Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-10-20
NEW
UP TO D. c. HEADS
Experts Arrive at Revenue
Total Needed, Fail to Fix
Form of Levy.

The ultimate fate OF the District S
new tax program was left to the Com
missioners today by the special COM
mittee of experts. appointed to develop
permanent plan of taxation that
would remain static for at least seven
years.
Meeting behind closed doors in the
office of Corporation Counsel Elwood
H. Seal, the committee tentatively
determined the amount of revenue
that would be needed to finance the
District over the seven-year period
but failed to decide on the forms Of
taxation that should be adopted.
Before reaching decision on the
tax program the committee plans TO
hold a conference with the Commits
sioners TO ascertain their views The
conference will be held either Satur-
day or Monday.
Business Tax Study.
Meanwhile, Chairman Palmisano Of
the House District Committee said he
plans to give intensive consideration to
new forms of taxes to replace the
widely condemned business privilege
tax, which he described as grossly
unjust" and handicap which no
other State places on its business.
He declared the net result of con-
tinuing the tax after it expires next
June 80 would be TO reduce business in
the District and decrease employment.
Outside business houses. he said. are
Withdrawing their statesmen and re-
sorting to mail order business which
Is not taxable.
The new program the Commission
erS' committee proposes to work out
will be designed to take effect at the
close of the current fiscal year. when
existing emergency taxes expire
These include the business privilege
tax and the 25-cent increase in the
real and personal property levies.
AS soon as the committee completes
its program it will be referred to the
recently created Citizens Tax Advisory
Committee, headed by L. A. Carruth-
ers. chairman of the Fiscal Affairs
Committee of the Federation of Citi-
zens' Associations
Realty Levy Discussed.
At the conclusion of the special
committees meeting today, the second
1t has held in connection with the new
tax program. Maj. Daniel j. Donovan,
District auditor and budget officer.
who is serving as chairman, issued the
following statement:
I'VE have canvaSsed the estimated
needs Of the District for the next
seven years and determined how
much money will be needed to provide
them, but we cannot take another
step until after conference with the
Commissioners. We will seek such a
conference either Saturday or Mon
day."
1t is known. however, that the COM
mittee discussed probable real estate
tax for the next seven years, as well
as substitution Of a general sales tax
or some other new form of taxation
for the business privilege tax.
Commissioner Hazen is anxious to
reduce the real estate levy to 81 so,
although several members of the COM
mittee are understood to feel s170
rate will be necessary to finance the
District if progressive program of
public improvement is to be carried out
during the 7-year period
In addition to Maj. Donovan and
Corporation Counsel Seal, the Tax
Committee is composed of Richmond
B. Keech, vice chairman of the Public
Utilities Commission; Capt. H. C.
Whitehurst, director of highways;
Fred D. Allen. tax assessor and Chat
ham M. Towers, collector of taxes.