Evening star., 1933-02-13
Three Proposals Made.

LIiCI SuDCOIuulCCee mas WTltLen lllCO Tie
bill.
Three Proposals Made.
Representative Cannon -aid that
three proposals were made for setting
up special fund for relief work. He
argued that the only way to provide
that all the relief funds should be
borne by the local community and none
Of it taken from the Federal Treasury
was by setting up such special fund,
for If It was taken out Of the general
funds, he said, more than 20 per cent
Of 1t would be from the Federal contri-
button. He explained that an increase
In real estate taxes would bear heaviest
ON small home owners paying on in
stallment plan and that to put on the
wartime excess profits tax would re-
quire additional machinery. He told
the Rules Committee that the assessor
has informed the subcommittee that
only about Ito of all intangibles are
reached for taxation. Representative
O'Connor, Democrat, New York, said
that under such a situation the action
Is to penalize the few who are honest
enough to admit their intangible per-
sonal property holdings. Representa-
tive Cannon insisted that by granting
this rule is the only way In which the
requests Of the people and the Dlstrlct
Commissioners can be carried out.
Representative Wood, Republican,
Indiana, insisted that the provision OF
= the bill will penalize those who are
honest enough to report their tntang1-
bles, and will encourage the nine-tenthS
who do not to further hide intang1bles.
He insisted that If special tax Is
levied for relief funds, it should be gen.
eral, that they ought not to be levied
through legislative rider on an appro-
priation bill, and that the District al
ready has a surplus Of millions OF dol
lars from which emergency relief could
be drawn. He declared that 1t Is RI
diculous" to try to levy more taxes
than are necessary at time when
every effort is being bent toward re-
Neytng the already overburdened tax
payers.
Tax Would Yield $500,000.
Mr.. Wood said that Mr. Cannon had
told the full Committee on Appropria- |
tons that this tax would yield $780,
600, while District officials had esti- |
mated that it would yield $400, 900, to |
meet the $625,0o0 carried In the bill. |
Mr., Wood also declared that with an
extra session of Congress coming a |
study can be made by the District Legis- |
lattve Committee to determine II such |
an increase in the tax on intangibles |
Is needed.
Representative Blanton told the {
Rules Committee that the District Of |
ficials have been claiming that they |
needed surplus of $5,000,000 to meet |
emergencies and that last year for the |
first time surplus was wiped out.
Representative O'Connor, Democrat, |
Of New York, questioned whether the |
District Legislative Committee had had |
this question referred to them. This |
question was answered by Represent
ative Smith, Democrat, of Maryland, |
member Of the Legislative Committee, |
who declared that the whole principle |
Of bringing the question before the |
Rules Committee in an attempt to put |
legislation on an appropriation bill Is
wrong. He emphasized that the only |
opportunity the people in the District |
have to express view regarding how |
or why they shall be taxed Is before |
the legislatives committees In the |
House and Senate and that this right |
ought not to be taken away from them. |
II there Is emergency need for tncreas-
ing the tax on intangibles the District
Committee can consider a resolution
and rule might properly be granted
TO them by the Rules Committee II such
emergency existed.
Mapes Appears by Invitation.
Representative Mapes, Republican,
Michigan, said he appeared in support
Of the request on invitation of Mr.. Can
non and argued that 1t was more
equitable to raise the funds by an ad-
ditional tax on intangibles than on real
estate
Representative Smith insisted that If
additional taxes are needed for relief
work, they should be spread over all of
the people and not be imposed on a
very small percentage of the people
He told the committee that widows and
orphans who have small estates left for
their support are unable to evade the
tax on intangiblcS and it Is the duty
Of Congress particularly to support this
class.
La Guardia Adds Objections.
In connection with the announcement
that he would seek to have restored
the relief item Representative La
Guardia added his objections to the
provision for the increase in the tax on
tntangibles. He thinks the unemploy-
ment relief item should be appropriated
out OF the general funds in a definite
and adequate amount fixed for this
work, rather than an indefinite amount
as would be forthcoming under the tax
increase plan.
The present allowance Of $500 q
week per family for relief. Mr.. La
Guardia said, Is ridiculously low and
should be increased materially.
Proponents OF the plan to create q
special unemployment emergency re-
lief fund through an increased tax on
1rtangibles pointed out that while the
fund would not be available until Octo-
Der l, the Commissioners can in the
meantime use other revenue to meet
expenses currently chargeable to the
fund. Advances for relief from other
revenues, it was said, must be paid as
soon as tax collections under the addi-
uonal levy are available.
District officials had feared that under
the Ia. increase plan there would be
no emergency relief funds available be-
tween July / and October /, since the
first installment of personal tangible
and intangible taxes is not payable until
September and 1t would be October /
before the special emergency relief fund
could be set up.
The House Appropriations Committee
estimated that the additional 20 per
cent tax on intangibles would raise
$509,408 for relief on the basis Of the
levy for the 1882 fiscal year. District
officials, however, believe the shrinkage
in the value Of intangibles since that
time, coupled with the higher tax, which
would lead to concealment of property
in many cases, will have the effect OF
treatly reducing returns.
HAWKS PETIIPNc Tn hIR