Evening star., 1944-01-24
Drastic Simp|ification
OF Income Tax Laws
Proposed by Carlson
By the Associated Press.

By the Associated Press.
Drastic simplification of the
income tax laws was proposed
today by Representative Carlson
Republican, OF Kansas. He sug-
|gested a plan which would:
/. Provide for only one tax or
personal incomes, with a single base
and single set of rates and ex-
emptions, through merger OF the
Victory tax with the regular income
tax.
2. Eliminate the necessity of filing
returns In the case of persons whose
tax liability is substantially with
held at the source, but permit re-
turns to be filed at the taxpayers
option. (This would affect 1000, ,00C
OF the approximately $4,000, 900 tax
payers and in general cover those
who are not now required to file
declaration of estimated taxi
3. Permit use Of the short form OF
return by taxpayers with up tc
S., 900 gross income. present limit
is $4,000
4. Strip down both the short and
long form of return
S. Give taxpayers until January
IS following the close of the taxable
year in which to file an amended
declaration of their estimated tax
and thereby avoid penalty for any
underestimate" Mr.. Carlson said
this will eliminate the guessing
contest In the present law which has
resulted in so much irritation and
confusion"
Put Married Exemption at $1,100.
Removed from further tax obliga-
ton would be those small taxpayers
now subject to the Victory tax but
whose earnings are not enough to
come within the regular income tax
levies.
THE elimination of the Victory
tax through merger with the regular
income tax" Mr.. Carlson said. "re-
quires the increase OF the existing
surtax rates by approximately 8
points in each bracket, in order to
preserve relatively the same total
burden as at present.
For the same reason, it is neces-
sary to fix the married exemption at
$1,100, as compared with the present
1924 exemption under the Victory
tax and the $1,000 exemption under
the regular income tax. The $500
exemption for single persons and the
$3.50 exemption for each dependent
would not be changed under my bill.
While the elimination of the Vic
tory tax, with its extremely low
exemption for married persons and
heads of families, will free a large
number OF small taxpayers from tax,
there is no way to really simplify the
law and the returns without taking
this step.
Mistake to Tax 1924 Income.
II believe it was a mistake, in the
first place, to have levied an income
tax on a married man with a gross
income Of as little as 1924 a year
From the revenue standpoint, the
total tax paid by this group was
not very large percentage Of the
total, being only 100000, 900 of the
total personal income tax burden
Of $1,000. 900, 900.
This potential loss Of revenue
would be Offset in part by the reduc-
ton Of the married exemption un-
der the regular income tax to $1,l0C
and the remainder by readjustments
In the surtax rates"
In order to have a single tax base
to which both the normal and sur
tax would apply, Mr.. Carlson said
1t is necessary to abandon the. So
called earned income credit provided
by existing law. The pending So
600 900, ,000-plus revenue bill contains
provision for repeal of this credit.
Mr.. Carlson proposes a single rate
schedule, rather than the present
normal tax-surtax combination.
His simplification measure would
make no change in the present 20
per cent withholding against wages
and salaries, although he said some
adjustment may be necessary or de-
sirable in any final legislation deal
ing with income tax readjustments,
so as to eliminate overwithholding
or underwithholding"