Evening star., 1938-02-15
Taxes
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which would exempt sales of motor
vehicles
The automobile dealers. however
proposed that tax be placed on the
certificate of title of all cars sold in an
amount equal to percentage Of the
total purchase price or fair market
value of the vehicle as determined by
the director of traffic. The percentage
figure was not suggested.
Howard w. Kacy, vice president and
general counsel of the Acacia Mutual
Life Association, protested against in
clusion of life insurance companies
IN the income tax feature Of the bill
He declared the measure as now drawn
Is mot entirely clear" as to whether
insurance companies would be re-
ouired to pay the income tax.
An additional tax on the income of
life insurance companies, Mr.. Kacy
said. is not necessary and is not JUS
tifled.' particularly in view of the
fact that such companies now pay a
tax on net premium receipts, which
last years revenue bill raised from
l12 to per cent.
w. A. Torrey, an automobile dealer,
wrote the subcommittee that continu-
alton of the business privilege tax or
the proposed income tax was not
needed.
1T is time he said. that there
was more efficiency in the adminstra-
ton of the affairs of the District. plus
the fact that it is also time for the
Federal Government to pay its just
share OF real estate and other taxes
to the District"
Earlier this month. MIR. Torrey
wrote Chairman Palmisano of the
District Committee: This business
privilege tax is the worst piece of un-
inst taxation I have ever heard of or
read about. My judgment is that if
the tax is re-enacted for another
year it will be better for me to sacri-
nee and liquidate my business and
start over somewhere else, and this is
what l contemplate doing"
N. Arnold Tolles, chairman of the
Civic Affairs Committee Of the United
Federal Workers of America, wrote
the subcommittee that the business
privilege tax is highly unsatisfactory"
and declared certain highly organized
and powerful groups are attempting to
have an outright sales tax foisted on
residents of the District"
Chairman Nichols announced the
subcommittee would hear a special
committee of the Fedora tion OF Citi-
bens' Associations tomorrow.
The committee. composed of L. A.
Carruthers. president of the fedora
ton: Thomas E. Lodge, former presi-
dent, and DR.. A. M. Edwards, vice
chairman of the organizations Fiscal
Affairs Committee, plans to urge an
increase in the Federal payment
toward sssA>rict expenses and the adop-
ton of general consumers tax.
Mr.. Lusk charged the business privi-
lege tax is working an injustice among
certain classes Of real estate owners
and doing lot Of damage" but said
he preferred its continuation to an
income tax. He said changes should
be made to eliminate the inequities,
the exemption raised above the present
$4,000. and real estate removed from
the effect of its provisions.
Building on, He Says.
Questioned by Mr.. Wood as to the
effect of the raise in the real estate
tax rate last year from $3.50 to $175.
Mr.. Lusk said building operations had
fallen off tremendously in the District,
but had increased in the surrounding
areas Of Maryland and Virginia.
Don't you believe the high rentals
here, and cheaper real estate in Mary
land and Virginia, is the cause?"
asked Mr. Wood
THAT has something to do with
It," Mr.. Lusk replied
Mr. Lusk also questioned the neces-
sity Of the creation of a board of tax
appeals, as provided in the business
privilege tax section of the bill, as
we'll as the necessity for the high
salaries prescribed for the three mem
bers. The chairman of the board
would receive $4,000 year and the
sther two members $1,000 each.
There are so many boards at the
District Building now" he declared,
the Commissioners can't find a place
% put them" &