Evening star., 1937-06-23
TAX |NEQU|TYF|CHT
IS LEFT TO PUBLIC
D. c. Heads to Let Each
Business Protest Flat
Rate Burdens.

District officials will depend upon
prospective taxpayers to draft any
basic changes in the business privilege
tax bill which may be needed to pre-
ent inequities under the proposed
fiat rate, it appeared today at the
District building.
This impression, given by the Com
missioners and their legal advisers,
stressed the Importance Of the public
hearings which are to be held on the
bill as whole by the Senate District
Committee beginning next Monday.
A suggestion that Congress confer
authority on the Commissioners to
make rate changes after the bill is
enacted was advanced by Commits
sioner George E. Allen. This would
permit the Commissioners later to ad-
just rates for various activities, If they
were convinced injustice was being
done.
Aliens legal advisers, however, ques-
ton whether such provision in the
law would be valid They have ex-
pressed fears 1t might be held to be
an improper delegation of the powers
Of Congress. Allen may ask that the
Senate Committee study the question.
The city heads have been asked by
Chairman King of the Senate District
Committee to be prepared to outline
desirable alterations before the bill is
reshaped in the Senate. They are
expected to offer some changes, but
from present plans the suggestions
will not 60 into the basic principles
of the fiat rate levy on gross receipts
as it is to be generally applied.
Must Prove Own Points.
The plan is to permit experts of
various lines of business to make
their own showing, to produce the
brass tacks" and figures which would
prove the need for revisions
The Commissioners probably will
question the House amendment to the
bill which would levy punitive tax
on the chain stores in addition to the
tax on gross receipts. Also, it is said,
they will be prepared to support
changes which may be proved neces-
sary to prevent undue hardships. The
Commissioners themselves, however,
are not expected to draft such changes
for consideration involving the ef-
fects of the proposed fiat rate of
three-fifths Of l per cent on gross
receipts
I'VE simply can't do that kind of job
in hurry" said one of the Com
missioners' advisers. I'VE do not
have at hand the essential informa-
ton as to the details of the various
lines of business.
1T was primarily for this reason
that the Commissioners Tax Revenue
Committee in its original report to the
Commissioners advised that the pro-
posed tax on gross receipts be laid
aside for time and that other meas
ures be substituted as stop-gap
program. 1t was thought the busi-
ness privilege tax could be worked
up during the months between now
and the next session of Congress-"
Suggested Sales Tax.
Alter that suggestion had been made
the Commissioners sent their pro-
posals to the Tax Subcommittee of
the House District Committee sup-
gesting sales tax in lieu of the busi-
ness privilege and District income
measures.
When there was revolt against the
thought OF a sales tax, District Off
clals were directed to complete the
draft OF a business privilege lew.
They complied, although some Dis
trict of1icials voiced misgivings as to
the effect Of fiat rate tax on GROSS
receipts.
AS The omnibus bill was passed by
tne House a number of amendments
were written hastily into the gross
receipts measure with the intention
OF removing some of the more ap-
parent harsh features (and then the
cnaln store provision was inserted)
some changes in wording may be
needed to clarity these amendments.
1t is said.
State Taxes Studied.
Study of the gross receipts type of
business privilege measures of yari-
GUS states has revealed they have
variety OF rates for different lines of
endeavor. intended to give recogni-
tlon TO differences in the margins of
prof1t and other conditions.
With certain specific exceptions, the
pending District bill would apply the
same levy to all. The exceptions,
written into the bill by the House,
oeal with the operations Of certain
nnancial houses. with receipts of gen.
eral contractors. commission mer-
chants. lawyers, brokers or other
agents.