Evening star., 1937-05-04

Continued From First Page)
had been free. untrammeled competi-
ton" In the fire insurance business,
and insisted il Moor's figures were ap-
piled to separate companies rather
than to a group they would not pro-
duce such ratio as he cited.
"Thre is nothing to prevent any
company in the District from writing
insurance at any rate it sees fit," Bra
shears testified. Everything has been
done to reduce the rate to the lowest
possible cost. That's done by competi-
ton. The insurance companies believe
the rates in the District are fair and
not unjust. The fire insurance business
in the District has been conducted on
a basis to win and merit public con-
fidence
There's not thing in Moor's fig
ures that have any bearing on the rates
charged. Yet he hasn't told us any,
thing about how he would 60 about
fixing rates for the District
Figures Relationship Denied.
There just isn't any rule of the
thumb or relationship between the VOL
ume of premiums collected by all the
companies and the volume of losses OF
all the companies"
Tax experts at the Capitol esti-
mated that the five-point revenue
program sponsored by the Com
missioners, if enacted into law, would
yield more during the coming fiscal
year than is needed to meet the an
ticipated 100000 deficit.
This was made possible by the in
clusion late yesterday Of the proposed
inheritance tax designed TO raise q
minimum of 100000 on estates and
a combined ! per cent gross receipts
and license tax on all corporations
doing business here. Taking in view
however the plan to abolish the per.
sonal property tax, which last veal
raised $4,000 1t was estimated thu
corporation sales tax would accoun
for net gain in taxes Of s4,l00,O0
or more.
Members of the subcommittee as.
serted today that the proposed sale.
tax on corporations would make i
unnecessary to levy separately or
cigarettes and other tobacco, sine.
these sales naturally would come
within the scope.
Meeting Original Estimate.
In announcing yesterdays approva
Of the two new bills. Commissions
Melvin C. Hazen said the tax pro
gram was prepared on the basis 0
, meeting the original estimate of
$4,000, 900 deficit next fiscal year an
not in view Of the additional 100000
deficit which now appears certain
We'll cross that other bridge whel
{ We come to it," he said
So far as Capitol experts are con
cerned, the Commissioners proposal
would yield in excess of S8,000,0OO
leaving ample margin in the even
that the deficit is smaller than nov
expected in view Of proposed slashe
in appropriations.
AS the tax program shaped up last
the possible collections totaled $4,000
| 900. This was made up of s1,l00,Oo
from the proposed increase Of l cen
in gasoline taxes, 100000 from in
surance companies and Sl.500,00,
from a weight tax on automobiles
Gross retail and wholesale receipt
from sales by corporations in tn
District were estimated at s600.000 ,00l
last year and probably will be NOR
next year. A gross receipts tax o
per cent, except wherein specificall,
exempted, would net s6,oOO,ooo o
more
Embodied also in the proposal is
| SIS filing fee when corporation
makes application for a license to d
business. A report must be file
showing the gross receipts Of the pre-
vious year.
Then there would be imposed
special scale of license fees for cor
porations or partnerships from whic,
it would be exceedingly difficult t
estimate an equitable gross receipt
tax That would take care of gen
eral contractors, commission broker
and the like, it was said
1t was estimated that $4,000
would be very liberal amount to b
expected from the SIS filing fee. Sine
the special license rates are being LET
blank in the bill for futurne deter
mination, it is impossible to tell hoy
much these would raise 1t wa
learned from House committe ex
perts that the gross receipts tax woult
be fixed at per cent.
The gross receipts tax and SIS film
fee, therefore, is estimated to rails
no less than $6,3Oo,eoO.
Deducting the loss Of an estimate
personal property tax, the additions
revenues from corporations and in
heritances would boost last week
total Of s2,800,000 to approximate
ss,oooooo.
The inheritance tax proposed Woult
be bit lower" than that provided il
the Collins bill.
The District proposes to take its
per cent share of the total tax that a.
estate pays at death into the Feders
Treasury, but with difference
Whereas the Federal tax exempts tn
first 100000, the Commissioners ar
considering fixing the exemption a
s50,000. The District tax would be
per cent Of the first 100000, which
the equivalent of the Federal tax u
to $l50,000.
In the Collins inheritance bill ex
emptions of $4,000 are allowed to
| vidou sin 000 tn a husband a (l00 I