Evening star., 1943-03-19
Proposed Tax Bill
Favors Rich Man,
House Is Told
Ways and Means Plan
. Termed 'Monstrosity'
BY Mortin
3 he Assnclattd Pre-

b he Associated Prca,
The income tax collection bill sub
rlltted to the House by the Wavs
and Means Committee. which make.
pay-as-you-eo optional for each tax
payer. was described on the f9or to-
day by Representative Allen. Re-
publican, Of Illinois as a rich mans
bill
1t provides no abatement or con-
'cesslon on taxes for 1912" he said
1T provides that if taxpayer de-
slres to get on current basis By
paying both 1912 and 1943 taxes dur
ing 1943 he is rewarded by being
given varying per cent discount &C.
pending upon the time of payment
Mr.. Allen Contended the Ruml
pay-as-you-go plan. which would
skip an entire tax year. would rot be
of principal interest to the wealthy.
The committee bill provides no tax
abatement. but creates a system of
discounts up to s per cent on 1913
taxes paid within the current year.
'after 1912 taxes have been remitted
an full. as a means OF encouraging
taxpayers to so on a current tasls.
VIII Allow Amendments.
} The position of the mass of our
people," Mr.. Allen said, is that they
Want TO get on a pay-as-you-eo
basis, but it is financially impossi-
9ble for them to maintain their FAM
illes and pay two years taxes in one
IF citizen has sufficient money
70 take advantage of the Ways and
Means Committee tax bill induce
ment Of discount. one must have
SUFFICIENT money to take care of both
years without discount"
The Ways and Means Committee
decided unanimously that in House
consideration of the tax bill. the
measure should be open for the
presentation Of amendments which
probably will bring separate votes
on various compromise proposals.
The Ruml plan and the various
compromises were voted down in
committee several DAYS ago.
Will File Minority Report
Representa- tive Knutson told re-
porters that Republican supporters
Of the Ruml plan would file a mi
nority report against the committee
bill which has been termed "A mon
stroslty" by Republican Leader
Martin
The search for middle course
vas begun by some members un-
willing to join either Republican
leaders in support of the Ruml plan
TO skip full tax year or the
Democrats who oppose it.
House Republicans met yester-
day to muster strength behind the
full abatement plan, and Repre-
sentative Knutson, Republican. of
Minnesota predicted afterward that
with the help of some Democrats
they would pass it.
Some Republicans speculated that
200 of their 209 members would
back the Ruml plan. The Demo-
Gratis have 222 House seats.
Both the committee and Ruml-
plan bills would impose a &c per
cent withholding tax against the
taxable portions of wages and SAL
aries.
Debate Starts Thursday.
The possible compromise most dis
cussed was that offered in COM
mlttee by representative Rob-
ertson, Democrat, of Virginia which
would abate the 6 per cent normal
and Is per cent first bracket suItax
on 1912 incomes.
This would erase the 1912 obliea-
ton completely for more than 70
per cent OF the taxpayers A 20
per cent withholding levy would be
applied, with small income groups.
comprising about 80 per cent of all
taxpayers, being put on a pay-ss-
vou-go basis and those with large
incomes continuing to pay as usual
each March Is on the basis Of the
previous years income.
Speaker Rayburn has tentatively
set next Thursday for the opening
of debate.
: Mr.. KnutSon described the Re
publican conference. held in the
House chamber. as the most har-
monlous I've attended in 27 wears"
He said the vast ma iority were for
the modified Ruml proposal as en-
braced in the bill by Representative
Carlson, Republican. of Kansas. He
told newspapermen that virtually all
the Democratic members from one
Southern State. which he did not
name, were ready to vote for it.
Martin Issues Statement.
No votes were taken at the con-
ference and the members were not
bound to support any pay-as-you-go
plan.
Mr. Martin issued a formal state
ment saying
The Republicans, Of course, are
In the minority in Congress. They
can and will present what they be-
lleve is constructive contribution
TO the solution OF our tax difficulties
To be successful, they must have
some Democratic support and we
hope this can be secured
He asserted over 44000O0O tax
payers want the Ruml- Carlson plan
and that adoption Of a tax policy
on pay-as-you-g basis must be
done eventually for the good Of
everyone and there Is no good rea-