Evening star., 1944-03-18
Speedy Enactment
Of SimpIified Tax
Measure Predicted
Would End Returns by
10000, 900 Persons
Moking Under S., 900

By the Associated Press.
Swift enactment was predicted
today for a new "streamliner"
tax bill which would free ap-
proximately 30,000,000 persons
earning less than $1,000 annually
from the filing of income tax re-
turns, while making few changes
in individual tax burdens.
Beginning next January /. under
the plan, the present withholding
system against wages and salaries
would be revised to deduct the full
tax liability for persons earning up
to 5000.
There would be no change in
amounts held out OF pay envelopes
and salary cheeks this year, but the
Government itself would compute
the taxes on 1914 income for those
with wages and salaries under 1000.
Chairman Doughton of the House
Ways and Means Committee and
Representatives Carlson, Repub-
lican, of Kansas and Robertson,
Democrat, of Virginia, committee
members, described the bill as "a
wonderful job" and Chairman
George of the Senate Finance Com
mittee said the Senate would act
within 10 days after the measure
comes from the House"
No Substantial Changes.
Mr.. Doughton said the bill made
no substantial changes in present
burdens for taxpayers-that nobody
will be hurt much or helped much, !"
as to the size of their tax liability.
However, some taxpayers, notably
married persons without children
would pay more, while couples with
more than one child would pay a
little less.
For instance, a man with wife
and two children now has an ex-
emption of 81 200 and two $3.50 ex-
emptions, or a total of 81 900. Under
the new exemption schedule for sur
taxes each member of the family
gets $500, or in this case $4,000.
Thus, some experts called the in
crease "a baby bonus bill"-the more
the children the larger the margin
OF increased exemption.
1t was estimated the bill would
bring in some 10000 new taxpayers,
whose incomes are between $555 and
1924 annually, and that the effect
OF the new exemptions and rates
would be to funnel about $40 0,0OO, 900
more annually into the Treasury.
April Is Returns Still Stand.
The bill makes no change in the
requirement that tax estimates and
partial payments be made by this
April is on 1914 income.
If it becomes law, this is about
what the bill would do:
l. Beginning January l, the pres
ent 20 per cent withholding system
against wages and salaries would be
revised to deduct the full tax LA
blllty for persons earning up to
$4,000, numbering approximately
100000
2. There would be no change in
amounts held out of pay envelopes
and salary checks this year. and the
Government itself would compute
the taxes on 1914 income for those
With wages and salaries under
$4,000. The taxpayer, after the year
ends, simply would mail to the COL
lector of internal revenue a copv
of a Withholding receipt, furnished
by the employer, in place of the reg
ular return, after writing on the
back of the receipt the number of
dependents and income other than
wages and salary, if any.
The collector then would calculate
at the actual tax and bill the tax
payer for an additional amount or
issue refund check.
Drops Victory Tax.
g. The Victory tax would be abol-
ished and broad changes made in
the normal and surtax exemptions
and rates, with a new normal rate
of per cent (present normal per
cent? to apply to all persons making
over $555.
congressional tax experts eX-
planned that under the new normal
tax the exemption for any person
with income over $500 WOULD be
only $500 plus 10 per cent of This
income, regardless of whether he is
married or the number of his de-
pendents, just as the per cent
Victory tax now is levied against
persons making over 1924 regardless
of family status.
Some 100000 now paying Victory
taxes, but with earnings not sufi-
(See TAXES, Page A-2)