Evening star., 1939-06-18
Bv ], A. OLEARY.

y
began drafting a substitute income
tax bill for the drastic House plan,
at the request of Chairman King
OF the Senate District Committee,
developments at the Capitol con-
tinued to cast doubt on the chances
OF an income levy remaining in the
pending revenue program.
Senator King disclosed he had
asked Corporation Counsel Seal and
10 V. Morgan of the Board OF
Tax Appeals, to prepare "a fair in
come tax taking in everybody" as
a tentative proposal to be laid be-
fore the Committee when it starts
hearings on the controversial House
measure, probably Tuesday or
Wednesday.
The Utah Senator indicated the
revised plan would allow exemp-
tions somewhat similar to the Fed
eral law, namely. ST 900 for a single
person and $4,000 for a married per-
son. The House bill contains a fat
$4,000 exemption. with no distinc-
ton between single and married
persons, and graduated scale of
rates on income above that amount
ranging from 2 to 7 per cent. The
House measure, however, exempts
members of Congress and employees
OF the House and Senate.
House Acceptance Doubtful.
In suggesting that the redraft ap-
ply to everybody, Senator King said
he expected retention of the pro-
vision allowing credit here for in
come tax paid in any of the States.
Even If the Senate should pass a
rewritten income levy, if it is all
inclusive In its application. some
members of the House seriously
doubt whether it would be accepted
by that branch.
Meanwhile. sentiment against at
tempting to work out complete re-
vision of the House income levy in
the short time available to the SEN
ate Committee, was strengthened
yesterday from two sources.
Senator Austin, Republican of
vermont, an active member of the
comittee, announced he agrees with
the findings of the Commissioners
Advisory Tax Committee that there
is insufficient time to give the House
plan careful study, and that the
present tax law, embodying the
business privilege levy, be continued
for another year, pending thorough
study.
Glass for Lump Sum Rise.
Earlier In the day the House in
come measure was dealt a hard
blow, when Senator Glass, Demo-
crat of Virginia, took a stand in
favor OF a fairer Federal payment
to National Capital expenses, as
proposed in the Overton plan, IN
lieu OF new taxation at this time.
Adoption of that plan would raise
the Federal share from a $5.OOO,-
700 lump sum to approximately So
100000 next year, based on the per-
centage of land area required for
national purposes. It's enactment,
he said, would obviate the necessity
for new taxation now.
The Virginia Senator, who is
chairman of the Appropriation
Committee and a high ranking men,
Der OF the District Committee, said
he would have no objection to a
scientific income tax for the Dis
trict if confined to persons who al
ready pay no State income tax. He
pointed out, however, that in view
OF the fact a large percentage of
the population of the District is
made up of Government employees
who have legal residence in the
States, and who under the new
court decision will be compelled to
pay both State and Federal income
tax, he is inclined to believe that
any just income tax in the District
would probably cost more to en-
force than it would raise.
On the other side of the picture
was Senator Capper of Kansas,
ranking minority member, who ia
vors the principle of an income tax,
and expressed accord with Sen
ator Kings desire to try to make
the House bill workable.
Representative Dirksen, Republi-
can, Of Illinois, an income tax ad-
vocate on the House District Com
mittee, conferred with Senator King
(See D. c. TAXES, Page A-4.)