Evening star., 1937-05-23

by Maj Daniel J. Donovan, auditor
and budget oncer. This program
proposes:
l. Weight tax on motor vehicles. to
raise $l,50o,o0o. which would go into
the general fund, not into the special
fund for highway purposes.
q Estate and inheritance tax, esti-
mated to raise 100000.
3. Insurance premium tax, to be
raised from is to per cent on net
premium receipts. estimated to bring
in 5000 900 additional. This levy would
be applied to the mutual fire and the
fraternal insurance companies, now
exempt from the present levy.
from 2 to cents gallon, to raise an
additional $l,100,00O, the receipts TO
go into the special highway fund.
S. Sales tax, estimated to produce
IS, 100000, this estimate being $780,
600 higher than earlier estimates Of
the effect Of sales tax
As to the sales tax, which the Com
missioners urge in lieu of the suggest
ed District income tax, because of the
doubts as to the constitutionality of
that measure, the committee of Dis
rict officials said
The principal objection to this
form Of taxation is that the poor man
pays equally with the rich in the pur-
chase Of necessities. This objection,
however, Is obviated by exempting food
from the operation Of this tax, which
exemption this committee recon-
mends. The purchase of other COM
modities is in fair proportion to in
come and ability to pay.
The committee is informed that
during the last calendar year, retail
sales in the District amounted TO
$685. ,000, 900, Of which $70,O00,0O0 rep
resented sales Of food. This leaves ap-
proximately $265, 900 900 upon which a
2-cent tax could be levied, and would
produce approximately $5,30O,0OO
Many States have enacted sales tax
laws, one Of the most successful being
California. That law was approved on
July !, 1888, and the committee I'M
derstands it is working satisfactorily.
In the opinion of the committee the
burden Of collecting and paying the
tax should be placed upon the re-
taller"
Favor d. c. Tax Survey.
The Commissioners emphasized they
will seek an appropriation of $4,000
for survey OF the entire tax structure
OF the District, to be made during the
recess Of Congress, in order to pre-
pare a permanent program. They de-
clared taxation to be highly technical
field and agreed that the imposition
OF one new tax without the lifting OF
others might result in substantial"
inequities.
Reporting that they had not aban-
doned the idea of business privilege
tax, nor an income tax, they insisted
that these should not be incorporated
in the hastily drawn emergency pro-
gram. Their committee declared in
fact, that the gross receipts or busi-
ness privilege tax may we'll be the
ny WlllIli lOCdlly ell
gagged In business may be required to
pay their property costs OF govern
ment" and added that by such a tax
ways and means may be devised by
which certain inequities now done
to local businesses through taxes, as
compared with the lack of. or in
consequential assessment against for
eign businesses or types Of operations,
may be properly changed"
AS to the income tax. the committee
declared the need for certainty In
result, plus the time limitation. have
made such proposal impracticable at
this juncture."
Seal announced that the sales tax
bill would include two general exemp-
tionS which must be inserted as q
precaution against voiding of the
act. One OF these would provide
exemption on gross receipts from
sales of tangible personal property
which the District is prohibited from
taxing under the Constitution and the