Evening star., 1937-04-18
KENNEDY TO SEEK
REVENUE WITHOUT
D. c. INCOME TAX
House Subcommittee Head
to Start Collins Bills
Hearings Tuesday.
DIRKSEN FOR LEVY
ON BUSINESS SPACES
Also Believes Motorists Should
Pay Small Fee for Curb
stone Parking.
BY JAMES E. CHINN.

Chairman Kennedy of the Special
Tax Subcommittee of the House Dis
trict Committee revealed yesterday an
effort would be made to raise Sc OOO,-
600 in additional revenue to offset
the anticipated budget deficit in the
coming fiscal year without adopting
the proposed income tax.
Kennedy is personally opposed to
an income tax and believes the needed
$6,000,000 can be accumulated from
other sources.
Kennedy made the disclosure as he
prepared to start public hearings
Tuesday on the Collins tax bills-a
study that threatens to go far beyond
the scope of the program involved in
the Collins measure. The bills are to
form the nucleus of the study, but
several members of the subcommittee
including Chairman Kennedy. already
have advanced some new and some
what revolutionary taxation plans that
are to be given serious consideration.
Representative Dirksen, Republican,
OF Illinois, for instance, has an idea
businessmen might be required to pay
q fee for exclusive shipping entrance
reservations at the curb in front of
their establishments. He also believes
additional revenue might be raised by
making motorists pay a small fee for
the privilege of curbstone parking
such as is done in cities which have
adopted the parking meter system.
Curbstone Data Sought.
Traffic Director William A. Van
Duzer is to be asked by Dirksen to fur
nish data showing how much curb
stone space is allocated to merchants
for shipping reservations, and how
much curbstone space is available in
the so-called congested area for park
Ing of private vehicles.
Dirksen also said he intended to
find out if real estate is bearing its
fair share of the tax load and whether
real estate assessments are being kept
up to date-refecting the changing
conditions in Washington. This IN
formation is to be sought from Tax
Assessor Fred D. Allen, who has been
summoned among the first witnesses
to appear before the subcommittee.
Kennedy, on the other hand, has an
idea an excess profits tax should be
placed on real estate investors, not so
much as means of raising revenue.
but primarily to keep rentals under
control
Estimates of the yield from an in
come tax have ranged from S4,5OO,OOO
to S6,000,000. Since the Collins in
come tax bill proposes to repeal the
existing levy on Intangible personal
property with the adoption of an in
come tax, the net revenue increase
would be from $2,oO0,OO0 to $685. 900
less.
Kennedy's opposition to an income
tax is based on fear it would impose
an undue burden on Government en-
ployes. If the tax was aimed at the
wealthy and persons in the high in
come brackets, Kennedy Indicated it
might meet with approval. In that
connection, Chairman Norton of the
House District Committee has declared
she would not oppose an income tax
II 1t carried an exemption of family
incomes up to $500.
Chain Store Tax Bill.
Aside from the Collins tax bills, the
subcommittee has before it for con-
slderatlon a measure introduced by
Representative Schultz, Democrat, of
Indiana, to tax chain store corpora
tions. The scale of taxation would be
graduated according to the number
OF stores in chain.
Kennedy pointed out, however, that
the object of the subcommittee would
be to formulate program of taxation
designed to raise $6,OO0,OOO and no
more. He, as well as Dirksen, and
Representative Nichols, Democrat, of
Oklahoma, another member of the
subcommittee, are definitely opposed
to imposing taxes on the District that
would build up a surplus in revenue.
The initial hearing is scheduled to
start Tuesday at 10 am. In addition
to Tax Assessor Allen the first wit
nesses will be Commissioners Hazen,
Allen and Sultan, and Maj. Daniel ).
Donovan, auditor and budget officer.
Arrangements are being made by
the National Broadcasting Co. to
broadcast portion of the first hear
ing, as well as important sessions that
follow. Members of the subcommittee,
as we'll as Chairman Collins of the
House Subcommittee on District Ap-
DrOpriatiOnS, also are to be invited
to speak over WRC and WMAL during
"a series of special tax broadcasts.