Evening star., 1937-11-23
SALES TAX PLAN
IS NOT OPPOSED
Position of Edward F. COL
Iaday in Discussing Issue
Incorrectly Quoted.

In the story appearing in The Star
of November 20, which gave an ac-
count of the Board of Trade meeting
at which the District Commissioners
and officials of the Board of Trade dis
cussed the current appropriations and
tax problems, the president of the
Board of Trade, Edward F.. Colladay,
was quoted as having rejected a sales
tax as substitute for the business
privilege tax and to have said that the
board was on record against retail
sales tax. This was an error. resulting
from the reporters misunderstanding
OF a part of Mr.. Colladay's address.
At The Stars request, Robert j..
Cottrell, executive secretary of the
board, has made a statement setting
forth, in brief, the position of the
board on this and other matters:
In respect to the raising of new
revenues the Board of Trade has
never advocated increased taxation.
1t has consistently opposed it, en-
deavoring, however, to have such new
taX-ralsing meaures which were in
evitable, of an equitable nature.
Position Explained.
Its position is, first, that the Fed.
eral Government which, under the
law should pay on a 60-40 per cent
basis and is now paying on an approxi-
mate 10 per cent basis, should par
ticlpate more equitably in its obliga-
ton toward the maintenance and
development of the National Capital
thereby precluding much of the need
Tor further revenue-ralslng measures
secondly, in so far as this year is
concerned, it is opposed to any in
crease in the appropriations bill over
and above that of last year, except
where such increases are unavoidable
due to increased collections in specia
funds-such as the gasoline tax func
or water fund-which are applied fol
special purposes
The boards position is that strict
economy at the District Building and
an equitable share by the Federal Gov
ernment would obviate many of ouA
fiscal problems, that if any other rev.
enue-ralSing measures are imposed on
the District regardless of the opinion
Of its citizens, the board will fight
for that measure which spreads the
burden equitably and will endeavor to
see that its application is just and
fair.
CnIn e.,u
With respect to the sales tax, Mr.
Colladay said: The two taxes most
frequently suggested to take the place
of the business privilege tax are the
retail sales tax and the income tax
Both of these taxes are in use in
many of the States, with vaYing re-
suits. The sales tax, as an emergency
measure at least, has been uniformly
successful as producer of revenue
The income tax has not been SO
effective.
The Board of Trades Municipal
Finance Committee is on record in
opposition to an income tax.
In my opinion an income tax. in
any form which Congress will pass
will not work in the District of Co.
lumbla. The proper object of a tax
is to produce needed revenues. An
income tax will not do this to any
satisfactory extent here, in my opin-
ion.
The House of Representatives in
its last preceding session, clearly indi-
Gated that any such tax passed by it
would be SO limited in its scope as to
be absolutely unequal in its applica-
ton to our population, and in my
opinion 1t would produce relatively
little revenue
lon the other hand, the retail
sales tax, if applied broadly as in
other cities, would be a reliable reve-
nue. producer