Evening star., 1939-07-11
D. 6. Fiscal
Continued From First Page }

regret exceedingly to learn from
your wire that you have overlooked
the principle, which to my mind is
all important, as against income tax
in any form for those who may be
domiciled in the District of Co.
lumbla or who may reside there.
My high regard for you and my
realization of your splendid study of
the subject of taxation in the Dis
trlct OF Columbia prompts me to
have pause in the matter of oppos-
ing your views. However, in this
matter I must disagree in that 1
believe no income tax should be
imposed against those individuals
who may be domiciled in the Dis
trict of Columbia by reason of the
location of the National Capital be-
ing in that District.
Il have expressed myself on this
subject in the committee and else
where. The National Capital, located
in the District of Columbia, calls
upon the service of those whom the
Government may seek to employ
and who by reason of employment
are required to live or be domiciled
in the District. To impose income
tax against those whom the Gov
ernment calls to service, and there
fore requires that they be domiciled
in the District, is to my mind un-
fortunate and unworthy of Govern
ment taxing power. The District
of Columbia is the Capital of the
Nation, and those who are domiciled
there by reason of that fact should
not be penalized. Domicile and
bona f1de residence are different in
point of significance. To my mind
it is an absurdity to say the Gov
ernment shall call upon public serv-
ants and demand their presence in
the District of Columbia and pay
them out of the National Treasury
for serving the Government in the
District of Columbia and then i'm
pose a tax against the wages or
salaries Of those who are so called
into Government service. I realize
that you did not yield your theories
as to taxation in the District, which
to my mind were entirely correct,
unless the eXigency of the occasion
demanded something unusual. Based
on my viewpoint, there is no COM
promise and 1 respectfully request
that you withdraw my name from
the conference report and that this
wire be read into the record on the
floor of the Senate in explanation
thereof. Kindest personal regards.
PAT McCARRAN."
The conferees' tax report is ex-
pected to encounter opposition in
the House, but both Representative
Randolph of West Virginia and
Representative Dirksen of Illinois
are hopeful of final approval. Mr.
Randolph IS chairman of the House
conferees and Mr.. Dirksen is one
of the Republican members of the
conference
Republican Support Seen.
Mr.. Dirksen based his prediction
of favorable action on a belief that
the House gained "the lions share"
OF the decisions reached in confer
SilSC RAAo iilOiSdUcu llS ALSO D6uSVeS
the agreement will receive substan-
tial support from the Republicans
The tax structure is essentially
along the lines of the House bill, ana
he pointed out that on the Federal
payment the $6,5OOOO0 lump sum is
a compromise half way between the
two houses.
Mr.. Randolph will ask Represent
ative Nichols, Democrat, of Okla
homa to call up the conference re-
port, because he is head of the Fis-
cal Affairs Subcommittee of the
House District Committee.
Although Mr.. Nichols is expected
to oppose the report, having pre-
dicted yesterday the House would
reject it. the conference agreement
has been signed by the four other
House conferees Representative