Detroit evening times. (Detroit, Mich) 1921-1958, 1942-12-29
The RumI Tax Plan


oENAToR CLARK of Missouri. chairman of a Senate
- subcommittee which recently recommended adoption
of the Ruml pay you go" income tax plan but was
unable to overcome treasury department objections to
the plan has announced that further study of will be
made by the Congress.
Briefly the Ruml plan proposes system of collect
Ing federal income taxes during the year income is
earned instead Of the following year existing law
provides.
1t has had widespread popularity from the time it
was proposed and is gaining popularity steadily
1t would provide for income tax payment by pay
roll deductions, which would simplify collection and
eliminate delinquency
II would put an end to the uneconomic practice of
using this years income to pay last years taxes
1t would eliminate the necessity for borrowing against
future income to pay old taxes, unsound device to
which large numbers of taxpayers have been compelled
to resort-parcuary since needs have inflated the
federal income tax beyond all past experience
1T is NOT tax reduction scheme and is therefore not
popular because of any expectation of lower taxes
But it would make taxes easier to pay, and would
prevent accumulation of staggering tax debt against the
ndvidual-and hence is both sound and sensible and is
deservedy popular.
However the treasury department opposes the plan
for no very good that have been advanced but
effectively nevertheless.
treasury department is like SO many other
bureaucratic agencies of government-much more IN
erested in raising and spending money than in simplifying
= and easing the tax burdens OF the people
1t is good to know that what the treasury says is
not the last word in this important matter and that
what the last Congress failed do in the matter does not
foreclose it.
THE new Congress is vastly different than its
predecessor.
1t has many new members-nearly enough to over
throw the New Deal administrations numerical control,
and probably more than enough to challenge the New
Deal when is arbitrary and to restrain the New Deal
when it is arrogant.
The New Deal administration represented by the
treasury department attitude, has unquestionably been
both arbitrary and arrogant toward the Ruml plan.
The Congress should make its study OF the plan,
and arrive at its conclusion regarding its desrabty
and feasibility and should act according to its own con-
sdered judgment and according to treasury depart
ment dictate
THERE are only two ways to make the change-over in
the fede. al income tax system which would convert
it to the pay you co. plan
One way, of would be to require payment of
two years taxes in year. That might have been
possible before the income tax inflated to take not
less than oneQuarter OF taxpayers gross INCOME
as much per of it in the confscaton brackets
1t is certainly not possible
The Ruml plan is the only other way creating
purely bookkeeping device accomplishing the desired
sut-wthout loss of to the government and
without escape from tax obligation by any citizen
Senator Clark there is continuing evidence of
growing sentiment for the Rum tax collection principle
in Congress.
There is assuredly rising tide of public sentiment
for it. and the public viewpoint in tax matters should not
ALWAYS be ignored.
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