The Wilmington morning star., 1944-03-01
By S. BURTON HEATH
NEA Staff CorresnonHar.

is to propose that Congress t this
year simplify the personal ipoo |niS
tax system so that there shall has
Cd Only one tax base:
90 Only one tax On that baso
a progressive tax on the s, u@se.
principle; '"''a&
90 No estimates or tax ro.,
required from persons whos ss0inS
come is entirely from sa1 III
wages or other payment for a' ao
sonal services. per-
These proposals involve M r
or radical departure, in Go new
from proven practices or fron,
proposals which have been MN oIi
by accepted experts on income '4 4os
theory and administration VA
The new thing about them !,
that they bring together, into a. or ~
plan, various practices and n ve
posals which, thus coordinat.S
would make income tax comnris'
ton and payment really simnla
and understandable by laymen
These proposals would make n.
pay-as-you-earn principle 100 NOV
cent effective for those who work
for wages or salaries.
A number Of detailed specific..
lions necessary to put this plan
into effect have been advoca+aJ
by members OF the WAYS and
Means Committee, or by Treasury
Department experts, or by both
Others are under consideration bv
the Commute and its experts
The purpose Of this and succeed.
ing articles is not only to propose
that the income tax structure be
really sinplified, but to demon.
strate that it can be done and 10
outline a way to do it.
Members Of Congr ess and
Treasury officials are acutelv
aware of the wave of public irri.
tation about onerous tax collection
methods now in vogue. They would
like to improve the system. But
some of them. at least, are wor.
ried about the clamor that they
think will arise from various pres.
sure groups the moment any real.
ly effective simplification is pro.
posed.
Therefore present thought leans
toward looping off a few of the
most troublesome complexities
without improving the system bas.
ically.
If the public really is as angry
about the present system as it
seems to be, then the public itself
can become a super pressure
group to force Congress, before
the fall elections, to sweep the
complicated existing structure out
of the window and substitute a
new simple, workable one in its
place.
For that new system I propose:
Cd That the surtax net income,
the normal tax net income and
the Victory Tax net income be
abolished, and that for them there
be substituted one net income
Taxable Net Income.
ca That the surtax, which be.
lies it's name by applying to in
come too small for normal tax,
be abolished; and also the normal
tax, which now really is flat
rate surtax; and the Victory Tax,
which is computed at one rate and
then reduced to another rate.
That for these there be substi-
tuted one tax, graduated accord
ing to the size of the taxable IN
come.
90 That the income tax on sal
aries, wages, etc., be withheld on
a graduated scale, SO that every
taxpayer, reg az les S of the
amount of his salary, always shall
be completely current as to his
taxes on personal service earn
ings.
az That small amount Of in
come from interest and dividends
Il suggest $25 but some experts
say as much as $100-be exempted
from income tax in every case
where this is the only income not
subject to withholding tax.
(5) That for all persons who
have no income except wages or
salaries Con which the tax has
been withheld) and the allowable
maximum of interest and dlVl'
dends, the income tax shall be
considered to nave been paid in
full, and no tax estimate or tax
return shall be required.
co. That for persons who DO
have other income, including those
drawing more than one salary ST.
multaneous1y, simple return
similar to that which l shall offer
in a later article, be required.
These proposals apply exclusive
ly to persons whose income IS
principally m salaries OF
wages. For persons in business OF
professions, and for those VINO
have income or losses from the
sale or exchange of property, m
Guiding securities. more conlpH-
Gated returns will be necessary,
But even these would benelll
from the provisions for one tax
base, one graduated tax rate ana
simplification of return forms ---