Evening star., 1937-05-30
D. c. HEADS DRAFT
PLANS TO ASSESS
INCOMES FOR 1885
TO- Point Program Nearly
Complete as Anti. Tax Bloc
Forms in House.
TRADE ASSESSMENT
IS REVISED UPWARD
Sales Tax Advocates to Seek Real
Estate Boost to Gain
Own Ends.
BACKGROUND

huOpLUH OF per cent retail
sales tar as the foundation OF a
one-yedr emergency tar prooram
10 balance the 1888 District budoet
Uds proposed last Ueek bv the
commissioners. This plan pas re.
7ected by House District Subcom.
mtttee, Which ordered income and
business gross receipts lepies as sub
stttutes. Speed is required, since
nep fiscal year begins July I, and
oud9et as passed by House leaves
q gap OF more than S6,00O,OO0 in
revenues.
District officials yesterday completed
all but one element of 1O-point
tax program, including a local income
tax bill to apply as a starter to 1895
incomes while bloc was forming In
the House District Committee to fight
enactment Of any income levy what.
ever.
While carrying out general direc.
tlons given by the special House group,
the Commissioners advisers inserted
In the income tax bill a provision
which would require the making OF
initial returns and payments before
October l of this year, covering income
received in the 1886 calendar year.
At the same time they revised their
plans for the business privilege tax,
raising the proposed rates from one.
half OF ! per cent to three-fifths Of
l per cent on gross receipts.
The application of the income levy
to 1896 is brand-new thought in
the tax crisis. resorted to in order
to keep from waiting until late in
the 1888 fiscal years for receipts
needed to meet the impending S..
100000 or greater deficit for that
year
The rates. ranging from ! to S per
cent, would be cut in half for the ini.
tial payments this October.
New Sales Tax Strategy,
Meanwhile. sales tax advocates in
the House District Committee, who
lost the first round OF their battle
when the tax subcommittee decided
to substitute an income tax, yester.
day planned to fight back With a pro.
posal to increase the real estate levy
from $3.50 to Sl70.
The strategy behind the nlan is to
force the full committee, which will
meet in special session Thursday to
pass on the new tax program, to
return to the sales tax rather than
raise the real estate tax. Sentiment
IN the full committee against the
income tax is said to be rather pro.
nounced. Many members of the full
committee also are understood to
look with dsfavor on an increase In
the real estate levy. feeling that real
estate already is bearing its fair share
OF the tax burden. In view If this
situation sales tax proponents are
hopeful this plan will be restored to
the tax program as compromise.
The full membership Of the House
committee will meet in special ses-
sion Thursday to pass on the new tax
program
Receipts Unknown.
District officials said yesterday they
could not calculate accurately how
much the revised tax program would
produce, although the Commissioners
intention was to restrict the income
receipts to 100000 and the business
gross receipts taxes to $4,000, 900.
Asked what the proposed rates would
produce, municipal officials responded:
I'VE don't know
They admitted that, by force Of
circumstance, they had paid more
attention to the legal framework of
the income and business levy bills
than to the estimates OF expected rev.
enues. The pressure of time was
given as the explanation, plus the
statement that Congress easily could
change the rates, if and when better
estimates of returns are available.
At the present time, however, mem.
bers Of the Commissioners Committee
said they did not know whether the
income levy, as now planned, would
bring in 100000, the figure set out
as the desire OF the city heads, or
as much as s5,0O0,00O. Also they
said they had no present means Of
knowing accurately whether the bust.
ness privilege tax would raise more
or less than the 100000 figure OUT
lined in the Commissioners plans.
Corporation Counsel Elwood H.
(See D. c. TAXES, Page A-50