Evening star., 1939-06-20
District
Continued From First Page)

boards Municipal Finance Commit
tee would file statement after a
meeting to be held this afternoon.
First Witness.
r Mr.. Bernstein, the first witness
urged progressive income tax in
stead of sales taxes.
At the outset he was questioned
by Senators McCarran of Nevada
and Bridges of New Hampshire as
to how many his committee repre-
sents. He replied it was a delegate
body, with representatives from 81
civic, labor and consumer groups.
The witness said there is a good
deal Of opposition to the income tax
from a narrow segment" of the
community. 1t seems to be the pur-
pose of these opponents, he asserted
not only to oppose the personal in
come tax, but also to drop the
corporate income tax in the House
bill. even If the individual income
tax is killed. He asked the committee
to retain the corporate tax rather
than continue the business privilege
levy announcer year.
Advocates Exemptions.
Mr.. Bernstein advocated exemp-
tions similar to the Federal income
law rather than the lower ex-
emptions suggested yesterday in a
tentative redraft.
He contended the Commissioners
Advisory Committee "discredited it
self when it recommended a sales
tax" The witness said community
sentiment is against the sales tax.
Senator McCarran said he under
stood District officials as saying
' original objections to the business
privilege tax have been ironed out
and asked Mr.. Bernstein's COM
ment on that.
The witness said that aside from
methods of administration the bus
iness privilege tax is passed on to
the consumer.
Isn't that unfortunately true Of
nearly all taxes?" Senator Nc
Carran inquired.
Mr.. Bernstein agreed all taxes
ultimately are paid out OF income
and said that is why his organiza-
ton favors income tax, based on
ability to pay.
Lusk Challenges Contention.
Answering Mr.. Seals questions,
Mr.. Bernstein said the Citizens
Committee for Fair Taxation oper-
ates as a delegate body with repre-
sentatives of 81 organizations, but
said he would not attempt to esti-
mate the number of persons repre-
sented by each group.
Don't you know that there are
eight persons in the Consumers
Council?" Mr.. Seal inquired, refer
ring to one of the groups affiliated
with the Taxation Committee. 1t
was at this point that Mr.. Bernstein
accused Mr.. Seal of trying to turn
the discussion to the milk cOntro-
versy.
Mr.. Lusk of the Washington Tax
payers Association testified that the
business privilege tax is not all
bad" and also challenged Mr.. Bern
STEMS contention that it is an indi-
rect sales tax because it can be
passed along Mr.. Lusk said the
people of Washington would be
better of with one-year extension
of the business privilege levy be-
cause the House bill lis in no sense
Q 10-year revenue program"
He said it merely shifts from one
tax source to another the present
revenue yield.
In support of higher Federal
payment, Mr.. Lusk pictured the
steady exodus Of Washingtonians
into nearby Maryland and Virginia
and predicted the future tax load
would become increasingly more
dificult for those who remain
within the District.
Out of $500 new houses built in
the metropolitan area over a period
of two and one-half years, he said
slo6 were across the District bound
ary line. In the past five years. he
said. 5000 apartments have been
built in nearby Maryland and Viz
oinia, drawing rs per cent of their
tenants from Washington.
Tucker States Views.
Speaking for the Federation of
Citizens Association, William J..
Tucker opposed both the business
privilege and sales taxes and said
the House bill, if amended to corre-
spond to exemptions in the Federal
law, would meet the Federation's
view.
Mr.. Walsh told the committee
that until there can be a permanent
tax program worked out. continual
ton Of the business privilege tax
would be preferable to hastily
drafted new legislation.
Speaking for the Citizens Forum
Of Columbia Heights. Spared A.
Wood made . strong plea for adop-