Evening star., 1937-06-21
BY j. A. O'LEARY.

BY j. A. O'LEARY.
Another section of the House tax bill
came under fire today when Senator
Capper, Republican. of Kansas. rank
ing minority member of the District
Committee, announced opposition to
the 2O-cent increase in the tax rate
on real estate.
Two other committee members
Chairman King and Senator Austin
of Vermont-previously had viewed
the business privilege tax, with a fat
rate of three-fiftfls of per cent
on gross receipts, as fraught with
inequalities.
Senator Lewis. Democrat. OF 1lli-
nois, also District Committee mem
Der, declared today the problem should
not be so much as to the form of new
taxation, but question Of how much
Congress is going t, require District
residents to pay in taxes toward the
support of the Capital City.
Senator Bridges, Republican, of New
Hampshire, made known ne has re-
ceived complaints. principally against
the gross receipts and chain store sec.
ton, and some against the increase
on real estate. He predicted this part
Of the program would affect the cost
Of living.
The New Hampshire Senator said
he has opposed the sales tax at home.
but on the ground that it would tend to
drive business across the State line
into adjacent areas. He also said he
favors the principle of the income tax,
but is aware Of the difficulty of enact
ing it for Washington because Of the
nonresident problem He suggested
that a combination of the sales tax
and income levy would be desirable
but will await the hearings before
making up his mind
Senator Reynolds. Democrat, Of
North Carolina said he plans to study
the House program carefully and to
follow closely the Senate hearings.
Meanwhile, he withheld comment.
Although Senate committee mem
bers are waiting for the hearings
to be held later this week before de-
Gliding to advocate any specific sub
stitutes for the House sources of reve-
nue., their preliminary comments in
dicate they plan to give the program
as it now stands careful study.
Probable Yield Estimated.
Meanwhile, the Commissioners put
their legal and budget-making staffs
to work estimating the proba BILE yield
of the House schedules before max
ing recommendations to the Senate
committee. Chairman King will start
hearings as soon as District Building
officials have analyzed the measure.
In opposing the increase on real
estate from $3.50 to Sl70 on full
value assessments, Senator Capper
pointed out the individual small home
owner could not pass the increase on.
With regard to those who live in
apartment houses, Capper indicated
he regards the level of rents as al
ready too high.
Like several of his Senate colleagues,
the Kansan regretted failure of the
House to accept the income tax The
boost on real estate was adopted at
the last minute to Offset elimination
of the income levy. Capper, however,
said he wants to hear the testimony to
be taken by the Senate before deciding
whether he would favor restoration of
the income tax Other Senators who
prefer the income tax have indicated
they do not wish to insist on it il it
will endanger passage of the bill. in
view of the financial difficulties in
which the city would find itself after
July /.
Sales Tax Considered.
Senator Capper said he has op-
posed the general sales tax in the
past, but realized a number of States
have turned to it. The Kansas Leg
islature adopted sales tax at its last
was increased recently.
While he has reached no conclu-
sions. the Senator indicated he
thought the sales tax would be pref
cradle to the increase on real estate.
The Commissioners proposed sales
tax to the House originally, but 1t was
turned down in committee The in
come tax next was proposed, and
when that met opposition the real
estate increase of 20 cents-amount-
ing to $1,000, ,0o0-was injected.
There has been less discussion thus
far among Senators of the other House
proposals. including an increase in the
net premium insurance tax, the addi-
tion Of weight tax to the present
personal property tax on motor We.
hicles. the inheritance levy, and the
chain store tax, which was added to
the business privilege levy.
While gross receipts business tax
is used in number of other places,
the local proposal is believed to be
more far-reaching in its provisions by
applying a fiat rate to virtually all
types OF business, and with only .
$1,000 exemption.
1t is probable the Senate commit
tee will seek to figure out the cost
of administering the House proposals.
since the added personnel and collec-
ton machinery that may te required
would be an Offset against the new