The Waterbury Democrat., 1942-09-01
MORE WAR TAXES
 FOR INDIVIDUALS
Treasury Presents What It Calls Courageous Tax
 Bill to Senate Com.
BY SPENCER KLAW United Press staff Correspondent)

WaShlnSton, september l. - CUP) - The treasury, reaffirming its be- lief that the people want "cour- ageous' tax bill, presents to the Sen ate Finance Committee today a plan for increasing the war tax burden on individual incomes without dis rupting efforts to save for the fu- ture or pay off debts.
 The treasury's proposal to include in the new tax bill "spendings' tax comes at time when the Sen- ate bill is $1.l0o,oOo 900 short of the conservative" house revenue figure S6 PFC, ,O00 900.
 The committee had indicated a determination to make up the defi- cit and perhaps go beyond the house figure and closer to the treasury $ original goal of $8,700, COG, 900.
 Chairman Walter F. George. Dem- ocrat. Ga, announced that Treas ury General Counsel Randolph Paul would present the proposed "spend- ings' tax today so that the commit tee could consider it along with final action on individual income rates.
 Push Income Tax Up
 "In general" the Treasury told the committee, this (spendings tax) plan would call for pushing the regular income tax as high as it could go without imposing excessive hardships on debtors, and then us- ing the spendings tax to get the rest of the income tax money that was needed"
 Statements last night by Paul and Secretary of the Treasury Henry Morgenthau, Jr., shed further light on the administrations stand on the tax situation.
 Paul placed the treasury in oppo- sition to the Ruml "pay-as- -you-go" system of income tax collection. The plan, proposed by Beardsley Ruml chairman of the Federal Reserve Bank of New York. to put taxpayer on a current basis, was said by Paul to be objectionable for three reasons:
 l. It is too complicated; 2. II would not, in fact, put taxpayers on a current basis; 3. It would for give" a years tax liability, with the greatest benefit going to persons with the biggest income.
 Even if the $l2000. GOO, 900 bond sales campaign succeeds and con- gress passes an adequate" tax bill Morgenthau said, the treasury will have to borrow utterly unprece- dented amounts from other sources
 T know that the American people are ready for a courageous tax program" he said. Tn fact, they are ready to bear even greater bur dens than the treasury's minimum proposals of $8, 700 100000 in new revenue would impose upon them.
 The Ruml income tax plan has been the subject of much debate for several weeks. Rumf is scheduled to return to the senate committee to explain 1t again. although the com mittee voted once to reject it.
 The basis of the plan is to cancel income taxes on l94l income and credit payments now being made on l942 income taxes.
 Paul said the 'unfairness" of the Ruff plan lies in the fact that sey- eral billions of dollars of tax lia- bility would be cancelled, Since SC to 90 per cent Of taxpayers have in comes below S3,000, the vast major l fly of taxpayers would be forgiven only up to $500 each while the veal thy man with an income Of $500 00C would save tax liability of more than S350,000, he said. Tn this con- nection, Paul cited the war contract brokers earning huge commissiony in i94i who, he contended, would pay no taxes at all on it,