Evening star. [volume] (Washington, D.C.) 1854-1972, 1943-04-22
The Political Mill
Democratic Majority on House Committee
Will Probably Write New Income Tax Bill

3W income IoX Dill
go to the Senate, where 1t may
be accepted or rewritten.
The Doughton proposal in the
recent conferences included a 10
per cent deduction If the 1912
tax were paid In full in one year
this year-and per cent de-
duction If it were paid in two
years. To the Republicans this
looked much like favoritism to
those who have money enough to
make the early payments-in
other words, to the wealthy.
There was also included a pro-
posal to freeze" income tax
rates at their present level for
the duration of the war-that Is,
they were not to go higher.
Many Delinquencies Feared.
Members of the committee
have become gravely concerned
over reports that the number Of
delinquent income taxpayers is
very large. They intend to call
on the Treasury Department for
the figures. One of the reasons
for getting to a "pay-as-you-go"
tax collection system, with COL
lection at the source, is to pre-
vent that delinquency. 1t has
been estimated roughly that
unless these twin undertakings
are carried out, the Government
may lose a billion dollars in
revenue this year.
A great deal has been said and
written about the Governments
losing a years taxes If the Ruml
plan were adopted. AS a matter
of fact, the taxpayer would pay
this year to the Government as
much or more taxes under the
Ruml plan. He would make no
gain whatever, until he died, and
then his widow or his children
would not have to pay a years
tax on the previous years income
as would be the case under
existing law. If large sums are
involved, even then the Govern
ment would get the money, or a
considerable part OF it, in in
heritance taxes.
The Committee for Constitu-
tional Government, Inc, Of New
York has distributed letter en-
titled THE Parable Of Uncle and
His Allowance directed to the
row over the income tax and the
Ruml plan. 1t goes in part as
follows:
There once was an old gentle
man who had a great many de-
voted nephews, and the more
prosperous made their uncle an
allowance. Soon after January l
every year, each we'll to-do neph-
ew figured up how much money
he had made during the previous
year and paid his uncle a cretain
percentage.
Allowance Increased.
The uncle got into various
kinds of trouble, and practically
all of the nephews had to chip in
to increase the allowance. When
it got to the point where the al
1owance took about a quarter of
the total incomes of all the
nephews, the nephews got nerv-
Gus because they were always a
year behind with the payments,
and these might be out of line
with their incomes at the time
the payments were made. So
they went to their uncle and said:
Uncle, we are fond of you and
don't begrudge you this big share
of our money, but we would like
to figure 1t on the basis of this
years income instead of last
years
"'Oh, no. said the uncle, so
you want me to forgive a whole
years payment?'
No, uncle, we don't think we
have done anything that needs
forgiveness. We intend to 20
right on paying you your allow
ance, without interruption, but
it seems sensible to us that our
payments should go up and down
with our income, and not stay up
for year after our incomes have
gone down, or vice versa"
There is more, but that gives
the gist of the parable. 1t should
be considered by the legislators.