Evening star., 1939-06-13
D. c. Taxes
Continued From First Page.)

ton of the Federal payment to the
District at S5000000.
The committee, it is understood
will prepare report to the Com
missioners which probably will be
sent to Chairman King of the Senate
District Committee.
Committee members in addition to
Maj. Donovan, who is the chairman,
are Corporation Counsel Elwood H.
Seal, Richmond B. Keech, vice chair
man Of the Public Utilities Com
mission; 10 V. Morgan. sole member
of the Board of Tax Appeals:
Assessor Fred D. Allen, Robert ".
Fleming, president of the Riggs
National Bank; L. G. Carruthers,
president of the Federation of
Citizens Associations; John Locher,
Mrs. Ernest Field Parkinson and
Prof. Charles M. Thomas.
The income tax, retroactive to
catch 1888 incomes, was substituted
for a business privilege tax by the
House late yesterday before it ap-
proved the revenue bill.
Such House action came as q dis
tinct surprise, since it twice before
had rejected District revenue bills
that proposed to tax salaries OF
members Of Congress and employees
in the lower income brackets.
Federal Share Limited.
Aside from the substitution Of the
income levy for the business privi-
lege tax. principal features of the
measure are that 1t:
fixes Federal payment toward
District expenses at not more
than s5,ooO,ooo a year.
2Fixes ceiling on personal prop
erty and real estate tax rate at
SITS on 500 of assessed value,
which is the present rate.
1Repeals intangible personal
property tax, and substitutes a
tax on unearned incomes above
$500 year.
Taxes automobile parking lot
owners 2 per cent on gross re-
ceipts.
61Increases inheritance taxes.
eProvides S per cent corpora
ton income tax
7EMakes more uniform taxes on
public utility corporations.
eProvides for pro rata personal
property tax on automobiles.
91Increases salary of 10 v. Nor
gan, sole member of District
Board of Tax Appeals, from
$500 to $4,000 a year.
Record Vote Forced.
Chairman Randolph of the Dis
trict Committee forced record vote
of the House in final, desperate
effort to prevent approval of the
income tax But he was beaten by
vote of 1876 to 1870.
He also made an effort to block
final approval of previous action
of the House in removing the busi-
ness privilege tax from the bill.
Again he was beaten, by a 1887
standing vote
The two major changes were on
amendments offered by Mr.. Bates.
An earlier attempt of Representa-
tive Dirksen, Republican, OF Illinois,
another member of the District
Committee, to have the House adopt
an income tax on salaries in ex-
cess Of $4,000 a year was defeated.
But shortly after that, Representa-
tive Cochran, Democrat, of Missouri
succeeded with the support of Ma
jority Leader Rayburn in having
the House adopt an amendment
that specifically exempted members
OF Congress and their employees from
paying an income tax. Subsequently,
an amendment by Representative
Bates was adopted which lowered
the exemption to salaries in excess
Of $4,000.
$4,000 Original Limit.
The tax bill. as originally re-
ported to the House, would have
taxed earned salaries in excess of
$4,000 year.
AS passed by the House 1t pre-
scribes rates as follows:
Two per cent on the first 81 900 of
taxable income.
Three per cent on the next $1,000
Of taxable income.
Four per cent on the next $1,000
Of taxable income.
Five per cent on the next $4,000
Of taxable income.
Six per cent on the next $4,000 of
taxable income
Seven per cent on the taxable in
come in excess Of $1,000.
All moves to amend the bill were
vigorously resisted by Chairman
Nichols of the Fiscal Affairs SUBJ
committee of the District Commit
tee which framed the tax bill as it
was reported to the House.
When the House lowered the ex-
emption on the income tax from
salaries above $4,000 to those in
excess OF $4,000. he shouted:
I'VE don't need that money"
The House, however, answered
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