Evening star., 1937-07-23
Tax Bill
Continued From First PaRe.)

live in adjoining States and work in
Washington
King further pointed out the House
would not consider the income tax.
In addition to new tax levies that
would raise more than the city's i'm
pending 100000 deficit, the measure
contains the authority so urgently
needed by the Commissioners to bor-
row from the Treasury until local reve-
nues begin to flow in to the tax COL
lectors later in the fiscal year
Heaviest opposition is expected to
center on the luxury sales tax and the
heavy new real estate tax, which would
require property owners to pay $3.50
per hundred on their land and $3.50
per hundred on their homes or other
buildings.
Sales Levy and Land Tax.
The House bill contained a busi-
ness privilege tax of three -fifths of per
cent on the gross receipts of all busi-
ness concerns and professional groups.
and an increase from $l50 to $1.70
Improvements. The Senate Commit
tee eliminated these and substituted
the sales levy and land tax
There is considerable doubt whether
the Senate will approve either the sales
tax or the land levy.
Senator Bridges, Republican, of New
Hampshire, has made known his op-
position to the land tax He also
1avors some changes in the sales tax
Senator Capper of Kansas. ranking
minority member of the District Com
mittee also will fight the salaes tax.
Real Emergency Presented.
While Senators differ, however, on
how the taxes should be raised. Dis
trict officials are gratified over the
change in the legislative situation
which makes it possible to pass the
bill IN some form. They have i'm
pressed on Congress during the past
week that the city will face a serious
financial situation in August unless
the borrowing authority is granted.
They are concerned also over the fact
that failure of new tax legislation
would compel them to put the entire
deficit on real estate and tangible
personal property, which would mean
raising the rate from $l.50 to $2.l0
per hundred.
Aside from the local tax features,
there will be some controversy over
the amendment to the Federal anti
trust laws, added as a rider to the
District measure in committee. Spon-
sored by Senator Tydings, Democrat,
Of Maryland, the rider is intended to
sanction State laws which permit
manufacturers of trade-marked COM
modities to make contracts with
dealers. fixing minimum resale price.
Senator KING has filed a minority
report against the Tydings proposal
and will fight it on the floor.
Clothes and Food Exempt.
The luxury sales tax in its present
form exempts medicines, clothing and
food, except meals served in restau-
rants. On all other articles, includ-
ing tickets Of admission to places Of
entertainment, it calls for 2 per
cent sales tax.
AS reported from committee, the bill
was somewhat indefinite as to how the
tax would be collected on low priced
articles. on which per cent of the
sale price would be less than a penny.
Several Senator's said yesterday they
intend to seek more information on
this phase of the measure before it
Is acted on.
The land tax, which has met with
strong opposition from local organ
izations and individual taxpayers,
would place 81, 4,800, 900 Of the $1,000 900
deficit on property owners, who it has
been pointed out, already pay large
part Of the local tax yield. The sales
tax is estimated to raise the remain
ing $2,5O0,000 toward the current
deficit.
The bill also includes an inheri-
tance tax, to yield 100000 more for
the city's general revenue fund, and
. new tax on motor vehicles by weight,
which would raise $750,000 for the
special highway improvement fund.
This is the same fund into which the
present gasoline tax goes.
The Senate Committee struck out
House provisions raising the tax on
net premiums Of insurance companies,
and the chain store tax. It also re-
duced the high schedule Of inheritance
rates the House had adopted.