Evening star., 1937-06-13

that great the
number OF employees at the District Building for which
vision has been made
public hearings BILL which
rushed completion last to the
report merely outlining provisions the
Handicapped by inability to obtain definite information
specific provisions either at the District Building the District
Committee undertaken below
sis of the bills main provisions calling attention especially
those which appear unusual plainly nequtabe perhaps
enforceable
Tax Privilege Of Doing Business.
Estimates of Yield:
l. BY advisers Commttee-$3 900 00O
BY Washington Board 900 to s7O0000O
BY District ocalsHave Of accurate prediction"
Method Rate of Tax:
Every person. and corporation vocation
profession business for gain must be licensed
fee of $40 and fiat hreehs
gross receipts all kinds with deductions
losses Banks and similar institutions specifically exempted
being subject other
wage salary" subject
Comment:
The terms of the bill exceedingly
operation would depend greatly definite regulations which
would have be drawn by the ntepre
tation decisions prevails application
to many classes of business operations.
In sharp contrast there doubt that fairly
with enforcement teeth The collector would
armed with to force returns payments
actual collections.
the gross receipts may result
in actual conscation of businesses District
agree there danger the fiat do
light others.
partnership joint adventure association corporation
foregn trust estate receiver other group
ton acting a unit"
include "the carrying on or
exercising for gain economic benefit either
any trade business profession vocation activity
the District not including however
by an individual for salary"
1t to be noted that the exemption Of and salaries
for labor commissions
This leaves much for determination
Taking face value it would indicate that the
widow selling flowers street
receipts BY interpretation the taxi driver
the tax he didn't the cab
conracua service salary
more certain the cab driver who his would have
the tax.
Travelling Statesmen, Huckster, Too.
There the question application to the travel
ing salesmanf the catch with him. many
only commission on sales He
would not be the of the in merely
the owners agent But he would be following gain
and be subject ruled to be
wage salary"
Some legal advisers however say broker
doubte would be taxed sales Of property his
This major of the business of
From the District Building suggestion
to- apply the tax to such real estate dealers.
1t the huckster selling caught
The levy would apply to the doctor lawyer
haps to the thief Of the old rhyme heavily
could lay hands his gross receipts Certainly
apply to the butcher the baker and the candestckmaker
The bill defines gross receipts gross receipts
received from business the District Columbia including
cash. credits and property kind nature
the cost OF materials labor services other costs
discount paid or any other expenses whatsoever"
The term credits have legal meaning prospective
taxpayers In various kinds business comp
Gated financial property transactions anticipate
sioners will have to regulations to clarity
many kinds Of accounts.
No Exemptions to Equaize Burden Included.
The bill lacks provisions incorporated privilege
TAX OF some cities and States which intended
1nequles The New York City law carries
per cent receipts allows exemption
on the receipts 1t applies well
business but the exemption lifts the burden
recognizing difference business lines separate
rate OF fifth OF cent for finance business with
ton up to $0O but this is applied gross receipts
gross income This makes huge difference Suppose
financial house made loan of 81 at per gross
receipts payment OF the oan would gross
would be $50.
In the New York financial business
the transactions
and brokers in credits commercial
securities and stocks and monetary metals.
West Virginia has business privilege but it radically
different the proposed District bill applies gross
instead receipts and instead nat
variety rates selected according to the activities
Continued Page L. Column ~
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