Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-06-08
|NW|TNESSESDUE
| ON D. c. INCOME TAX
Hearings on Mapes Measure
Resumed Today After
Kean Attack.

With score Of witnesses to be heard,
the Senate District Committee this
afternoon resumed public hearings OIL
the Mapes bill providing an income tax
for the District as substitute for the
present tax on intangible personal
property.
At the initial hearing yesterday after
noon Senator Kean of New Jersey ques-
toned the wisdom of adopting an in
come tax law at this time in view Of eX-
1sting economic conditions.
Senator Kean pointed out that in
formation furnished by experts indi-
Gates the income of the people of the
United States this year will be far be-
low the 1881 income. 1T seems to be
that under those circumstances" he
said. you won't get much out of an
income tax"
Average Salaries Shown.
Senator Kean made his statement
after Thomas F. Murphy, assistant chief
OF the United States Bureau of Eff
cheney, had explained the estimated
amount Of revenue the tax was expected
to yield.
Statistics based on an analysis Of the
source of individual incomes reported
by returns filed by residents of the Dis
trict from 1925 to 1929. inclusive, were
cited by Murphy to show that the to-
tai average salaries for that flve-year
period amounted to s245.378 OCT, and
that the net. after allowing deductions,
comes in the District for the next
two or three years, however, are more
or less a matter of conjecture.
my thought Is" interposed Senator
Kean, that conditions throughout the
United States are not any too favorable
for the introduction Of an income tax"
In response to questions by Senator
Capper, chairman of the committee,
Murphy said he believed an income tax
would be more equitable than the
present tax on intangibles. He also de-
clared the objections to the proposed
income tax raised by the Federation of
Citizens Associations. were not well
founded.
Action Regarded As Unwise.
The federation had sent to the COM
mittee a copy of a resolution adopted
at recent meeting opposing the income
tax. chiefly on the ground that 1t would
be unwise to attempt to introduce such
a tax at this time because the amount
that it would yield is uncertain.
Murphy pointed out that the Eff
cheney Bureau, after its exhaustive
study of the Mapes bill. had recon-
mended a modified scale Of rates fixed
at per cent on the first $4,000 Of
net income above the exemption: 2 per
cent on the net income between $4,000
and $4,000; 3 per cent on the net in
come between 5000 and $4,000, and
4 per cent on the net income over
$4,000 The bureau. he said. also sug-
gested certain changes designed to
make the law more equitable and to
facilitate administration of the tax.
Records of the tax assessors office
show that the Intangible tax will yield
approximately S2547,0 900 for the cur
rent fiscal year ending June 80. Muir
ply said, and officials of the District
government anticipate drop in rev.
enues for the 1888 fiscal year from
this tax, If continued, Of between $780,
in the tax system, he declared. 1t is
estimated that an income tax at the
rates suggested by the bureau, would
yield for 1888 approximately the same
revenues as might be expected from the
intangible tax.
Favor Proposed Tax.
Tax Assessor William P. Richards,
and c. A. Russell. deputy tax assessor,
were among the other witnesses. Both
favored the proposed income tax.
Mr.. Richards also pointed out that
his office collects about 10 per cent Of
the amount of taxable intangibles. a
larger percentage than most OF the
States having a tax on intangibles.
Chairman Capper commended the
record.