Evening star., 1937-06-10

person VINO is elther QOmlClled IN
the District, or one who maintains
a permanent place Of abode within
the District and spends in the ag-
gregate more than three months of
the taxable year within the District
Of Columbia"
Seal Predicts Confusion.
Corporation Counsel ElWood H
Seal, who sat with the committee
: throughout the day explaining each
OF the tax plans, said the Hull
amendment would cause great con-
fusion" His "curbstone opinion" was
1t might eliminate from the tax not
only members of Congress, but resi-
dents OF Maryland and Virginia who
work in the District, and some 10000
absentee voters, who have legal
residence in the States.
The income tax plan as it came out
OF subcommittee would have taxed
every person whose income is earned
IN the Dstrict-Federal employees, nom
residents and members of Congress.
The only exemptions would be those
decreed by the Constitution-the Pres
ident and members of the Federal ju-
dietary
Constitutional Issue Raised.
In the heat of the debate on the
income tax, Representative Schultz,
Democrat, of Indiana raised the ques-
ton as to the constitutionality of tax
Ing the incomes of Federal employees.
Seal said there is a grave doubt"
IN his mind as to the validity of tax
Ing the salaries of Government work.
ers, and that the joint congressional
Committee on Taxation held the same
view.
If It's constitutional in the Dis
trlct," Schultz declared, "it also would
be constitutional for Illinois to tax
salaries of Federal employees. "If you
leave the provision in the bill to tax
Federal employees you had better get
ready now to find some new source
of taxation to meet this deficit or ask
Congress to increase the Federal pay
ments toward support of the District" +"
That's only a presumption" Dirk
zen replied
Realty increase Fails.
Representative Bigelow, Democrat,
Of Ohio made several efforts to kill
both the income tax and the business
privilege tax plans. First the COM
mittee voted down his motion to sub
stitute $3.50 tax on land values for
both the income and business priv
ilege taxes. Then he came back with
proposal to increase the real estate
tax from $3.50 to sl75. It met the
same fate.
Bigelow argued either of his plans
would raise more revenue than the
income and business privilege taxes.
A $3.50 levy on land values alone, he
predicted would yield $5,000,OOO.
In final attempt to kill the income
tax plan, Bigelow moved that it be
eliminated from the bill on the ground
the Commissioners had authority to
raise the real estate levy If additional
revenue is needed. The committee
voted down this motion.
Debate over the tax program became
bitter at times, especially when Schultz
threatened to make a point of no
quorum TO prevent final action.
Il think that's eminently unfair"
shouted Dirksen. Members Of the
tax subcommittee have gone through
many headache preparing this pro-
gram"
Parking Meters Attacked.
In addition to fighting to prevent
members of Congress from paying the
income tax, Hull vigorously opposed a
provision authorizing the Commits
sioners to install parking meters in
the District. The parking meter pro-
vision, it was pointed out. was "inad-
vertently" left out OF Kennedy's omni-
bus bill, and after it was inserted by
committee action, Hull made motion
to eliminate it, which the committee
promptly defeated.
The principal amendment adopted