Evening star., 1943-02-12
New York Bar Aide
Urges Adoption Of
Pay-as-You-Go Tax
Ways ond Means Group
To Hear PouI Again;
Program Unfolding
3y the Associated Press.

BY the Associated Press.
Arad Riggs. representing the Tax
Committee OF the New York City
Association Of the Bar, urged the
House Ways and Means Committee
today to adopt the Ruml plan to skip
1912 tax liabilities to put the Ma
tion's a, ,000, 900 income taxpayers on
q pay-as-you-go basis.
Mr.. Riggs was heard as the COM
mittee awaited second appearance
Of Randolph Paul, Treasury general
counsel, who vigorously opposed the
Rlml plan in previous testimony,
but indicated the Treasury was will
ing to support "a certain amount Of
forgiveness to put income taxes on
q current basis.
Secretary Morgenthau. meanwhile,
said the Treasury is cooperating
closely with congressional tax COM
mittees. but believes it is up to Con-
gress to frame a complete tax and
fiscal program which would put in
come taxpayers on pay-as-you-go
basis and raise additional revenues.
VIII OTauuAuy OHlOiU.
He expressed that view in a press
conference yesterday in which ne
declared that cooperation between
his department and the congress
sional committees concerned with
taxation had never been better, add
ing that tax program now being
considered by the House Ways and
ssvr,t1y Il N l1Ny
unfold as the committee wishes"
1T Is their job" he said. I'VE are
there in the capacity Of consult
ants and as they wish it to unfold,
1t will unfold"
The Treasury, he indicated, would
follow a similar policy when the
committee takes up the problem of
raising additional revenues. Presi-
dent Roosevelt has urged that at
least $4,000, 900, 900 be collected in
the next fiscal year In additional
taxes or savings or both to pro-
vide additional revenue and act as
. curb on imitation.
Asked If he could give any in
dication what proportion OF this sum
would be savings and what propor-
tion new taxes, the Secretary re-
piled: mo, can't. We have got
to wait for Congress on that"
Criticizes Doughton Plan.
Asked II the Treasury considered
q compulsory savings program
necessary, he replied, I'VE are going
along with the committee"
Chairman Doughton questioned
Mr.. Riggs as to whether he believed
New York State should, as he put
1t, forgive" = years taxes to get on
q pay-as-you-go basis. and Mr. Riggs
replied he did not believe the State
needed such plan now as its rates
were not nearly 80 high as Federal
rates.
Mr.. Riggs criticized q proposition
previously put forth by Mr.. Dough-
ton "for consideration" which would
apply the much softer 194l rates and
exemptions to 1912 income, on which
tax is due March is, as means Of
transition to pay-as-you-gob basis.
THE effect OF such proposal is
W A46AC bA1C pAV6A AANOAAAC VoAA
unbearably progressive" the New
Yorker said.
Mr.. Doughton suggested that If
1911 rates were applied to 1912 In
come, the reduced 1942 obligations Of
taxpayers might be collected over .
period of several years.
Hearings % End Monday.
Several Ways and Means men,
bers have expressed . desire for the
Treasury to say definitely what
amount OF abatement it would con-
slider fair and not ovcrburdensome
to the taxpayers and at the same
time bring substantial revenue into
the Treasury.
The committeeman elected to
work on Lincoln's Birthday, though
the House is in recess. The hearings
were speeded up by the members
suspending their previous custom of
questioning each witness at length.
Thus, the committee machinery
moved so swiftly that plans to hold
night sessions were abandoned
The committee plans to wind up
public hearings Monday, then 1t
will start writing a bill to put
Americas 1900 900 income taxpay-
ers on a current basis.