Evening star., 1937-06-19
D. c. Taxes
Continued From First Paee.)


Until he has had An opportunity to
study the matter thoroughly.
Senator King announced before the
bill passed he had requested the city
heads to be ready to present their views
on the details as finally worked out
BY the House.
One OF the first changes the Sem
ate committee is likely to consider is
restoration of authority to the District
70 obtain advances from the Treasury
Early in the fiscal year to avoid leaving
She city without sufficient operating
revenue pending the collection of local
faxes. These advances would be re-
turned to the Treasury as the taxes
come in.
Thomas Backs Plan.
Senator Thomas. Democrat. Of
Oklahoma, announced last night he
will urge inclusion OF this borrowing
power, which was stricken out in the
House. Although he is in charge of
the $46,6oo,0o District appropriation
bill, now in conference, Thomas en-
phasized he was discussing the tax
program in his capacity as an indi-
Vidual Senator and not as chairman
OF the subcommittee on local appro-
priations, because that group does not
have jurisdiction over the tax measure.
Senator Thomas also said he thought
the Commissioners should be given
discretionary authority to try out auto
mobile parking meters for street park
Ing here, another provision which
went out OF the tax bill in the House.
He will favor its restoration.
AS 1t left the House, the bill would:
Raise the real estate and personal
property tax rate from sl.50 to Sl.7O:
add A weight tax to the present per-
sonal tax on the value Of motor We
hicles: establish business privilege
tax OF threef1fths OF l per cent on
gross receipts, boost the insurance tax
from is to per cent on net pre-
n1iums: apply 4 local inheritance and
estate tax. with the rates increased
substantially by amendments on the
House floor; put more teeth in the
present Intangible personal tax.
Copeland Wants Changes.
Senator Copeland yesterday declared
his opposition to the inheritance tax.
He also made known he would prefer
an income tax to the increase on real
estate. arguing that the former is
based more on ability to pay than the !
latter. The New Yorker explained,
however, that this expression OF opin-
Ion did not mean he would insist on
going back to the income tax, which
the House knocked out after a con-
4roversy developed over whether it
would apply to members OF Congress
and other Government officials, The
higher real estate levy was inserted as
substitute for the income tax.
Although there are several others
IN the committee, including Chair
man King. who lean toward the in
some tax principle, it is doubtful II
Sney viii press for return to that
proposal in view Of the danger OF de-
laying hnal passage OF the bill, with
me fiscal year beginning in less than
Two weeks.
Financial Problem Looms.
The District Government may face
= serious financial problem during
me frst three months of the new
hscal year unless Congress restores
sne authorization for Treasury ad-
vances. For. while the House tax
bill may produce even more than
the local share OF the pending supply
BILL It will take time to get the
machinery In motion by which the
new revenue will fiow in, includ-
Ing the heavy volume OF real estate
tax payments not due until Septem-
her. Meanwhile. the city appears
likely to end the present fiscal year
With deficit Of somewhere between
II .000. 900 and Sl.500,000.
One OF the FIRST things the Senate
Committee will want to find out from
local ofnciak Is how much the bill
in its present form probably would
raise.
The deficit to be met under the
1898 appropriation bill will range
between 5000 900 and $500, 900 de-
pending on what the conferees decide
next week regarding Senate amend
ments.
Revenue Estimates Vary Widely.
A the tax bill reached the floor
NJ the House Thursday its revenue
possibilities were estimated all the
way from 100000 to $4,000, 900.
because OF conflicting estimates of
how much the gross receipts business
tax would produce. On the floor OF
the House. one member estimated the
Yield 1t slightly more than 5000, 900.
There has been little time, how
ever, for oficisls to recheck the ef-
fects OF alterations made as the bill
went through the House.
These changes consisted OF adding
the new tax on chain stores, with the
rata mounting A. the number e
scores In . chain increase; BOOSTING !