WASHINGTON -- President Roosevelt today signed the pay-as-you-go income tax bill providing for a 20 per cent withholding tax to start July 1 and forgiving from 75 to 100 per cent of a year's tax liability for all persons.
The bill is a compromise worked out by Congress after nearly five months of heated wrangling over various forgiveness proposals, including the highly controversial Ruml plan which was thrice rejected by the House by very narrow margins.
The new law applies its forgiveness features to liability for either 1942 or 1943, whichever is smaller, in order to avoid undue benefits to persons whose income has decreased sharply. It also contains various other anti-windfall provisions.
