Evening star., 1940-03-20
D. G. Taxes
Continued From First Page.)

the tax from being applied to retail
sales under 10 cents.
The only important change made
in the bill by the committee, it was
said, would make subject to the
sales tax sales of electricity or gas,
admissions to any place of amuse-
ment including moving picture thea
ters. theatrical performances, cir
cuses, athletic events, amusement
parks, swimming pools, bathing es-
tablishments and fairs. The commit
tee also wrote in provision spe-
cifically exempting street car and
bus fares.
District Day Uncertain.
1t had been the plan of Chairman
Randolph to have the bill called up
in the House Monday, the last Dis
trict day" of the month. He said
after the special meeting House lead
ers had asked him to forego the Dis
trict day" Monday because they
wanted to call up two important
appropriation bills.
However, he explained, he would
confer with House leaders during
the day and attempt to arrange for
special District day" later in the
week.
Is Attend Meeting.
Fifteen of the 20 members of the
committee attended the special
meeting, three of the latest addi-
tions for the first time. They are
Representatives Goodwin. Repub-
lican, of Iowa and Mcmillan and
Kennedy of New York, both Demo-
Gratis. Chairman Randolph. it was
said, did not vote on any of the
motions.
No accurate estimate of revenue
that the combination sales-income
tax will raise has been given the
committee Roughly, the sales tax
alone is expected to produce about
s5,000,000 a year. The income tax,
1t was said, may produce an addi-
tional $1,000000.
Aside from street car and bus
fares, the only articles selling for
less than five cents that would be
exempt under the sales tax would
be sales of food and food products
for human consumption off the
premises where sold," sales of medi-
cine for human consumption and
use, sales to or by the Government
of the United States and the Dis
trict. sales immune from taxation
under the Constitution or laws of
the United States. sales of news
papers and periodicals and sales OF
gasoline.
Tax Applies to Meals.
The bill specifically provides that
the tax shall be applied to meals
whether consumed on or off the
premises where sold, to candy and
confectionery alcoholic beverages,
soft drinks and sodaS.
The sales tax would not become
effective until January l, 1941. The
income tax, however, would be ap-
plicable to incomes in the current
taxable year.
The new tax plan, it was en-
phasized, does not outlaw the pres
ent personal income tax on 1899
salaries, which reaches down into
the lower salary brackets. This tax,
it was said, must be paid in two
installments. the first April IS and
the second October IS.
The bill was introduced late yes
terday by Representative Nichols.
Democrat, of Oklahoma, chairman
of the Fiscal Affairs Subcommittee
of the District Committee in charge
of revenue legislation.
Mr.. Nichols, however, did not in
troduce the measure until the sub
committee had Endorsed last-minute
changes in the original draft of the
new tax plan. The principal amend
ment would exempt from the sales
tax articles selling for less than S
cents. Under the original program,
the sales tax would have been ap-
piled to articles selling for cent.
Two committee members-Repre-
sentatives Schultz of Indiana and
D'Alesandro of Maryland, both
Democrats-already have served
notice they intended to fight the
sales tax feature of the program.