Evening star., 1937-11-25
Senator to Seek Changes
If Unable to Block Pas
sage Again.
AMOUNT OF BUDGET
TO GOVERN TAXATION
Commissioners to Have Program
Of Revenue Ready for Regular
Session in January.
By ]. A, O'LEARY.

Re-enactment of the gross receipts
business privilege tax in the District
was opposed today by Senator Tydings.
Democrat, of Maryland, member of
the Senate District Committee.
Recalling that he had opposed its
original passage in August for the
current fiscal year, the Maryland Sen
ator said:
II think Congress would have been
wiser if it had followed the tax pro-
gram as reported from the Senate
Committee, or something similar to it."
The Senate Committee had elimi-
mated the House-sponsored gross re-
ceipts levy and substituted luxury
sales tax, with food, clothing and
medicine exempted. When the bill
reached the floor of the Senate, how
ever. opponents of sales tax had 1t
stricken out and replaced by pro-
posed local income tax
Income Tax Sidetracked.
When the much amended tax pro-
gram got into conference the House
conferees declined to accept the in
come tax amendment, and it finally
was agreed to go back to the gross re-
ceipts tax on business with its dura-
ton limited to one year. and slight
changes in the rates. Further dis
cussing the gross receipts levy, Senator
TydingS declared: 1t is not privilege
tax at all, but a direct tax on
business"
BY limiting the gross receipts levy
to one year. and giving the Commits
sionerS $1,000 with which to make a
revenue survey, Congress paved the
way for reconsideration of the en-
tire local tax structure during the
coming winter. The Commissioners
were given until January IS to re-
port the results of their survey, with
recommendations for the future.
Senator Tydings indicated that if
Congress shows disposition to re-
enact the gross receipts business
levy, he would favor its revision to
make it more equitable In its opera
ton. In its present form, 1t applies
to all business concerns and to pro-
fessional groups, at a rate of two
flfths Of l per cent on gross re-
ceipts, with a $4,000 exemption.
Tax Hinges on d. c. Bill.
How far Congress would have to
go in seeking. substitute revenue if it
decides to discard the gross receipts
levy will depend mainly on how large
an appropriation bill the House and
Senate bring out for the operation of
the city for the year beginning next
July. For the current year, Congress
appropriated $46,OO0,0OO to run the
city, toward which the Federal share
was held to the lump sum figure of
$5,000,000. For next year the Com
missioners have outlined $4,000, 900
budget, but the Budget Bureau has
not yet made known how far it will
go along with the District Building
on this increase.
AS part of the tax law enacted in
August, property owners are bearing
an increase from $3.50 to SITS per
hundred of assessed value in the real
estate this fiscal year, and within the
next month motorists, in obtaining
their 1888 tags, will feel the new
automobile weight tax for the first
time. These are only part of the
tax program adopted last August, and
estimated to call for an aggregate of
nearly $9,000,000. Drafting of the
new supply bill will get under way
during the next month, but local tax
revision probably will not become
live issue until the regular session
starts in January.