Evening star., 1947-06-18
Four Plans Offered
10 EquaIize Taxes
On Married Couples
BY ths Asseeiossd Press

BY The Assoeiofsd Press
The Treasury today handed
Congress some tax revision ideas
to think over until what Presi-
dent Truman calls the right
time" for changing the revenue
laws arrives.
Specifically Withholding recon-
mendatiors of its own, the Treasury
turned over to the House Ways and
Means Committee studies OF four
plans to equalize Federal income
taxes on married couples In all 48
States.
Three of the four plans would in
crease taxes by as much as $997, ,700,-
900 for as many as 1,400 900 couples
and 1900, 900 single persons.
The other would save 1900 900
couples $743, 500, 900 by giving those
living In SO States the same income
splitting" rights now enjoyed by
couples living in the 10 States which
have community property laws.
Offered as "FactuaI Findings"
The Treasury avoided indorsing
any Of the plans, describing its &C.
page report on them as "factual
findings" but Secretary Snyder, In
earlier testimony before the COM
mittee, has indicated that the ad-
ministration considers the plans to
be among the right kinds" of
changes in the tax setup.
The Ways and Means Committee
is studying possible general revision
of the tax structure at some future
date. It's investigation was under
way even before President Truman
vetoed the tax bill.
The Treasury report said the
present income tax law "discrimi-
mates" between families by favor
ing those with income from invest
ments over those with earned in
come as well as by favoring COM
nunity property State residents over
others. Persons with investment
income have the right to split It'll
among members of their families.
Savings at Different Levels.
Some 1,4OO, 900 couples with COM
bined net incomes starting at $4,000
save taxes as a result of this dis
elimination, 1t added -Four -fifths
of them save under $38, but the
saving rises to S342 at $4,000 net
income and $12,854 at the 100000
level
That saving comes about because
the percentage of tax commences
to increase at $4,000 of taxable in
come (after exemptions and deduc-
tions). Couples who can split their
income each pay on half of it. but
the half-income gets by at lower
tax percentage.
The Treasury's four plans for
equalization:
/. Require all couples, including
those in community property States,
to pool their income in one return,
thus eliminating any saving through
income splitting. This would add
s542,00o,00o taxes on 100000
couples.
2. Tax all earned income to the
Garner, and all community property
income to the husband or wife ex-
ercising management and control
of the property. This would add
$82, 100000 taxes on 100000 couples
in community property States.
Would Eliminate Advantage.
3. A "dual-rate-se schedule plan
which would eliminate the tax ad-
vantage of filing separate returns
to get the benefit of lower percent
ages of tax. 1t would keep the same
surtax percentages, but make them
apply on income brackets so per
cent lower than now. This plan
would be costly also to single tax
payers.
1t would add $1,00o,00o taxes on
100000 couples who now benefit
by filing separate returns and 7,200,-
600 single persons with surtax net
incomes over $1,000, which means
those with gross income of about
$3.50 and over.
4. The split-income plan. which
would simply let married couples in
all States divide their combined
incomes for tax purposes instead of
restricting that right to community
property States.
This one, the Treasury said would
benefit couples in community prop
erty States as we'll as others because
some couples have unequal amounts
of separate income of non-com-
status which they cannot
now split.