Evening star., 1939-06-13

lege tax which has been producing
more than 100000 a year in ad-
ditional revenue.
The House-approved $4,000 in
come tax provides for no exemp-
tions for married persons or persons
with dependents, as is provided In
the Federal income tax law. The
bill, however, allows q credit for
non-residents who pay an income
tax in the States in which they live.
No estimates have yet been made
as to the amount the bill will yield
with the $4,000 income tax as sub
stitute for the business privilege
tax. The District Committee had
figured that with the business privi-
lege tax the bill would have pro-
duced all the money the municipal
government would need in the COM
ing fiscal year to meet its anticipat-
ed budget deficit, despite the in
creases voted by the Senate In the
1910 appropriation bill.
$500 Are Exempted.
The Cochran amendment speciA-
cally exempting members Of Con-
gress and their employees will affect
about $500 persons at the Capitol,
including the members themselves.
Before its adoption, Representative
Nichols had defended the exemption
OF members under the original
$4,000 base.
Mr.. Nichols also defended the
limitation in the bill of a $1,000 900
annual Federal payment toward Dis
trict expenses as fair compensation
for municipal services to the Federal
Government.
When Representative Dirksen
asked the House to adopt his own
amendment to start the income tax
at S2,500 he said the members could
not 60 home and defend a vote Cor
an income tax that started at $40 900.
You'll hear about it in the next
campaign if you do" he declared
"Gentlemen, you'll be in a hot spot"
Following adoption on a division
vote of the Bates amendment to
start the income tax at salaries
above $4,000, Representative Nichols
charged the Republicans with in
jecting partisan politics into the
fight over the District revenue bill.
He cited the 88-to-29 division vote
and pointed out 86 were Republicans.
Where were the rest of the Dem
ocrats?" inquired Representative
Michener Republican, Of Michigan.
The Democratic party is made up
OF individuals" replied Mr.. Nichols.
I'VE don't herd like cattle"
Representative Nichols also charged
that lowering of the income tax to
So 600 would shift the tax burden to
lower wage earners.
Didn't President Roosevelt ad.
vocate an income tax?" inquired
Representative Cole, Republican, of
New York, former member of the
District Committee.
The President approved this tax
bill with sales tax in it for the
District" answered Mr.. Nichols. "Of
course, he favors an income tax for
national purposes"
When Mr.. Nichols concluded. Rep
resentative Dirksen said he hoped
the Oklahoma member didn't mean
what he said. Mr.. Dirksen declared
there had been happy fellowship"
among the members of the District
committee and that no partisan
politics had been used or should be
injected into the debate on the rev.
enue bill.
I'm sure the gentleman would
not accuse me Of practicing partisan
politics, interrupted Chairman Ran
oolpn OF the District Committee.
Bill Endorsed by Citizens.
The bill passed by the House yes
terday drew favorable comment
from the Joint Citizens Commit
tee OF the District of Columbia.
David Cushman Coyle, author and
economist; Harry Wender, president
OF the Southwest Citizens Associa-
ton; Francis j. Mcdonald, former
president OF the Dahlgren Terrace
Citizens Association and delegate
to the Federation of Citizens Asso-
Citations; J. Charles Laue, former
secretary of the New York City
Board OF Taxes and now a WASH
1ngton resident; Aurthr L. Schoen-
thai, vice president of the Washing
ton Building Trades Council and
member OF the Minimum Wage
Board; Sidney r. Katz, secretary
OF the Washington Industrial Union
Council; Woolsey Hall, former presi-
dent of the Federation of Civic AS
sociations, and Mrs. John Boyle, jr.,
chairman Of the Citizens Commit
tee for Fair Taxation.