Show TERMS TERMS' PLAN EYED ON INCOME TAXES House Unit Studies System of I IPa Pa Pay Deductions W WASHINGTON May 21 UP jp Remember those easy terms you used to have for buying merchandise You may be paying paying paying pay pay- ing your income tax that way before many months Randolph Paul treasury treasury- tax adviser adviser adviser ad ad- said Thursday that the house ways and means committee was now considering considering and and might get to a vote on it if Friday Friday a a treasury proposal to deduct each pay day a flat 10 per cent of that part of a mans man's income which is taxable The committee turned to its consideration consideration con con- of the you pay-as-you-go arrangement soon after completing ing its new individual tax program by raising the range of surtaxes from 77 6 per cent to 81 12 per cent Noting that proposed lower personal personal personal per per- income tax exemptions will require income tax payments from persons earning as little as 10 a week Paul said An income tax which covers as many as or people can not function effectively without collection collection collection tion at atthe the source The deductions would be a flat pent cent of all wages interest I or diVi x ov v r a a. scale cale of ex- ex i l. l written into to the thene ne nek ne tax income tax bill 1 In th the case of a single single- person person- the check off would be 10 per percent percent percent cent of his wages in excess of 11 per week as tax bill now stands The check off would start after a 26 per week income of married persons or 26 plus for each dependent of married per per- sons When the March 15 tax-paying tax Continued on Page Five Column Three YOU PAY-AS-YOU-GO TAX PLAN EYED Continued from Page PaJe One date rolled around the worker would make out an Income tax re return return return re- re turn the same as he does docs now However after figuring his tax he would deduct the amount of tax I that has already been paid for him by his employer and pay the difference difference dif dif- ference if any In some cases the tax might turn out to be less than he had already paid and refunds would be provided for such uch cases In response to questions Paul I Isaid said that the treasury proposal would not exempt any classification tion of employers If adopted in this form the plan would require for instance housewives to deduct small tax amounts from the wages of many domestic servants Universal Um Requirement Farmers and other employers exempted from making similar de de- de I for social security also would be required to participate in m the new plan Paul indicated however that it was unlikely that the plan would be put into effect even though approved by congress for two or three months or later He declined to estimate how long it would take congress to enact the legislation but said it would take 30 to 60 days after congress finishes the legislation before the treasury could set up the necessary administrative administrative admin admin- machinery Low Incomes Stressed The committees committee's new income tax proposals would add an estimated estimated estimated esti esti- mated to the 5 55 now collected with heavy emphasis on incomes below below below be be- low The program would be based on exemptions for single persons persons persons per per- sons and 1200 for husbands and wives a normal tax of or 6 per cent instead of 4 and minimum surtax surtax surtax sur sur- sur- sur tax rates starting at double the present level of 6 per cent on the first 2000 of net income The committee rejecting a treasury suggestion decided to retain retain retain re re- tain the present 10 per cent earned credit up to in computing computing computing ing normal taxes only and also kept ept the present exemption for dependents Hits Slits New Group Thus the committee would bring into the income tax hold for the first time single persons earning as little as 10 a week would increase the average 10 a j year ear congressman's congressman s tax from 1200 to about 2000 and would increase the tax of a 50 year a man from about 20 to There was no indication of just how low many people would be added to the who now pay income income in income in- in come taxes by the committees committee's exemptions Committee members said there had lad been no serious discussion of President Roosevelt's Roosevelt s recent suggestion suggestion suggestion sug sug- that individual incomes be beheld beheld held to a year after payment payment payment pay pay- ment of taxes although the new rates would mean that a man would have to earn more than a year before he would have that amount left Corporation Taxes As in the case of the treasury's recommendations for 00 in new corporation taxes taxes- the he committee approved only 2 the members made madea a sizable cut in Secretary Mor- Mor revised request for 3 in additional re nue from individuals Actually however considering treasury estimates on the yield from rom a committee-approved committee re requirement requirement re- re requirement that married couples file joint returns the government would pick up more than from individuals Treasury tax experts have explained ex- ex explained lamed in this manner the so- so called salary withhold tax as a means of collecting income taxes on a a you pay basis Take a man who earns a month and who has a wife and andone andone andone one child He would have dependent dependent dependent dent exemptions of 1600 To that would be added 10 per cent of 1600 as an average for other reductions or a total of 1760 This his would mean exemptions of 66 a month His estimated net taxable income would then be 53 44 a month A maximum 10 per er cent collection would be made on that base base 5 33 a month Those monthly payments would be credited credited cred- cred ted as part payment of taxes when individual returns are filed on March 15 |