Evening star., 1939-06-13
Revision Is Seen
For Income Tax
RATE in D. T.. Bill,
Bates to Urge Senote
Group to Work Out
Reasonable Scale
BACKGROUND

BAChGROUND-
Failure OF Congress to make
any adjustment in Federal puv-
nlent as District requirements IN.
creased led to temporary tar in.
crease laWs in last t,Uo years and
nom threatens third, permanent
neU tar burden. After discard
ing the income tar in the precious
ldUS because OF controversy oDer
constitutionality of applying it to
Federal salaries, including mem
bers OF Congress, the House re-
Gently tCas encouraged to propose
1t again BY Supreme Court de-
cts1on upholding State taxation o,
Federal compensation.
Probability the drastic income tax
voted by the House yesterday. that
would tap all salaries in excess of
$1,000 year except those of mem.
bers OF Congress and their employees,
Will be revised by the Senate Dis
trlct Committee was seen today by
representative Bates, Republican,
OF Massachusetts, who sponsored the
amendments lowering the exemption
figure.
Representative Bates asserted he
would urge the Senate District Com
mlttee to work out a reasonable"
rate schedule.
PUBLIC hearings on the suggested
tax measure will be held by the
Senate District Committee as soon
as possible. probably tomorrow.
Chairman King announced today.
First, Senator King said. the com.
mlttee must decide on the procedure
and the extent of the hearings.
Favors Income Tax.
The people should have every op-
portunity to be heard on legislation
OF such Importance to the District"
Senator King added.
The chairman did not commit
himself on the tax bill which the
House adopted, but he did say that
he favored an income tax.
L want time to study the bill
thoroughly before expressing an
opinion, the Utah Senator explained.
senator King said he was opposed
to exempting the salaries of mem
oers OF Congress and their staffs
from any income tax levied on Dis
trlct citizens. He would not say at
this time what he thought of the
exemption limit of $4,000 fixed by
the House.
Meanwhile, Senator Arthur Cap-
per, Republican, of Kansas, mem.
Der OF the Senate committee, gave
the proposed bill his qualified"
approval.
Another member of the Senate
committee, Senator Carter Glass.
Democrat, of Virginia, according to
spokesman in his Office, will be
unalterably opposed to any double
taxation or levying of a District
income tax on persons who now pay
State income tax.
Wants Fair Rate.
Explaining his position on the bill,
Representative Bates declared that
at the time the House adopted his
amendment he did not approve Of
the schedule of rates in the bill,
which was drawn for incomes over
$4,000, but that the parliamentary
situation prevented any changes
being made.
The principle of a tax on in
come said Representative Bates,
was established by the House when
1t adopted my amendment. Now We
will have to sit down and work out
with the Senators a fair rate for
the different brackets of income"
Commenting on the new tax
measure, Senator Capper said:
Il think I shall be for it, with
qualifications. OF course, it may
be too large as passed by the House
but in my opinion an income tax,
as such. is much better than some
of the other forms of taxes proposed
for the District. 1 certainly prefer
it to any form of sales tax. Nobody
wants or likes an income tax but
think it's almost inevitable here.
In my mind it is the fairest form
of taxation as it reaches those more
able TO pay
Committee to Meet.
Its previous calculations of antic-
ipated revenue upset by reduction
of the exemption from $4,000 to
$4,000. the District Tax Advisory
Committee will meet tomorrow at 2
pm. to determine how much its
estimates must be changed. accord
ing to an announcement today by
District Auditor Daniel J. Donovan.
The original program. Maj. Donovan
said. was expected to raise about
sl.500,00O a year.
Among the things it Is thought
likely will be discussed is the limita-
(See D. C. TAXES, Page A-5)