Evening star., 1943-05-02
Taxes
Continued From First Page.)

senting report that the opposition S
compromise was "a stepchild of
political pressure"
The Ways and Means Committee
bill would collect the 1943 tax this
year; amortize the taxes due on 1912
income over a period Of three years,
with this tax figured on the softer
1941 rates and exemptions, and pro-
vide a 20 per cent withholding levy
on wages and salaries starting July l..
While the taxpayers would not
be called on to "double-up" in their
tax payments this year, they would
be required to pay third of their
readjusted 1912 income tax on
March Is, 1914, another on March
Is, 1945, and the final third on
March IS, 1916 These payments
would be in addition to current year
tax payments. A percent deduc-
ton would be provided for persons
settled up by March Is, 1914.
The Republican House members
will offer as a substitute the So
called Carlson -Ruml bill, which,
with some notifications, abandons
the 1912 tax in order to place tax
payers Immediately on current
basis.
Problem up Twice in Two Months.
This will be the second time
within two months that the House
has tackled the pay-as-you-go tax
problem. The first time the House
defeated by narrow margin the
Carlson bill, then by a much more
drastic vote recommitted the. Ways
and Means Committee bill. The COM
mittee measure at that time merely
provided for system of tax collec-
ton at the source and permitted
taxpayers to become current by
making two years tax payments
this year.
The new Democratic bill is COM
promise, forced on the reluctant
chairman Doughton and his sup
porters by public demand and the
Democratic leadership of the House..
Secretary of the Treasury Morgen-,
thau, who supported the first COM.
mittee bill, now has given his bless,
ing to the new measure. The,
Treasury Department has strongly,
opposed the Ruml plan.
House leaders have agreed to
bring the committee bill to a vote
Tuesday if possible The Republic
cans plan to offer the Carlson Bill
at that time. If it should be de-
feated, motion will be made to
substitute the Forand- Robertson
Bill, backed by some Democrats,
which would eliminate the normal 6
per cent tax and the first surtax
bracket of 13 per cent.
Mr.. Martin and Republican Knut-
son OF Minnesota. a Republican
member Of the Ways and Means
Committee, yesterday expressed
hope that the Carlson Bill would be
passed. 1t will depend, as they
pointed out, on whether they are
able to hold practically all of the
Republicans in line and on how
many Democrats prefer the Carlson
Bill to the committee bill.
Sees Both Sides Ready to Vote.
Mr.. Martin saw no reason for a
prolonged debate in the House since
the tax issue was debated thor
oughly before, he pointed out.
Il think both sides are ready to
vote" he added.
The Carlson substitute will con-
tain one odification-which lowers
the so called windfall provision from
$4,000 to 5000. In other words,
any man who received $4,000 or
more income in 1912, and whose
income was materially greater than
1t had been in 1941, would be COM
PEELED to pay the 1912 income tax
on all that excess above $4,000. That
Is designed to reach those persons
who made big gains in income be-
cause of war business.
Asserting that the opposition
plan "soaks the rich" and socks"