Evening star., 1938-04-05
ID. Taxes
CONTINUED From First Page.)

man Of the Municipal Finance Com
mittee Of the Washington Board Of
Trade; James E. Colliower former
president of the Merchants e. Manu-
facturers Association; Roger j. White
ford, general counsel for the Merchants
G Manufacturers Association; l.. A.
Carruthers, president of the Fedora
ton of Citizens Associations; Robert
V. Fleming, president of Riggs Ma
tlonal Bank; John Saul, president of
the B. F. Saul Co.; Rufus S. Lusk,
president Of the Washington Taxpay-
ers' Association; Fred A. Smith, vice
president of the Washington Real Es-
tate Board, and Julian Brylawski.
president of the Motion Picture The
aters owners & Operators Association.
Room Ordered Cleared.
When the committee convened
Chairman Palmisano pointed out that
previous arrangements had been made
70 meet IN executive session, but said
in view of the unexpected large at
tendance of spectators he would be
willing to grant them a last-minute
hearing if the committee agreed. Rep
resentative Dirksen, Republican, of
Illinois, income-tax-plan champion
on the committee. insisted however,
that the meeting be held behind closed
doors.
Chairman Palmisano then ordered
the committee room cleared. A few
minutes later he came into the corri-
dor and informed the waiting group
that the committee insisted on an
executive session.
The delegation of business and civic
leaders then handed him a typewrit-
ten flve-page statement containing
thelr views on the bill and requested
him to present it to the committee.
He said he would, but refused to guar
.antee its consideration.
Oppose Income Tax.
The statement not only opposed the
income tax plan, but set out that a
25-cent increase in the present local
tax on hard liquor, continuance of
the existing SITS real estate tax rate
and a 75-cent tax per barrel on beer
would raise more revenue than needed
to balance the budget in the coming
fiscal year.
The bill in its present form pro-
vides for a 75-cent tax per barrel on
beer, continuance of the SITS real
estate tax rate and the income tax.
The Fiscal Affairs Subcommittee which
framed the measure at one time had
under consideration a proposal 10
raise the local tax on hard liquor
from so cents to ST gallon, but
scrapped it during final revision of the
bill.
The statement also declared if the
committee declines to consider a 25-
cent increase in the tax on hard liquor
that 1t substitute a modified business
privilege tax for the income tax.
Our opposition to an income tax"
the statement said, lis based largely
on the belief that it will be found
unavoidable in the District of Co.
lumbia because of the most unusual
circumstances as to the character of
its population makeup and its status
as Federal territory. We believe
that under the circumstances the pro-
posed measure might fail to produce
the anticipated revenue"
Five points were raised in the
statement in connection with the
income tax. They are as follows:
Il. We wonder whether. in the
minds of your committee, there are
any serious doubts as to the con-
stitutionality of such a tax in the
District of Columbia
20. The proposed tax would consti-
tute the only municipal income tax
in this country. and, we are further
informed, in any country. This law
could prove an incentive to other
cities to enact similar legislation and
so start, in the United States, a triple
income tax system-Federal, State
and city.
Should Be Reserved.
''3. There is today a distinct feeling
that the importance of the income
tax in supplying Federal revenue is
so great that this form of taxation
should be reserved to the Federal
Government alone, and we under
stand there is a joint committee
representing the various States and
the Federal Government, formed for
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