Evening star., 1939-06-11
House 10 Act
On DC. Bills
Tomorrow
Largest and Most
Important List of
Session to Come Up
by JAMES E. CHINN.

~ JAMES Z. CHINN.
The House tomorrow will be called
on to consider the largest and most
important calendar Of District legis-
lation that has confronted it at the
present session.
Heading the list of seven bills is
one designed to give the District a
new revenue law, the major features
OF which provide for continuation of
the business privilege tax and tax
on earned incomes in excess of So
600 year and on unearned incomes
above $500.
Second IN importance are bills TO
divorce the unemployment compen-
Satlon board from the Social Sc.
curlty Board and to establish So
called fair trade practice law in
the District.
The other bills on the calendar
provide:
abolition Of the lunacv COM
mission and adoption of a new pro-
cedure for handling lunacy cases.
2-Authorization for the commits
sioners to sell with approval of the
National Capital Park and Plan
ming Commission, District owned
property no longer required for pub
lie purposes.
3-Transfer from the Recorder OF
Deeds to the Department of Traf-
flc and Vehicles the duty of record
ing and releasing liens and encum-
brances on motor vehicles.
4-Inclusion of property surround
ing Lafayette Park within restrlc-
tions of the Shipstead Act of 1880
which regulates the height. exterior
design and construction of private
and semi-prlvate buildings in the
vicinity of certain Federal property.
Business Tax to Be Issue.
The new revenue bill, radically
different in many respects from the
legislation originally proposed by
the tax experts who made an eX-
haustive study of the Districts tax
problems and revenue needs. is ex-
pected to provoke conslderaD ole de-
bate on the House floor. Attention
probably will be centered on the
provision to continue the business
privilege tax which was substituted
for a proposed combination retail
sales and personal income tax.
Publication of the final draft OF
the bill and its report yesterday dis
closed that number of laSt-minute
changes were made by the full Dis
t,-io+ TOro1 u-hoFo PnaSIHorpH
the measure last week behind closed
doors For instance. the rates pre-
scribed for the inheritance tax were
materially increased.
The bill in its present form pre-
/ scribes graduated instead of fiat
rate on various groups of benef-
ciaries. which range as high as IS
per cent in one class of inheritances
in excess of S500,000
The committee report, however,
said the rates proposed ARE not bur-
densome and will not result in any
hardship on taxpayers" 1t pointed
out they are substantially similar to
those imposed in Virginia and many
other States.
N0uld tnC lax Nre01t.
Another important change would
repeal existing law allowing a credit
on the business privilege tax for
tangible personal property tax pay
ments. 1t has been estimated this
change would add another 100000
year burden on business interests.
The committee explained in its re-
port however. that a credit would
be allowed on the income tax for any
business privilege tax payments. and
made this comment: In other
words. any increase in the business
privilege tax by reason of the repeal
of section 7 tb) of existing law al
lowing a credit for tangible personal
property paid will be credited
against the income tax
On the other hand those who have
studied the bill said such an arrange
ment would be unfair to the small
business man who probably would
pay no income tax since his earned
income would be less than $4,000
year.
Still another change made in the
bill would increase the salary OF 10
V. Morgan, sole member of the board
of District Tax Appeals from $500
to $4,000 a year The committee re-
port pointed out that Mr.. Morgans
duties would be greatly increased by
the additional taxes provided in the
bill, especially the income tax.
No Estimate of Revenue.
The report fails to contain def
mite estimate of the anticipated
revenue yield from the proposed new
tax legislation. 1t pointed out. how
ever. that on the basis of the changes
made in the 1910 District appropria-
ton bill by the Senate, S9O45;OOO
additional would be needed to
balance the budget In the coming
fiscal year. This bill" the report de-
(See D. C. BILLS, Page BID