Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-05-09
BY JAMES E. CHM.

The Commissioners are expected TO
pull a brand-new tax rabbit out of
the hat Tuesday when they 60 before
the special Tax Subcommittee of the
House District Committee to present
their complete scheme for keeping the
District out of the red in the next
fiscal year by boosting local taxes
100000 or more.
The new plan reported Yesterday to
be under consideration is a business
tax, the principle of which is to levy
one-half of per cent tax against
gross receipts of all businesses and
corporations in the District. with pro-
visions for special taxes, or license
fees on professional men. such as
doctors. dentists and lawyers. Re-
ceiptS from the tax. the details Of
which are being closely guarded until
presentation to the committee, are
estimated at s2500,O00
The proposal is described as a COM
bination business privilege and gross
receipts tax Nothing like 1t has
been proposed here before.
Income Tax Also Proposed.
The Commissioners, according to re-
ports yesterday. also plan to include
a local income tax in their program.
considered as substitute for the pres
ent tax on intangibles, the income tax
would produce a net additional yield
of 32.50O,00O.
irn
opposed by the Federation of Citizens'
Associations and other groups, one
reason for opposition being the diff.
culties Of administration under tho
population conditions peculiar to the
District of Columbia. The Commits
sioners' tax. however. may modify
some of the provisions of the Collins
income tax bill, already introduced.
Total yield of the measures proposed
by the Commissioners. it is stated,
would be about So 500 ,O0O-or 50, 600.
600 in excess of the current revenue
needs as shown in the District bill
as 1t passed the House. Members of
Congress as we'll as local citizens have
stated repeatedly that new taxes
should be levied to produce only tho
amount needed to prevent a deficit
Five Plans Already Offered.
The Commissioners already have
submitted five proposals for raising
the needed additional revenue, but
several OF these probably will be all
tered somewhat due to the prospective
inclusion of an income tax in the
program. The principal change, It
was said. will be designed to prevent
diversion of taxes paid by motor
Vehlcle owners to support activities
other than those related to the high
way department.
Corporation Counsel Elwood Seal.
1t was learned at the District Building.
is working out the details of the in.
come tax. Changes to be proposed in
the original tax plans are being han.
died by Richmond B. Keecn. vice
chairman OF the Public Utilities Com
mission, and Capt. H. c. Whitehurst,
director OF highways, both members Of
committee of District officials created
by the Commissioners to develop a new
program of taxation.
The Commissioners will meet with
the Tax Committee tomorrow to take
formal action on the new tax proposals
so they can be whipped into final shape
Tor submission to the House Subcom-
mittee the following day.
New Auto Tax Considered.
The tax plans which may be recon.
mended by the Commissioners and the
estimated amount of revenue Weld
follow:
IAN increase in the gasoline tax
from to cents a gallon-s1, 100, 600,
"A weight tax on motor vehicles,
eliminating the present 81 registra.
ton fee, but continuing the personal
property tax-Sl 100000.
3.-An estate or inheritance tax
100000.
Am increase from is to 2 per
cent In the net premium receipts tax
on insurance companies-$2O0, 900.
5.-A combination business priv.
lege and gross receipts tax on various
forms Of business-s2, 100000.
GA local income tax-s2, 500 900.
Altogether, the six plans, according
to the estimates, would yield a total
Of $4,000 or about $4,000, 900 in
excess of the original IS ,00O, 900 goal.
The Commissioners, however. are
said to contemplate recommending
that all revenues from the gasoline tax
and the motor vehicle weight tax. to-
Ealing an estimated $4,000 900, be set
aside exclusively for the support of the
highway department, the trees and
parking department, and certain ac-
Invites Of the office Of the director of
vehicles and trafiic. Originally the
Commissioners proposed that the rev.
enue from the motor vehicle tax 90
INTO the general fund Of the District,
where 1t would be used for sundry
municipal purposes.
If motor taxes are regarded as con.
special fund, the net in.
(See TAXES, Page A-5.)