Evening star. [volume] (Washington, D.C.) 1854-1972, 1943-02-08
Budget Chief Urges
Speedy Settlement Of
Dispute on Tax Plan
Treasury and Congress
Asked to Get Proerom in
Operation by April !
BY the Associated Press.

Budget Director Harold D.
Smith, who is President Roose-
velt's personal fiscal adviser, ap-
pealed to the Treasury and Con-
gress today to get together
Immediately" on pay-as-you-go
tax legislation so the new plan
can start functioning April l.
Mr.. Smiths statement, made as
the House Ways and Means Com
.ntttee hegsn another week Nfshears
ings on the Ruml proposal to by
pass 1912 - an ipdtvidYal income
tax year III order ID put collections
on a current basis, limited Of in
direct White House Intervention to
end arguments over details Of the
legislation. He did not say what
form the Intervention might take.
May Cancel Is Pct. Of 1912 Tax.
Contrary to Treasury testimony
before the Ways and Means Com
mittee, Mr.. Smith indicated ad-
ministration approval for cancel
1ation Of up to three-quarters Of
1912 taxes to facilitate immediate
operation of the plan.
1.-THE shift to source collection,
for most taxpayers" he said, with
out collecting two years taxes in
one year will require an adjustment
Of their present 1912 tax liability.
It would be desirable If such q shift
could be enacted so that collection
at the source can start on April /,
1913.
mo contemplated plan, however,
would excuse the necessity of filing
the usual tax returns on March Is
and of paying at least the first in
stallment on the taxpayers decla-
ration"
Mr.. Smith also said early enact
ment Of the pay-as-you-go proposal
was necessary ito clear the way
for further tax measures or COM
pulsory saving If they become
needed"
Urges Pay-as- Y ou-Go Plan.
In this connection, he noted that
President Roosevelt's budget mes
sage in January called for $4,000, :
100000 in additional taxes or COM
pulsory savings. Mr.. Smith said
action on this request is being held
up by the other tax matter.
Pay-as-you-go tax legislation, he
added, will work out to the best
interest Of the taxpayer and the
financial position of the Govern
ment, as well as aiding the stabiliza-
ton program"
Several legislators asserted, mean
while, that large numbers Of people
apparently had received the erro-
neous impression that it already
had been decided to skip 1912 taxes
and expressed the opinion privately
that If some measure Of abatement
is not forthcoming there might be
strong political repercussions in
1914.
In response to public demands for
a more painless" means of collect
il4g taxes, the Ways and Means Com
mittee hoped to wind up public
hearings this week and. in executive
session, begin actual writing of pay
as-you-go legislation.
CIO Assails Ruml Plan.
The Executive Board Of the CLIO
called for legislation pro-
viding for taxes from current in
come, but criticized the Ruml pro-
posal as giving "a special favor" to
the wealthy.
The board said the Ruml plan
merely provides for a change OF
label as to which years tax Is being
paid and at the same time affords a
special favor to those IN the high
income brackets who would benefit
from a cancellation Of an entire
years taxes, particularly in year
in which their incomes happen to
be excessively high"
The Ruml plan, the board de-
clared. has nothing to do with true
pay-as-you-go principles"
The labor organizations leaders
asked higher income taxes on all
earnings above 5000 yearly and in
creased levies on corporation profits,
estates and gifts. The board called
for repeal of the Victory tax and ex-
pressed opposition to proposals for
q Federal sales 6vy.