Evening star., 1938-02-17
SOAK: RICH. TAXES
FOR D. c, PROPOSED
BY c. |. 0. OFFICIAL
S. R. Katz Would Exempt.
Members of Congress
..'UncIes and Aunts."
LEVY WOULD BE PLACED
ON GRADUATED SCALE
subcommittee's Alleged Lack Of
Interest in Conducting Pub
lie Hearings Criticized.
BY JAMES E. CHINN.

BY JAMES E. CHINN.
An income tax with a graduated
scale that would soak the rich was
advocated today by Sidney r. Katz of
the Washington Industrial Council
Committee for Industrial Organization
of public hearings before the Fiscal
Affairs Subcommittee on the House
District Committee on the 1889 rev.
enue bill.
It necessary to assure approval of
such plan, Mr.. Katz said he would
favor exemption of members of Con-
gress, their secretaries and their un-
cles and their aunts." Previous at
tempts to get an income tax for the
District have failed because of disin-
clination of members of Congress to
tax themselves.
The nat per cent levy on in
comes as proposed in the bill, Mr..
Katz declared. is not an income tax.
He argued that the rate should be in
creased gradually into the higher
salary brackets and predicted that
such tax would raise far more
revenue than is needed to balance the
Districts 1899 budget.
Opposes Other Levies.
Mr.. katz vigorously opposed the
business privilege tax feature of the
bill and condemned proposals for a
sales tax which he branded as "class
legislation of the worst kind" Even
If dressed up like demagogue"
with exemptions on food and medi-
cine. he said, sales tax would strike
at the poor to greater extent than
the wealthy.
These proposed exemptions are
like throwing crumbs to the poor"
he declared. ITS like saying to them,
II you get sick We won't tax you"
Mr.. Katz also criticized what he
termed the subcommittee lack of
interest in the hearings, since only
one member Representative Arnold,
Democrat, of Illinois. appeared and
conducted the proceedings.
This is sad commentary on the
form of government we have here"
he declared.
Another witness, who said he rep
resented group of Government en-
ployes. requested to be permitted to
return later when more members of
the subcommittee are present.
Mr.. Katz said if the subcommittee
desired to ascertain public sentiment
on the various tax plans his organiza-
ton would support referendum and
predicted the voters would like the
sales tax"
Despite a warning by Chairman
Nichols that sales tax advocates were
wasting their time" in appearing be-
fore the subcommittee. A. D. Calvert,
president of the Lincoln Park Citizens
Association. testified in favor of that
form of taxation.
A sales tax. he said, is painless and
the most equitable way of raising tax
revenues. 1T is not vicious tax" he
declared, lit is a sensible tax
Mr. Calvert, however, said the Door
should be allowed to escape the tax
and said bread, potatoes, medicine and
coal in quantities of one-half ton or
less should be exempted.
U. S. Share Declared Unfair.
Mr.. Calvert also declared the Fed
eral Government is not paying its fair
share toward support Of the District
and said until it does it should be
stopped from acquiring any more
property in the city.
Mrs. John Boyle, jr.. chairman of
the Citizens Committee on Fair Tax
alton, presented two-point program
approved by the District Organizing
Committee of the United Federal
Workers. 1t calls for tax on net
profits reported by corporations in the
District as a substitute for the busi-
ness privilege tax and a graduated
personal income tax with such ex-
emptions as will safeguard the living
standards of those least able to pay"
Mrs. Boyle declared the committee
opposes any type of sales tax or any
other tax not based on ability to pay.
Meanwhile. prediction was made
today by Chairman Nichols of the
Fiscal Affairs Subcommittee that his
group would eliminate the proposed
income tax plan from the revenue bill
before reporting it to the full COM
mittee for approval
Il believe the subcommittee will
recognize the impossibility of trying to
force an income tax plan for the Dis
trict through Congress" he said, "and
delete it from the bill"
MIR. Nichols also intimated the sub
committee may cut the real estate tax
rate in the present bill from SITS to
$l.60 and leave intact the present plan
for continuation of the business priv
ilege tax on gross receipts. These two
plans, despite the proposal to reduce
the receipts from business privilege
levy by a graduated tax, he said, will
produce far more revenue than will
be necessary in the coming fiscal year
to balance the budget.
Mr.. Nichols estimates the business
privilege tax as modified in the bill,
will produce about $2,600000, and
that a S1.60 real estate rate will yield
$1,200,000 more than was collected
under the former $3.50 levy. The
total additional revenue under these
two plans, he pointed out, would
amount to $3,s00,000, whereas the
budget shortage in the coming fiscal
year is not expected to exceed $3,-
100000.
Plans have been made by Mr.. Mich
OILS to bring the present public hear
ings on the revenue bill to a close
rSext Monday, which will give the
subcommittee day to review the
testimony before reporting the meas
aire to the full committee at its regu-
lat meeting Wednesday.