Evening star., 1938-01-07
D|RKSEN PLEDGES
WAR0N SALESTAX
District Subcommittee Mem.
Der to Press Battle for
Income Levy.
BY JAMES E. CHINN.

CSCuIIlcQ W tHc subcommittee Ol
the House District Committee that
will write the tax increase legislation
for the coming fiscal year, Representa-
tive Dirksen, Republican, of Illinois
announced today he would fight all
proposals for . general sales tax and
champion an income tax in its stead.
Mr.. Dirksen led the battle at the
last regular session Of Congress a. .
member Of the special subcommittee
that framed the current tax increase
program for an income tax. Despite
the defeat he suffered when the House
fatty rejected the income tax in favor
of the present widely condemned busi-
ness privilege tax on gross receipts,
Mr. Dirksen said he is prepared to
engage in another scrap for the same
cause.
Il haven't yet heard any arguments
in opposition to an income tax per-
suasive enough to change my views, !"
he declared. AN income tax is the
most reasonable form of taxation"
Fears Taxes Easy"
Mr.. Dirksen said there's danger"
in q sales tax simply because its easy
to apply and easy to collect. And the
more it produces, he pointed out, the
more extravagant those who handle
the revenue become.
Another member Of the subcommit-
tee, Representative Cole, Republican,
Of New York, also is an income tax
supporter. The other three members,
however, have different views on the
forms Of taxation that should be
adopted to keep the District out of the
red in the next fiscal year.
The subcommittee, headed by Rep
resentative Nichols, Democrat, of
Oklahoma. actually will begin work on
the new tax program Monday at 10
am. At that time the Commissioners
and . group Of other District officials
will be called before the subcommittee
to discuss the various proposals for
raising between $4,000 900 and S.
000, 900 in additional revenue to meet
the anticipated budget deficit.
Bill Possible Within 10 Days.
Mr.. Nichols believes the subcommit-
tee can complete its work and write
the new tax legislation in . week OF
10 days. The bill will then be intro
duced in the House, and . series OF
public hearings held on it, at which
time, he said, every interested person
In the District will be given an oppor-
tunity to testify"
Prior to drafting the tax bill, Mr.
Nichols explained, the subcommittee
would give serious consideration to the
recommendations of the special Dis
trict Tax Committee and those of the
Citizens Advisory Committee on Tax
alton.
The Tax Committee proposed sales
tax, l per cent income tax, and an
increase in the Federal payment to-
ward District expenses from $5,O00,-
600 to $7,500. 900 year. The recon-
mendations of the Citizens Advisory
Committee were similar, except it did
not include an income tax.
Dirksen Wins Victory.
Mr.. Dirksen's return to the subcom-
mittee in chargH of the tax bill marked
. sweeping victory for him in his clash
with Chairman Palmisano Of the Dis
trict Committee for recognition as the
ranking minority member He also
was placed on the Public Utilities Sub
committee, an assignment he sought
50 as to be in q position to take an
active part in the impending investi-
cation of the Capital Transit Co.,
which he initiated.
Left OF these two subcommittee by
Mr.. Palmisano, Mr.. Dirksen and the
other Republican members Of the full
committee made q vigorous protest. As
. result the chairman agreed to permit
the Republicans to select their own
subcommittee assignments.
Later, the Republicans held an in
formal caucus, and placed Mr.. Dirksen
on the Public Utilities and Fiscal AZ
fairs Subcommittees, the two assign
ments he most desired. The change
necessitated shifting Representative
Brewster of Maine from the Public
Utilities Subcommittee to the Insur-
ance and Banking subcommittee, and
Representative Short Of Missouri from
the Fiscal Affairs Subcommittee to the
Police and Fire Subcommittee.