Evening star., 1937-10-17
BY DON S. WARREN.

BY DON S. WARREN.
Division of thought between COM
missioners Allen and Hazen over the
possibilities of District income tax
as major element Of a revamped
municipal tax structure came to light
yesterday while committees of off,
cials and taxpayers continued to
grope for a solution Of the city's
revenue problems.
Clinging to views he voiced last
Spring before congressional commit
tees that a levy based on ability to
pay is the fairest form Of taxation,
Mr.. Allen announced he would cham
pion the adoption of an income tax
with certain restrictions.
He proposed to exempt from the
levy all those earning their incomes
in the District who pay a State in
come tax back home" where they
maintain a claim of legal residence.
He said he believed the suggested
District tax, however, should be ap-
piled to Government employees and
others not paying a State income bill.
Mr.. Hazen declared that If there
is to be District income levy, in
all fairness. it should be applied in
blanket fashion to all whose incomes
are earned in the District, regardless
Of whether there is an income levied
in North Carolina, in Missouri or in
Virginia, with the exemption of any
particular class.
Sales Tax Possible.
Mr.. HAGEN went further to declare
That 4 general sales tax should not
be counted out of the picture of
possibilities and he explained that
such levy would draw revenue from
the many thousands of visitors who
come to the National Capital to en-
Joy its facilities. Mr.. Hazen. how
ever, explained that he had not
committed himself to any OF the
proposed forms of taxes in advance
OF the recommendations to come from
the District Tax Committee and the
Advisory Committee consisting of
spokesmen for various District civic
and business groups.
Meanwhile. a report by Tax As
SCISSOR Fred D. Aiken turned atten-
ton to the effect of the increase in
the real estate tax rate which was
adopted by Congress for one year as
one OF the means of balancing the
1888 budget. He reported yesterday
that the 25-cent increase in the real
estate rate would add S3,331.238 to
CCtrlrt iy,
year, or about 100000 more than
was estimated by District officials
nearly six months ago.
Also. there we're indications OF in
creasing sentiment among District
of1lclals for adoption of a tax on the
sale Of beer as new revenue measure
The District now imposes a sales tax
on liquor, but from the time of repeal
here beer has been exempted on the
theory that the Government should
foster consumption of beer as against
hard liquor, in the interest of teni-
perance.
Review State Taxes.
Commissioner Allen yesterday re-
viewed with Maj Daniel j. Donovan,
chairman of the District Tax Com
mittee, reports of the large amounts
OF revenue being derived by various
States from taxes on beer sales. There
Is talk at the District Building that
adoption of any reasonable tax on
beer would not increase consumption
OF hard liquor or increase the problem
Of drunkenness. 1t seems probable
the Tax Committee will make some
statemeit on this possible source of
revenue.
Increased taxes on public utilities
and combination of a low general
sales tax on all commodities, coupled
with an income tax on the higher"
income brackets, also is being consid-
cred. An income of $4,000 year or up
is considered in the latter connection,
it was said. Also, there is increasing at
tention given to possibilities of the
adoption of some form of q business
privilege" tax even though the present
tax on gross receipts is rejected from
future consideration. Taxpayers and
District officials alike have condemned
the gross receipts levy, which was
adopted as an emergency measure, for
one year only. But there is senti-
ment for placing privilege tax on
many lines of business, in addition to
the nominal business license fees.
That the Commissioners are hoping
for clear expression of public SEN
timent on the tax problems was evi-
denced recently when they appointed
the Tax Advisory Committee Of spokes-
men from nine civic and business
groups, to work with the group Of
District officials who are charged with
making q survey and report on rcvis-
ion Of the District tax structure. The
District Tax Committee is to hold
its second formal session Wednesday.
Hopes for Reduced Levies.
Commissioner HaZen has voiced
hopes of effecting reduction of the
present real estate tax rate in any
revision of the tax structure for the
future. When Congress last session
rejected sales tax or an income tax
as means Of balancing the 1888
budget, the gross receipts levy and
an increase in the real estate rate
(see D. c. TAX, Page A-4)