Evening star. [volume] (Washington, D.C.) 1854-1972, 1943-03-09
Ry CARL ". McCARDLE.

nv tAkL W. NCt ARDLE.
OTTAWA. March Gwen with
the temperature 81 degrees below
zero. as it was here the other dav.
frOst-bitten taxpayer from the
United States can find comfort in
Canada.
For Canada is getting ready to
put into effect the Ruml plan-Or
what amounts to the same thing.
Thus Canada is stealing another
march on the United States, which
is still stalling on the question, with
Congress enmeshed in talk and the
Treasury Department in theories.
The Dominion has been working
gradually into its own version of
Beardsley Rumls idea Of collecting
present taxes out Of present income
and letting the government book
keeper forget about the taxes on last
years income.
To Forgive Eight Months.
In changing over officially to the
Ruml way for 1913, Canada prob
ably will forgive approximately eight
months of the 1912 taxes. The tax
payers already have paid their taxes
on the other four months of 1912
So the new system will be installed
without any overlapping double
taxes.
The swing to Ruml is characteris-
tic Of Canada's realistic approach to
all its wartime problems. Canada,
for example, has prices and wages
pegged at near balanced level and
to date has kept initiation at bay
Some weeks ago the cost Of living
was inChing upward. The govern
ment simply jumped on the prices
with both feet. Now the cost Of lily
ing average is tending downward.
Officials Unworried
None OF the officials I've talked to
is worried in the slightest about let
ting eight months of 1912 taxes slide;
if the Dominion government were
losing any appreciable revenue
thereby it wouldn't be done. These
men cannot understand the fears
which seem to affliCt United States
Treasury specialists and some Con-
gressional leaders over the "forgiv-
ing" feature of Ruml's plan. In
fact, Canada feels very sure Of its
ground concerning the Ruml plan,
because it has had its income tax
on pay-aS- yOu-gO, collect the
source basis since September. 1912
The forgiving Of some taxes isn't
a barrier to the Ruml plan one
official said to me But you do
have to get your machinery going
to handle it, That's the only OBJ
stacle First you have to begin COL
lecting taxes at the source. And
then you have to go over to a pay
as-vou-go basis We've done each
Of these in turn and now we're pre-
pared for about Ruml'
Initial Step Taken in 1940
As an initial step toward ultimate
full collection Of income taxes at
the source, Canada in 1870 imposed
national defense tax. 1t was de
ductible from all salaries, wages
and dividends at the source And it
was in addition to the regular in
come tax.
After this experience in collecting
at the source. Canada decided in
1882 to collect all, or at least 90
pei cent, Of its income tax in that
way. The national defense tax and
the regular income tax were COM
bined
These payments started last Sep
TENDER That is, the tax year began
then and extended to September.
1913, when the taxpayer was to
fill out his income tax return at
which time any adjustment on his
side or the Governments side was to
have been made
In other words Canada's taxes
started becoming due in September
OF the same year for which they were