Evening star. [volume] (Washington, D.C.) 1854-1972, 1943-03-11
Present Form of Income Tax
Advocated as Stimulant to Work.

TO the Editor OF The Star.
In following the congressional discus
sions of the proposed change IN the
personal income tax law, I have been
unable to find any consideration of the
Importance of maintaining an adequate
economic motive for regular attendance
at work by persons in low income brack-
cts who probably are subject to impor-
tant direct taxation for the first time.
A progressive weekly income tax above
personal exemption has been RESPONSE
bic, I believe, for much of the excessive
abSenteeism which has continued to
plague Englands industry, There, of
course, the lowest bracket of the income
tax is so per cent.
Specifically, I fear a very heavy in
crease in absenteeism among industrial
workers if United States taxes are shift
ed to this progressive weekly basis Take
a munitions plant worker who receives
base rate of 81 an hour: Under the
present scheme of exemptions, having
two dependents and working six eight
hour days, he will have the first four days
of pay tax free, except for the Victory tax,
which would amount to about 90 cents.
This would be equivalent to 81 cents per
hour worked On the last two days of
the week his normal earnings Of $40
would be subject to a total income and
Victory tax Of IS, giving earnings at the
rate Of "a cents an hour. The individual
of necessity would receive a statement
of his tax bill at the end of each pay
period, which inevitably would draw his
attention to the fact that he received
less compensation per unit Of effort for
the last days of the week than for the
first
Workers in this country have been
trained assiduously by the Government
and reformers to believe it isn't worth
while working beyond 40 hours without
getting at least time and-a half pay.
This has been drilled in over a period
of years. Moreover, the country is faced
with rapid disappearance from the
stores of most merchandise beyond the
simplest necessities of life. This will
mean that six months from today the
typical factory worker earning ST an
hour will not be able to spend much more
money than he is able to earn in four
days If, under these circumstances,
the tax is TO be imposed so that it re-
duces the average net hourly income on
the fifth and sixth days of each week
below the four-day level, it seems in
eVltable that there will be a sharp re-
duCtlOn in the motive Of the individual
to remain steadily on the Job.
The disappearance of merchandise is
bad enough influence on the incentive
to work regularly without heaping on
tax that specifically Furnishes overtime
work every week. A progressive weekly
Withholding tax, contingent upon each
weeks earnings, inevitably produces a
strong temptation to poor attendance.
This expected effect Of the prospective
withholding tax is in sharp contrast
with the existing income tax law, which,
If left unchanged definitely Will stlmu-
late better attendance. Under the pres
ent law those persons who have failed
to accumulate enough savings TO meet
the amount of the tax would be forced
TO arrive at an agreement with the col
leCtor of internal revenue to remit
fixed amount each pay period. This, in
effect, would come as a deduction from
the first part of each weeks earnings.
That is. it would be payable whether or
not the worker shows up every day.
Under the present law it will be neceS-
Sary for him to work at least a day
longer each week to satisfy a given
standard Of living than he would under
the weekly withholding plan, Moreover.
The present law will not interfere appre-