Evening star., 1937-05-12
THREE NEW TAXES
FOR D. c, FAVORED
by SUBCOMMITTEE
Motor Weight, Insurance and
Inheritance Levies Agreed
to Tentatively.
GENERAL SALES PLAN
URGED BY NICHOLS
Oklahomans Proposed Bill May
Be Substitute for Gross Re-
ceipts Scheme.
BY JAMES f. CHISN,

The special tax subcommittee Of the
House District Committee, working on
a S6,000,000 tax increase program,
tentatively agreed today to three of the
varied assortment of new taxes it will
propoSe-a weight tax on motor
vehicles, an increase in insurance taxes
and an inheritance and estates tax.
The rates to be recommended have
not been determined, but the subcom-
mlttee Will meet again tomorrow TO
work out these details and also decide
What other proposed tax sources should
be tapped to keep the District out Of
the red in the fiscal year beginning
July l. 1t is likely the proposals Of
the Commissioners will be followed
With respect to the weight, insurance
and inheritance and estate taxes.
In the meantime, Representative
Nichols, Democrat of Oklahoma,
dumped into the laps of the subcom-
mlttee, Of which he is member, the
draft OF proposed new tax bill en-
bodylng another scheme for raising
reVenue-a general sales tax on all
retail sales which would produce
roughly about s4,5OO,0OO a year.
Would Raise Tag Costs.
The motor vehicle weight tax rec
ommended by the Commissioners
would raise the cost Of tags for private
vehicles from ST to a graduated scale.
ranging from IS to SIP, and continue
the existing personal property tax on
cars. Truck tags would be consider
ably higher. This plan is estimated to
yield s1,5000oO a year in additional
revenue.
The inheritance and estates tax
suggested by the Commissioners would
be modelled after either the MARYLAND
or Virginia inheritance tax laws and
would produce 100000, it is esti-
mated.
The insurance tax which the Com.
mlssloners proposed would raise the
present rate on net premium receipts
from is TO 2 per cent, and yield about
100000 additional in revenue from
this source.
Altogether, the three plans would
produce total of s2,50O.OOO toward
the anticipated s6,0O0OO0 deficit. The
have agreed tentatively to place the
revenue from the weight tax on motor
vehicles into special fund with the
gasoline tax revenues to support tho
highway department and enable it to
embark on an extensive traffic allevia.
ton program. If this plan is carried
out the subcommittee must find meth
DDS to raise an additional S5.OOO,oOO.
Out of the varied assortment OF
other tax-raising plans pending be.
fore the subcommittee for some time,
the proposal of Nichols for a general
sales tax on retail sales is expected to
receive serious consideration as sub
stitute for the gross receipts tax
scheme of the Commissioners.
Sales Tax Proposed
Every person engaged in the bust.
ness of selling commodities or mer-
| chandise at retail would be required
under the Nichols bill to pay monthly
a tax Of per cent of the gross pro-
ceeds derived from sales The tax
would apply to all sales at retail of
tangible personal property. sales at or
by restaurants, hotels. dining cars,
auctioneers. funeral directors, sales
of admission to theaters, athletic con-
tests, circuses, carnivals, dance halls
and all other places of amusement, as
well as all retail sales of electric power
and light, natural and artificial gas,
water, telephone use and messages
and kilograms.
| Credit merchants would be per-
mitted to pay the tax on the basis of
cash actually received.
Administration and enforcement Of
! the proposed tax plan would be lodged
in the Commissioners. The proposed
bill prescribes that the tax go into
effect July l.
Estimates have been given the SUBJ
committee that retail sales in the
District last year totaled about $780,
| 100000. On that basis it is believed
a 1l2 per cent tax, as proposed by
Nichols, would yield about S4500 900.
The Commissioners estimated that
their business privilege or gross re-
ceipts tax plan would produce about
s2,500,00
| To Consider Gas Levy.
Two other proposals of the Commis-
sioners, one calling for an increase
from to cents in the gasoline tax
and the other an income tax, have not
| been discarded by the subcommittee,
and probably will be given further
consideration. Decided opposition to
an increase in the gasoline tax has
been registered by Nichols, and only
several members of the subcommittee
have indicated they favor an income
| tax
The Commissioners suggested an
income tax only at the insistence Of
| subcommittee members, but then
promptly endeavored to kill the plan
| by questioning its constitutionality.
Fear was expressed that, since an in
come tax, to be worthwhile, would
! have to dip into the earnings Of Fed
eral employees, the courts might hold
| it unconstitutional in view of the fact
| that States are not permitted to tax
1f