Evening star. [volume] (Washington, D.C.) 1854-1972, 1938-03-09
BY JAMES E. CHM.


A reduction in the real estate tax
rate from SITS to s1.60 may be the
next move of the Fiscal Affairs Sub
committee Of the House District Com
mittee when it meets Monday to apply
finishing touches to the revised edi-
ton of the 1889 revenue bill, it was
indicated today by Chairman Nichols.
On the basis of latest changes in
the bill. it will produce in excess of
$6,000,000 in additional revenue in
the coming fiscal year-far more than
necessary to meet the anticipated
budget deficit, which is not expected
to go beyond s4,7O0,OOO. The short
age, however, may be reduced $1,000,-
900 or more by conferees on the 1899
appropriation bill
Mr.. Nichols, who has consistently
advocated cut in the real estate tax
rate to $l.60, is more firmly convinced
than ever, in view of the latest reve-
nue. producing additions to the bill,
that it will be possible to relieve the
present tax burden on property owners
in the new fiscal year.
Privilege Tax Scrapped.
The subcommittee virtually COM
pleted revision of the bill late yester-
day by scrapping the unpopular BUSH
ness privilege tax on gross receipts,
and substituting an income tax on
both individuals and corporations,
based on graduated scale of rates. 1t
also wrote into the measure provisions
raising the present tax on hard liquor
from so cents to 81 a gallon. and inn
posing local tax on beer at the rate
OF 81 barrel Another provision was
added to repeal the long imperative
substantive law requiring the Federal
Government to pay 40 per cent of Dis
trict expenses.
Mr.. Nichols believes the subcommit-
tee will complete its work on the bill
Monday and have it ready for con-
sideration Of the full District Commit
tee March is. Fixing the real estate
tax rate, plus few "reflnements" in
the income tax plan, he said, are the
only details remaining for subcommit-
tee action. These so-called refine
ments," he indicated, include such
questions as whether the tax shall be
applied to 1887 or 1888 incomes, and
whether members of Congress should
be required to pay it.
A proposal of the Citizens Commit
tee on Fair Taxation that an income
tax based on one-sixth of the amount
OF the Federal income tax was dis
carded by the subcommittee as i'm
practical before it adopted the gradu-
ated scale
Mrs. Boyle Gratified.
In q statement today, Mrs. John
Boyle, jr, chairman of the Citizens
Committee, said she was gratified
that an income tax plan had been
substituted, but added that her COM
mittee is not satisfied that the tax
proposed by the subcommittee can
be collected or administered as SIM
ply as levy based on the Federal
income tax payments.
I'VE intend to have our tax pro-
posal offered on the floor of the
House as an amendment to the bill
that will be proposed by the Fiscal
Affairs Subcommittee. she said. She
pointed out that her committees pro-
posed income levy would make un-
necessary tax on beer and an ad-
ditional tax on liquor.
Copies Federal Law.
The approved plan is patterned after
the Federal income tax law. 1t will
apply to Federal employees as well as
non-yesidents. Non-residents, how
ever, will be required to pay only on
that portion of the income received
In the District.
Primary exemptions will be 81 1000
for single persons and 81, 800 for mar
ried couples, with $500 deduction
for each dependent under 10. The
scale of rates on taxable income,
follows
One per cent on the first $4,000 2
per cent on the next $4,000 per cent
on the next $1,000, 4 per cent on the
next $4,000, S per cent on the next
$4,000, per cent on the next S., 900,
per cent on the next $1,000, per
cent on the next $4,000. per cent on
the next $4,000 and 10 per cent on
Ill income in excess of $4,000
The corporation income tax lew was
hxed At per cent on the first $4,000
Of net income, per cent on the next
SIS, 900 and per cent on all income
in excess Of $4,000