Evening star., 1937-07-28
BY J. A. O'LEARY.

~
House and Senate conferees are
expected to gather this afternoon
for the first time in an effort to agree
on a tax program to meet the city's
s7,000O0O deficit for the current fiscal
year.
Definite plans for the meeting, how
ever, await the return of one of the
House conferees who is due back in
the city at pm. There was a pos
sibility the conference might have to
be- postponed again until tomorrow
morning
The action of the Senate In substi-
tuting a heavy land tax and an income
levy for the House program of a busi-
ness privilege tax with an increase in
the present uniform rate on real estate
and tangible personal property has
become the chief issue in conference.
Although there are other tax features
in the bill, these are the main revenue
sources and the most controversial
ones.
In view Of House opposition to the
income tax and to the new land levy,
it is believed efforts will be made to
compromise on a modified form Of
business privilege tax with some ad-
justment in the real estate rate that
would be less drastic than the land tax.
Estimates indicate adoption Of
| either the House or Senate tax sched-
ule without change would produce
| more money than is needed, which
| opens the way for compromise on
some middle ground.
Business Tax Favor Seen.
Meanwhile, the District Commits
| sioners, impressed by the Board Of
Trades report on the proposed busi-
ness privilege tax, are prepared to
emphasize to Congress that this torn
of levy has stronger popular appeal
than the proposed income tax, Com
missioner Hazen said today.
I'VE were rather surprised when
| the Board of Trade came out in IA
vor Of the business privilege tax yes
| terday," Hazen said. Since the tax
will affect business men principally.
| the support of the 1000 members Of
the Board of Trade is an important
l
port of the proposed income tax. We
intend to acquaint the conference COM
mittee in charge of the tax bill with
these facts when We appear before
| it."
Hazen said the Commissioners have
not yet received any indications as to
when they will be allowed to appear
before the Conference Committee.
Chart Presented.
A committee of the Board OF Trade
called on the Commissioners yester-
day and presented chart of proposed
new taxes which would raise s8.50O,OO0
to meet the citys deficit. Outstanding
among the new revenue sources pro-
| posed by the committee were the busi-
ness privilege tax and 20-cent in
crease in the current real estate tax
On some parts of the bill there is
little or no difference of opinion be-
tween the two houses. These include:
Provisions strengthening collection Of
personal taxes, expecting to bring in
S500,000; inheritance and estate taxes,
100000, and the weight tax on motor
vehicles. While the weight tax will
raise sl,500000. it does not figure in
the deficit problem because this money
will go into the special highway fund
along with gas tax revenues. The
deficit is in the general revenue fund.
The Senate is proposing to boost the
tax rate on land. improved or unim-
proved from $3.50 to $3.50 per hun
dred of value, continuing the $3.50
rate on buildings This. however,
would put s4,800,0O0 of the deficit
burden on property owners, despite
the fact property taxes already form
the major part Of the city's reve-
nues. The House, on the other hand,
is proposing to adhere to a uniform
rate on real estate as whole, with
the rate raised from sl50 to s170.
This would make the property own
ers' share Of the deficit S2,500,000, and
is believed to have a chance for adop.
ton.
Income Tax Opposed.
There are no indications the House
will weaken in its opposition to the
income tax, which would produce
about s2,500,00O after allowing credit
for Intangible taxes paid. The busi-
ness privilege tax at the House rate
Of three-flfths of ! per cent on gross
receipts has been estimated to raise
anywhere from $4,o0o,0O0 to se,000.-
900, but the Senate felt this was In.
equitable.
A basi of settlement may be sought
on lower business privilege rate,
which, with the 2O-cent increase on
real estate and the other tax sources
in the bill, would meet the deficit.
Chairman King of the Senate group
had hoped to start conferences yes
terday. but three Senate members
were engaged in drafting the new
judicial reform bill. That task was
completed yesterday afternoon.