Evening star., 1939-06-15
'0verton Weighs
Fixed 70 Pei. Or
Lump Sum Rise
May Propose Either
For His Lond Formula
In D. {. Tax Measure

JOWdTu Ullc NdJlOIldl SdplUdl Ocll.
nitely at 20 per cent, or raising the
House $5,000,000 lump sum to a
more equitable figure, may be pro-
posed by Senator Overton, Demo-
crat, of Louisiana. as alternative
substitutes for his land-area formu-
la as part of the District tax bill,
1t was reported from reliable sources
today.
While his formula for measuring
the Federal share of the District
budget according to the acreage
Of land in the city required for ma
tional purposes also would amount
to 20 per cent at the present time,
the Senator is understood to be con-
sidering the advisability Of propos-
ing it as a fixed ratio rather than
as formula, since Congress for
nearly half century prior to 1925
adhered to the definite ratio prin-
ciple.
The question will come to head
when the Senate District Committee
revises the tax bill, since the House
has taken the initiative to settle
the fiscal relations issue in that
measure by writing in provision
making the existing $5,O0O,O 900 lump
sum a permanent limit on the
amount of the Federal payment.
Advisors to Reconvene.
Meanwhile, the Commissioners
Advisory Committee on Taxation
prepared to reconvene at 3 pm.
today, after a two-and-half- hour
conference with District officials
yesterday at which no conclusions
were announced.
The committee is considering
what recommendations to make
when the Senate District Commit
tee holds hearings next week, at
which the income tax is expected to
be the, storm center In addition
to being retroactive to 1888, the in
come tax as passed by the House
seeks to exempt members of Con-
gress and employees of the House
and Senate.
While the Commissioners COM
mittee made no statement on its
deliberations, there is reason to be-
lieve it regards the new revenue
plan as adopted by the House to be
definitely unsatisfactory. The COM
mittee is said to be considering a
recommendation that the business
privilege tax be continued for one
more year.
Members of the committee are
five District officials-Maj. Daniel J..
Donovan, auditor and budget officer,
who is chairman; Corporation Coun-
sci Elwood H. Seal. Tax Assessor
Fred D. Allen, 10 v. Morgan, sole
member of the Board of Tax Ap-
peals, and Richmond B. Keech. vice
chairman of the Public Utilities
Commission-and five citizens
Robert " Fleming, L. A. Carruthers,
Prof. Charles M. Thomas, Mrs Err
nest Feild Parkinson and John
Locher
The Overton land formula, or
20 per cent fixed ratio, would make
the Federal share approximately
$4,000, 900, but if it should be de-
cided to continue the lump sum
method of national payment, there
is possibility $500 900 may be con-
sidered as substitute for the House
$5,000,00O limit.
May Limit Proposal.
1t was reported also that Senator
Overton is considering adding to his
fiscal relations amendment a pro-
viso that substantial part of
the increased Federal payment
would be used for Capital improve
ments, such as buildings or park
extensions, which have the effect
of meeting the requirements of
Washington as the National Capital.
In whatever form the fiscal re-
lations amendment is presented,
Senator Overton will endeavor to
have the Senate committee make
that the first step in the revision
Of the House bill and then proceed
to work out an appropriate revenue
program to cover the Districts re-
naming obligations toward upkeep
of the city.
In passing the 1910 local appro-
priation bill recently, the Senate
already has gone on record for a
fairer fiscal relations basis by rails
ing the Federal lump sum from
$4,000, 900 to $7,750,0O0. AS decision
between these two amounts is await
ing the deliberation of House and
Senate conferees. That decision,
however, will be only for the coming
fiscal year, whereas in the tax bill
a permanent solution of the re-
curing controversy is being sought.
Senator Tydings, Democrat, of
Maryland, member of the District
Committee, said yesterday he will
not comment on the House revenue
program, embodying a drastic in
come tax and changes in other local
levies, until he has studied it more
carefully.