Evening star., 1937-06-16

interrupted O'Connor. ''If you go in
| the House with this tax bill in its pres
ent form, however, you won't pass it,"
Representative Mapes, Republican.
| of Michigan, whose bill to impose a
| similar income tax on District resi-
dents passed the House in 1881, said
! he favored granting rule because he
! approved an income tax.
President Roosevelt at his press con-
! terence late yesterday said he favored
income and inheritance taxes in the
District. but was against a sales tax.
He declined to comment on the tax
| bill as whole.
Three members of the Rules Com
| mittee were among those who attacked
the income tax plan when two futile
efforts were made to call it up for con-
sideration in the House Monday.
One of them is Chairman O'Connor.
The others are Representatives Smith
Of Virginia and Dies.
Smith was opposed to the income
tax plan primarily because it would
make non-residents who work in the
District pay the levy. That provision
was not removed, and the result is
his constituents in nearby Virginia
who work in Washington would have
to pay the tax, as we'll as other nom
residents from other States.
The amendment was adopted yes
terday on motion of Representa-
tive Cole, Republican, of New
York 1t stipulates that the defini-
ton Of taxpayer shall not include
any Federal official or employe elected
or appointed for definite term of
years unless such person was actually
a resident of the District of Columbia
prior to such election or appoint
ment.'
Other Inequities Removed.
The committee also took advantage
of the opportunity to erase from the
bill series of the more apparent
inequities, some of which were point
ed out in an analysis of the measure
in the Sunday Star of June 10.
In the business privilege tax plan,
for instance, change was made so
the three -flfths of l per cent levy
would be applied to the gross income
instead of the gross receipts of fnan-
cial houses, general contractors and
commission merchants.
Another alteration would permit an
exemption up to $1,000 for all per-
sons affected by the business privi-
lege tax. The purpose of the COM
mlttee was to protect the so-called
little fellow" Newsboys and others
selling newspapers, magazines or peri
odicals, who have no fixed" location
also would be exempt under this
amendment from paying the proposed
$40 annual license fee.
These changes were suggested by
Corporation Counsel Elwood H. Seal,
who explained that financial houses
would have to pay the privilege tax,
as the bill was Worded not on gross
income but on capital assets. He
pointed out financial institutions bor-
row money at per cent and loan it
out at 6 per cent. With the set-up
expectancy of an income margin of
per cent. he said, the privilege tax
would have been applied each time
the money turned over"
Representative Nichols supported the
amendment. He declared if it was not
adopted all private financial houses
In the District would have to close up.
Under the revision financial
house lending $1,000 at 6 per cent
would pay three-ffth of l per cent
on $50. not on $1,000
Representative Bigelow, Democrat,
OF Ohio was responsible for general
contractors being affected by the
change. He explained a general con-
tractor getting an award of $l,OOO,-
600 project would keep but a rela-
lively small percentage of the total,
but would award subcontracts to 9TH
ers for much of the job.
During the discussion Nichols ad-