The Ypsilanti Daily Press

Taxpayers May be Unable to Pay Otherwise

Washington, D. C., Dec. 2—INS—A congressional drive soon after Jan. 3, for enactment of separate legislation placing federal income taxes on a pay-as-you-go basis was forecast today.

Fearful that millions of taxpayers will not realize the heavy impact of the new revenue law and be unable to pay their taxes next March prompted members of the Senate Finance Committee to urge that swift action be taken.

Sen. Bennett C. Clark (D) Mo., chairman of a finance subcommittee which studied the Ruml pay-as-you-go plan, said that sentiment for the proposal is growing.

"There ought to be separate legislation enacted to put it into effect," he said. "I am sure that there will be great interest in the plan when the next tax bill is considered."

Lose One Year

Clark declared that Congress must forgive payment of one year's taxes in order to make the plan effective. Otherwise, he said, a burden of double taxation too big for 43,000,000 taxpayers to carry would be imposed.

The Treasury has opposed the Ruml plan because it would wipe out one year's taxes, while Sen. George (D) Ga., chairman of the Finance Committee, has suggested consideration of a postponement of the 1942 or 1943 taxes until after the war.

"I do not think that a postponement would be feasible," said Clark. "It would mean that you would run

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into the question of double taxation perhaps at a time when taxpayers are less able to pay than now

He might be able to work out a spread of death duties over two or three years

Would Get Most

Clark maintained that in the long run. the government would get most of the taxes even if the one year was forgiven.

One possibility of failure of congress to adopt the pay as you go plan. according to congressional experts. Is that huge amounts of war bonds will be cashed next year in order to enable persons to pay taxes

While the Treasury will begin collecting the 5 per cent victory tax on Jan. 1 from pay rolls. tax experts say that in most cases it will be far less than the tax liability of the individual. and thus is not a true pay-as-you go plan

Treasury experts are considering a new tax bill. estimated to range from six billions to 16 billions. but congressional leaders were informed that recommendations will not be ready before congress convenes early in January.