Evening star., 1938-05-06
PALM|SAN0 ASKS
COLLEAGUES AID
IN FIGHT ON TAX
Urqes All House Members to
Join Move to Kill D. c.
Revenue Bill.
ALLEGED INEQUITIES
ARE CITED IN LETTER
Suggests Raising Realty Rate in
Lieu of Business Privilege
Levy.
BY JAMES E. CHINN.

Every member of the House was
urged today by Chairman Palmisano
of the District Committee to Join him
in movement to kill the 1889 revenue
bill-a measure designed to produce
sufficient revenue to keep the munici-
pal government out of the red in the
coming fiscal year to the extent of
81, 100000.
Mr.. Palmisano's appeal was con-
talned in letter he wrote to the entire
House membership, requesting votes
against the conference report on the
bill when it is considered in the House
Monday
Aiming directly at the business
privilege tax section of the measure
which he vigorously opposes, Mr.. Pal
missno called attention to its alleged
inequities and declared it is unfair"
especially to small merchants.
Death of the bill. Mr.. Palmisano
pointed out will not necessarily mean
the District will not have sufficient
revenue in the coming fiscal year TO
meet its obligations. The Commits
sloners, ne explained. can, by their
own authority. raise the real estate
tax rate to 81 90 and produce sufficient
revenue to offset the anticipated
budget deficit.
Writes to Colleagues.
In writing personal letters to House
members, Mr.. Palmisano followed the
nracp6ont established 1,1y
ative Smith. Democrat, OF Virginia.
who took the same course several
weeks ago in urging defeat of the pro-
posed District income tax Whether
Mr.. Smiths plea had any influence on
House members or not, the income
tax plan was crushingly defeated.
Only House approval of the confer
ence report on the bill is needed to
complete legislative action and send
1t to the White House for the sigma
ture of President Roosevelt
Mr.. Palmisano called attention in
his letter to the fact that the business
privilege tax does not exempt rail-
roads. financial institutions and con-
ira actors. and accused the Commission
ers in recommending an exemption OF
81 900 for other business firms affected
of attempting to ease the pressure on
the big merchant at the expense OF the
little merchant" The exemption. how
ever. was increased in conference from
81 900 to $4,000.
PalmisanO'S Letter.
The letter of Mr. Palmisano follows,
in part:
This business privilege tax laws an
unjust burden on agriculture. 1t does
not exempt the farmer for the labor
that he pays to produce the goods, nor
does it allow merchant for loss that
he suffers in the deterioration of the
farm products that he sells. On the
other hand it allows the commission
merchant who handles farm products
to pay only on the commission re-
ceived. The commission merchant be-
fore he would pay tax would earn
$4,000, while farmer receiving 50, 900
would earn approximately a S4oO or
$500 profit and the same applies to the
merchant who sells farm products. It
allows general contractor who obtains
million dollar job in the construc-
tion Of building to sublet the whole
OF the work and he, in turn, would pay
only on his profit.
Under the law the Commissioners
have general power to increase or de-
crease real and personal tax rates and
the Commissioners could easily make
up the deficit by adding Is cents to the
present tax Of SITS on real estate.
Il trust that you will look into this
matter and vote against the confer
ence report when the District of Co.
lumba revenue bill comes up for a
vote in the House on Monday, May g."