Evening star., 1937-12-31
CITY HEADS PUSH
NEW TAX PLANS
ATMEET|NCTODAY
Committee Report Urging
Sales and Income Levy
Will Be Considered.
NICHOLS DOUBTS HOUSE
WOULD FAVOR PROGRAM
Split Among Commissioners Over
Way to Raise Funds Is
Reported.

Reported.
Early action on proposals for
permanent tax program that would
supplant emergency measures adopted
for this year was promised today by
the Commissioners as they tackled
the Districts serious financial problem
In preparation for impending con-
gressional hearings.
The board was to meet this morning
to consider the report of the Com
miSsioners' Tax Committee, filed yes
terday, which recommends an increase
In the Federal payment, l per cent
income levy and per cent general
sales levy for next year to raise about
$6,000,OOO.
Members of the board said they
were not sure they would be able to
complete the draft of their own
recommendations today, but empha-
sized that they must have q report
ready for congressional committees
not later than January Is.
DVuUSO 0oACO AoA 4 0Oo6&Cs
Meanwhile, Representative Nichols,
Democrat, of Oklahoma, chairman of
the subcommittee which is soon to
take up consideration of the District
tax problem, said he 'favors II. prin-
ciple" the sales tax as recommended
by the Advisory Committee, but doubts
II Congress would authorize such q
levy.
Il do not believe the business privi-
lege AK has been given fair trial."
he said today. Some mighty good
arguments will have o be made to our
subcommittee to convince me that the
business privilege tax and the 25-cent
increase in the real estate tax should
not be continued for another year"
Mr.. Nichols does not favor an in
crease in the Federal payment.
He censured District officials for
refusing to use policemen, especially
in the suburban area, where, he said,
their work Is relatively light, to help
collect the business privilege tax. He
pointed out that it is largely in the
outlying area that there are small
businesses which require checking up.
If the District officials are unwill-
ing to use police to assist in collecting
this tax they should set up some other
effective machinery for enforcing pay
ment," he declared.
Just as soon as the incoming ses-
sion begins to shake down" little
and Chairman Palmisano has organ
3,ad Tho a ont;vitioc of Tho nictrinf roy,,
mittee, Representative Nichols said
he will start earnest and exhaustive
consideration of Washington's veXed
tax problem" While Congress has
been in recess he has had several in
dependent surveys made.
Commissioners Disagree.
There are indications that the Com
missioners are not entirely in accord
on the proposals so far submitted by
their own committee of District OFF,
cials, the suggestions of the Citizens
Advisory Committee and other groups.
Commissioner Melvin C. Hazen Is on
record in support of general sales
tax and Commissioner George E. Allen
is on record opposing a sales tax and
hvoring q modified form of an in
come tax. Engineer Commissioner
Dan I. Sultan has given some indica-
tions of favoring a sales tax if suit
able and effective income measure can
not be adopted.
The District Tax Committee, headed
by Maj. Daniel j. Donovan, District
auditor and budget officer, recon-
mended:
An increase in the Federal payment
from $5,000,0oO to s7,500,00O.
A general sales tax not to exceed
2 per cent, with no exemptions, sug-
gesting that the Commissioners be en-
powered to fix the rate and that If the
rate were per cent for next fiscal
year the District might expect to re-
ceive between $4,000, 900 and 50 3,000, 900.
A District income tax, with a rate of
] per cent, with no exemptions other
than those allowed under the Federal
income tax law.
Business Privilege Tax.
Abandonment of the business privi-
lege tax on gross receipts, which the
committee agreed has failed to measure
up to expectations as a revenue pro-
ducer. This levy will expire automati-
cally next June 30 unless it Is con-
tinued by legislative action.
Reduction of this years emergency
$1.70 realty tax rate to $1.50-which
was in effect during the past fiscal
year.
The committee insisted that the
Federal payment should be measured
by calculation of what taxes the
United States would be required to pay
II the Districts real estate tax were
applied to Federal property holdings
in the District.
= Adoption of . general sales levy as
+ major element If any revision of
the Districts tax structure previously
had been recommended by the Citi-
tens Advisory Committee, consisting
q representatives Of nine business and
eivic groups. The same position had
been taken by the Board Of Trade,
which reported that most Of its
tnembers favored Q sales tax.
arokaauoo~ fnp h. IL