Evening star., 1943-04-20
House Leaders Plan
One Last Try Today
For Tax Agreement
Martin to Seek New
Ruml Proposal Vote
If Conference Fails
BY the Associated Press.

~
A possibility developed today
that Republicans supporting the
skip-a-tax-year and pay-as-you-
go income tax plan and opposing
Democrats might compromise
on the abatement of approx
mately so per cent of one years
income taxes.
Such an agreement would encom-
pass a 20 per cent withholding levy
against the taxable part of all wages
and salaries
The bipartisan compromise
group after encountering a vir-
tually complete collapse of their ef-
forts yesterday, made "one last try"
to bring about meeting of minds.
Minority Leader Martin said, ITO
day will settle it one way or the
other" He added, There's still
chance that we'll have a compro-
mise" One conference member said
the Republicans and Democrats
might from sheer exhaustion" come
to an agreement on cancellation of
about so per cent of either 1912 or
1943 taxes.
May Seek New Vote.
If a breakdown occurs in the
friendly bipartisan compromise
drive, Mr.. Martin is prepared to
move Immediately in an effort to
obtain the signatures of 218 House
members, majority, on a petition
which would open the way for an
other House vote on the modified
Ruml skip-a-tax-year plan, defeated
in the House three weeks ago, 215
to 198
Republicans now are confident
they would win on another vote, but
Democrats appeared just as certain
they could defeat it again.
The compromise group, composed
of banking members of both parties
on the Ways and Means Committee,
met late yesterday with Speaker
Rayburn, leader of the conciliatory
parley; Mr.. Martin and Majority
Leader Mccormack, in what was to
have been the deciding conference.
1t was understood the Democrats
battled for compromise plan origi-
nally put forward by Chairman
Doughton of the Ways and Means
Committee to apply the lower 1941
rates and exemptions to 1912 in
come, and amortize the lowered
1912 liability over a period of years
yrYN leo p-nv11ff{aI
current year income.
Would Rebate $4,000, 100000.
This would wipe out last years
obligations completely for about
100000 taxpayers, reduce the liza
bilities of others and erase about
$4,000, 100000 of Treasury assets" +"
against $9,000,0 100000 to $4,000, ,000,-
600 under the Ruml plan.
Republicans were reported to have
insisted on a compromise that
would abate approximately rs per
cent of 1912 tax liability for most
taxpayers.
The most optimistic comment
came from Representative Knutson,
Republican, of Minnesota, leader of
the Republican tax forces, who said,
Il am confident we will have a
unanimous report by the committee
ways and Means) by Thursday"
Mr.. Doughton, mainstem of the
Democratic no-abatement position,
said, 1--WE shall not give up in
despair until every human effort is
exhausted"
In addition to Mr.. Doughton and
Mr.. Knutson, the compromise group
was comprised of Representatives
Cooper, Democrat, of Tennessee;
Disney. Democrat, of Oklahoma;
Reed, Republican, of New York, and
Woodruff, Republican, of Michigan.
(Secretary Morgenthau, meanwhile,
told a press conference yesterday the
Treasury could put pay-as-you-go
taxes into operation within about 60
days after Congress enacted them.
He said it would take that period,
perhaps less time, to set up ma
chinery for the payroll deductions.)