Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-11-27
Hearing on New Tax
Program for D. {.
Opens Tomorrow
Il Witnesses Slated to
Be Heard at Meeting
At Capitol
BACKGROUND

BACKGROUND
Diminishing Federal payments
to,Dard National Capital expenses
hare contributed to inadequdcy
OF District reDenues to meet
grO,Uing demands. As result,
emergency or "stop-gap" legiSld-
ton 1DaS adopted in the past t1Uo
years, 1Dhich 1Drecked. among
other plans, the 10000 900 fUe-
year school building program.
Select committees no,D are con-
Sidering a permanent" District
tar program.
Plans for two days of public hear
ings on the suggested new-District
tax program, to be opened tomorrow
at 10 am. at the Capitol, were COM
pleted yesterday by the Commits
sioners' Tax Advisory Committee as
it announced 81 witnesses were
scheduled to be heard.
The hearings, to be held in the
Senate Judiciary Committee room,
on the northwest corner of the first
floor of the Capitol, will be attended
by Colin F. STAN, chief of staff of
the Congressional Joint Committee
on Internal Revenue Taxation,
which is in charge of the tax survey,
and DR.. Chester B. Pond, survey
director.
The advisory group. of which Maj.
Daniel j. Donovan. District auditor
and budget officer is chairman, has
suggested the following plan for
public consideration" but explained
that the committee has yet reached
no final conclusion;
l. Repeal of the Intangible per-
sonal property tax;
2. Abandonment of the business
privilege tax, which would expire
automatically June 80;
3. Adopt corporation net income
tax, following closely similar Fed
eral tax, with a fiat rate tentatively
fixed at per cent-such tax to be
applied to Washingtons four major
utilities, which also would have to
pay a special franchise tax on gross
receipts.
4. Adopt combination levy con-
sisting of "non-salary, non-Wage
personal net income tax and retail
sales tax eXempting food, medicine
and rent and retail sales of personal
property below some fixed amount.
Suggested rates for the limited per-
sonal net income would range from
2 to per cent. 1t was said an
earned income credit might be al
lowed businessmen so that the
graduated tax may be regarded as in
true conformity with the ability
theory which calls for heavier tax
alton of unearned income"
Eighteen organizations will be rep
resented at the hearings, in addi-
ton to three individuals, and others
may be crowded into the two-day
session.
The schedule for tomorrow morn
ing includes:
Washington I. Cleveland of the
American Automobile Association,
Mrs. Edward A. Chaplin of the Amer
lean Association of University Wom-
en-, Owen R. Lovejoy of the American
Youth Commission, Mrs. Spared A.
Wood of the Citizens Forum of Co.
lumbia Heights, Edward Hollander
of the United Federal Workers of
America, Mrs. Virginia Weston of
the Voteless District of Columbia
League of Women Voters and Sam
uel Lipkowitz of the National La
Dor Relations Board Union.
Those listed for session tomor-
row afternoon, beginning at 2
o'clock, are: Fairfax Oyster of the
Federation of Business Mems As
sociations, William P. Robinson of
the Non-Partisan Lobby for Eco
nomic and Democratic Rights, a
representative of the National Law
yers' Guild and Rufus S. Lusk of
the Washington Taxpayers Associa-
ton.
Those scheduled to be heard Tues
day are: Martin Chancey of the
Communist Party of the District,
Sidney R. Katz of the Maryland and
District Industrial Union Council,
L. A. Carruthers of the Federation
of Citizens Associations, Miss G. B.
Wimsatt of the Citizens Committee
on Fair Taxation, A. Julian Bry-
lawski Of the District Council on
Municipal Affairs, Henry A. Hay
ward, Mrs. Alice I. Siddall, Charles
]. Rush of the Washington Board
of Trade and Marvin M. Mclean.