Evening star., 1937-06-27
D. c. TAX BILL FIGHT
BEGINS TOMORROW
IN SENATE HEARING
Opposition Takes Up CudgeI
Against an Apparent
S2,000,000 Surplus.
DISTRICT OFFICIALS
PUT LAST ON PROGRAM
Kennedy Will Outline Measure
First, Then Taxpayers Will
Give Their Views.

BACKGROUND
To raise an additional 5000, 900
tor the District for the coming fiscal
year, 1t tDds announced tUo months
ago an increase in District td1es
pds necessary. A sales tar. first
suggested, ,Dos put aside for an in
come tar. Members of the House
d,sltked tdring selues and approved
higher realty and business tu1es.
The problem is noW in the lap Of
the Senate District Committee.
Faced with widespread opposition
from many sources, the omnibus tax
bill for the District will come up for
hearing before the Senate District
Committee tomorrow morning
Although the District appropriation
bill, as agreed to by Senate and House
conferees, indicates shortage of only
about 100000 in revenues for the
next fiscal year. beginning Thursday.
the omnibus tax bill is variously esti.
mated to raise S9,0O0,000 or more.
1t is this apparent surplus over
needs which is expected to arouse most
objection generally to the measure.
Much OF the fire, however, is expected
to be centered on the business priv.
lege tax of three-fifths Of l per cent
on gross receipts, with its additional
chain store tax running up to $3.50
a store on the big chains.
Senator King, Democrat, OF Utah,
chairman of the committee, who will
preside at the sessions in the District
committee room in the Capitol Build
ing, beginning at 10 am, already has
indicated objections TO some phases Of
the tax measure
Kennedy to Outline Bill.
Chairman King has arranged for
the hearings to be opened with an
explanation Of the bill by Representa-
tive Kennedy, Democrat, of Maryland,
chairman Of the House Tax Subcom-
mittee. which handled the original
measure. He is expected to outline
the bill. what the House intended,
what the House accomplished, and
give the Senate District Committee
sufficient details for good back
ground
Ordinarily in the course of regular
hearings the District Commissioners
would be given next place on the pro-
gram. but Chairman King this tima
has decided to reverse the order and
place the Commissioners and District
ocials last Following Kennedy. tax
payers and their representatives will
be called to present their views, which
are known to include many objections
to the measure as it now stands With
these objections in the record, Chair
man KING believes. the Commissioners
and their representatives will be in
better position to present their case.
including some amendments.
King Wants Thorough Study. !
Recognizing the difficulty of putting
| through the tax bill in the short time
remaining, Chairman King said last
| night he would favor a more thorough
study of the whole subject after the
pending emergency revenues measure
has been put through
With the fiscal year 1897 drawing
| rapidly to a close. it appeared likely
that the District appropriation bill,
carrying s45,9l5,000, would become
law in time. making available certain
funds to begin the year, such as the
| $5,0OO.00O Federal payment for the
District. The conferees have agreed
to the supply bill and 1t probably will
come up in the House tomorrow and
in the Senate Tuesday for final ap-
| proval so as to go to the White
House for signature before Wednesday
night, the last day Of the old fiscal
| year.
But even with the appropriation
| bill funds available, the District
stands about s7,000000 short OF
| needs. District officials may Be
faced with shortage of funds some
time this Summer, because no longer
are they able to obtain Treasury
| advances to tide over until District
revenues come in from tax sources.
The biggest returns are not due until
September and March. Maj. Dam
iel Donovan, auditor for the District.
has indicated that unless Congress
restores in the tax bill the Districts
right to obtain Treasury advances
the city may run so short Of cash it
might not be able to pay some sala-
| ries.
Tax Bill Could Garry Survey.
Chairman King, in favoring q
more comprehensive survey of the
District tax problem. says authority
| for such a survey could be added
to the tax bill. But any appropria-
ton necessary to cover the cost
would have to be carried in an ap-
preparation bill II the survey Is
approved, however, it would be pos
sible to have the appropriation item
considered in the last deficiency bill.
which is expected before Congress
adjourns.
Senator King said lit is unfair to
the District to put through tax bill
of such consequence in such linz
tied time" but added that it is neces.
sary to meet the immediate require.
(see D. c. TAXES, Page A-3)