Evening star., 1943-04-21

collect two years David Lawrence.
In one, while the opponents-advo-
Gates of the Ruml plan-insist that
one year can be skipped without any
real loss to the Treasury In the i'm
mediate future.
Since the Ruml plan was defeated
by narrow vote in the House,
members have heard from the
country and now there are confident
assertions on Capitol Hill by the
defenders Of the Ruml plan that
they have an overwhelming ma
1ority.
The tangle Is most unfortunate
all around, for while Congress and
the Administration held stubbornly
to their positions the taxpayer has
been deprived of an opportunity to
get on pay as you know" basis.
quarter of a year has gone by
and there is talk Of withholding
tax on July l. and yet the citizen
doesn't know what he must provide
for in the way of tax payments in
the present year. This is a sad re-
hection on Administration leader
ship.
Acid Test for Treasury.
Clinglng to social reform theories,
repeatedly arguing about so-called
vlndfalls to rich taxpayers, the Ad-
ninistration has failed to persuade
majority of Congress that it has
any better method than the Ruml
plan to effect the pay-as-you-go
basis.
The acid test of whether the
Treasury really wants to put the
country on a ay-as-you-go plan
has been furnished in the way the
Administration Democrats helped to
vote down proposal recently Of
fered in the House whereby the tax
payers would be put on a current
basis for 1913 and yet the payment
Of their 1912 taxes would be spread
over a period of years.
The proposal was not, of course,
clear-cut because it allowed tax
rayers with incomes under $4,000 to
have their taxes Cancelled, but this
could have been amended-if the
Treasury had been willing to agree
to the idea Of spreading 1912 pay
r1entS-so that nobody had any of
the 1912 payment Cancelled.
The Dewey Doughton plan pub
hshed widely as a possible compro-
mise the other day would provide for
something of the same kind. In
stead. however, of one and one
twentieth of the taxes due for 1912
and l943 as suggested in these
columns. the Dewey-Doughton idea
IS to make the taxpayer pay in one
year approximately one and one
third of the taxes of both 1912 and
l943. This was to be accompanied
by the assurance of Congress or the
Treasury, or both, that there would
be no further increases In taxes
during the next three years.
Longer Spread More Feasible.
It Is. as a practical matter, i'm
possible for one Congress to bind its
successor, so the spreading of the
payments for 1912 over a period of
more than three years-possibly five
or even 10 years-is a much more
feasible program. But the important
thing to be borne in mind Is that
all the tax plans except the Ruml
plan tend more and more toward a
doubling up of taxes to be paid
during 1943.
One suggestion which the Re-
publican and Democratic members
OF the Ways and Means Committee
are considering is that 1912 taxes be
abated so per cent for everybody, but
this would still mean that the other
half OF 1912 taxes would have to be
paid along with the regular years
payment during 1943 unless some in
stallment arrangement was allowed.
If the period for paying 1912 taxes
were spread to 10 or even Is years,
graduated discount could be allowed
20 that anybody who anticipated the
maturity date by full payment would
make a saving. The disadvantage
here is that those with ready cash
would benefit, as against those with
out it. That is why the Ruml plan
is being pushed by It's advocates as
q practical way of achieving pay-as-
you-go without involving double
payments in whole or in part for any
taxpayer,
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