The Waterbury Democrat. [volume] (Waterbury, Conn.) 1917-1946, 1943-02-12
MURRAY ENDORSES
RUML TAX SYSTEM
Advanced Plan, However,
Termed Snare and De.
lusiOn' By Clio Prexy

Washington, Feb. 10 -CUP)-
Philip Murray, president Of the
Congress Of Industrial Organiza-
tions, who has endorsed the pay
as-you-go tax principle, said today
the plan advanced by Beardsley
Beardsley Ruml Of New York was
truly a snare and o delusion."
Murray's statement was read TO
the House Ways and Means COM
mittee by Nathan e. Cowan, CLIO
legislative official. Murray said
few Of the 100000 organized work.
erS now included In the income tax
brackets have accumulated SUM-
cient reserves to meet the tax bur-
den with which they will be faced
on March is.
He told the committee that
workers are interested In two ele.
mentS In the pay-as-you-go argu-
ment: that taxes be spread over q
full year, and that they be based
on an amount proportionate to the
actual size Of the taxpayers pay
check.
"These two elements are ohvi-
ously essential II any so-called pay
as-you-go plan Is to be truly pay
as-you-go for American workers."
Murray said. "The Ruml plan
which has been given such wide
publicity in recent months offers to
the American people neither Of
these elements.
1.-THE Ruml plan as originally
projected had nothing In essence
to do with the question Of whether
tax payments would be made all at
once or in payments spread out
over the year, or whether they
would come out of each pay check.
Even in the revised form In which
the plan has been discussed, pro-
vision has simply been made for
larger numbers Of installlnentS, but
not for installrnent payments ap-
portion to pay check periods"
A pay-as-you-go proposal which
appeared to embody at least some
Of Murray'S ideas was prepared for
introduction by Rep. Louis Ludlow,
D., Ind. Ludlow's proposal Is that
on April IS, 1913, each income tax
payer be required to file two re-
ports: the first complete tax re-
port with 1912 rates applied to
1925 total income, but not accom-
panied by any tax payment; the
other a quarterly report and pay
nent covering January, February
and March, 1943. i
The taxpayer, under LudlowS
proposal, would pay his first quar-
terly installment for 194S at 1912
rates. When the 1913 tax bill is
passed, its rates would be substi-
tuted for the 1913 rates, effective
at the beginning of the first quar-
ter after enactment.
cat the end Of the year 194S,"
Ludlow proposed, IF q person had
a larger income in 1913 than in
1912 his books are closed as
far as the government is con-
cerned."
If the taxpayers tax liability was
greater in 1942 than in 1943 he
would owe the government the diff
ference at the 1912 rate. This lat
ter provision would not apply to
men and women in the armed
forces.
Secretary Of Treasury Henry
Morgenthau, Jr., who held his first
press conference since December,
yesterday, said that whatever tax
program is reported out by the
Ways and Means committee Will
be the result Of the cooperative eff
fort by the committee and the
treasury.
Morgenthau said the treasury
would submit no hard and fast pay
as-you-go income tax plan, or pro-
visions for raising the additional
SIC, 900, 100000 in revenue called for
by President Roosevelt.