Evening star. [volume] (Washington, D.C.) 1854-1972, 1943-03-20
I uxes

Continued From First Page
views of several Republican mem
bers of the committee who have in
dorsed the Ruml proposal for turn
ing the hands of the tax clock ahead
a year, is expected to be filed later.
1--WE are now faced with the most
frightful war in the history of the
world declared the ma jority report
under a section entitled Should
$4,000, 100000 Of Taxes Be For
given?"
This is no time for experiment.
We must make every effort to raise
all the revenue the economy of this
country can reasonably bear by true
and tried methods. Every effort
should be made to encourage tax
payers to pay as much tax on their
current income as they desire.
But those who do not desire to
make such advance payments should
not be forced to do so. In a great
many instances, the payments of
more than one years taxes in the
same year will constitute a severe
hardship
Under the ma jority committee
plan, a taxpayer could get on a pay
as-you-earn basis if he elects to
double up" by paying off two years
taxes in one year. 1t provides dis
count of per cent for taxes paid
against 1o43 income before June Is,
after a person had paid 1912 tax
liabilities in full.
Raps Ruml Plan.
The plan advanced by Beardsley
Ruml, chairman of the Federal Re-
serve Bank in New York. and sup
ported in modified plan by a stable
group of Republicans in the House
would cancel 1912 tax obligations al
together. But, said the majority in
Its report:
your committee members who
have approved this report do not
want their taxes forgiven. They are
ready to pay their 1912 taxes, which
have already accrued with respect to
their income for 1912. 1t is believed
that the vast majority of the Ameri-
can people also will not want any of
their taxes forgiven"
This" said the report. lis a debt
which has already accrued and, in
equity and good conscience, must be
paid ahead Of any other liability
that may occur for future years"
The majority report said the adj
ministration's plan-so called be-
cause Secretary of the Treasury
Morgenthau said it had 100 per
cent" backing of his department
provides a method to prevent the
taxpayer from bearing a burden
larger than he can stand.
The report said that our plan
one termed "a monstrosity" by
Minority Leader Martin-Would en-
courage taxpayer able to meet his
1912 liability TO pay off all or part
Of his 1943 liability through the al
loWarces of certain discounts.
Cancellation Assailed.
Cancellation of taxes on 1912 in
come. the majority argued. would
constitute gross violation of the
principle of ability to pay"
Cancellation" 1t said. would be-
stow the greatest benefit on those
best able to make economic sacri-
fees. About so taxpayers with mil
hon-dollar incomes would each re-
ceive benefit Of at least 1854 900.
AT one stroke, the Ruml plan
would add to their wealth more than
they could have in six years OF they
saved every cent Of their income
after taxes
The majority argued that the
Ruml plan would. in effect, "torce
shift of part of the tax burden
from the few at the upper end of the
income scale to the many at the
middle and lower end
Would Impede War Effort"
Forgiveness, " said the report
would also tend 10 impede the war
effort"
It reached that conclusion by
maintaining that it would be detrl-
mental to the morale of the armed
forces because II would imply gain
rather than sacrifice, to those on the
home front.
1T would endanger the morale o.
those at home by leadlng them tC
expect lower taxes al a time Wher
higher taxes and severe sacrifices
cannot be escaped. Since heavier
burdens are inevitable your com.
nittee does not feel that any rist
should be run, even temporarily, Of
deceiving the public into believing
that the pressure of taxes can b.
reduced in the visible future"
1t maintained also that forgive
ness also would endanger the wal
effort by stimulating the forces
making for initiation arguing thai
it would release funds which hac
already been set aside for taxes now
due and would reduce the pressure
on those with 1912 tax liability tc
make all possible economies"
Meanwhile. both the Ruml plar
END the Ways and Means Commit
tees bill were denounced in the
House yesterday as measures de-
SIGNED to benefit the wealthy