Evening star., 1939-06-23
District Tax Bill
Scheduled 10 Reach
Senate Today
Committee Rotifies
Measure After Voting
Income Levy Out Again
BY J. A. O'LEARY.

The revised local revenue bill,
continuing the existing tax struc-
ture with notifications and includ-
ing the Overton plan for a more
equitable permanent basis of Fed
eral payment to the National Cap
ital, was scheduled to be reported
to the Senate today by Chairman
King of the District Committee
and taken up at the earliest op-
portunity.
The committee formally ratified
the measure late yesterday, after
again voting down the income tax,
which had been eliminated from
the House bill at a previous meet
Ing Tuesday.
Meanwhile, conferees on the 1910
local appropriation bill, still far
apart over the Senate amendment
raising the Federal lump sum from
$4,000 900 to S7,750,0O0 for the COM
ing year, are in recess until Mon
day morning, when further efforts
toward a settlement will be made,
II the supply bill is not agreed to
next week passage of continuing
resolution would become necessary
10 meet daily operating expenses
OF the city government after July /,
pending passage of the bill.
Extension Is Indefinite,
In continuing the business privi-
lege gross receipts tax, in place of
the House income levy, the Senate
bill makes some changes in the
rate schedule and makes the ex-
tension for an indefinite period.
This means the tax would not ex-
plre on June 80, 1910, as it does
this year, but would not prevent
the next session of Congress from
repeating or changing it.
A delegation representing oreani-
cations in favor of the income tax
failed in an 11th-hour effort to have
the Senate committee go back to
that levy.
When the committee met late YES
terday to ratify the details of the
tax program it had approved in
principle on Tuesday, Chairman
King read the petition of the in
come tax supporters and moved that
1t be approved. Adoption of the
motion would have had the effect
OF reversing Tuesdays action.
Inc motion was defeated, 4 to 2,
Senators King and Capper voting
for it. At the Tuesday meeting
however, the income tax had been
rejected. to 2.
Approval Is Forecast.
Although the question could be
raised again in the Senate, it is be-
HeVed the committee recommended
tlons will be approved. The final
declslon as between the income and
business privilege levies then would
rest with conferees, with the odds
Tfavoring continuation of the present
tax system for the coming year.
, Under the Senate bill the bl1si.
ness privilege tax rate, after July l,
Will be slightly less for merchants
depending on the spread, or differ
ence, between the cost and sale
price OF the goods handled, while
the rate on gross receipts of profess
sional groups, such as lawyers and
doctors, will be raised from 4i1O of
per cent to l per cent.
District officials contended tho
margin between gross and net is
smaller on merchandise than on
professional services, and that the
changes are designed to eouaIize
the rates as between the two groups
Of taxpayers.
In its present form the bill also
makes some increase in the exist
ing inheritance tax rates for the
purpose, District officials said, of
obtaining the amount of revenue
intended by the original law,
Utility Tax Adjustments.
adjustments also are made in
public utility taxation to amply
uniform rate of 4 per cent on gross
receipts to gas, telephone and cleo
trlc power companies and 3 per cent
,1or the transit company.
OF paramount Importance in both
stf1e tax and appropriation bills is
the Senate's effort to have the Fed
eral obligation toward the Capita1
CITY liked on fairer basis. at
The same time that the local COM
,munltys future tax obligation is
being fixed.
In the appropriation bill the Sen
ate is battling for a larger lump
sum as a temporary solution, while
n the tax bill a permanent solu-
uon is proposed, based on the Over
ton land formula, which would
measure the Federal payment bv
the percentage of land required for
national purposes. At this time this
percentage would be 20 per cent
or approximately 100000 for the
coming wear.