The Wilmington morning star., 1944-03-18
New Tax Plan
By Committee
RETURNS ELIMINATED
Filing Is Done Away With
For About 100000
Persons In u. S.

WASHINGTON, March 17.-tRE
Responding to a national outcry
.eainst the recent siege of decima
filters, the House Ways and Mean!
committee approved today a far
reaching plan to simplify the ta1
.tatutes, relieving some 10000, 00t
If the 100000 taxpayers of thu
necessity of ever computing an
other income tax return.
Beginning next January 1, if thu
bill is enacted the present with
holding system against wages ane
salaries will be revised to deduc'
the full tax liability for person.
earning up to $4,000.
There will be no change II
amounts held out of pay envelope.
and salary checks this year, bu
the government itself will compute
tbe taxes on 1914 income for those
with wages and salaries under S..
900.
The victory tax is abolished ano
broad changes are made in the
normal and surtax exemptions and
rates, with new normal rate Of
3 percent (present normal 6 pei
cent? to apply to all persons max
ing over S55. Some 10000 new
taxpayers will be added.
Congressional tax experts ex
planned that under the new norma.
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
dependents, just as the 3 per cent
victory tax now is levied against
persons making over 1924 regard
less of family status.
The $4,000 new taxpayers woule
be picked up from persons earning
between S55 and 1924.
However, Ways and Means chair.
man Doughton said there would be
no substantial change in the bur
den on any taxpayer, declaring
nobody will be hurt much or help
ed much as to the actual amount
Of their taxes.
Some 100000 now paying vic
tory taxes but with earnings no
sufficiently large to come under
the present income levies will be
come regular income taxpayers
paying rates about equivalent tt
their present victory tax burdens
Doughton said.
OF the 2O,0ou, 900 who still mus
file returns, the committee sale
10000, 900 can use a simple taa
table which will show their entire
tax, and the remaining 10000, 00t
will fill out returns in more detail
but will be provided a simpler re
turn than the present long form
If any taxpayer in the class I'm
der $4,000 wishes TO claim large
deductions than those computed
under the new Withholding taxes
he may file a return each Marcl
ID, as he now does and pay tn
same tax as he is liable for unde
the current statutes.
The new plan will provide
real shortcut for about 30 millio
wage and salary earners," a fol
NAL statement said.
All those earning UP to $500
and receiving not more than $40
from sources not subject to with
holding will be permitted to fill
copy of a withholding receip
furnished by the employer, in plac
Of the regular return. These ta1
payers will list their dependents o
the reverse side of this receir
and enter the amount of "othe
income,' if any.
They will then sign the receir
and mail it to the local tax CO
lector, without any payment. Tn
collector will calculate the tax an
where necessary will either bill tn
taxpayer for additional payment Q
Issue refund check.
The 20 million persons who Wi
continue to file regular returns wi
also benefit from simplification.
their income from all sources is nj
over $1,000 and their deduction
are not over 10 per cent of income
lhey can use the simple one-pag
tax table to determine their ta1
Even for the taxpayers who cannc
use the tax table, the new forr
Will be simpler than the preser
long form"