Evening star. [volume] (Washington, D.C.) 1854-1972, 1943-05-11
The Political Mill
Georges Own 'RumI Plan May Be Compromise
On Which Senate and House Could Agree

sSoSS SVoio NSsSS
however, must be credited to the
strong teamwork of Senator
Vandenberg and Senator Bennett
Clark Of Missouri who mar
shaled Democratic strength for
the plan. Senator Clark was an
early supporter of the Ruml
plan, going to the bat for 1t last
summer, and demanding that
something be done to place the
income tax payers on a current
basis. He has been a tower of
strength for the plan, and I'M
doubleday will be during the tax
bills consideration in the Senate
itself.
It was Senator Clark who in
sisted, in the Finance Committee,
that In rewriting the House bill,
everything after the enacting
clause be stricken out, and that
the Carlson-Ruml bill be then
inserted. This parliamentary
maneuver gives the conferees
on the measure greater latitude
when the time Genes to reaching
an agreement, If the bill is finally
sent to conference between the
two houses.
Senator George, chairman of
the Finance Committee, does not
like the House bill because it is
discriminatory and does not treat
all the income tax payers alike.
The bill forgives 90 per cent of
the income tax payers all of their
income tax for 1912, but the
other 4 per cent are compelled to
pay all except the normal 5 per
cent tax and the first Is per cent
surtax bracket. In the opinion
OF Senator George this is unfair.
1t is, moreover, cheap politics.
George Has Own Plan.
Senator George has a plan OF
his own, however, which he Of
fered in committee as a substi-
tute for the Ruml plan. It is to
forgive rs per cent of the 1912
tax-with the forgiveness apply
ing to all income tax payers
alike, on IS per cent basis. The
other Is per cent of the tax would
be paid in equal installments, the
first next March Is, and the Sec
ond March Is, 1945, with the
understanding that no further
increase be made during the next
two years in the rates of taxation
on individual incomes.
Either Senator George or one
of his colleagues may offer this
plan as substitute for the
Finance Committee bill-the
Carlson-Ruml bill-during the
Senate debate. But if not, the
George plan may be advanced in
conference. Senator George is
confident that the administra-
ton leaders in the House would
accept his plan if they had an
opportunity.
May Satisfy Clark.
Senator Clark might have been
willing to accept the George plan
and he would be satisfied with
it today. But if the Senate
should pass the George plan and
send the measure to conference,
concessions might be forced by
the House conferees, reducing
the George plan to something
less than it now is. The Missouri
Senator, therefore, insisted on
the 100 per cent forgiveness of
the Ruml plan-from which Sem
ate conferees may retreat if nee
essary to the George plan.
It is essential that the tax
payers be placed on a current
basis as soon as possible, and
particularly essential that the
tax be withheld at the source.
The Government may lose a bill
lion or even three billion dollars
In revenue, it has been variously
estimated, if these steps are not
taken. The administration and
Congress have temporized with
the situation for nearly a year.
It Is too bad that the Treasury
Department did not think up the
Ruml plan before Beardsley
Ruml, president of the Federal
Reserve Bank Of New York, did.
eminent by executive order. direc