Evening star., 1938-04-12
ID. C.. Taxes
Continued From First Page.)

Democrat. of Mississippi; Hull. Pro-
ereSslVe, OF Wisconsin. and Brewster
OF Maine, Cole of New York and Dirk
sen of Illinois, all Republicans.
Representative Norton, Democrat. of
New Jersey. former chairman of the
District committee, also voted against
the amendment.
Mr.. Smith and other opponents of
the income tax presented five princi-
pal arguments against it:
l. That it would be unfair to tax
the salaries of non residents.
2. That members of Congress could
not justify a vote to tax others and
exempt themselves.
8. That tax by municipality on
the incomes of Federal workers whose
salaries now cannot be taxed by the
States would esta blish dangerous
precedent.
4. That 1t would constitute dis
crlmlnatlon to place an income tax
on Federal employees who work in
Washington and not tax Government
employees in the States. whose salaries
also come out of the United States
Treasury in Washington.
S: That it would be unfair to tax
salaries of officers of the Army, Navy
Marine Corps, Coast Guard, Coast and
<eodetlc Survey and the Public Health
Service simply because they are forced
to serve tour of duty in Washington.
Mr.. Dlrksen, father" of the local
income tax plan, aided Mr.. Nichols in
MS efforts to prevent it from being
defeated. He not only criticized
washington newspapers that opposed
the income tax, but attacked Mr..
Smith for failure to give the Fiscal
Affairs Subcommittee the benefit of
his wisdom" when it had the revenue
bill under consideration.
Dirksen Explains Exemption.
Called on to explain why members
OF Congress were specifically exempted
from payment of the tax, Mr.. Dirksen
recalled that last year the House re-
Jected the plan because it proposed to
tax the salaries of members of Con-
greSS, and said:
I'm not going to be foolish enough
to come back here and say Here it is
again. after you've pinned my Cars
back once before"
Every parliamentary maneuver was
resorted to by Mr.. Nichols to prevent
defeat of the income tax. After the
House, in committee of the whole. had
turned down the plan, 81 to rs. he had
the bill reported back to the House
IN an effort to save the income tax
section. The second vote was 81 to %
In favor of Mr.. Smiths amendment.
And as a final move Mr.. Nichols
forced roll call vote on the amend
ment and for the third time lost,
197-87.
Halted Other Amendments.
The strategy OF Mr.. Nichols that
went awry also prevented Mr.. Smith
from introducing several other amend
ments he proposed to offer as means
OF raising the revenue lost by the in
come tax. One would have increased
the hard liquor tax from so cents to
81 gallon. The other would have
placed local tax on beer at the rate
Of 81 a barrel.
Except for elimination of the entire
income tax section, the House made
no other changes in the bill. AS it
went to the Senate, the principal fea-
lures provide:
l. Continuation of the existing SITS
real estate tax rate.
2. A local tax of so cents a barrel
on beer
3. Outright repeal of substantive
law requiring the Federal Government
to pay 40 per cent of the expenses
Of the municipal government.
4. Extension of the automobile reg
istration year to March /.
5. Creation of highly paid board
Of tax appeals of three members who
do not have to be residents of the
District.