plan from the Senate floor. as
as amendment 10 the bill.
II is a tradition for commit
tees OF Congress, charged with
responsibility for drafting a
particular piece OF legislation.
10 stand together when the bill
reported out comes up for dis
cussion.
Ii is feared that il the Ruml
plan amendment were offered. IL
would reveal a great split in the
finance committee.
A MOTHER danger also Is an
"A ticipated. 1t is this, that IL
the bill were thrown wide open
To amendment from the floor.
the administration might take
advantage Of the situation 10
try TO force into the bill the
treasury's proposed spending
tax, which the. finance commit
tee turned down.