Axis Belt Pierced (Parker) – 2-3
A Withholding Tax of 10% is Proposed by the Treasury (MacCormac) – 4-5
War News Summarized – 4
Foe Loses Warship and 2 Freighters – 5
Community Heads Favor Sales Tax (Gallup) – 5
Willow Run Plant a Wonder of War (by Sidney M. Shalett, first-time contributor) – 6-7
The War at Sea-II (Baldwin) – 9
Phone Ban Caused by Goering Speech (Axelsson) – 9
The Texts of the Day’s Communiques on Fighting in Various Zones – 10-11
http://www.onwar.com/chrono/1942/may42/f22may42.htm
US expands draft by 3.1 million
Friday, May 22, 1942 www.onwar.com
In Washington... President Roosevelt orders the Selective Service registration of all male Americans residents who reach the age of 18 or 19 before June 30th or has reached the age of 20 since December 31, 1941. This fifth registration will generate 3.1 million new names. The same day he warns against a flood of optimism (in the wake of the Doolittle Raid of April 18th) and says it will be a long war.
http://en.wikipedia.org/wiki/Randolph_E._Paul
First as special assistant to the Secretary for the Tax Division, and later as the Department’s General Counsel, Acting Secretary of the Treasury for Foreign Funds Control, and the Roosevelt Administration’s chief spokesperson on tax matters on Capitol Hill, Paul convinced Morgenthau to embrace Keynesian principles and to consider taxation as a vehicle for social progress.
To this end, Paul was instrumental in defeating attempts to enact a regressive national sales tax and in transforming the federal income tax into the broad-based revenue source and tool of fiscal policy that exists today. The Government’s existing income tax system – in which taxpayers need not pay their tax bill for one year until the next, when the value of the dollar had fallen – exacerbated the problem. The confluence of these events required an exceptional solution, which the Paul-written Revenue Act of 1942 addressed. Paul is credited with modernizing the Internal Revenue Code and persuading Congress to enact the payroll withholding tax.
http://en.wikipedia.org/wiki/Beardsley_Ruml
In the summer of 1942 Ruml proposed that the U.S. Treasury start collecting income taxes through a withholding, pay-as-you-go, system. He proposed an abatement on the previous year’s taxes, making up the revenue by immediately collecting on the current year’s taxes. In 1943 Congress adopted the withholding system.