Evening star., 1937-12-20
HOUSE UNIT PLAN,
D. c. TAXES STUD1
|EAR[Y IN JANUARY
Expects to Get Proposals o
Capitals Officials by
That Time.
DONOVAN GROUP MEETS
TO TAKE UP PROPOSALS
Income and General Sales Levie
Are Hinted-Nichols Says He
Will Push Legislation.

The newly recreated standing Sub
committee on Fiscal Affairs of tn
House District Committee will star
work on new tax increase program
for the coming fiscal year the frs
week in January, it was announced
today by Chairman Nichols.
BY that time, Mr.. Nichols said, the
subcommittee expected to have before
it the recommendations of District Of
ficials which, according to current re-
ports, may call for a general sales
tax and substantial increase in the
Federal payment toward District eX-
penses.
recommendations will be submitted
to the Commissioners before the enc
Of the week by a group of six de-
partment heads, Maj. Daniel j. Don
ovan, chairman of the District Tax
Committee, said today.
After brief meeting this morning.
Maj. Donovan indicated the group had
not yet formulated final series OF
recommendations He said another
meeting would be held later in the
week.
Income Tax Hinted.
There were some indications today
that the committee members may be
considering a. recommendation for an
income tax, to be coupled with a pro-
posed general sales tax, which would
exempt at least food and medicines,
but this could not be confirmed.
Maj. Donovan said the committee
was instructed to report to the Com
missioners and that its members had
been asked not to make any announce
ment prior to the submission of the
official report.
In addition to Maj. Donovan. the
members of the committee are Cor
poration Counsel Elwood H. Seal, Tax
Assessor Fred Allen, Tax Collector
Chatham M. Towers, Richmond B.
Keech, vice chairman of the Public
Utilities Commission, and Capt. H. C..
Whitehurst, director of highways.
Mr.. Nichols explained today the sub
committee would use the recommended
tions of the Commissioners as the
basis Of its tax study, but it also in
tended to ascertain the views of busi-
ness and civic leaders before it writes
the new tax program.
Plans Study of Revenue.
GAS soon as the holidays are over,
intend to call my subcommittee
together and go right to work on new
tax legislation Mr.. Nichols said I'VE
will first call in District officials to
learn why the business privilege tax
on gross receipts failed to produce
the estimated s3.000,000. Next We
will ask business men to describe the
so-called hardships and inequities of
that tax. We want the views of the
citizens, too If all these groups show
us the need of a substitute for the
business privilege tax I believe the
subcommittee will give them what
they want"
Mr.. Nichols pointed out, however,
that the present business privilege tax
Is form of sales tax THE only
difference" he said, "is that the busi-
ness privilege tax is hidden tax,
while the consumer would pay the
proposed sales tax direct at the time
of purchase"
Chairman Palnisano of the District
Committee has not yet completed the
personnel of MIR. Nichols subcommit-
tee. He indicated, however, that he
proposed to appoint Representatives
Cole, Republican, of New York, and
Wood, Democrat, of Missouri. The
full subcommittee will be composed of
five members-three Democrats and
two Republicans.
Mr.. Cole served on the special tax
subcommittee which wrote the cur
rent 100000 tax increase program.