Evening star., 1939-03-10
Tax Advisers
To Meet Today
On Changes
Morgan Reveals
Approval by Several
Committee Members

A special meeting of the Citizens
Advisory Committee on Taxation
will be held at the District Building
this afternoon to consider so-called
administrative" changes in the pro-
posed tax plan for the District
which were outlined to the Fiscal
Affairs Subcommittee of the House
District Committee yesterday by 10
v. Morgan, who constitutes the
District Board of Tax Appeals.
The Commissioners called the
extraordinary session as result of
a complaint that alterations in the
tax program which Mr.. Morgan rec
commended had not been approved
by the advisory committee
The principal change would make
the proposed 2 per cent retail sales
tax applicable to articles selling for
13 cents, whereas the tax program
drafted by the tax experts and in
dorsed by the advisory committee
would not apply to sales of less than
25 cents.
The alterations, it was revealed,
are contained in the "comLlittee
print of the proposed tax bill which
the subcommittee has under con-
sideration, together with report of
DR.. Chester B Pond, New York tax
expert. which contains the tax plan
approved by the advisory committee.
Morgan Issues Statement.
Mr.. Morgan last night issued a
statement saying he drafted the
suggested changes after their ap-
proval by a committee of District
officials composed of Maj. Daniel j.
Donovan. auditor and budget officer;
Richmond B. Keech, vice chairman
of the Public Utilities Commission:
Elwood H. Seal, corporation counsel,
and Fred Allen, tax assessor. All
of these District officials are men,
bers of the Tax Advisory Commit
tee. The other members are:
L. A. Carruthers, president of the
Federation of Citizens Associations:
John Locher. president of the Cen
trail Labor Union; Mrs. Ernest Field
Parkinson and Charles M. Thomas.
Both Mr.. Carruthers and MS.
Parkinson said they were surprised
that changes would be suggested
without the approval of the advisory
committee.
Mrs. Parkinson Protests.
Mrs. Parkinson said she was un-
aware of the proposed changes until
she read about them in the news
papers. And as a member of the
advisory committee, she declared:
II certainly think we should have
been consulted"
Mr.. Morgan's explanation of The
situation over the tax plan was out
lined in the following statement:
Il did not state to the Fiscal Re-
lations Subcommittee or to any one
else that was personally responsible
for the suggested changes to the
tentative draft of legislation ap-
pended to the Pond report. OF
course, I may have drafted them,
which was true.
AFTER the Pond report was filed
I was called upon, as member Ct
committee consisting of Elwood
Seal, corporation counsel; Rich
mond B. Keech of the Utilities Com
mission; Fred Allen, assessor, and
me as member sole of the Board of
Tax Appeals, to consider several
changes, improvements and addi-
tions to the tentative draft of legis-
lation.
Persuaded to Undertake Work.
1--WE met and heard several Off
cials of the District and discussed
among ourselves several suggested
changes. I was requested to draft
such changes as the committee
might decide would be advisable.
AS all my time was taken up with
work on the Board of Tax Appeals
I requested to be relieved. I was,
however, persuaded to undertake the
work.
"A few days later heard that two
very excellent income tax lawyers
were considering recommendation
for changes in the tentative daft
OF the income tax law and another
group was considering the sales tax
law.
With the consent of the COM
mlttee I accepted invitations to at
tend meetings of these groups. I
submitted their suggested changes to
the committee above mentioned and
some were adopted and others re-
jected. I was then directed to draft
proposed changes to the tentative
draft of legislation appended to the
Pond report. I thereafter submitted
the redraft to the committee, who,
with the exception of Mr.. Seal, spent
an entire day going over the draft.
Every change or improvement, or
addition, was approved by the en-
tire committee, except those consid-
cred in the afternoon when Mr.. Seal
was absent, when the four remain
Ing members approved the draft.
"At the direction of the committee
I informed Mr.. Nichols chairman
of the Fiscal Affairs Subcommittee)
that we had prepared certain sug-
gested changes for consideration of
his subcommittee for printing as
committee report which was in
tended for consideration by the COM
mittee. AS planned, we requested
that 1 be put on the stand imme-
diately following DR.. Ponds exposi-
tion OF the advisory committee plan,
so that the changes between the
tentative draft and the committee
print could be explained before tes-
timony OF persons for or against the
plan.
Siam Consulted.
while the changes were being
considered, Mr.. STAN Colin F. STAN
OF the Joint Congressional Commit
tee on Internal Revenue Taxation
who helped draft the tax program)
was consulted and suggested the
language for one of the changes, and