Evening star., 1939-06-17
D. 6. Taxes
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Committee urged a return to the
original recommendation in the tax
report of last January for a COM
bination income-sa levy. with a
per cent sales tax, exempting
food, medicine and rent, and with
the income schedules starting at
$4,000.
II Congress is unwilling to adopt
the program, the Advisory Commit
tee favors continuation of the pres
ent tax structure, with the business
privilege levy, for another year, on
the ground there is not sufficient
time now to give the House income
tax thorough study.
Senator Hughes, Democrat, OF
Delaware joined in the belief that
temporary continuation of the pres
ent tax structure, with some increase
IN the Federal payment, probably
Is the best course the committee can
take under the circumstances. He
indicated a willingness to take a
liberal view of the national obliga-
ton toward the Capital City.
The Advisory Committee plans to
meet again at 3 o'clock Monday to
consider any further suggestions it
may have to offer as the result of
yesterdays informal conference with
the Senators.
Meanwhile, there are indications
the Senate committee is giving Sc
rlous consideration to the adoption
OF a more equitable basis of Fed
eral payment toward the District
than the $5,0O0,O0O lump sum, which
the House bill seeks to fix as a per-
manent limit.
The Senate Committee has before
1t as a proposed substitute the Over
ton plan, to measure the Federal
obligation by the percentage of land
area of the city required for ma
tlonal purposes, which at this time
would be 20 per cent or about So
100000 toward the general fund re-
quirements. In passing the 1910
local supply bill the Senate already
has gone on record for an increase
in the lump sum payment for the
coming year from $4,000, 900 to ST.
100000, which is awaiting final ac-
ton in conference. While this is q
temporary, one-year provision, the
proposal before the Senate District
Committee would be a permanent
solution.
Ind0rse Income Tax Law.
Qualified Endorsement Of the Dis
trict income tax law approved by
the House of Representatives came
from two more sources today.
The Citizens Committee for Fair
Taxation, in a letter to the Senate
District Committee, said the bill
represents for the great majority of
the citizens of the District, a great
Improvement over present tax pro-
visions and over all of the alterna-
tives offered for 1899 40" but offered
suggestions including larger per-
sonal exemption for married couples,
credit for dependents and removal
Of the 100000 limitation for Fed
eral payment.
A similar qualified Endorsement
came from the District Communist
party, which, in a letter to Senator
King of Utah, held that the act
established the form of taxation
on correct principles. That is, that
contributions toward the functionine
Of government be made by the peo.
pie in proportion to their ability te
pay, whereas the sales tax exacts
equal contributions from the utilitie.
and corporations with huge profits
and from the unemployed and othe,
low-income groups in the District.
A recommendation was made thai
the tax begin to apply on thoss
making $4,000 and up, and an ex.
emption of $500 for each dependent
be allowed.
The Citizens Committee com.
mended the complete avoidance o1
any kind Of sales tax" and laudee
rs 'the logical substitute for the
business privilege tax" the cor.
porate net income tax Of 3 per cent