Evening star., 1943-01-09
Three Senators Back
Withholding Method
OF Collecting Taxes
Poy-os-Y -You-Go System
Receives RooseveIt's
Qualified Endorsement
Py the Associated Press.

| Ry the Associated Press.
Wider collection of taxes at the
source of income was advocated
by congressional leaders today to
implement a pay-as-you-go plan
given the qualified Endorsement
OF President Roosevelt.
Three ranking members of the
Senate Finance Chair
man George and Senator La Fol-
lette, Progressive, Of Washington,
senior minority member. and Van
denberg, of Michigan, senior Repub-
lican member-proposed in separate
interviews that the Withholding
method employed to collect the S
per cent Victory tax be extended to
the regular income levy.
All three have favored modified
versions Of the plan advanced by
Beardsley Rlml, New York mer-
chant and banker, to put income
tax collections on current basis
by excusing or postponing the pay
ment of one years levels. All three
said, however, that any such sys-
tenn must be carried out by requir-
ing periodic payments throughout
the year through deductions from
pay checks and other similar
methods.
Senator George said he believed 1t
would be absolutely necessary, not
only from the standpoint Of the tax
payer, but from that Of the Gov
ernment, to collect taxes currently
and in periodic installments.
Delinquencies Feared.
Otherwise, he said, there would
be great many delinquencies when
the war boom ended and citizens
were faced with the necessity of
paying heavy taxes on their pre-
vious years large income in a period
when their pay had declined sharply.
I'VE will have to take a realistic
view and get on a pay as you earn
basis" he said. While this might
cause some eventual loss to the
Treasury when taxpayers died, he
added, current collections would re-
main the same.
Senator La Toilette foresaw "a
great disappointment" in the yield
of the tax laws If some version of
the Ruml plan were not adopted.
Senator Vandenberg said it Is
obvious the country is now in a
period of inflated economy, despite
all of the controls being exercised,
and predicted it will be followed by
a debated era after the war when
taxpayers by the millions will be
forced into delinquency.
1t should be made plain, he added,
that the ordinary taxpayer is not
going to get windfall if the Ruml
plan is adopted, since he would pay
the same amount as now, but on the
current years liability instead of
last years.
Ninety eight per cent Of the
people who are for the Ruml plan
think they are going to get some
dollars and cents relief on March
IS if it is adopted, but they are
not going to get any such thing"
he declared
President Roosevelt told his press
conference yesterday that every one
is in favor of pay as you go basis,
but he insisted that the Treasury
would be out of pocket unless some
arrangements were made to collect
the years taxes that otherwise
would be wiped out.
Meanwhile, there were reports
that the President would recommend
in his budget message next week
that Congress set a goal of raising
currently half of the money needed
to finance the Government expen-
ditures that are expected to reach
$100, ,00O, 100000 in the fiscal year be-
ginning next July /.
Some StatiSticianS have estimated
that the present tax laws might
raise $35, 900, ,00O, 900 in the next fiscal
year. This is 100000, 900 900 more
than previous official estimates OF
annual returns and is based on
Commerce Department forecast that
national income might 60 as high
as $135, 900 900, 900 annually.
Thus $4,000 100000 gap, to be
met either by increased taxes or
compulsory loans. would exist be-
tween receipts under the present
law and the proposed new goal. The
remaining $4,000, 900 900 would have
to be raised by voluntary purchases
of bonds and other securities.
The President was understood to
be planning only general financing
recommendations, leaving it up to
Congress to write its own tax ticket.