Evening star., 1938-03-29
Present $1.75 Real Estate
Provision Continued by
Subcommittee.
75.CENT LEVY FIXED
ON BARREL OF BEER
New Program Expected to Yield
$5,300,000 in Additional
Revenue.
By JAMES E, CHINN,

/ The Fiscal Affairs Subcommittee Of
the House District Committee finally
completed revision of the 1889 revenue
bill today after voting to continue the
present Sl.75 real estate tax rate in
the coming fiscal year and placing a
tax Of rs cents a barrel on beer eff
fective July /.
A proposal to raise the tax on hard
liquor from so cents to 81 q gallon
was scrapped.
In final form, the new tax program,
with an income tax exempting Con-
gressmen and certain other officials, is
roughly estimated to yield s5,300,Ooo
in additional revenue in the coming
fiscal year or about $l,600,ooo in ex-
cess of the anticipated budget short
age Of S3,700,o00.
Chairman Nichols, however, believes
the prospective surplus will be absorbed
by deficiency appropriat tions. He pre-
dicted the relief fund may be in
creased by at least S1,000,000 before
the close Of the coming fiscal year.
Another last-minute change by the
subcommittee was to write into the
bill a new definition for highway"
designed to prevent any attempt in
the future to divert gasoline taxes to
pay the street lighting bill The House
made an effort this year to saddle the
street lighting bill on the special gaso-
line tax fund.
Another eleventh-hour change was
made in the existing tax on insurance
premiums which is designed to place
the levy on original premiums to es-
cape Supreme Court decision relat-
ing to taxes on reinsurance
The revised revenue bill will be in
troduced in the House late today and
considered by the full District Com
mittee at its regular meeting tomor-
row. An all-day session is planned to
give the members an opportunity to
consider the details.
Provisions of Bill.
In hnal form the revenue bill pro-
vides:
/. An income tax on both tndivid-
uas and corporations, based on 1898
calendar year incomes, but not pay-
able until next February and Nav.
The individual rates range from l to
10 per cent on taxable incomes. The
corporation rate ranges from to 6
per cent. The President, cabinet off,
GERS, members of the Federal iu.
dietary and members of Congress and
their secretaries who are non-resi-
dents will be exempt.
2. A real estate tax rate of not less
than SITS in the coming fiscal year.
3. A 75-cent tax rate on beer per
barrel.
4. Extending the automobile tag Ii.
cense year to March /.
5. Repeal of the long imperative
law requiring the Federal Government
to pay 40 per cent of District expenses.
6. Revising the automobile trailer
license fees. making the minimum SIS
and the maximum SIS.
7. Minor notifications in the exist
ing estate tax law.
g. Continues enforcement provisions
OF the business privilege tax, which is
destined to die June 80.
Broken down, the estimates of addi-
tional tax yield in the new program
follows:
Real estate, 100000.
Income, s5,00O,0O0. but the net is
expected to be about 100000, in
view of credits to be allowed for in
tangible tax payments.
Beer, 100000.
Chairman Nichols said the subcom-
mittee killed the proposed increase in
the hard liquor tax for fear it would
drive liquor purchasers into nearby
Maryland and Virginia and cheat the
District out of the revenue it is now
procuring from this tax.