Evening star., 1937-06-29


spends portion Of it for living ex-
penses, and can invest the balance
in savings or tax-exempt securities.
Food and Medicine Excluded.
Committee members, however, have
been discussing sales tax with food,
medicine and low-price clothing ex-
cluded. In this connection, Tydings
argued that If the necessities were
excluded the sales tax on a man max
ing 81 900 a year would be about So,
whereas man making $4,000 prob
ably would pay about $50 in sales
taxes.
To show the sales tax is not new,
Mrs. Boyle declared the pharoahs
used it in the Nile Valley" Later,
she said, the French revolutionists
| did away with it.
Again it raises its head in the
twentieth century in the United
States" she added She denied it is
painless tax and said that even if
the rates are low. it is wrong in
principle.
Mrs. Boyle also opposed the chain
store tax, but the committee has al
ready decided informally to strike that
out when the time comes to report the
bill.
Mrs. Boyle, under questioning ex-
planned she favored an income tax
which would reach so far down the
line that it would tax virtually every
one with a job" They should be
made to feel they are supporting the
Government, she said.
Contention of Tydings.
IydlngS, taking up q statistical
table presented by Mrs. Boyle, con-
tended that his proposal for a sales
tax, with food, cheap clothing and
medicines exempted, would exempt
the poor and lay tax on the rich.
The poor man." Tydings told Mrs
Boyie, would pay more under your
plan than he would under mine
I'm trying to exempt the poor man
from a tax on the necessities OF
life, and tax the rich man."
When Senator Reynolds asked Mrs
Boyle how she would provide revenue
from the 10000 to $4,000 persons who
earn their living here, but live in near.
by Maryland and Virginia, Tydings
explained that his proposed sales tax
would derive substantial revenue from
them because they buy many COM
modities here, such as clothing.
Beer and Ale Tax Proposed.
At this point Whiteford interjected
the proposal to lay District tax on
beer and ale. Assistant Corporation
Counsel West had just informed him
Whiteford said. that the District has
no local tax on beer and ale.
Keneipp urged retention in the bill
OF the single highway fund provision
in the bill, which would throw the pro.
ceeds from the automobile weight tax
into the highway funds, and opposed
any increase in the gasoline tax.
Keneipp asked the committee, if II
should adops sales tax, to exempt
gasoline. Already gasoline is under q
tax which amounts to a sales tax, he
said, and should be exempted from any
further similar levy. District officials
reported this gas tax turned In
$2,500,0O0 in revenue.
Even if gasoline were exempted
Tydings insisted, his proposed sales
tax would raise substantial revenue as
part of the new tax program.
The bulk Of yesterdays testimony
was aimed at the tax of three-flfths
OF l per cent on the gross receipts OF
virtually every business, vocation and
profession, except persons working for
salary or wages. Led by Attorney
Whiteford, group Of witnesses out
lined in detail how this tax would
prove ineQuitable and might be pyra-
mided several times, as commodities
pass from wholesaler to retailer, tc
consumer.
Much testimony in support of a
sales tax with food, medicine and
cheap clothing exempted, was pre-
sented Discussion between committee
members and witnesses indicated that
fear of opposition to the direct sales
tax in the House might cause the
Senate group to hesitate at substitut-
ing it for the gross receipts levy
because of the necessity for prompt
| enactment.
When Senator Hughes, Democrat
OF Delaware offered the suggestion
that House opposition to the principle
OF the sales tax might endanger the
bill, Chairman King observed:
Il think if the Senate believes there
! are imperfections in the House bill
the responsibility rests on 1t to correct
those imperfections. I do not mean
to invite deadlock with the House
however, and hope there will not be
one"
The commissioners already have