Evening star., 1938-11-30
D. {. Tax Committee
Plans a Program
To Give Congress
Group to Meet This Week
To Map Changes in
District Levies
BY JAMES E. CHINN.

BY JAMES E. CHINN.
Preparations were made today by
members of the Commissioners Tax
Advisory Committee to get to-
gether the latter part of the week
to consider a definite program to
recommend to Congress for re-
vamping the District tax structure.
Voluminous testimony, taken from
Is witnesses at a tWo-day public
hearing on suggested" tax struc-
ture, will be reviewed by the COM
mittee before starting work on its
recommendations The members also
plan to confer with Colin F. STAN,
chief of staff of the Congressional
Joint Committee on Internal Rev.
enue Taxation which the last Con-
gress directed to draft new tax
set-up for the District, as well as
DR.. Chester B. Pond, this commit
tees tax survey director.
Although Congress fixed January
Is as the deadline for the joint
committee to report, there are in
dications it will be ready for SUBJ
mission in advance of that date.
The Commissioners Advisory Com
mittee, however, is expected to have
its recommendations completed
within the next three weeks.
Seek Civic Recommendations.
Mai. Daniel j. Donovan. District
auditor and budget officer, who is
chairman of the advisory commit
tee, said the recommendations OF
the Federation of Citizens Asso-
Citations are desired before its re-
port is written. L. A. Carruthers,
Federation president. indicated the
organization may pass on the four
point suggested" program OF the
advisory committee at its meeting
Saturday night in the District Build
ing.
, Although 25 witnesses testified
during the two-day hearing, DR..
Pond said no tax proposals had been
advanced that had not already been
discussed previously in conferences
he had with members Of the advls-
ory committee. with the exception.
to finance emergency relief.
Most of the witnesses, however,
avoided the Advisory Committees
tentative program. and converted
the hearing into debate on the
relative merits of graduated in
come tax and a sales tax as
means of raising the needed addl-
1InnfY1riQl HhnrE
showed II spoke in favor OF the
income tax and eight for the sales
tax. But in some cases, there were
two witnesses representing each Or
ganization on both sides, so that the
ratio of an organization vote would
be about the same proportion.
All Want Bigger Lump Sum.
The only organization which stuck
to a discussion of the Advisory
Committees four-point program
and Endorsed it in principle is
the Washington Board of Trade.
The Endorsement, however, was con-
ditioned on repeal of the present
tax on Intangible property and the
business privilege tax.
There was only one subject on
which virtually all of the witnesses
were in agreement-that the $5,000,-
900 lump sum Federal payment to-
ward District expenses is made
auate. Several stressed the fact
that fair and equitable Federal
payment would make unnecessary
new tax program.
The position of the trade board
was outlined to the committee late
yesterday by Francis G. Addison,
jr., its president. He read a lengthy
statement, which not only discussed
the suggested" tax program, but
condemned the parsimonious treat
ment of the District by the Federal
Government and urged adoption of
a flexible real estate rate ranging
from a minimum of $1.50 to maxi
mum of SITS.
U. S. Once Paid so Per Cent.
Pointing out that AZ years ago
the United States paid SO per cent
of the expenses of the District,
and that the s5,000,000 payment for
the current fiscal year represents
only 10 per cent, Mr.. Addison de-
clared:
1--WE are strongly opposed to the
lump sum system which has been
in effect since 1925 and we urge
YOU to recommend to Congress the
establishment of percentage
basis of local costs to be paid by the
Federal Government. In any event,
If a fair payment by the Federal
Government is once established,
then there should be an elastic rule
which would provide for the increase
of such payment when additional
taxable land is purchased by the
Federal Government or to compen-
safe for additional services which
are required by the Federal Gov
ernment."
BY setting a $3.50 minimum and
asl.75 maximum on real estate taxes,
Mr.. Addison argued this arrange
ment would allow for raising or
lowering the total tax collection
about s3,000,000 year.
Mr.. Addison also explained that
the board "for many reasons which
have heretofore been discussed" Is
opposed to a graduated all-inclu-
sive income tax such rs has been
proposed to Congress "a the past. 10
v. Morgan, the one-man District
Board of Tax Appeals, asked him
specifically to give the boards objec-
tions to such tax.
Objections to Income Tax.
His answer was that the board re-
allied there would be too many ex-
emptions under an income tax and
that levy of this type would drive
the heaviest" taxpayers out of the
District.
Succinctly. Mr.. Addison presented
the boards position in the following
nine points:
81. Taxes should not be levied in
excess of current needs.
q. Taxes should be levied on the
theory of ability to pay, for part,
and widespread base, for part of
the needs.