Evening star., 1937-04-06
KENNEDY OPPOSES
.$12,0lO,0)D SCOPE
Of D. c. TAX BILLS.
Collins Program Goes Be-.
yond Necessity, CON- =,
mitteeman Says.
BUILDING OF PRESERVE"
FUND is DISTRUSTED
Proposed Weight Levy on Motor
Vehicles Too High, Repre-
sentative Holds.
BY JAMES E. CHINN.

Definite opposition to the Collins
tax bills developed today in the House
District Committee, which controls
the fate Of the proposed far-reaching
revenue program.
Criticism came principally from
Representative Kennedy, Democrat,
of Maryland, chairman of the spe-
cial subcommittee appointed to con-.
slider the merits of the various tax
bills. He believes the program goes
far beyond the realm Of necessity in.
attempting to raise Sl2,000,000 or
more a year, when only half that
amount is required to meet the
anticipated deficit in the coming fiscal
year.
Kennedy plans to insist that the
program be curtailed to meet actual
budget needs. If he succeeds in SELL
in gthat idea to other members Of
his subcommittee it is likely some Of
the tax bills will be scrapped.
hlIHS W DuIlu y y ouIP PIoS.
The sponsor of the new tax pro-
gram, Representative Collins, Demo-
crat, of Mississippi, chairman Of the
Subcommittee on Appropriations
which framed the 1888 District supply
bill, has indicated his purpose in
raising $l2,O0o,OOO would be to build
up a surplus which might be used
in the 1899 fiscal year to reduce the
levy on real estate.
Kennedy, however, is opposed to
both features of such plan. Real
estate taxes, he feels, should be in
creased rather than decreased. Sec
ondly, he does not believe it is wise
policy to build up revenue surpluses,
since there is too often disposition
to embark on a spending spree. The
last time the District had a large
surplus of unobligated revenues, he
pointed out, more than s6000,0OO
was used to purchase a site and pre-
pare for a so-called municipal center,
which has failed to materialize.
The income tax and motor vehicle
weight tax bills are the ones which
have engrossed Kennedy's interest.
He is not yet ready to concede that
an income tax would yield more reve-
nue. than the present tax on intangl-
BILE personal property which it would
replace
The argument OF proponents OF the
income tax that the Intangible tax Is
difficult to collect is not taken seri-
ously by Kennedy. He said the in
tangible tax is being collected salts
factorily in Baltimore, and there is no
reason why it can't be done in WASH
ington. In its study Of the tax meas
ures the subcommittee, he indicated,
probably would make comparative
analysis of the Washington and Balti-
more tax collection systems.
Motor Tax Held Too High.
Kennedy also is inclined to believe
the proposed weight tax on motor
vehicles is too high and should be
scaled down, especially with respect
to commercial vehicles. He Is not
opposed, however, to the theory on
which the bill is predicated, that the
heavier the vehicle the higher the tax
it should pay.
No definite plans have been made
by Kennedy for starting a study Of
the tax program, primarily because
he believes the House should provide
about $4,000 out of its contingent
fund to employ an expert and other
assistants to aid the subcommittee
with the big job that confronts it..
A request for the appropriation is
expected to be made by the full Dis
| trict committee before the end Of
the week.
| Kennedy explained that members
of his subcommittee are too busy with
matters affecting the districts they
represent in the House to devote the
time to the tax bills that they de-
serve, whereas a paid expert could
do all of the preliminary work and
greatly simplify the procedure. He
plans to engage William A. Roberts.
former peoples counsel, to be the
subcommittee adviser If the $4,000
is forthcoming
May Give Up Craftsmanship.
Kennedy, however, indicated he
may be forced to give up the chair
manship of the subcommittee be-
cause of the pressure of other con-
gressional duties. He said his work
on the Claims Committee, Of which
he is chairman. is now occupying
virtually all his time. If he reaches
a decision to relinquish the chair
manship, he will request that the
assignment be given Representative
Nichols, Democrat. Of Oklahoma.
Kennedy and Nichols were chair
men Of the two special subcommittees
created some time ago by the Dis
trict committee to study the Jacobs
fiscal relations plan, which the Ap-
propriations Subcommittee discarded.
After two joint hearings on the ia
cobs formula the subcommittees were
dissolved, and in their place was Gre
ated the special Tax Subcommittee
which Kennedy now heads.