Evening star., 1935-03-12
EIIenbogen Measure Would
Raise Funds for Social
Security.
EXEMPTION OF $4,000
is PROVIDED IN BILL
Corporations Would Be Assessed
40 Per Cent of Levy Now
Paid U. S.


clined during hearings on his unem-
ployment insurance bill for the Dis
trict to take any responsibility for
the raising of revenue to meet the
contribution requirements, Represent
ative Ellenbogen, Democrat Of Penn
sylvania, author of the insurance bill
and chairman OF the subcommittee
conducting hearings on the measure,
this afternoon introduced in the House
a bill to levy an income tax on citizens
of the District.
Questioned about the tax measure,
he admitted that "if We are going to
have an old-age pension bill or any
other social legislation additional
funds will be needed to pay for these
benefits"
Admits New Tax Need.
Ellenbogen has admitted upon at
least one occasion during the hearings
that new taxes probably would be
necessary to meet the requirement
that the District government should
contribute an amount equal to / per
cent of taxable private pay rolls to
the insurance fund. Upon several oc-
casions. the last one today, he has
declined to give his views as to what
kind of taxes should be levied
During the hearings this morning
and previous to his introduction of
the income tax bill, he did say that
he would not favor added real estate
taxes 10 raise the revenue. but he de-
clined at that time to say what type
he would favor
Based on Federal Tax.
The bill introduced today would
provide for tax based on the tax
paid to the Federal Government.
Ellenbogen said he considers this as
the outstanding feature of his bill be-
cause 1t utilized all the machinery
which has been set up and constantly
improved for the last 20 years in the
collection of Federal income taxes.
Under the bill introduced today in
dividual incomes of less than $4,000
would be exempt. Above that amount
the suggested tax levy runs from 10
per cent to 20 per cent of the Federal
tax payment. Corporations would be
taxed 40 per cent Of the 1875 per cent
income tax which they now pay the
Federal Government.
Incomes from $4,000 to $4,000 would
be taxed 10 per cent Of the amount
paid as Federal income tax, including
the surtax: incomes from $1,000 to
$4,000 would pay II per cent. $4,000
to $4,000 would pay II per cent sl6,-
900 to $4,000 would pay l3 per cent.
$4,000 to $4,000 would pay IA per
cent, $4,000 to $4,000 would pay Is
per cent, $4,000 to S50,0O0. 16 per
cent; $50,o00 to S62 900, II per cent;
s62, 900 to $74000, 18 per cent; STA 900
to 100000, 19 per cent, and 100000
and above. 20 per cent of the amount
paid as Federal income tax, including
surtaX
Wants Views of Residents.
Continuing, Mr.. Ellenbogen said:
Il do not want to introduce bill,
hold hearings promptly and rush
through a tax measure against the
District residents. ] want to give the
District citizens an opportunity to
consider such a measure, which Is OF
very great concern to them, before
it is taken up by the District Com
mittee, so that they may have an op-
portunity to express their views when
the District Committee is consider
ing that measure
IF we are going to have social
legislation, additional funds will be
needed Therefore it is time to con-
slider what other sources there are for
taxation One of these I believe is
an income tax That does not mean
that this is the only source of new
revenue, nor does the fact that I
introduced the bill mean that the Sub
committee on fiscal affairs, of which
I am chairman, or that the full Dis
trict committee will approve it. But
If additional taxes are to be, raised
I am firmly convince that some of the
burden should be carried by those
who have the larger incomes"
At the hearing after three witnesses
had joined in urging that any enacted
unemployment insurance law require
employe contribution in building up
the reserve fund, Mr.. Ellenbogen said
that he would like to convince
those interested that the employees will
indirectly bear the brunt Of the in
surance burden, even though they are
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