Evening star., 1943-05-08
Senators Vote,.
III, for Draft
Of New Tax Bill
Approve Modified
Version of Ruml
Skip-Yeor Plan
By the Associated Press.

BY the Associated Press.
The Senate Finance Commit
tee voted 17-to-7 approval today
for a modified version of the
Ruml- Carlson pay-as-you-go tax
collection measure, which would
abate either the 1912 or 1943 liza
bilities of taxpayers, whichever
is lower.
In record breaking time the COM
mittee completed it's general work
on the skip-a- -tax-year legislation,
which was rejected by only four
votes in the House, which adopted
instead current collection plan
providing for abatement Of the two
lowest brackets of taxes on 1912
income.
Chairman George, Democrat, of
Georgia announced the vote and
said Senators Gerry, Democrat, of
Rhode Island ana Bailey, Democrat,
OF North Carolina, who were absent,
have the privilege of recording their
votes later.
Ihus the measure was approved
with the votes of the eight commit
tee Republicans and four Demo-
Gratis, Clark of Missouri. Walsh of
Massachusetts, Lucas of Illinois and
Radcliffe of Maryland.
Six Democrats Vote NO"
Voting against the measure were
Senators George, Barkley, Demo-
crat, OF Kentucky; Connally, Demo-
crat, OF Texas; Byrd, Democrat, of
Virginia; Johnson, Democrat, of
Colorado; Guffey, Democrat, of
Pennsylvania, and La Toilette, Pro-
gressive, of Wisconsin.
The committee moved rapidly in
its consideration of the House
rejected measure, which it decided
to make the framework of new cur
rent collection legislation.
Senator La Toilette said the group
voted to strike out of the bill a pro-
vision under which the 1912 levies Of
all persons with net incomes up to
$4,000 would be wiped out, and sub
stituted the 1942-43 alternative.
Formerly this provision had been
designed to apply only to those with
incomes above IS ,000
With the modified Ruml plan
firmly intrenched behind a 13-to-5
vote yesterday, the committee hur-
ried to incorporate it in bill in time
for presentation to the Senate next
week.
Victory for Ruml Plan.
| The committee vote yesterday was
a major victory for the Ruml plan,
but there remained the likelihood
OF opposition to it on the floor.
Chairman George, Senate Ma
jority Leader Barkley and Senators
Connally of Texas, Byrd of Virginia
and Johnson of Colorado. Demo-
Gratis, and La Toilette were aligned
against the plan.
Senators Walsh and Lucas insisted
on provisions to prevent war con-
tract brokers and others with greatly
increased incomes from profiting too
much by the abatement of years
| taxes.
George Favored 1870 Abatement.
Senator George said he would have
favored skipping only rs per cent
of every ones 1912 tax, but Senator
Connally opposed any abatement at
| all.
Il am utterly opposed to any plan
| to give away years taxes, to hand
out about 100000, when we
need $4,000, 100000 more in new
revenues" Senator Connally de-
clared.
The committee measure would
start 20 per cent withholding tax
on wages and salaries July l, to put
persons in that category on a cur
rent basis. Payments already made
this year would go down on the
books as payments on the first half
of 1943 taxes.
Provision would be made for other
types of taxpayers to meet their
l943 liabilities currently on quar-
terly basis, with special provisions
Tor farmers and some others.
The committee is working against
a deadline requiring enactment of a
Withholding levy by May IS if it is
to be put into effect July 1.
The Finance Committee voted to
accept the Treasurys suggestions
for Withholding procedure consid-
erably simplified from that laid
down in the House-approved bill.
Five Withholding Tables.
This would apply the same with
holding exemptions for the income
tax as for the Victory tax. AS a re-
suit, five withholding tables would
do the work of Is set out in the
House bill
The withholding exemption rate
would be 1924 for single persons, as
compared with $50 stipulated by the
House for the income tax withhold
ing; $1,248 for married persons in
stead of $1,320; and 1912 for de-
pendents, rather than $4O8.
The tax would then be withheld
at the single rate of 20 per cent on
all amounts paid in excess of those
exemptions, but in no case would the
amount Of the tax withheld be less
than per cent of the amount paid
in excess of 1924.
Randolph Paul, Treasury counsel.
| stressed to the committee that the
chanOnS in tho