Evening star., 1938-04-11
By JAMES E. CHINN.

By JAMES E. CHINN.
Facing bitter battle, the 1889 Dis
trict revenue bill providing an income
tax that will exempt members of Con-
gress and other select groups was
called up in the House shortly before
l o'clock today.
Debate on the measure was limited
to two hours by agreement. Reading
of the bill for amendments was to
start Immediately afterward.
Representative Nichols. Democrat,
of Oklahoma, chairman of the Fiscal
Affairs Subcommittee of the District
Committee which framed the measure,
started the debate with a detailed ex-
planation of the various features, and
intimated he anticipated scrap over
the income tax section.
II judge we will hear quite lot
about the income tax if can depend
on rumor," he declared.
Bill Carefully Prepared.
Mr. Nichols told the House the bill
had been Carefully prepared" and
laid stress on the importance of Sec
ton which creates a board of tax ap-
peals of three highly paid members
who do not have to be residents Of the
District.
This board" he said, will prevent
appeals from tax assessments from
being heard by the same people who
levy the assessments"
The first attack on the bill was
made by Representative Smith, Demo-
crat. of Virginia. who declared the in
come tax section should be entirely
removed.
THE income tax is all wrong" he
declared. 1T ought to be kicked out
of the bill If that is not done we
ought to eliminate that provision
which taxes your constituents and
mine"
Representative Sadowski, Democrat.
of Michigan, interrupted to say he
couldn't get excited about the income
tax on non-residents because only 20
of his constituents live in Washington.
Liquor and Beer Tax.
Mr.. Smith argued that the revenue
that would be lost by scrapping the
income tax plan could be made by a
proper and adequate tax on hard
liquor and beer. He said he intended
to offer amendments to increase the
hard liquor tax from so cents to 81
gallon and raise the beer levy as pro-
vided in the bill from so cents to 81
barrel.
Representative Lewis. Democrat. of
Maryland joined Representative Smith
in his protest against the income tax,
as applied to non-residents. and par
ticularly denounced those who oppose
it on the ground that it would save
them money.
mo court can excuse me from pay
ing my taxes" declared Mr.. Lewis. i
have no sympathy with those who op-
pose tax on the ground that it will
save them money"
Representative Dirksen, Republican,
of Illinois, champion of the income
tax plan, subsequently criticized the
Washington newspapers who opposed
the tax. He singled out the Evening
Star and declared the esteemed gen.
tleman at it's head. whose income
probably reaches quarter of mil
paper, has steadily fought the income
tax plan for three years"
Mr. Dirksen also criticized Repre-
sentative Smith for failure to give
the Fiscal Affairs Subcommittee the
benefit of his wisdom" when it had
the tax bill under consideration in
stead of attacking the income tax
plan on the House floor.
10 V. Morgan, assistant corporation
counsel, who aided the Fiscal Affairs
Subcommittee prepare the bill, was
called on the House floor to assist
members of the District Committee in
answering questions about the meas
ure. He was seated beside Chairman
Palmisano.
Although the House convened at
noon, there was delay of nearly an
hour before it began consideration of
the revenue bill. Part of the time was
taken up by Representative Hoffman,
Republican, of Michigan, who rose to
point of personal privilege to an
swer statement involving him which
appeared in the Congressional Record.
Less Than 80 on Floor.
There were less than 80 members
on the floor as Mr.. Palmisano prepared
to call up the bill for consideration.
The galleries. however. were we'll
filled with civic leaders and District
officials. Among the officials were
Corporation Counsel Elwood H. Seal,
who aided the Fiscal Affairs Subcom-
mittee of the District Committee in
drafting the bill.
In it's present form the measure Is
calculated to raise $5.200000 in addi-
tional revenue in the coming fiscal
year beginning July l to Offset an
anticipated budget shortage of $4,-
100000.
Known proponents and opponents
Of the bill were on the floor prepared
for bitter fight over the income tax
section, especially the provision ex-
empting members of Congress and
other select groups. These included
Representatives Smith, Democrat, Of
Virginia and Lewis. Democrat, Of
Maryland, who issued joint appeal
to the entire House membership yes.
terday to defeat the income tax plan.