Evening star., 1943-03-22
Democratic Leaders
Open Drive 10 Block
Rum| Plan Coalition
Administration Forces
In House Fear Pussooe
OF Poy-os-Go Tax Bill
Fy the Associated Press.

Pdl W . AAOuSc HiSIIlDCl okAlP OC
signed to head of a potential
coalition of a segment of Dem
ocrats with Republicans that
might spell House passage of the
Ruml plan to skip an entire tax
year in putting income taxpayers
on a pay-as-you-go basis.
Representative Ramspeck of
Georgia, the Democratic whip, said
many Democrats still have AN open
mind" on the tax issue and some are
confused by the controversy over
the Ruml plan and the Administra-
tion tax collection bill, drawn by a
majority of the House Ways and
Means Committee.
The tax debate begins Thursday
Knutson Predicts Skip" Tax.
Representative Knutson, Republi-
can, of Minnesota, predicted 30
Democrats would join the Republi-
cans to pass the skip-a-year pro-
possl. He said he could find no
more than six Republicans against
the Ruml plan A coalition of dissi-
dent Democrats with Republicans
has been in virtually complete
charge of legislation on the House
floor since the convening of the 18th
Congress.
On the other hand, Representative
Disney, Democrat, of Oklahoma. said
I'VE will have more Republicans
voting against the Ruml plan than
Democrats for it."
The House has 2Oe Republicans
and 222 Democrats.
A. Republican minority of the
Ways and Means Committee filed a
report charging the Democratic
maJoritys tax collection bill would
put small taxpayers in a strait
Jacket" and called for enactment OF
the Ruml plan. The majority pre-
viously had excoriated the skip-a-
year proposal as like robbing Peter
to pay a bonus to Paul"
In the midst OF the charges and
OBSERVATION-DISCLOSURES for the
free-for-an tax battle on the floor
Representative Forand, Democrat.
OF Rhode Island. Ways and Means
member. wrote all House members
he would offer . compromise to
abate the greater part, but not all,
OF 1912 income tax obligations, and
put virtually all taxpayers on a pay
as-you-go basis. This plan original
~ was presented by Representative
Robertson, Democrat, of Virginia
and voted down in committee along
with the Ruml plan.
Call Majority Bill Stupid.
The Republican minority's report
referred to provisions OF the ma
1ority's bill as stupid, misguided
and unenlightened," and declared
the hybrid measure which the ma
1ority has finally concocted after
many weeks OF indecision is not even
= substantial gesture toward the
adoption OF a pay-as-you-earn tax
system. 1t further set forth:
l. 1t seems obvious that If tax
payers resort to cashing In their
War bonds in order to get the ad-
vantage of the higher interest rate
onered by the discount provisions
OF the committee bill the whole
bond program may be thrown into
Chaos"
2. The makeshift bill which the
majority of the committee have
reported to the House utterly re-
pudiates the assurance previously
held out to the American people
that income tax payments would,
40 far As possible, be placed on
current basis"
3. No present income taxpayers
are made current by the committee
measure, nor can any become fully
current hereunder except by paw
Ing substantially two years taxes
in one year. For most OF the
%4,0O0, 900 taxpayers, this would
result In an undue, If not an in
tolerable, burden"
Sop" to Wealthy.
4. The committees bill discount
provision obviously will benefit only
those who have sutficient means to
pay TWO years taxes in one. In other
WORDS, II Is sop to the well-to- do
rather than TO the millions of tax
payers who are most in need of hav-
Ing their tax payments placed on a
current. pay-as-you-ern basis"
). whether the ma jority realizes
It or not, their bill abounds in for
e1veness features"
q. 1t can readily be seen
mat the incentive discount plan
may put a few thousand
wealthy persons on a current basis
but will leave the millions of tax
payers in the lower income bracket,
precisely where they now are-one
year behind.
The Republicans said the demand
FOR the Ruml plan comes from the
grass roots-from the people them
selves" and that 1T is worth nothing
that never has there been a greater
absence OF organized propaganda
than in connection with the people s
demand for adoption OF the Ruml
plan"
Nine Sign Report.
The report was signed by . OF 10
Republicans on the Ways and Means
Committee. The tenth, Representa-
tive Gearhart of California, joined
the Is Democrats in voting down the
Rulnl plan in committee and in re
porting out the committee bill. He
issued a statement saying the skip
a-year proposal was Wall Street
boondoggling at its worst" and If
enacted would mushroom 100, 900
War-made millionaires
The committee bill provides that
taxpayer, at his own option. may
continue to remit his taxes as at
present on the basis OF the previous
years income. or may pay of the
previous year in fun and 20 on a
current basis A discount ranging
up TO per cent in l943 and TO 4 per
cent in subsequent years Is provided
Tor whole or part advance payment
OF tax liabilities on current wear in
come.