Evening star., 1937-12-21
D. c. OFFICIALS
PUSH WORK ON
PERMANENT TAX
Contemplate APPOINT Pro-
gram Designed to Raise
s5,O00,OO0.
SALES AND INCOME
LEVIES CONSIDERED
Committee Appears to Have De.
cided Business Privilege Plan
Should Be Abandoned.

District officials today continued to
struggle to complete their proposals
for long-range permanent tax pro-
gram, with indications that they are
contemplating four-point plan that
will raise somewhere between S.
100000 and Sc 100000 above the nor
NAL revenue base.
Members Of the District Tax Com
mittee insisted they have not yet
reached, final decision and suggested
there might be some last-minute
changes. At the same time, there was
reason to believe they are contemplat-
ing plan involving the following:
A general sales tax, with a rate
probably of l per cent, which might
produce some $3,c00,000 in new reve-
nue.. What exemptions the commit
tee would propose, however, or what
method would be suggested for the
collection of the tax, officials, said had
not been determined
A restricted form of income tax, pos
sibly rate of per cent, which might
be expected to produce, roughly, ST.
100000. However, various committee
members said it had not yet been de-
cided what the details of the plan
would be if finally recommended
Some said the credits probably would
be the same as those allowed under
the Federal income levy, but there
still was no decision as to what classes
of residents might be exempted.
An increase in the real estate and
tangible personal property tax rate to
some point above the normal base of
$1.50 per $100. This rate prevailed
last fiscal year but was boosted to
$1.75 to meet this years revenue emer-
gency. This emergency rate is sched-
uled to be abandoned June 80 un-
less either Congress or the Com
missioners make a change from $1.5O
in the meantime.
Plan Apparently Abandoned.
Apparently the committee men,
bers have decided that the business
privilege levy should be abandoned.
1t is to expire automatically June 80
unless Congress orders it continued.
1t has been a disappointment, since
present indications are that it. will
produce far less than the estimate of
100000. Incidentally this is sug-
gested as one reason why, according
to reports, District tax officials are
said to be figuring on raising $5,000,-
600 or more in additional revenue
for next year, instead of an earlier
estimate Of but $3,4O0,000.
Reports that the suggested modified
form of an income tax might be pro-
posed as substitute for the Districts
intangible personal property tax were
discounted by several District officials.
The intangible tax now is producing,
roughly, s2,50o,000. One committee
member said this could not be aban-
doned, with 100000 income tax
as q SUBJ lite.
-mptions Provided.
II An income tax is recommended,
the report is that it would carry an
exemption of $1,000 for single persons,
s2,50o for married persons living with
husband or wife and $400 for each
child. The committee Is considering
suggesting that persons claiming legal
residence in one of the States and
paying an income tax back home
might be given . credit against the
District levy for what they pay in
the State income tax Some members
OF the committee, however, declare
that If there Is an income tax there
should be no classes Of persons ex-
empt.
Some weeks ago Commissioner Ha-
zen declared he believed the real estate
tax rate should be reduced to $1.5O.
The suggestion coming from District
onicials today was that this might not
be possible, and one tax committee
member went SO far as to say the
group would consider a rate of $1.70.
Representative Cole, Republican, of
New York, who has just been ap-
pointed 4 member of the subcommit-
tee Of the House District Committee
which will write the 1899 tax in
crease legislation, disclosed today he
would continue to fight for an income
tax in lieu of other forms of taxation.
AZ 4 member of the special tax
subcommittee which framed the cur
rent tax increase program Mr.. Cole
joined with Representative Dirksen.
Republican, Of Illinois in trying to
force adoption Of an income tax in
stead Of the business privilege tax on
gross receipts.
Committee Proposals Read.
Mr.. Cole said he had read the
proposals of the Citizens Advisory
Committee on Taxation for a gen.
erai sales tax as q substitute for the
business privilege tax, as we'll as an
increase In the Federal payment
toward District expenses.
Until an income tax is adopted, 4"
hs declared, IT will not support q
proposal for An increased Federal pay
ment."