Evening star., 1938-03-13
LIQUOR INTERESTS
MAY GET HEARING
ION TAX INCREASES
Subcommittee Members
Feel Brewers Should
State Their Views,
ADDED CONSUMER COST
IS CITED IN PROTESTS
Bill May Not Be Ready for Full
Committee Action Before
End Of Week.

The Fiscal Affairs Subcommittee
Of the House District Committee made
plans yesterday to give beer and liquor
interests . limited hearing before
placing its final stamp of approval on
those features of the 1889 revenue
bill calling for local levy Of 81 q
barrel on beer and 50-cent increase
IN the present tax on hard liquor.
The beer tax and the higher levy
on distilled spirits were not a part Of
the subcommittee's original three
point tax-raising program, but were
written into the bill Unexpectedly last
week after the conclusion of public
hearings The subcommittee mem
bers now feel that representatives Of
the brewers, as well as the distillers,
should be given an opportunity to ex-
press their views on these proposed
new taxes before the measure is re-
ported to the full District Committee.
Verbal protests against the taxes al
ready have been filed with several of
the subcommittee members by both
liquor and beer interests. Both groups
argued the levies would increase the
cost to consumers.
Distilled Tax Levy Heaviest.
Distilled spirits face the heaviest
tax IN view Of the action of the House
last week in voting for an additional
25-cent Federal levy on these bever-
ages. The 50-cent additional local tax
will raise the amount to rs cents.
Hard liquor sold in the District is now
bearing a Federal tax of 50 a gallon
and local tax Of so cents gallon.
The subcommittee will meet tonor-
row in the Office of Chairman NichoS
with a view to applying finishing
touches TO the bill, but if liquor and
beer interests are given a hearing,
the measure may not be ready for
consideration Of the full committee
before the end Of the week.
Drafting Of the bill already has
been virtually completed, but there
are two major questions the SUBJ
committee must answer before It is
put In final form. One is whether the
proposed income tax shall be applied
to 1887 or 1888 incomes. The other
Is whether members Of Congress
should be required to pay the tax.
1897 Basis Is Urged.
| Several subcommittee members said
they had accepted as q foregone con-
clusion the tax would be applied to
1887 incomes, otherwise there would
be no revenue from this source In
the coming fiscal year to aid IN bal
ancing the budget.
The proposed income tax, affecting
both individuals and corporations, is
estimated to yield about $5,000,0 1000 in
additional revenue It Is planned to
allow credit on the income tax for
intangible tax payments, however,
which will reduce the net gain to ST.
o00, 900 a year.
There are rather strong indications
that the income tax plan, in its final
form. will exempt members Of Con-
gress. Subcommittee members, 1t is
said, feel that application Of the tax
to the salaries of members of Congress
might jeopardize approval Of the en-
tire revenue bill, since the House re-
jected . similar plan year ago.
For the last several days 10 v. Nor
gan, assistant corporation counsel, and
G. F. STAN Of the Joint Committee on
Internal Revenue Legislation have
been perfecting the bill at the direc-
ton Of the subcommittee.