Evening star. [volume] (Washington, D.C.) 1854-1972, 1943-02-10
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very MUCH any ACtenpL 10 so IN
terpret the statement" and con-
tinued:
While I have said it would be
desirable If collection at the source
could start on April l, If this state
ment were to be interpreted by you
or your committee as an invasion of
your province. I would gladly retract
1t, since I consider it purely Incl
dental to the point was making"
The Is Ways and Means commit
teemen will hold night meetings be-
ginning Immediately, to complete
the hearing of witnesses and get
quickly to the actual writing of the
tax legislation.
Chairman Doughton said, how
ever, that before drafting of bill
begins the committee will explore
completely the possible advantages
and disadvantages of taxing 1912
income by much softer l941 rates
and exemptions. while beginning
the current collection on 1913 in
come.
Compromise Discussed.
Under this proposition. which
the chairman suggested for con-
sideration," last years tax obliga-
tons would be erased or reduced
substantially for millions of persons.
Millions also would have to
double-up by paying the remaining
1912 taxes while at the same time
remitting on current taxes out of
current income. Mr.. Doughton said
the reduced obligations for 1912
could be collected over several years
If such plan were adopted.
A majority of the committee still
appeared in q mood to accept a
compromise between the Ruml plan.
The most discussed compromise
proposal thus far has been that by
Representative Robertson, Democrat,
of Virginia, committee member, to
cancel the normal 8 per cent and
first surtax bracket OF Is per cent
on 1912 income. This would abate
the 1912 tax on the first $4,000 OF
taxable income for all taxpayers
meaning 10 per cent would pay no
1912 tax at all. SO ..,.s., i,,.,,
Payment Due March Is. -
The committeeman continued to
emphasize that 10 pay-as-you-go
plan to be considered would remove
the necessity Of all income taxpayers
filing their returns and paying at
least one-fourth on 1912 taxes, at
present rates, by March IS.
Some committeeman yesterday
criticized Budget Director Smith on
the basis Of 4 statement in which
they contended he, in effect, had
told Congress what to do" and had
confused the administration view as
to details of current tax payment
legislation.
Among other things Mr.. Smith
urged quick action to get current tax
collections in operation by April /.
Representatives Knutson, Repub-
lican. of Minnesota and Disney,
Democrat, Of Oklahoma. offered
resolutions to call Mr.. Smith before
the committee for an explanation of
his statement.
Mr.. Doughton then advised his COL
leagues the budget director was sub
hitting = letter in explanation.
Thereupon the committee delayed
action on the resolutions.
Smith Explains Statement.
The chairman later received and
made public letter from Mr.. Smith
in which the budget director said
the prime n,lrnOse NJ HE ct q tayoa,,t
made Monday in an interview with
the Associated Press, had been to
stress the necessity for all taxpayers
to file their returns on 1912 income
by March IS "inasmuch as it is
acknowledged that the situation is
somewhat confused as a result of
the discussion OF pay-as-you-