Evening star., 1937-07-03

sioners becomes more acute. The
Federal lump sum payment Of S.
100000 carried in the 1888 appropria-
ton act will keep the city going dur
ing July and part of August. officials
believe, but they stress the fact that
the tax rate should be fixed by July
Is if the ledgers and bills are to be
ready for the September payments.
Because of the changes the Nc
Carran l per cent land tax would
make in collection machinery il 1t
remains the bill would carry an
amendment postponing September tax
payments for 80 days
Resale Price Bill Added.
The Tydings resale price main
tenance bill Vas added to the local tax
bill by vote OF IL to !, with three
District Committee members not vot-
ing. Chairman King Waged a lone
fight against complicating the Dis
trict tax situation with this national
measure. and declared later he re-
garded it as unjust and unfair
procedure
Sections of the House bill to
strengthen collection Of personal taxes
to improve collection of the gas tax
without changing the rate and estab-
fishing new motor vehicle weight
tax remain unchanged These fea-
tues, therefore, are virtually settled
nn1oSS oltoroS tr, ho TO
The inheritance and estate taxes are
retained, but with the increased rates
advocated by Representative Dies Of
Texas eliminated.
Authority to obtain advances Of
funds from the Treasury pending
local tax collections also was restored,
together with an authorization for a
more thorough study of the whole
local tax structure before the next
session of Congress convenes In Janu-
ary. With this in view, the Senate
Committee limited the luxury sales
tax and land levy to one year.
Nothing to Compromise
Members Of the House District Com
mittee who helped to draft the tax
bill emphatically declare that there
is nothing that can be compromise"
and that the terms of the House
bill must be restored, In substance.
Several of the most prominent
members of the House subcommittee
are out OF town and could not be
reached. including Chairman AM
brose Kennedy, Democrat. Of Mary
land; Representative Everett M. Dirk
sen OF Illinois, the ranking Republican n
member, and Representative Cole Of
New York.
Chairman Palmisano of the District
Committee expressed himself as
pleased that the Senate took out the
per cent business privilege tax, to
which he was originally opposed He
is opposed to the so-called luxury
tax imposed by the Senate, declaring
himself opposed to any sales tax"
He said he could not understand why
the Senate took out the insurance fea-
ture, upon which he estimated every
one was agreed"
Representative Jack Nichols, Dem
ocrat, of Oklahoma. who ranks next
to Chairman Kennedy on the sub
committee, said he felt sure the House
conferees would insist on the terms
of the bill as passed by the House.
He declined to comment on the rider,
which is the Tydings bill reported
three months ago to forbid any drug
store cutting the rates on standard
products 1t is national bill to
which the President is opposed. hav-
ing no relation to the District tax
bill, solely for the purpose of tagging
1t on to some must" measure.
Nichols pointed out that the Sem
ate has virtually drafted new bill,
not at all like the House Committee
worked up after months of careful
| consideration and extensive confer
ences with Dotrict officials.
There is nothing in it to COM
promise" he said I'VE must stick
by our own measure, which was care
fully considered" he emphasized.
Insists Senate Is Wrong.
1tCpl CSCklGdUiFC OA1l u. MCNT8Itt,
Democrat, of Mississippi, another
member of the subcommittee which
drafted the House bill, and who will
probably be one Of the House con-
ferees, insists that the Senate is all
wrong about the $2,500,000 estimated
yield from the so-called luxury tax"
He calculates that it cannot produce
more than $500,OO0 to $75G,O0O. The
land tax of 81 per 500 of undeveloped
real estate, he points out, would put
heavy burden on real estate. This
the House Committee tried to avoid
The House Committee tried to
broaden the tax base and ease the
burden as far as possible from the
| shoulders of those who can least
afford to pay" he said. THE bill
as reported in the Senate does not
reach the people We should make pay
a just share Of the necessary taxes
The business tax should be worked
out to make it equitable and just, SC
that people doing business here and
making money should pay for the
privilege and profit they enjoy. The
proposed luxury tax which is moth
ing but q sales tax, places the bur-
den on the poorer people"
Representative McGehee predicted
that The House conferees will be able
to persuade the managers On the
part Of the Senate that the Senate tax
program Is unwise and unjust, and
that eventually q tax bill more In line
! with that passed by the House viii
become law.