Evening star., 1939-06-14
0verton Seeks
Priority for
Lump Sum Plan
Would Consider 1t
Before Proposed
New D. 6. Tuxes

Senator Overton, Democrat, Of
Louisiana, announced today he will
ask the Senate District Committee
to make his land area formula for
settlement of the fiscal relations
problem the first step in considera-
ton of the new D. G. tax bill.
on the ground that the Federal
obligation should be determined be-
fore the comittee decides the scope
of the local revenue program.
Meanwhile, Senator Glass, Demo-
crat, of Virginia, also a member OF
the District Comittee, while not
ready to discuss the details of the
far-reaching income tax approved
by the House, made the general
comment that he is 'unalterably
opposed to any one paying three
income taxes"
The Virginian presumably had in
mind the fact that many citizens
of nearby and other States would
face the possibility of paying some
income tax to both the District and
their States in addition to the
Federal tax.
While these developments were
taking place at the Capitol Citi-
zens' Advisory Committee prepared
to meet with city officials at the
District Building this afternoon to
analyze the House bill to be ready
for Senate hearing early next week.
Overton Cites Precedent.
While some members of the Sem
ate Committee are predicting the
House income tax will be kept after
considerable revision, other Senators
have indicated they will fight the
measure
In support of his plan to urge
that the Federal obligation be def
nitely fixed as title l of the bill,
with the new local taxes following
as title 2, Senator Overton cited the
Organic Act of 1873 as precedent.
That act, he pointed out, contains
this provision:
ITO the extent to which Congress
shall approve of said estimates (the
annual estimates for operation of
the District, Congress shall appro-
pirate the amount of so per centllm
thereof; and the remaining so per
centum of such approved estimates
shall be levied and assessed upon
taxable property and privileges in
said District other than property
Of the United States and the Dis
trict Of Columbia"
The House has opened the way
for combining settlement of the
Federal obligation permanently as
part Of the tax bill by providing in
It's measure that after this year the
present 5000, 900 lump sum shall
be the limit Of national payment.
The House, however, embodied this
IN the middle of the bill, as part of
Title Two, making the income tax
the first title.
Senator Overton said he was not
prepared to discuss the relative
merits of alternative forms of local
tax, but is convinced that settle
ment Of Federal obligations first is
"the logical procedure and in accord
with traditional policy" After that
has been done, he said, the COM
mittee will be in a better position
to decide how sufficient local revenue
should be raised.
The Overton formula would base
the Federal payments on the per-
centage of land acreage in the city
required for national purposes, which
at present is 20 per cent of the total
ANY,1vyiv,n fIic f1 thu
fund expenses, would make the Fed
eral payment next year $4,000 900
instead of s5,00O,0OO, and could be
adjusted automatically each year as
the Government buys or sells prop
erty here.
While controversy ragged about the
House bill which would levy an in
come tax on all non-congressional
salaries above $4,000 a year, the pre-
diction was made by several MEM
bers of the committee that an in
come tax would be retained in
modified form.
At a conference late yesterday at
the Capitol with Commissioners
Melvin C. Hazen and David Nc
Coach and other District officials,
Chairman King of the Senate COM
mittee suggested that the Citizens
Advisory Committee on Taxation
take up the tax bill and prepare
recommendations to be presented at
the hearings.
While there were no direct state
mentS after the informal confer
ence, it was learned that the Com
missioners told Senator King they
(See D. c. TAXES, Page A-50
E All AeLod ~ pod,,