Evening star., 1939-03-11
Tax Advisory
Unit Decides
On Changes
Exemption Reduction
Opposition Voiced in
4-Hour Session

Advisory Committee on Taxation
will oppose lowering of the ex-
emption level in the proposed 2 per
cent retail sales tax from Is cents to
13 cents, but will recommend a num-
Der of other administrative"
changes in the District tax program
when congressional hearings are re-
sumed next week.
Decision to this effect was reached
by the committee late yesterday
during a special session that lasted
more than four hours. The COM
mittee stated also it was opposed
to amendment of the proposed in
come tax plan so that the levy would
be made retroactive and applied to
incomes received this fiscal year.
The income tax would apply to per-
sons receiving $4,000 or more per
year.
The committee, however, declined
to detail other changes in the tax
program which it had approved, and
likewise declined to reveal the iden-
tity of the person or persons who
had recommended the lowering of
the exemption level in the sales tax.
Debate had prevailed for two days
over this point
The special meeting of the full
membership of the advisory group
was called by the Commissioners as
a result of the disclosure Thursday
to the Nichols subcommittee Of the
House District Committee that a
series of changes in the tax pro-
gram, including that relating to the
sales tax, had been suggested. The
changes were outlined to the con-
gressional body by 10 v. Morgan,
who constitutes the Districts Board
Of Tax Appeals.
"Surprises" Two Members.
It developed that representatives
of the public on the advisory COM
mittee had not acted on the pro-
posed changes in the program before
they were included in committee
print" of the proposed tax bill that
was presented for consideration"
at the Thursday meeting of the
congressional subcommittee. Two
members of Commissioners Advis-
ory Committee said they were sur
prised" that changes would be sug-
gested without the approval of the
advisory committee.
An explanation of the procedure
involved in the development, as we'll
as a partial report of its actions,
was given by the advisory group last
night after it adjourned at 8:45
o'clock following the long session.
Sitting with the committee were L.
H. Parker, tax consultant. who is a
member of the Board of Trade, and
William Press of the executive staff
of the trade body.
Robert v. Fleming, president of
Riggs National Bank, who acted as
spokesman for the advisory group,
gave out the following prepared
statement:
"The Citizens Advisory Commit
tee has been reconvened at the call
of the chairman (Maj. Daniel j.
Donovan, District auditor) and the
committee has been going over va
rious phases of the proposed tax
program.
There seems to be some misin-
depreciation as to just what has oc-
CURED.
Wording Difficulties Cited.
'It is inherent in the drafting
of any piece of legislation which
involves as wide scope as taxation
that paragraphs pertaining to Ger
tain provisions of the legislation
will not contain language that
clearly carries out the intent as
determined upon in the vote of the
committee, and further that as
the examination of the draft OF
the bill has proceeded it has been
found that there were cases where
1t was necessary to make correc-
tions, changes or refinements to
carry out the intent of the Tax
Advisory Committee.
Therefore, District officials
charged with presenting these mat
ters to committees of Congress,
being asked to give the House Dis
trict Committee a print of the tax
proposals solely for the purpose OF
consideration of that committee,
incorporated certain of the changes
that had been suggested in print.
The purpose of the meeting this
afternoon was to present to the
entire Tax Advisory Committee
matters concerned with suggested
changes incorporated in the print.
The committee was in entire &C
cord on most of the changes, and
additional ones were recommend
ed and approved. The committee
was not in accord with the sug-
gestion for a retroactive feature as
to the income tax or with reducing
the exempt articles under the sales
tax below Is cents.
Some Matters Left to Officials.
"As matters pertaining to the in
heritance and gift tax amendments
had never been matter that had
been brought before the Tax Ad-
visory Committee for consideration,
it was the consensus of opinion that
this should be left to the District
officials to handle in separate leg
islative proposal.
The non official members of the
Tax Advisory Committee have been
working with the District officials
who are members of the committee
and those present expressed their
appreciation of the fine cooperation
which they are receiving from those
officials of the District government"
Mr.. Fleming said the proposed
changes in the program dealing with
the sales tax had not been recon-
mended to District officials by the
Board of Trade, or by its Municipal
Finance Committee or by special
subcommittee of the committee He
said the suggestions had come from
a member or members of the Board
of Trade, but that the author or
authors of the changes were not
authorized spokesmen for the trade
hodv Ha aH6e6 that tho Sa1ec TOW