Evening star., 1931-12-18
Virginians Face Third As
sesSment on Incomes and
NJ MaryIanders Second
Charge on lntangibIes.
INTEREST ON HOME LOANS
is NOT TO BE EXEMPTED
Civic Organizations in Neighboring
Communities and Congressional
Delegations Representing Them
Muster Forces to Defeat Measure
in Senate.

Discovery of a clause in the in
come tax bill for the District as
passed by the House, which would
attempt to impose the tax on
non-residents whose income is
earned in Washington, today
stirred civic organizations IN
nearby Maryland and Virginia
into action in preparation for a
vigorous fight against the measure
in the Senate.
Hundreds of employees in the
District in Federal as we'll as pri-
vate offices who live in surround
ing Maryland and Virginia COM
munltleS would be affected by the
bill. Belief also was expressed
that the measure would serve as a
boomerang to Congress, whose
members also would be subjected
to the tax like other non-reSi-
dents.
Another feature of the bill.
characterized as astounding" is
a provision forbidding deductions
from gross income on account of
interest paid on home purchase
loans. Such exemption, of course,
is provided in the Federal income
tax laws.
tVirginians Hardest Hit.
Residents of Virginia in private en-
ployment in the District would be hard
tIn
vision, since they are now taxed on
their incomes by both Virginia and the
Federal Government. Federal workers
living IN Virginia are exempt from the
State income tax, but the District tax
bill treats Federal and private employees
alike. In effect, the bill would result
in the impositioneGf triple tax on the
income Of Virginfans working in private
establishments in the District, as they
are now paying a Federal and State
income tax
Maryland has no State income tax,
but its residents who work in the Dis
tr1ct would pay double tax-as Mary
land taxes intangible personal property
like the District. The residents of the
District are to be relieved of the in
tangible tax if the income tax law is
enacted.
Bills proposing an income tax and an
estate tax reached the Senate today
and will be sent to the Finance Com
lnittee which handles Federal taxation
problems. The other two bills, raising
the gas tax from 2 to cents and plac-
ing tax on automobiles by weight,
were referred today to the Senate Dis
trict Committee.
Aside from the impending fight
against the tax bill in the Senate by
civic organizations in nearby Mary
land and Virginia, members of the
state delegations from these two States
also are planning to develop opposition
10 the measure, now that they have
discovered the far-reaching effect it
Will nave on their constituents.
Swanson Against Bill.
None of the members of the Senate
and House from either Maryland or
virginia was familiar with the proVi-
slons OF the tax bill at the time of its
passage by the House. Senator Swan
son, however, said he was bitterly op-
posed to any provision that would put
an additional tax burden on residents
OF virginia, and announced he would
make a thorough study of the measure
before action is taken on it by the
Senate.
Representative Howard w. Smith.
VINO represents the eighth Virginia dis
trict. which includes Arlington and
FAIRFAX Counties, declared he was in
the House at the time the vote was
taken on the tax bill, but was un-
aware that it contained a clause that
would impose an added tax on his con-
stltuents. Mr.. Smith said he voted
against the bill, not because he is op-
posed 10 an income tax law for the Dis
trlct, but because he had not had an
opportunity to consider the measure.
The tax bill, Mr.. Smith pointed ont
was rushed through the House and was
not even accorded the usual procedure
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