Evening star., 1937-06-22
BY J. A. OLEARY.

Hearings on the en-point House
tax program to meet the citys i'm
pending deficit will begin at 10 m.
Thursday before the Senate District
Committee, Chairman King announced
today.
Preliminary comment of committee
members indicates revision of some
features Of the House plan. but specific
changes will not take shape until after
the views of the community have been
heard. The hearings are expected to
last several days
In announcing the hearings, Sena-
tor King also accepted the offer of
Chairman Kennedy of the House tax
subcommittee to be present and ex-
plain details of the measure as it
stands.
Confers With Hazen.
In conference with Commissioner
Hazen late yesterday King invited the
city heads to prepare any alterations
they believe should be made in the
House proposals.
Meanwhile it appeared likely the
Commissioners would confine their
recommendations to the following:
Opposition to the chain store tax,
restoration of power TO borrow from
the Treasury pending tax collection
and request for ten or fifteen thou
sand dollars to defray the cost of a
more thorough study of the local tax
situation during the congressional re-
cess.
Indications today were the city
heads will not put forward modifica-
tions of the far-reachine gross re-
ceipts business tax or for substitu-
tion of alternative levies for those
adopted by the House unless Senate
committee members take the initia-
tive in proposing different revenue
sources.
Corporation Counsel Elwood H Seal,
one of the Commissioners tax ad-
visers, believes the gross receipts tax
will bring in close to S5.00OO0O in
stead Of the tentative estimate of
s3,000,000 used in House calcula-
tions. The Board of Trade last week
figured it would be s6,O00.0OO.
Hazen Voices Opposition.
Commissioner Hazen, president Of
the board went on record individually
today as opposed to the 20-cent boost
on real estate. which would take
s2,4OO.O00 additional from property
owners. He said he would prefer to
put the money from the motor vehicle
~ toxy tl,1 Il
of the special highway account. and
add l cent to the gasoline tax to pro-
vide the desired highway revenue.
There were no signs. however. the
board would initiate these changes.
District officials take the view the
pending program is temporary to
meet the approaching deficit, and that
a more carefully worked out tax
schedule could be presented to the
next session in January. This is re-
flected in their request for an ap-
preparation to make a tax survey.
1.-THE revenue sources tapped by the
House were: A business privilege tax
based on a fiat rate of three-fifths of
l per cent on gross receipts on virtu-
ally all business establishments, voca-
tions and professions, except individ-
| uals working for a salary; a special
tax on chain stores in addition to
| the business levy. motor vehicle
weight tax in addition to the present
personal property tax based on value.
an inheritance and estate tax. 20
cent increase in the rate of real estate
| and tangible personal property, an
increase in the insurance tax on net
premiums and section to tighten en-
forcement of the personal tax law.
Income Tax Stand.
Most of the senatorial discussion
since the House acted has dealt with
the business levy. chain store and
real estate tax features. While there
is considerable sentiment in the Sem
n