Evening star., 1937-06-28

out the high rates on inheritance
taxes, inserted on the floor of the
House. and restores the previous in
herltance rates. running from l to S
per cent, as provided in the bill as
reported to the House by the House
District Committee The estate tax
Is left as it was. The Commissioners
will testify at the close of the hearing
before the committee acts on these
suggested changes.
Gross Receipts" Meaning.
Another proposed amendment in
the reprint would change the meaning
OF gross receipts" in the business
privilege tax. as applied to con-
tractors. 1t would define contractors
gross receipts as their total re-
oeipts less money paid by them to
sub-contractors for work and labor
performed and material furnished by
such sub-contractors in connection
with such work and labor
Chairman King started the hearings
with the statement the committee
hopes to get the bill out by July l, If
possible, but this appears unlikely.
The opening session was marked
by defense Of the House bill by Rep
resentatives Kennedy and Nichols Of
Oklahoma, members OF the House
committee that drafted it.
Kennedy, however, joined in op-
posing the special chain store levy
that was added to the business priv
ileee tax on the floor of the House
on motion of Representative Dies of
Texas. 1t was not in the original
committee bill.
Challenges Nichols Claim.
Speaking not only for the Mer-
chants and Manufacturers Associa-
ton. but for other business men, also,
Whiteford challenged the claim of
Nichols that the storekeeper will be
able to pass on to the consumer the
business privilege tax of three-fifths of
per cent on gross receipts.
Pointing out that this levy would
apply to virtually every business ven-
ture, profession and voca ton except
the man working for salary, White
ford told the committee at least So
900 persons would have to take out
the $40 license fee and then pay the
three -fifths of per cent on his gross
receipts.
Whiteford declared the term ''busi-
ness privilege" tax is misnomer be-
cause gross receipts bear no relation to
the privilege of doing business.
To illustrate, if one lawyer receives
100000 a year gross and another
$4,000 gross, they both are taxed at
the same rate, although both have
same privilege
Before crowd that overflowed into
the hallway, the hearings opened with
the Municipal Finance Committee of
the Board OF Trade presenting its plea
for revision Of the House program to
avoid raising more than is needed to
balance the citys budget for the COM
ing year.
Trade Board Program.
Retaining some and eliminating
other features Of the House bill, the
Trade Board urged the following tax
program:
Increase in insurance premium
tax, 100000.
Auto weight tax, 100000.
Increase in liquor tax from so to
30 cents per gallon 81. 0,0oO.
Estate tax, 100000.
Increased rate on tangible per-
sonal property, of 20 cents per
hundred, S2.500,OOO
The statement of Edgar Morris.
spokesman for the Trade Board
pointed out this schedule would pro-
duce $5,700,000. To this would be
added the s1,0O0,OOO additional the
assessor expects to collect from title
!. which tightens enforcement Of the
existing personal tax law, making S.
100000.
Extension on Loan Sought.
The trade body then suggested that
Congress grant the District an extern
sion Of time on repayment of its P
w. A. loan amounting to $1,000, 1000 q
year, which would leave the city with
$7,700,000 OF new revenue, or approx
mately the amount Of the deficit under
the 1898 appropriation bill, as figured
by the Board of Trade.
The statement previously had showr
that the supply bill calls for less thar
$4,000 of new revenue for the city'.
general fund, and about 81 1000 900 t.
meet requirements Of the gas tax fund
or $8,O00,0O0 in all.
The trade boards recommendations
would eliminate the controversial
business privilege tax based on gros.
receipts and including the heavy spe-
cial levy tax on chain stores 1t also
would eliminate the inheritance tax
but retain the estate tax feature OF
that section.
The traAe hoard told the ~on,y,, n =