Evening star., 1938-11-20
BY DON S. WARREN.

OlSlTlCl revenues WuSl Dc III
creased by at least S5,000,0O0 over
the present load by the end Of the
next seven years if the District is
to meet increased needs. budget Of
ficer. Auditor Daniel j. Donovan,
estimated last night as he issued a
call for a public hearing on tax re-
vision and announced schedule OF
suggested" new levies.
The tentative outline of new rev.
enue measures, now being "consid-
cred" by experts of the congressional
Joint Committee on Internal Rev.
enue Taxation and the Advisory
Committee on Study of the Districts
Tax Structure, includes:
l. A corporation net income
tax. with a fiat rate of 5 per
cent.
2. A non-salary, non-wage per-
sonal net income tax. with rates
ranging from to per cent, this
to be coupled with
3. A retail sales tax. on tangible
personal property sold at retail,
possibly exempting food and med
iCine and rent.
Coupled with these proposals, in
the tentative outline, offered for
public consideration. would be rec
concentrations for repeal of the in
tangible personal property tax Of
the District. and repeal of the en-
battled business privilege tax on
gross receipts.
Larger L. S. Payment Urged.
Maj. Donovan, who is chairman
Of the Advisory Committee, in his
summation Of the Districts finan-
cial problem to DR.. Chester B. Pond.
the expert placed in charge of study
of the tax revision program, also
included a strong argument for .
larger Federal payment toward Ma
tional Capital expenses.
Maj. Donovan showed that pro-
gresSive reduction of the Federal
payment had been related in past
years to deficits in the Districts
budget operations, lack Of sufficient
funds for capital Improvements and
to the need for the emergency tax
legislation of the last two years.
The tentative outline of revised
taxes did not give any definite state
ment as to the present real estate
tax rate. although the increase from
SIS to sl75 per 500 of value is
scheduled to expire automatically
June 30 next. unless continued, AZ
is the case with the business privi-
lege levy. There has been no indi-
cation from the committee. however.
that its members would move for
reduction of the $l75 rate.
The public hearing is to be held
November % and 20. beginning at
10 am. in the Senate judiciary
Committee room. in the northwest
corner of the first floor, Senate side
OF the United States Capitol. A
request is made that organizations
and individuals desiring to be heard
on the tax revision make their ap-
pointments in writing with Maj.
Donovan, room 2O4. District Building.
not later than Friday. November
25. He requested that so far as pos
sible, each organization or group
designate not more than two speak
ers to present statements.
Others to Conduct Hearings.
In addition to members OF the
Advisory Committee. the public
hearings will be conducted by Colin
F. STAN, chief of staff of the Joint
Committee on Internal Revenue
Taxation, which is in charge of
studies of proposed revision of the
District tax structure, and DR.. Pond.
the out t-of-town expert brought here
to analyze the problem for the con-
gressional committee.
In suggesting the need for a more
flexible tax plan. which would per-
nit increases over the present rev.
enue load. Maj. Donovan declared
allowances must be made for an an
nual increase of roughly $1,000 900
in expenditures for mere mainte-
nance and operation costs and that
lCao m WIG n.-~ ICY