Evening star., 1939-06-20
|Ear|y DC. Tax
Decision Seen
As Hearings End
Senate Committee
To Decide Between
Income, Business Levy
BY J. A. OLEARY.


BY J. A. OLEARY.
An early decision by the Senate
District Committee as between a
modified income tax and continual
ton OF the business privilege levy
Tor another year was in prospect
this afternoon as public hearings
ended after three hours. and the
committee planned an immediate
executive session with District of.
ficials.
Dozen Spokesman Heard.
After a dozen spokesmen for civic
groups had been heard. some for
the income tax, others for keeping
the business privilege levy, the hear
lngs came to close with Senators
seeking the views of Representa-
tive Bates, Republican. of Massa-
chusetts, as to how Government
employees and members of Congress
should be classified if local income
tax Is enacted.
Mr.. Bates began this discussion
with the statement he does not
think the District should tax people
from other States. Anybody who
lives here IL months of the year, he
explained. gets the benefits of the
local government and ought to pay
here.
He was asked by Chairman King
OF the Senate group if he would
care to comment on whether a Dis
trlct income levy should apply to or
exempt members of Congress. The
House bill exempts Representatives,
Senators and their employees, but
would apply to other temporary
residents. less credit for taxes paid
in State
Against Tax Here.
Mr.. Bates replied they ought tc
pay in their respective States, and
ought not to be taxed here if they
are taxed back home. He admitted
1t would be rather difficult to avoid
applying the tax to members who
are not subject to an income tax
at home.
Pursuing the subject further, Sem
ator Overton inquired what distlnc-
ton, if any. should be made between
cabinet officers and ordinary Gov
ernment employees, all of whom are
12-month residents of the District.
Mr.. Bates said he would exempt
them altogether if they are taxed
somewhere else.
Senator Overton added the OBJ
servation that IF we exempt Repre-
sentatives or Senators, we should
exempt also the President, the cabi-
net and all Government employees,
for We cannot make fish of one
and fowl of another"
Mr.. Bates took the view that the
general rule should be to apply the
tax either at home or here, repeat
ing that if the salary is taxed at
home it should be exempt here.
The hearing opened shortly after
10 o'clock with a f1are-up of sharp
verbal exchanges between Corpora
ton Counsel Seal and Arthur Bern
stein, representing the Citizens
Committee for Fair Taxation, when
Mr.. Seal cross-examined the wit
tACcc no W 1loW Aidlly SlUlLCIlS llC lCp.
resented and how his committee
went about considering the tax
problem.
AS Mr. Seal pressed the witness
with rapid-fire questions about the
make up of the Fair Taxation Com
mittee. Mr.. Bernstein charged the
corporation counsel was trying to
inject the House milk controversy
into the Senate tax discussion.
This came after Mr. Seal had
brought out by questioning Mr..
Bernstein that chairman of the Fair
Taxation Committee is Mrs. John
Boyle, jr.. who also is head of the
Consumers Council
Several Senators Joined the cor
poration counsel in cross-examining
Mr.. Bernstein. who protested the
queries bore no relation to the tes-
timony he had just given in favor
OF the income tax as against the
sales levy or continuing the business
privilege tax another year.
He was required, however. to an
swer in detail when and how his
organization acted on the tax prob
lem. As he left the stand, Mr.. Bern
stein declared:
II think what we need here Is a
vote for the District"
More than dozen witnesses lined
up on opposite sides as between a
modified income tax or continuing
the present business privilege levy
for another year.
They presented united front.
however. in urging fairer basis of
Federal payment than the IS 900 900
lump sum which the House seeks to
make a permanent limit.
Support Committee.
Supporting the Commissioners
Advisory Committee in favoring
continuation of the business privi-
lege levy as preferable to a hastily
drafted income tax were:
The Washington Taxpayers As
sociation, by Rufus S. Lusk, presi-
dent: Gerald A. Walsh of the
Graphic Arts Association, repre-
senting commercial printing estab-
lishments.
Joining Mr.. Bernstein's committee
in support of the income tax. with
exemptions corresponding to the
Federal law, we're:
The Federation of Citizens Asso-
Citations, through William j. Tucker.
and S. A. Wood of the Citizens
Forum of Columbia Heights.
! William H. Press of the Board of
Trade told Chairman King the
(See DISTRICT, Page A-50