Detroit evening times. (Detroit, Mich) 1921-1958, 1943-02-03
Treasury Backs
Pdy-ds-You-Go;
IRumI Plan Fades

WASHINGTON, Feb. 3 (INS)
Sentiment for the Ruml tax plar
appeared on the decline in the
House ways and means committee
today. one member predicting that
II would mot receive more than
three votes out OF the IS on the
committee"
The forecast was made by Rep
A. Willis Robertson CD OF Vir.
GINA, who added:
eff we should pass legislation
Incorporating the Ruml plan, L
think President Roosevelt would
veto it,
Friends OF the Rumi plan, which
would forgive a whole year of
taxes TO put the income tax col
lections on a current pay-as-yo u-go
basis, said, however, that they
were not disturbed. One of them,
Rep. Frank Carlson (R) of Kan
sas. asserted:
81 still think wen come 10 a
modified Ruml plan before we
are through"
RUML TO APPEAR
The statements were made on
the eve of scheduled testimony Ivy
the author OF the plan. Beardsley
Ruml, chairman OF the New York
Federal Reserve Bank, who is 10
appear before the committee to-
morrow.
In addition TO Robertson, several
other committee members asserted
privately that the opening testi-
n1ony yesterday by Randolph Paul.
the treasurys general counsel, had
been an effective argument against
the Ruml plan.
Alarmed by the way taxpayers
are falling behind in filing their
March Is income tax returns, the
treasury. through Paul, asked Con-
ess to pass as quickly as pos
1ble a bill permitting deduction
OF 1943 taxes out Of wages
salaries and dividends.
NEEDED BY JULY
Paul told the ways and means
committee that the bill should be
passed In time 10 enable deduc-
tons by July /.
Paul declared emphatically that
he did not endorse the suggestion
that the basic 10 per cent Income
tax rate be forgiven on 1912 in
comes In order TO get taxpayers
on a pay-as-you-go basis. He did
not say specifically. however. Just
what he would favor from the
forgiveness standpoint.
Paul suggested forgiving or de-
ferring a part Of the 1912 income
taxes, but he said that. in view of
the governments revenue needs
and the necessity OF an equitable 4
distribution Of taxes. complete for
givencss OF the 1912 taxes seemed
very undesirable.
NO RATE INCREASE
Under the treasury proposal.
There would be no increase in
Individual income tax rates az far
Ss l943 incomes are concerned
Shis Notwithstanding the fact that
president Roosevelt has asked for
IN increase in government receipts.
through taxes and savings. of S16.-
DOC. OO0, 900 for the fiscal year be-
ginning July /.
Paul pointed out that. so far as
total immediate government re-
Seipts were concerned, the same
results as rate increase could be
achieved by the doubling UP"
process. that is. by having tax
payers pay part or all Of their
~nforgiven 1912 taxes in 1919
while Starting the payment OF 1913
taxes in 1913.
- He estimated that 20 per cent
the taxpayers about 25,00).0O0
Othus would be on current or
pay-as-you-go and collect-at-th ,
source basis at the end Of the year
AIDS BIG INCOMES
In opposing the forgiveness Of |
tIl 1912 taxes. he emphasized
mat this would result in great !.
Hindfall for taxpayers in the
higher income brackets. For a
married man earning $1,000, 900, {
he said, the amount OF taxes for
given would be 5S5 per cent of
his net income after tax in a given
year, while. for a $3,0O0-a-year !
married man, the forgiven tax
would be 12.1 per cent OF his net Il
income after tax.
Because a critical situation Is
developing in the filing of tax re-
turns, a situation that may result
In a jam on March Is payments
at best and In widespread delin-
luencies at worst-the ways and
means committee adopted unani-
a resolution warning tax
payers that they must file their
March Is returns and pay INSTALL
ments due at that time.
No pending tax plan. the COM r
mittee said. will relieve taxpayers
of that necessity.