Evening star., 1937-06-28

COMMISSIONER Atten.
tee it believes the House bill would
require Washingtonians to produce
1885 900 of new revenue. After
allowing for 100000 of tangible
taxes deducted from the business
privilege tax, the board arrived at ar
estimated yield of $l1.335,0O0 from
the House measure, or far more than
is required.
Summing up its substitute program,
the board stated:
1t appears to us that such an ar
rangement would be entirely adequate
to meet conditions during the coming
fiscal year, that the basis of taxation
will be reasonably fair and just, and
that adoption of this program will
eliminate from further consideration
certain taxes which are admittedly
arbitrary and inequitable, and which
will have a most unWholesome effect
on the economic structure of the
city and place tremendous disad-
vantage upon local citizens in every
walk Of life, whether they be con-
Sumers or business men"
Says Federal Share Too Small.
At the outset the Trade Board en-
phatically registered its belief that
the Federal Government is not bear
ing its fair share Of the expenses OF
the Capital.
For the coming year the Federal
payment is only S50OO,OOO toward q
total outlay Of almost 100000.
The statement reiterated the board s
opposition to local income tax, but
there is no likelihood the Senate COM
mlttee will attempt to revive that
issue in view of the opposition to it
in the House
The board also pointed out that it
originally supported the Commission
ers in their request for a per cent
sales tax on all except food, medi-
cine and possibly basic clothing ne
cessities.
Despite the fact that the passage
OF per cent sales tax would very
nearly Offset the threatened deficit" ;"
the board said, we have not recon-
mended it in this brief because it
seems obvious that the Congress will
not support such a measure"
Features in House Program.
Five features of the trade board
program are already in the House bill.
namely: Insurance increase, auto
weight, estate. tangible property in.
crease and tightening of collection
machinery of the personal property
law.
The boards chief recommendations,
therefore, are substitution of the
liquor tax for the business privilege
levy, dropping the inheritance levy
and the requested postponement of
the P. w. A. reimbursement this year.
In urging modification of the in
heritance and estate tax title. the
board explained: We urge the elimi-
nation Of the inheritance tax feature
OF this title. Substantial taxes are
already assessed against estates and
the adoption of a further tax on in
herltances at the rates prescribed in
this bill constitutes, in our mind, ex-
cesslve taxation against these funds u
Robert J. Cottrell, secretary of the
Board of Trade was questioned at
length by members of the committee
nh Of hn
concentrations
He was interrupted, however, by
Chairman King, in order that the
committee could hear Representativ
Kennedy and Nichols Cottrell wa.
to continue later.
Questioned by King.
Asked by Senator King why the
Board Of Trade objected to the busi-
ness privilege tax, Cottrell charged
this levy was developed practically
over night, raised too much money
more than is needed by the District
but could not be put into operation
for at least so or 80 days"
You cannot tax business q fiat
rate Of three-flfths of one per cent, >
he said, because many operating on
a small margin would go out of bust
ness"
Concerning the proposal to tighten
up on collection Of tangible tax, Cot
trell, In response to questions by Sen
ator Copeland, estimated a million
dollars year might be realized if the
Commissioners were granted power OF
subpoena. The personal property
tax, Cottrell charged, had been largely
avoided by persons who do not re-
port"
Senator Capper pursued a series o
questions as to the proposed incom.
tax levy, which had been in tn
measure when reported to the House
but was eliminated in the House.
Cottrell told the committee tn,
Board Of Trade felt income tax was
field for the Federal Government, an,
the District should stay out of it.
Chairman King said for Is year
he had been trying to get an incom,
tax for the District, was still in favo
OF it, but in view of the situation now
he would be "realist," and recogniz
it was impracticable now to attemp
further.
Senator Capper insisted 81 State
had an income tax and charged tina
great many wealthy people com
here because they escape payment o
an income tax"
Questioned on Income Tax.
Pressed by Senator Capper on tn
income tax question Cottrell said tn
apparent reason why 1t had failed wa
because I'VE feel great influence va
broukht to bear to EXEMPT tnola VII