Evening star., 1939-07-08
Confeiees SET
| 10 ; Pei. Rate
On DC. Incomes
Schedule, if Adopted,
Would Raise $500, 900
More Than Needed
By ]. A, O'LEARY.


the House and Senate conferees
adopted rate schedule ranging
from l to 3 per cent in $1,000 steps
for the income revenue.
The schedule follows
One per cent on the first $4,000 Of
taxable income, IL per cent on the
next $4,000, 2 per cent on the next
$4,000, 21a per cent on the next
$4,000 and per cent on the taxable
income in excess of $4,000
District officials told the con-
ferees this schedule would raise
about 100000. which may prove to
be about 100000 more than needed
to balance the budget. The con-
ferees said they realized, however,
this Is rough estimate.
Taxpayers in Doubt.
The number of taxpayers is some
what in doubt because of the def
milton adopted by the conferees ap-
plying the tax only to those "domi-
ciled' in Washington, which will
exempt not only members of Con-
gress but large number of other
high Government officials and Gov
ernment employees who will be able
to show they are only temporary
residents and that their domicile in
the legal sense is still in the State
from which they came.
30 Per Cent Exempt.
District officials estimated about
80 per cent of the persons who file
Federal income tax returns from
Washington will be exempt from the
local tax according to the domicile
definition.
When the conference report is
taken up in both branches early
next week the real test will be
whether the House will accept the
increase in the Federal payment of
S5,OOO,000 to $500 900, accepted by
the House conferees in return for the
income tax.
Senator Overton of Louisiana
chairman of the Senate conferees
on both the tax and appropriation
bills, said today he felt satisfied
that if both the Senate and House
| concur in the conference report
on the revenue measure, there
Will be no trouble in working out
an agreement on the appropria-
ton bill
The deadlock on the appropria-
| ton bill. which has left the Dis
trlct government functioning with
out authorized funds for a week,
involves the same basic controversy
over the amount of the Federal
lump sum, which the tax bill con-
ferees are proposing to settle on
a figure midway between the House
and Senate contention.
Collins Indicates Truce.
Representative Ross Collins Of
Mississippi. in charge of District ap-
preparations in the House, indi-
! Gated he would not take the floor
against the compromise reached by
| the tax conferees when it is pre-
sented. probably Tuesday, but. asked
70 comment on it. he said, " al
ways defend my handiwork"
While not on the tax conference,
Mr.. Collins is chairman of House
conferees on the appropriation bill,
in which the House has been in
sisting on adherence to the S5,OOO,-
| 900 Federal lump sum.
The Mississippian gave the i'm
preston he will be guided by the
decision OF the House, with the test
coming when the conference report
on the tax bill is presented. 1t is
not likely the separate group of
conferees on the appropriation bill
will meet again until the House
has expressed itself on the lump
sum compromise in the tax bill.
Meanwhile, it developed today that
the tax agreement must be presented
the parliamentary situation. Sena-
tor Overton will ask the Senate to
approve it at the first opportunity,
which may be Tuesday, since the
State funeral for Secretary of the
Navy Swanson, a former Senator,
will be held in the Senate chamber
Monday. 1t will 60 to the House as
soon as the Senate acts.
In the income tax agreement. 1t
was definitely agreed that the
term "domicile" will exempt mem
bers of Congress, who must have
their domicile in the States they
represent in order to stand for cleo
ton. Likewise. there appeared to
be no doubt it would exclude most
high Government officials, serving
for definite term of years. There
is, of course, no question that it ex-
empts residents of Maryland and
Virginia who earn their income in
the District.
But, as to Government employees
who come here from the States
serve for an indefinite time, but
retain their voting status, opinions
differed among some of the law
makers as to how the domicile rule
would operate.
Some contended that retaining a
vote elsewhere would not necessarily
mean such a persons domicile was
outside the District. Senator King
Of Utah, on the other hand, indi-
Gated he is inclined to the view that
by registering to vote in a State,
person declares himself a legal
resident of the State.
DhuCA ChtA0tC ADCkWCCu 1CTmSs
According to some of the tax ex-
perts who do not believe the act
of voting would be a determining
factor, a person may have any
number of residences but only one
domicile, and that to change his
place of domicile the person must
60 physically to the new place
with the intention to remain there
indefinitely.
In any event, it appeared likely
that in view of the large number
OF employees who come to Washing
ton from the States, the domicile
rule, involving the legal question of
intent, will lead to many border
line cases.
One of the conferees is of the
opinion that certain specific ques-
tions could be included in the tax
blank to develop factors that would
h1A fhA % IL