Evening star., 1939-07-15
By i. A. OIFARY


House and Senate conferees or
the local tax bill today agreed tc
write into permanent law the Sc.
100000 lump sum agreed to for one
year in the District appropriation
bill yesterday as the Federal share
OF the annual expenses of the Ma.
tional Capital.
The conferees also reached a fna
agreement to establish local III.
come tax, limited to persons domi-
ciled in the District, which excludes
nonresident wage earners from
nearby States and all actual resi-.
dents who can show their domicile
Is in State.
The remainder of the tax
structure remains as previously
agreed to, namely:
Present real estate and tangi-
BILE personal property rate of
$l.75 continued.
Intangible personal property
tax repealed
Five per cent net corporation
Income tax adopted, along with
the individual income levy.
Business privilege tax allowed
to die, but with last-minute pro-
vision allowing District to collect
unpaid amounts still due on both
business privilege and intangible
taxes.
Supply Measure Signed.
Approval OF this tax agreement by
both houses next week would bring
complete settlement of Washington S
fiscal situation, which has been in a
state of legal uncertainty since
July /.
The appropriation bill, signed by
the President this morning after
sudden adoption of the $4,000 900
lump-sum compromise yesterday, re-
stores the legal status of the city
government and paves the way for
distribution Monday or Tuesday of
the pay checks of 1850 municipal
employees, due today.
Senator Overton, Democrat, of
Louisiana, who led the fight for an
increase in the $5,O00,000 Federal
share in both the supply and tax
bills, will call the revenue agreemen.
up in the Senate Monday.
After the Senate acts Representa-
tive Nichols, Democrat, of Oklahoma
will submit it to the House. AL
though Mr.. Nichols did not sign
the report, he announced he will not
oppose it in the House.
The Senate accepted a change in
the wording of the fiscal relations
provision. Previously it stated that
there shall be appropriated" the
sum of $6000,000 each year. House
members objected on the ground
that this constituted direct ap-
preparation, and infringed on the
jurisdiction of the Appropriations
committee. Senator Overton and
his associates agreed to change it
TO there is hereby authorized to
be appropriated.
Tax Study Abandoned.
The text of the permanent pro-
vision follows:
For the fiscal year ending June
80, 1910, and for each fiscal wear
thereafter there is hereby author
lied to be appropriated as the an
nual payment of the United States
toward defraying the expenses of
the government of the District of
Columbia the sum of S6OOO,OOO
The Senate conferees agreed TO
knock out the provision to create e
joint House and Senate committee
to make a further study of the tax
structure before the next session.
Later, Mr.. Nichols said he refused
to sign tha conference agreement
as a protest against the income tax
feature OF the tax bill.
The income tax plan as finally
approved in conference is reeking
with discrimination" he said. Il
predict now it will be held uncon-
stitutional.
Nichols Sees Confusion.
What is fair about a tax plan
that will work this way? Take the
case OF two lawyers practicing in
washington, one of whom lives here
ana the other in Maryland. Both
OF them earn their income here and
the one who lives in Washington
will have to pay the tax and the
(See D. c. FISCAL, Page A-3)