The Waterbury Democrat., 1943-02-02

 income tax collection were: 1. withholding from Wages and salaries 70 per cent ne income after dedletione and exnankionh. ifneludk iug six per cent on tho normal tax end 1S per cent Ofa the first ourtax bracket.
 2. rlllng oe tentative 0,iarterly income reports and current quafteriy payments of taxes for taxpayers whose income derives from sources other than wages and salaries, with . tax payment adiustment after tlie year ends on the basis of actual in- come.
 Tho TrOasury proposed that the transition from the pfeeent income tax payment method to . pAY-AH- you.go basis be achieved hT de. ferring tax payments for l9A2 for "a certain number of years - gay by March IS, le4s."
 Paul eaAd the Treasury favored pay-as-you-go income tax payment aS soon as possible, ''cerSalnly not later than July l." Meanwhile, he emphasized, income tax returns and payments due March l6 for I01a's taxes should be fiied on time.
 m . lengthy dlscussion o6 various tax paying methods, P6ul said it is estimated that AA0OO. GOO Americang will pay taxes on I0AS income. Of these he said, S0O00, 900 wage and salary earners will not rise above the Arst slrtax bracket of 42,OO0: 10000 900 win receive only nom. inal amount of their income from wages and salaries but still will not go above the first surtax bracket and 100000 will receive income from all sources which will be above tho first gttrtax bracket.
 By placing the S0,O0O, 900 wage and salary earners on collection-At. source basis, Paul said 70 per cent of all income tax payers would be made current. No pay-as.you-go plan, he said, would be ''adeuuate unless 1t makes current ct least this group ot wage and salary earners."
 Paul said any payeas.yotl.go plan "should currently discharge as much l aS possible of the tAxpayerS' liabil- ltieS: 1t should. also be co adjusted as not to collect more than the lia- bilities."
 Tn order to do this, Paul proposed that personal exemptions and nof- nal deductions be stbtracted from wage and salary payments at source before taxes are withheld. These ale lowanceS, he proposed, should be pforated for each pay period. For example, Paul said, under existing exemptions the weekly allowance before tax dedAction would be 9il for c single person, $26 for a mar ried couple and $8 additional for each dependent.
 ''It IS important to note," Paul said, "that any system of withhold. ing income tax which does not allow exemptions, or which allows only Q uniform exemption for all employees without regard to their marital or dependency status, would not meet the need"
 Although Paul did not commit the treasury to such Q reconmenda- tions, he said the committee "mAy wish to consider the possibility of absorbing the Victory tax into the regular income tax system"
 Delay Alarming
 Assistant Secretary Of Treasury John Sullivan told the House ways and means committee that public delay in filing income tax returns this year was ''Inost alarming"
 He said the Bureau of Internal Revenue was ''seriously concerned" by checkups which revealed that while Q Une-third increase in num- Der of returns was anticipated this year, the number filed to date was liar behind'' last years rate.
 At his urgent request the commit. tee. as it opened hearings on pay-as. y0u-so taxation, adopted Q reSolu- ton informing the taxpayers that mo impending tax plan will relieve the necessity of filing Q return by March IS, and making the payment due on that date"
 The resolution stated that even if pay-as-you-so plan was adopted by that date, there would be mo relief" from the payment due on that date. .sl