Evening star., 1937-06-29
BEER AND ALE TAX
AND | PCT. LEVY
ON LAND SOUGHT
McCarran Reports Proposed
Property Assessment Would
Return s4,80O,O0O.
SALES REVENUE ISSUE
MET BY OPPOSITION
Chairman of Consumers Council
Contends Plan Would Infict
Penalty on Poor.
BACKGROUND

BACKGROUND
Steady increase in Districts
share of municipal cost results in
$1,000 900 deficit for fiscal year be-
ginning ner Thursday uith only
some s5,oo0,o00 Federal payment
House bill in Senate Committee in
ciudes iepies on business pririleoe,
chain store auto ,oeight, inheri-
tdnce and estates, and increases on
real estate and insurance pre-
n'ums, estimated to raise at least
$1,000 900.
tax on beer and ale and a special
l per cent levy on the value o.
land were new alternatives suggested
to the Senate District Committee to.
day to replace controversial features
OF the House omnibus revenue meas
ure.
The additional alcoholic beverage
tax was proposed by Roger j. White
ford. spokesman for opponents of the
privilege tax on gross receipts of all
business and professional groups. He
said he understood there is no local
tax at present on beer and ale.
Senator McCarran. Democrat, of
Nevada asked the committee and wit
nesses to consider the l per cent land
tax, stating he had learned from As
SCISSOR Fred D. Allen that it would pro-
duce $4,000 900.
McCarran said he believed the diff
ferential between assessed value and
sale price is such that this rate of
tax would never be noticed, and would
offer an opportunity to eliminate all
this controversy.
Discusses Liquor Taxes.
Senator Reynolds, Democrat, Of
North Carolina inquired in open hear
ing concerning the possibility of rais-
ing more revenue from beer and liquor
and afterWard indicated he NAV pro-
pose higher license taxes here designed
to raise upward Of half a million dol
lars.
The liquor and beer traffic here
could stand much more taxation, Rev.
nolds believes, in the form of licenses
on virtually all groups. For instance,
he may propose increase of the whole
saler's license from $500 to s2,5O0,
retailers from $3.50 to $500. tavern's
from 5000 to $500 and graduated
scale for hotels, which now stands at
$500. He would increase this hotel
license based on the number of rooms,
to begin at 81 900 and run up to $1,000
The committee adjourned at noon,
until 10 am. tomorrow.
Debate on Levies.
The debate over the gross receipts
versus direct sales tax continued as
today's hearing got under way
After the Board of Trade had in
formed Senator Tydings. Democrat. of
Maryland that s5OoO.OOO could be
raised from a sales tax without touch-
ing food, medicinb, low-priced cloth
ing. ice or fuel, the sales tax drew OPP
position from Mrs John Boyle, jr.,
chairman of the Consumers Council.
Others who testified this morning
included:
Mrs. M. C. Mallon, secretary Of the
District Petroleum Association; George
E. Keneipp of the keystone Automo-
bile Club and J. Nelson Anderson of
the Federation of>Business Mems As
sociations.
Senator Tydings explained today
that, while he is not committed to the
sales tax idea, he is trying to develop
the wisdom of it.
Representative Palmisano of Mary
land, new chairman of the House Dis
trict Committee, came over to observe
the progress Of the Senate hearings
today.
Questioned by Capper.
Andersons statement centered on
opposition to the gross receipts tax,
while approving some of the other
features of the House program. Later,
in reply to questions by Senator Cap
per of Kansas. Anderson said he
thought fiat business privilege tax
of S25 a year or some other amount
would be fairer than the House pro-
posal to take three-fifths of per cent
Of gross receipts from all business es-
Establishments.
Mrs. Mallon called the gross receipts
levy one Of the most punitive taxes
ever devised She said it is based on
the philosophy that every business
runs at profit, which is erroneous.
She predicted it would force many
small businesses to close, adding that
(See D. c. TAXES, Page A-5)