Evening star., 1938-02-09
DISTRICT TAX BILL
STUDIED PENDING
DATE OF HEARING
Committee Expected to Set
Time for Airing of Views
Today.
LEVY ON INCOMES
PROMISES TROUBLES
Provisions Scrutinized for Legal
Exemptions-Estimate Yield
Forecasts Surplus.
By JAMES E, CHINN.


The full House District Committee
IS expected to fix date today for pub
lie hearings on the 1899 revenue bill
"a measure that would raise more
than twice the amount necessary to
meet the anticipated budget deficit
In the coming fiscal year.
Meantime, members of the Fiscal
Affairs Subcommittee, who dictated
various features of the bill to the
corporation counsel's Office which
actually wrote it, began serious study
Of the various provisions to determine
II their instructions had been scrupu-
lously followed.
Already some doubts have arisen as
to certain sections. particularly those
relating to the proposed per cent in
come tax
Representative Dirksen, Republican,
OF Illinois, champion of the income
tax, for instance. urged that a pro-
vision be included in the bill which
would tax only that portion of the
$4,000 salary which members of
congress received while actually living
In Washington.
Court Might Have to Decide.
But now, it develops, the phraseology
OF the bill is such that court de-
clslon may be necessary to determine
on what amount member should pay:
or the taxable income of any other
person who is classed as a nonresident
and who earns only portion of his
income in the District.
Corporation Counsel Elwood n
Seal said the income tax feature was
written to require members of Con-
ress to pay the per cent levy on the
1ull $4,000 annual salary (minus. of
course, the prescribed exemptions)
whether they received all of it in
washington or in some other part of
the country.
Unless members of Congress live in
washington for less than six months
year, the bill regards them as non
RESIDENTS. And then, it says, a non.
resident shall be taxable only upon
the amount Of income received bv such
taxpayer from labor performed. bust
ness done, or tangible property rea,
or personal, and from such intaneible
property as has acquired situs located
within the District"
Studies Provisions.
Mr.. Dirksen did not see a nr,n+ed
copy OF the bill until late Yesterday
and took it home last night to study
de is a lawyer and may have some
comment 10 make later on his income
TAX plan as interpreted in the bill.
But at the District Building those
learned in the law argue it would he
olff1cult. without discrimination IN
apply the tax to only that portion of
the income received by a member of
Congress while in Washington with
ouC making q similar allowance TO
otner Federal employees. AS an H.
!ustratlon, 1t was pointed out. MANY
feoeral workers spend their vacation
outside the District. The question
then is raised whether they would be
allowed to deduct from taxable INCOME
the amount called for in the nav check
they receive while not actuallv living
In the District.
On Capitol Hill, however. IT. Is
argued that members of Congress are
paid on an annual basis, and not for
particular session Of Congress. It
was pointed out a member on the
territories Committee of the House.
Tor instance, might spend six months
out ct year investigating conditions
In OF OF the island possessions. and
II would be decidedly unfair to tax
MIN on the full $4,000 which he did
not earn in Washington.
House Approval Not Expected.
While the House is not expected to
approve the income tax plan in view
OF its rebellion against it last wear a
number of members, it is understood
are preparing to fight it during the
public hearings. Chief opposition is
expected to come from those who op-
pose the retroactive feature that would
impose the tax on 1887 incomes.
Inc other two tax-raising features
provide for continuation of the I'm.
popular business privilege tax on a
graduated scale, and at present sl.75
levy on real and personal property,
The three tax plans are estimated to
yield at least $6,600,000 in additional
revenue in the coming fiscal year. and
less than 100000 will be needed to
balance the budget on the basis of the
1889 appropriation bill the House sent
to the Senate.