Evening star., 1937-07-04
BY ], A, O'LEARY,

BY ]. A. O'LEARY.
The Senate will be asked to give the
right Of way within a few days to the
rewritten District tax BILL which now
lays = major part Of the city's ST.
900, 900 deficit on real estate owners
through the additional land tax Of 81
per hundred of assessed value
While the measure contains a vari-
ETY. Of revenue-raising features that
make the total new yield more than
100000. the two main sources
adopted by the Senate District Com
mittee to balance the current budget
are the land tax. estimated to pro-
duce $4,8o0.000. and the 2 per cent
tax on luxuries, designed to bring in
$4,000 900.
District officials pointed out yes
terday that OF the $1,000, 900 to be de-
rived from these two primary fea-
lures, property owners would be put
ting up through the land tax 66 per
cent. These two levies slightly exceed
the estimated deficit.
Three Other Sources Tapped.
There are two other sections OF the
bill that would add to the city's gen.
eral revenue fund, namely, the in
heritance and estate taxes, $500, 600,
and the strengthening of the proce-
dure for collection Of personal taxes,
100000. but these do not offer such
immediate collection possibilities
Then there is the new motor vehicle
weight tax, estimated to yield $780,
600, but this goes into the special
highway fund for street work and
trafiic regulation.
Meanwhile, 1t is becoming increas-
ingly apparent that the tax schedule
| finally adopted will be written in con-
ference. because Of the wide difference
in the programs drafted by the House
Band Senate committees II the bill
passes the Senate in its present form,
the conferees would still have to de-
| eide between the House provisions that
| have been knocked out and the Senate
substitutes, with compromises q pos
stbllity.
Chairman King announced yester-
| day that he expects to report the re-
vised bill to the Senate when 1t re-
convenes Tuesday. and ask for its
immediate consideration. In view of
the changes that have been made in
| it. however, it is probable the leaders
will follow the regular course OF re-
| quiring 1t TO go over one day after
being reported.
McNary 10 Cooperate.
Although the stage Is believed to be
set for the opening OF the battle over
the Supreme Court bill this week, II
the court issue is taken up 1t is ex-
| pected the leaders will agree TO lay
it aside temporarily for action on the
tax bill, because of its emergency
| nature.
Minority Leader McNary indicated
yesterday he would cooperate in
bringing up promptly urgent matters
such AS the local tax bill. Majority
Leader Robinson Was out OF the city
| yesterday.
Senator King will call his committee
together either tomorrow or early
Tuesday to make sure the detailed
phraseoloey OF the tax amendments
is satisfactory. When the committee
acted Friday, it voted on the forms
OF taxation and then instructed the
! legislative drafting Experts to revise
the House bill accordingly
On the 2 per cent luxury sales tax,
for example, it is understood the
amendment will give the Commits
sioners general authority to draw up
regulations governing the method OF
collection. Food, medicine and cloth
Ing will be exempt from this tax.
Borah Still Opposed.
Senator Borah, Republican, OF
Idaho, who made known several days
ago he was opposed to 4 sales tax,
announced yesterday the exemption of
the foregoing necessities has not
changed his position. He said he
would oppose 1t because experience
indicates that when once adopted, this
form Of tax is later extended.
Assuming that the leaders will
break in on the Supreme Court de-
bate to take up the tax bill, there is
some uncertainty rs to how long it
will take to pass it In view OF the fact
that 1t carries rs a rider the Tydings
resale price maintenance measure,
which is national legislation.
In this connection, Senator Borah,
= strong supporter of the Sherman
antitrust lay, said he is for the
! principle of the TydinEs bill because
he does not believe it weakens the
antitrust law.
A considerable number of States
have laws sanctioning contracts be-
tween manufacturers and dealers
specifying minimum resale prices of
commodities, and the purpose of the
Tydings bill is to strengthen the State
law in States that have it.
Passage Sought by Saturday.
Every effort will be made to get
the tax bill through t. Senate BY
Saturday, which would still leave les,
than a week In which to work out
a conference agreement before July
IS. the date on which District officials
say work should start ON making ur
the property tax ledgers and bills.
All indications are the House con-
ferees will fight for a return to sub
stantially the tax program as it was
reported to the House. This would
mean the business privilege levy in