Evening star., 1943-02-04
RUNL AND DOUGHTON Clash on TAX Plan
Rayburn Backs
Pdy-ds-you-Go
Principle
Withholding Should
Stqrt BY April !,
Sponsor Declurss
~ the Associated Prsss.

~ the Associated Press.
Chairman Douehton Of the
House Ways and Means Commit
tee today vigorously CHALLENGED
contentious Of Beardsley Ruml,
sponsor Of I skip-a-year, pay-as-
you-go tax plan, that his idea
would improve the .'flnancial
well-beihg Of the Government"
Mr.. Doushton, vutc1ux oppOei.
ton to any plan for all-out for
eiveness q year of tax llnba1ity
Tor individual inc0gs6 taxpoSoGo 10
put them 0n pay>oa@yo0.n0 toels.
asked Mr.. Ru,ul, Wis = e,nnIxmnn
Of the New York ro6erai Ieqooyy0
Board, why q HI oontsntiog,s v1eso
correct, you dnut sell That - q
business people ana hare tl,am can.
cel debts by thsir csastounsss7s
kaybufn fsr rAy-as-Ysa- O.. ~
Az his daily press confes3n1o
later, Speaker Raybsnn said II -
vored adoption u pay-as-ypu-1o
TAX legislation. but emphasized
that he did not mean that he Advo-
Gated the Ruml plan.
Mr.. Ruml had tust completed 1
plea for his plan when Mr. poueli-
ton dred questions.
The big, jovial banker contandetl.
that putting the tax clock one year
ahead. and skipping one year a IL
ability. would bring more money into
the Treasury than the present. ~
tenn does.
He had also told the committse
that .much confusicns had heen
caused By discnsBicns q sfcrn1yin1Es.
: years taxes. ne ccntsnded HI Man
would not-mvolSe '.fors1ytne'' q tn
word meant thnt tl1efo Nonld = Z
year when taxpayers made No pay-
nsents and The Treasury ~ - Isv-s
Nothing could ho 1arthsr fram
the truth Nr. 1lnnal coatanded
He 1naisted that vttlaiojatni tn,lu
cn 04s izlcol11D aal1ll< a la1De
s9setipe nj 1nt9Fstl h j J. q
DsasAtsa olEsrS 49,. ~
II dont believe the averSse -.
payer, ii tiew al IL n16(I1 sof cnr
>sSesS =. sssee<s1S, kG4 @lSQH 49,
clared. wants to ~ calt of a Cl1.
| cation 70 his <30veTnnent.
= couldn't sleep euod ID tiuses M
th1eA Il / didn't ny the 0ovognnaeut
| . DIT I w1S A6D u p6y, ma elas
| passed the debt Ia 70 the bo0s nv
lighting III over the world. I. II Il
Answering M. DoaehtonS uues-
tioA about business debts, Nr. Hual
told the story OF : doctor he kneW
who found his patients were g en-
baITassed by what they Owed him
they quit coming to him. Whores
upon, the doctor decided I'd Yathef
have my patients than their dehto,s 4
erased AL the obligations and MY
came hack to him. Nr. Ruml aatd
the doctor cancelled large as ven @
small debts because he. did not want
any to feel they were acceptin9
charity.
Mr.. Ruml also told Z story az =
New York store that during tn de-
pression cancelled the indebtednaes
OF It's customers and went On : caah
basis, doing good business there-
after. 81 !
He told the committee, however.
he would not advise this practtco
generally for business. but only
where It would be good husineass.
to take such step.
He contended It would - md
business for the Government % 80,
taxes In 1913 from 1oA3 income ana
not take taxes on 1Sl1 incCuue.
In his explanation Of his plsn NJ.
Ruml contended It would Improve
the Governments financial condi-
ton, since the revenues : : would
he larger than ct present a,ad
this without increase Of taxes"
He laid. We shall Ill rs a1ore
paying out income taxes Is " have
before. only they win be on ! cur
rent basis and claimed thar over
2 period Of years 1T Is likely that
the income Of this country win IN
crease and the receipts under the
pay system would IS