Evening star., 1937-05-15
RETAIL SALES TAX
MAY Be ENACTED,
HAzEN INDICATES
Support Likely to Follow
Dropping Income Levy
Plan, He Says.
PROPOSAL ATTACKED
BY THREE SPEAKERS
Representative Warns Capital
City Forum Congress Prob
ably Would Approve.

Support for retail sales tax in the
District was indicated today by Com
missioner Melvin c. Hazen in the
wake of condemnation Of such a levy
by three speakers appearing before
the Capital City Forum last night.
The Commissioner expression on
the sales levy was based, he explained,
on the anticipation that proposals for
a local income tax will be abandoned
and the necessity will remain for rais-
ing about 3,00O,0 900 in revenue.
The attack on the sales levy, made
during a scheduled discussion Of
Taxation Without Representation"
before the forum, came from a mem.
Der Of the House, an economist and
an educator The House member,
Representative Bigelow, Democrat. Of
Ohio, qualified his criticism with a
warming that the Congress probably
will pass the sales tax If requested to
do 80.
I'VE haven't decided anything def
nitely yet" said Hazen. The whols
picture is somewhat confused, because
opposition has developed from vari-
ous groups over points involved in tho
variety Of tax revenue programs which
have been considered.
May Be Necessary.
However, it may be that We will
have to have sales tax, with ex-
emptions for food, clothing and GER
tain other necessities, and it may
be that We also will have a business
privilege tax, under which physicians,
lawyers, jobbers, agents and others
would be brought within levies. l
do not know as yet what the details
of such plans would be-"
His statement followed a similar
expression of views by Chairman Nor
ton Of the House District COMMITTEES
as to the possibilities of adoption Of
q sales tax. Mrs. Norton said she
regarded a sales tax as the most
painless form of taxation.
Any sales tax plan is destined to
meet some opposition in the Special
Tax Subcommittee of the House Dis
trict Committee. Two members, Rep
resentatives McGehee, Democrat Of
Mississippi, and Dirksen, Republican
Of Illinois, are opposed to such q
plan.
When sales tax was discussed at
the last meeting of the subcommittee
Drksen announced his intention to
oppose such 4 plan. At that time he
said he preferred an income tax to a
sales tax because the Ia tier would
hit" the poor man and the rich
man equally. He argued that such q
proposal would be inequitable.
Suggested by Seal.
Suggestion of a sales tax was Of
fered by Corporation Counsel Eluood
H. Seal last Tuesday during an ap.
pearance before the Tax Subcommit-
tee OF the House District Committee.
which is preparing to formulate a new
tax program for the District. His
suggestion came after he had ques-
toned the constitutionality of a Dis.
trict income tax because it would ap-
ply to Federal employees. He explained
that the Supreme Court has held that
Congress acts in the capacity of
State legislature when it enacts laws.
for the District, and, he added, the
States are barred from taxing the
incomes of Federal employees.
IF you don't get sales tax" Rep
resentative Bigelow said, 'it will bo
because Congress can't think OF any,
thing more foolish"
You can't put tax on anything
labor produces" the Representative
continued, without raising prices"
Suggests Land Value Tax.
But you can put taxes on land
values without raising the price of
land" he said, stating that he had
proposed to Congress bill embody-
ing the principles OF exclusive land
value taxation as a means OF raising
revenue. Take taxes of everything
man makes and sock them on land
values" he reiterated
He stated further that it is not
necessary to change the social and
economic order of this country to
solve its problems.
The more see of government with
its futile efforts and follies, the more
I distrust saving the world by letting
the Government do everything" he
remarked.
John H. Gray, former president OF
the American Economics Association,
declared the sales tax is the most
vicious Of taxes"
The financial problems of the coun-
try cannot be solved through taxa
ton, Gray said, until We break the
rule of Wall Street"
I'VE can't stabilize prices and in
dustry," he continued, "as long as
We have speculation"
The sales tax will produce peasan-
try" declared DR.. Charles NJ Thomas
head Of the social science department
Of the Armstrong High School, in dis
cussing the effect such a levy would
have on the colored population.
Commenting that such taxation
would increase the downward pres
sure" on the colored race, DR.. Thomas
also expressed confidence that Con-
gress would pass the sales tax.
I'VE are now getting to the climax
Of q system Of exploitation that has
been here since the country began"
he said.