Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-05-13
Seeks Amendment in Law
Instead of Income
Levy Bill.
RECORDS EXAMINATION
WOULD BE Permitted
Allen Believes 100000 of
Added Revenue Could Be Raised
if Change Is Made.
BACKGROUND

Facing deficit estimate OF S6,000,-
900, District seems destined for ne1D
tar burden NTH flock OF proposed
leDieS no,D under consideration BY
special subcommittee OF House Dis
trict Committee
Committee currently is consider
ing seUeral suggestions by Commits
sioners Nth three being giuen ten
tdtipe Endorsement yesterday,
namely, 1Ueight tar on automobiles,
increased insurance tar and in
heritance and estate tar.
Amendment Of the Districts in
tangible property tax to put real
teeth" into its operation will be
sought by Chairman Kennedy of the
Tax Subcommittee of the House Dis
trict Committee, in preference to
adoption Of an income tax bill of
dubious constitutionality, it was
learned today.
The proposed amendment would
empower the District assessor to ex-
anime the books and records of indi-
viduals and corporations as a check
against returns made on intangible
holdings power held by the Federal
Government as well as number of
the States in enforcement of income
tax levies.
Sees Additional Revenue.
Tax Assessor Fred D. Allen has adj
vised the subcommittee he believes
100000 of additional revenue could
be collected from the present intangi-
bic levy If such a change Is incorpo-
rated in the new District tax bills now
being framed.
Statement of the position of Chair
man Kennedy has strengthened the
belief that the subcommittee will pro-
pose the grant of this power to the
assessor, If the Intangible levy is re-
tanned, as urged by the Commissioners.
A brief study has already been made
into the possibilities of getting an
additional 100000 from the in
tangible tax by the simple expedient
of giving the assessor the power he
needs to make effective the payment
of the tax on intangibles.
by all means" said Assessor Allen,
IF the intangible tax is to be retained,
We need the authority to examine the
books. I am convinced we could col
lect an extra million dollars"
Inquiry developed that such States
as New York, Massachusetts,, Wis
consin and Virginia have laws which
give taxing officials the right to ex-
anime the records of the taxpayer as
a check against income returns. In
the District, the assessor must accept
the statements made by the taxpayer
as to intangibles. Among the In
tangibles are stocks, bonds and bank
accounts.
The hearings previously had de-
veloped that last July l Washington
resident reported by $60,00O,oo0 in
money on deposit, whereas bank re-
ports to the Treasury showed some
S270, 600 900 on deposit.
Oficiais are convinced there are
many residents who do not report
money on deposit and many others
who follow a practice of withdrawing
such moneys for July l, the date on
which the Intangible levy applies.
Quorum Is Lacking.
Plans Of the Tax Subcommittee to
complete work on the tentative draft
Of the Sc, 100000 tax-increase program
today had to be abandoned because
OF the lack Of quorum. Chairman
Kennedy was delayed in Baltimore,
his home, and only two other men,
bers appeared for the meeting Repre-
sentatives McGehee of Mississippi and
Allen of Delaware, both Democrats.
McGehee and Allen waited from
1890 to 1920 am. for the other
members Of the subcommittee, and
when they failed to show up the meet
ing was postponed Indefinitely. It is
likely, however, that Kennedy will
call another meeting for Tuesday.
Kennedy is known to be anxious
to complete the program before
Wednesday, SO it can be acted on at
that time by the full District Com.
mittee and sent to the House in time
for consideration on the next District
day, May "a.
Whitehurst Submits Figures.
Meanwhile, Capt. H. c. White
hurst, director of highways, SUBJ
mitted to Chairman Kennedy q
detailed statement showing the esti-
mated annual average income from
the proposed additional taxes on au'
tomobile owners. The statement alst
shows the proposed use Of motol
vehicle revenues.
An increase from to 3 cents IL
the gasoline tax, Capt. Whitehurs
pointed out, would produce total O.
S3,70O,00O year, Of which all bu
$4,000 would be available for high
way activities, if the subcommittee
decided to make the gas tax supper
the trees and parking department o
vehicles and traffic.
Since the subcommittee has tenta
tievly agreed to recommend that tn
revenue from the weight tax be place.
in the gasoline tax fund, Capt. White
hurst estimated the highway depart
ment would have total OF $5,625, 00(
If the gas tax is raised to cents I
gallon. The subcommittee, however
has shown indications of frowninl
on an increased gas tax, and if tina
Is opposed Capt. Whitehurst's figure
would be reduced by $1,100.000.
In planning to place the weight ia,
and gasoline tax receipts into on
special fund the subcommittee pro-
poses to create sufficient revenue Il
finance some Of the proposed highwa!
improvements for alienation of trafh'
conditions