Evening star. [volume] (Washington, D.C.) 1854-1972, 1943-02-16
j. ). Chamber Urqes
Nip-Year Tax Based
On Post War Payment
Withholding Could Be
Put in Effect by July l,
Alvord Tells Hearing
By the Associated Press.


Amid growing official concern
over the public's reported tax
paying lethargy, the United
States Chamber of Commerce to-
day proposed a new version of
the pay-as-you-go plan, based
largely on deferment of 1912 liza
bilities until some time after the
war.
Ellsworth c. Alvord, chairman of
the chambers Federal Finance Com
mittee. presented the plan to the
House Ways and Means Committee
and said its approximately 20 per
cent -collectable withholding
tax should start as soon as possible
He estimated that it could become
effective July /.
Meanwhile, quarterly income tax
payments on March Is and June Is
would have to be paid as usual, to
be applied to the l943 liabilities as
soon as the plan was put in effect.
According to the detailed program
submitted by Mr. Alvord, the close
relationship between 1912 and 1943
tax liabilities would simplify placing
the two quarterly payments on the
current years tax schedule.
Current Basis After July 1.
After July 1, the proposed 20 per
cent withholding tax-which Mr.. AL
word said would generally cover the
present per cent normal tax, the
first 10 per cent surtax bracket and
the per cent victory tax-would be
collected at the source, and the tax
payer would be considered on a cur
rent basis.
However, he still would owe the
deferred 1912 obligation-one major
dlf1erence between this plan and the
Beardsley Ruml plan-to be COL
lected at some future postwar date
which, according to Mr. Alvord,
| should be "at least five years from
the cessation of hostilities and pref
erably 10 years. No interest would
| be payable on the deferred liability,
and substantial discount would
be provided for earlier payment, Mr.
Alvord said.
Emphasis on the fact that this
years first two quarterly tax pay
| mentS would proceed as usual served
| to underscore the concern in Treas
ury and congressional circles over
reports that the tax returns received
thus far this year are about so per
cent behind last years.
After acknowledging he was Wor-
ried about the situation, Secretary of
the Treasury Morgenthau joined
Chairman Doughton of the House
Ways and Means Committee and
Chairman George Of the Senate
Finance Committee in public radio
appeal to taxpayers last night.
Must Pay Installment.
Attributing the lessening flow of
tax returns to public confusion over
the much discussed pay-as-you-g
plans, the trio told taxpayers that
no matter what happened on that
score, the first quarterly installment
on 1912 taxes would have to be paid
on or before March IS.
Their appeal was coupled with as
SuranceS from Mr.. Doughton that
the best plan for making the bulk
of taxpayers current Will be intro
duced at the earliest possible time"
and a hint from Senator George
that Congress may abate part of
1912 tax liabilities.
Mr. Doughton said that the con-
fusion is very embarrassing to the
! Government.
Taxes are the lifeblood of a ma
ton at war" he added. The fail
ure to pay taxes when due would
interfere seriously with the effective
prosecution of the war And no
American wants to let that hap
pen"
In his statement, which was pre-
sented as the committee closed its
public hearings, Mr. Alyord con-
| tended that in no event should
| pay-as-you-go be abandoned be-
| cause of difficulties, and disputes as
to their solution, during the transit
| ton year"
In computing a base for the 20
per cent pay roll deductions, Mr..
Alvord recommended personal ex-
emptions Of 1924 for single persons,
$l,24S for married persons and 1912
! for dependents.