Evening star., 1943-04-17
Deal on Tax Bill
Sought in House
By Rival Groups
Hope Is Rising Thot
Measure Will Pass
Early Next Week
BY the Associated Press,

BY the Associated Press.
Opposing teams in the recent
bitter tax battle on Capitol Hill
came out of a midfield huddle
today to join forces and fight
toward the same goal-a pay
as-you-go plan for the Nations
44,OO0,OO0 income taxpayers.
That attaining the goal still in
wolves plenty of compromise is clear,
tor Republicans continue to support
modified Ruml plan to skip tax
year, and Democrats oppose it.
But the conciliatory spirit seems
strong in a special bipartisan group
composed of ranking members of the
House Ways and Means Committee.
raising congressional hopes that the
House will pass tax bill next week
probably Wednesday.
The group considered a proposal
that 1912 individual incomes be taxed
by the much softer 194l rates and
exemptions. under a plan that would
peg present income tax rates-the
highest In hiStory-for the duration
OF the war, permitting no further
increases.
Withholding Levy Supported.
PRESENTED by Representative
Dewey, Republican, of Illinois. the
proposal embraced a 20 per cent
withholding levy against the taxable
portions of pay envelopes and salary
checks-a point that any compro-
mise Is expected to carry.
Committee Chairman Doughton
who presided over the Democratic
republican conferences, said I'VE
nave arrived at no conclusions, but
we have made progress. We are
very hopeful"
Meanwhile, IS Democrats-prin-
clpally those wanting a compromise
between full abatement and no
Observation-Disclosures letter to
chairman Doughton asking that
another tax bill be presented for
House voting. The chairman had
taken the position the committee
should defer further consideration
OF the tax issue until it disposed of
bill to extend reciprocal trade
agreements three years beyond the
JUNE ~ expiration GATE.
! After the bipartisan compromise
session last night, Mr.. Doughton
said:
L am ready and anxious to do all
can to work this problem out. ANY
statement that I am trying to
dominate the committee cannot be
substantiated. I'll do anything
can, without surrendering on prin-
ciple, to bring order to the situation.
II work day and night and Sunday
II necessary. This matter should
have no political implications. I
appreciate the joint efforts of the
majority and minority leaders to
help find the solution to this very
difficult problem"
The compromise hunters" held
their first meeting a few hours after
Republicans and Democrats, under
the leadership of Speaker Rayburn,
had agreed to put down the hatchet
and, on friendly terms, try to find
some middle ground for their pay
as-you-go differences.
Dewey Proposal Discussed.
Republicans discussed principally
the Dewey proposal, which would
abate approximately $4,000 900 900
of the $4,000 100000 tax liabilities
against 1912 income and give tax
payers three years in which to pay
off the remaining S6,000000 900,
while at the same time remitting
taxes on current income. About
100000 persons would have their
last years obligations wiped out
completely, and the liabilities would
be- reduced Dewey also proposed
that, in view of the doubling up"
in paying off the 1912 liabilities,
there should be no further increases
in wartime personal income tax
rates.
Representative Disney, Democrat,
of Oklahoma said: Il still cling to
the idea of amortization of the
1912 liability over a 10-year period"
The Oklahoman was leader In the
House battle that defeated the
modified Ruml plan, 215 to 1913, two
weeks ago.
Members of the bipartisan body
seeking a compromise include Rep
resentatives Doughton, Cooper,
Democrat, of Tennessee: Disney.
Knutson, Republican, of Minnesota:
Reed. Republican. of New York and
Woodruff, Republican, of Michigan.
Representative Shafer, Repub-
lican, of Michigan expressed on the
House floor the hope that the Ways
and Means Committee would con-
slider methods of plugging "loopholes
by which millionaires can evade or
dodge taxes"
Certain individuals, he said, pur-
chase for cash corporations enjoying
large profits, change them to part
nerships or individual proprietor
ships, and escape corporate taxes.
''I do not know how many wealthy
individuals are practicing this tax
dodge" he added but it has been
revealed that Marshall Field, pub
Usher of PM and the Chicago Sun, is
one."
Mr.. Shafer said that Mr. Field re-
Gently purchased two highly profit
able industrial concerns engaged in
war production, and bus system
operating between Chicago and the
Northern Indiana industrial dis
trict," and was in position to use
! the profits from them ito Offset, in
part. the heavy losses he has in-'
Cured in his publishing ventures"
(lne Dead I Hurt in Fire