Evening star., 1939-03-17
Original Tax
Program Backed
By Trade Unit
Finance Committee
Of Boord Suggests
Certoin Alterations

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Certain Alterations
Taking exception to certain pro.
visions now in the pending new
tax bill for the District, the Munich
pal Finance Committee Of the Board
OF Trade has recommended sup
port Of original recommendations
for changing the tax structure,
made by the Joint Committee on
Internal Revenue Taxation, which
were supported by the Citizens Ad-
visory Committee.
The report of the Municipal
Finance Committee, made last night
by its chairman, Robert v. Fleming,
before board members at the May
flower Hotel, approved the Overton
bill on fiscal relations as holding
out the bare possibility of return
ing the real estate tax rate from
its present SITS to $3.50.
Objection was raised by the Flem-
Ing Committee to injection into the
revenue bill print now before the
Tax Subcommittee of the District
Committee Of retroactive feature
in the income tax, as we'll as a
change in the exemptions from the
sales tax.
Board to Act on Report.
The Municipal Finance Commits
tee report, although read to the
board membership last night, was
not acted upon then, but had been
referred to the Board of Directors
for final approval
I'm considering these tax pro-
possls," Mr.. Fleming reported, "it is
necessary to recognize that they
must be considered as one, other
wise the tax program is not work.
able; that is, If part is adopted and
another part not adopted
Formally placing its specific rec
concentrations into three main
points, the Finance Committee rec
commended unanimously the fol-
lowing:
81. To reaffirm the position of the
Washington Board of Trade here
tofore taken in opposition to
straight income tax. The Board of
Trade is sustained in this position
by the report of DR.. (Chester b.
Pond and Mr.. Colin F. Stan on
the economic position of the Dis
trict of Columbia which discloses
the restriction on industry and the
large preponderance of Federal en-
ployes among our citizens, as we'll
as the concentration of their sal.
aries to an extreme degree around
the $4,000 mark. In addition, pend
ing legislation respecting the right
of States to tax Federal salaries
Is under consideration, which, if en-
acted probably would have a very
marked effect upon any revenue to
be raised through straight income
tax. This bill has passed the House
and is now before the Senate.
Make Certain Reservations.
"2. To urge the adoption of the
proposals contained in the report
for a joint income and sales tax.
with the proviso, in addition to
certain technical changes, that
"(a) The retroactive feature of
the income tax be eliminated;
"(b) In the case of the sales tax,
the exemption on sales under Is
cents be retained, with a specific
exemption added clarifying the law
so that in the collection of the tax
there could be no misunderstanding
as to whether the collection was on
gross sales or sales over Is cents.
The Board of Trade will hold to
this position respecting the sales
tax, unless it develops that ad-
ministrative difficulties would re-
quire some modification in the ex-
emption provision.
g. 1t is opposed to the imposition
Of a gift tax in the District of Co.
lumbia, which also was provided for
in the committee print. but not in
cluded in the Pond or STAN report"
Mr.. Fleming praised the Pond and
STAN report as most constructive
effort" The position of the board.
he continued, will be Ito urge the
enactment of legislation carrying
out the intent of their report, with
such notifications as may seem de-
sirable."
Taking up the Overton fiscal rela-
tions bill, Mr.. Fleming explained that
he already had appeared on behalf
Of of the Board of Trade, favoring
its enactment. If it became a law,
he said it would provide an in
crease in the Federal payment Of
between $4,000, 900 and 1000 900 and
would seem to assure holding to the
81 so tax rate"
Reviewing the problem which con-
fronts the District on a 7-year pro-
gram, Mr.. Fleming said: with the
history of general operating ex-
penses showing an increase of ST.
600 900 per year, and taking into con-
sideration the difference between the
"a 4,600 900 for capital outlays in the
budget for 1910, we find that for the
period beginning with the fiscal year
1910 through the fiscal year 1947.
revenue must be raised to meet oper-
ating budgetary costs of Govern
ment running from roundly s42, 900, =
600 in the fiscal year 1910, to slightly
over $51 100000 in the fiscal year
1947.
Proposed changes for reducing
revenue were estimated at So, SOC, 600,
while the proposals of Mr.. STAN
and DR.. Pond based on their esti-
mates, Mr.. Fleming said would raise
$9,900,0 900.
Explains Reductions.
The reductions would come as
follows: Repeal of intangible tax,
$1,000, 900; repeal Of business privi-
lege tax, $2,200,0O0; reduction Of
real estate and tangible property tax
from SITS to $150, $1,000 900.
The increases would result from q
2 per cent retail sales tax, $500 900:
personal income tax, $1,275, 900; s
Der cent cOrn0rati0n income taY 20 -