Evening star., 1943-05-24

taxes may be D#$W
"canceled " the David Lawrence.
perplexities and headaches that are
bound to arise il: the application
of a withholding tax far outweigh
such Fictitious benefits.
Not only has clerical manpower
with training ana experience been
drained. making it difficult for en-
ployers to cope with the colossal
problem of bookkeeping and audit
ing that's coming, but the shortage
of and restrictions on new office
equipment, adding machines, and
the like may produce a flaSco of
non-enforcement simular to that
which the Government encountered
in trying to enforce prohibition.
There is, moreover, a worse prob
lem than the administrative or
bookkeeping mess. 1t grows out of
the pressure for increased wages
which the Withholding tax surely
will stimulate. Anybody who knows
know that when cut of 20 per cent
is imposed on the weekly pay en-
Velope. it means a dilemma for the
worker and the housewife. most of
whom operate on a cash budget
basis.
Saving Campaign Advised.
1t has been argued in rebuttal
that the vast number of employees
would find themselves relieved of
their customary second six months
payments. But the taxpayer isn't
relieved of his June Is payment
and yet two weeks later he will be
compelled to unccrgo a pay cut of
20 per cent in every weeks pay
envelope thereafter. No pav-as-you-
earn plan for collecting taxes can
5e successful unless preceded by at
least three or six months of Ma
tlon-Wide save-as-you-earn" cam
paIgn similar in penetrating power
md pursuasiveness to the recent war
loan effort
1t would be much better if the
Withholding tax were passed now but
the effective date were announced as
next January !.
Many workers Will encounter
hardships in being without the cash
to carry on their normal budgets.
Somebody will have to finance the
adjustment - possibly retail store
keepers Or employers In the end
he employer class, whose co-opera-
ZION the President and the Treasury
reem bent on alternating whenever
the occasion arises. will be compelled
10 make up a conSidera bic portion OF
the 20 per cent Withholding tax.
Dynamite for Democrats
Since wage payments are legiti
mate deductions from gross income
-Or tax purposes, the employer will
seek out ways of yielding to the pres
sure rather than face a diScontented
army of virtually insolvent taxpayers
with depressed morale during work
ing hours. That's where enforce
ment will begin to break down be-
cause the Government Will not be
able to cope with the judicial or
administrative tasks Of checking
those wage increases"
AS a political issue, the whole
thing has dynamite in it for the
Democrats. The latter have been
following a thick -and-thln support
of the administration and have
Brushed aside one of the most sieni-
fiCant movements in recent legisla
tive hlStory-the demand for the
Ruml plan. Despite the admnistra-
tion's objections. the plan--On diff
ferent motiOns-haS shown four
more than a majority Of the men,
bers of the House and a majority of
the Senate. This means the people
see through the administration S
schemes for double taxation and
prefer 100 per cent cancellation to
make current withholding taxes
feasible
Democrats Confused.
The President has been poorly ad-
ViSed. He has been busy with war
strategy and has allowed himself to
sign a letter threatening veto Of
the Senate bill. He has created an
extraordinary precedent-threaten
ing to veto a tax bill While refusing
to state publicly what bill he would
sign This has caused confusion
among the members of his own party
and served only to widen the rift
between the President and Congress.