The daily monitor leader. [volume] (Mount Clemens, Mich.) 1942-19??, 1943-03-11

Leaders of the skip-a-year
proposal described as "a great
disappointment TO the taxpay-
ers" the income tax collection
plan approved yesterday by the
Ways and Means committee.
making "pay-as-you-go" option
al with each taxpayer, without
any tax abatement, and imposing
a 20 per cent Withholding levy
against the taxable portion of
wages and salaries, effective
July 1.
The committee action, putting
aside all long debated pay-as-
you-go proposals, transferred to
the House floor the battle over
income tax abatement as an Gle
ment in achieving a current pay
ment basis.
TENS VOTE NO
The Is Democrats on the COM
mittee voted solidly against the
Ruml plan and for the com
promise" and were joined by
one Republican, Gearhart; while
the nine other Republicans sup.
ported the skip-a-year proposal
and voted against the comprom-
Use.
Saying he spoke the attitude
of the nine Republicans, Rep.
Knutson (R-Minn) said 1.-The
mountain has labored and
brought forth a mouse" and Il.
is obvious that the House will
have to take the matter into its
own hands if taxpayers are to
be made current"
Gearhart, disagreeing with his
Republican colleagues, said:
IF we forgive a years taxes
as many advocate we would
create by that act 100000 or
more War-made millionaires,
whereas among the middle and
poorer groups no saving what
ever could accrue. This would
merely recreate the profiteering
scandals of the first World War"
EXPLAIN COMPROMISE
AS explained by members, the
compromise approved by the
Ways and Means committee
would provide:
/. Persons with taxable in
come in 1912 would file returns
and pay one-fourth of 1912 obi
cations by March Is and another
quarter by June Is, as usual.
2. Such taxpayers would come
under the withholding levy,
starting July l if they earned
wages or salaries, and would
have the option of continuing to
pay in one year on the basis of
income in the previous year, as
at present or, if they desired
now or in the future, could
double up" by paying off the
previous year and thus start
pay-as- you-go. Withholdings of
wages or salaries then would be
applied against the tax obliga-
ton on their current year in
come. The committee is consid-
ering a discount Of perhaps S or
10 per cent on outstanding obli-
cations for persons paying off
the previous year in full and be-
coming current.
3. In the case of new tax
peyers, about 100000 persons
having taxable income for the
first time in 1943, the withhold
ings would begin July l and
they would have only the first
half of 1943 to catch up" to be-
come current.
4. Taxpayers whose liability
ran to more than 20 per cent
withholding rate, and those in
the first bracket $4,000 or less
taxable) having income other
than wages and salaries, would
pay their third and fourth in
stallments of the 1912 obliga-
ton after deducting the amount
of taxes withheld by the 20 per-
cent levy.
Still to be decided upon by the
committee is a means of periodic
payments for persons with in
come from sources other than
wages and salaries, including
farmers, business and profession
al men.
The withholding levy, cover
ing both income and Victory tax
obligations, would be imposed
through weekly, semimonthly or
monthly deductions from pay
envelopes and salary checks re-
gardless whether such collec-
tons were credited against the
individuals tax obligation on the
last years income or against the
current year.
his levy would not be
straight 20 per cent deduction
against wages and salaries but
against the portions of such
earnings remaining after deduc-
tons were made on the basis of
dependents. Neither would it be
an additional tax, but a means of