Evening star., 1940-03-03
DC. Income Tax
Backed as Row
Slows Returns
Dirksen Expected to
Leod Fight Against
Repeal Of Law

leud right Against
: Repeal Of Law
"A move to block action on the bill
OF Representative Cooley, Democrat
Of North Carolina providing for out
right repeal Of the Districts per-
sonal income tax law was promised
by several House members yesterday
as figures released at the District
Building indicated the controversy
over the law apparently has had the
effect of slowing down the filing OF
returns.
Meanwhile, Representative Nichols
Democrat, of Oklahoma, chairman
Of the Fiscal Affairs Subcommittee
Of the, District Committee which will
consider the Cooley bill as well as
proposed amendments to the income
tax act,l intimated his group would
tackle the tax problem in the next
week or 10 days.
Representative Dirksen, Republi-
can, of Illinois is expected to take
the leadership in the impending
battle over the income tax law. For
several years he supported legisla-
ton for an income tax for the Dis
trict. He will be aided in his fight
by Representative Bates, Republican,
of Massachusetts,. Both are members
of the fiscal affairs subcommittee.
Representative Kennedy, Demo-
crat, of Maryland, who was recently
placed on the five-man subcommit-
tee, has indicated he would resist
efforts to kill the income tax.
Returns Are Slowed Up.
Although the staff assigned to the
income tax division at the District
Building has been working at a
speedy clip all week, only about
$4,000 in income tax revenue was
received in returns filed up until
Friday, Tax Assessor Edward A.
Dent disclosed.
Some officials expressed belief
that many taxpayers were waiting
to see what Congress is going to do
to the law before they file their
returns. Others took the position,
however, that thousands will wait
until the last minute, just as they've
always done with their Federal
returns.
Assessor Dent reported the total
received from the personal and cor
porate income levies stood at $212,-
639-or only about per cent of the
estimated anticipated revenue. Maj.
Daniel j. Donovan. auditor and
budget ofiicer, has estimated that,
under the present act, the District
should receive about 81 1000, 900 from
the individual tax and $4,000, 900
from the corporate levy.
During the week, q total Of $124,-
729 Was received from 7,158 personal
net income returns. while the re-
lnainder, $87,910, came from 576 cor
poratiou returns. sSoznA $500 other
Individual returns haye l,een received
from persons who, through deduc-
tions and exemptions, have no
tax to pay.
Dirksen Keeps Plan Secret.
In announcing his plans to pre-
vent scrapping Of the. income tax,
Mr.. Dirksen declined to disclose what
steps he would take. He said the
agitation for repeal reminded him
of q story of three tailors on Tooley
street in London who had dispute
and wrote petition to Queen Vic
toria which began: 1--WE, the people
Of the Empire"
"You get what I mean," Mr. Dirk
sen said. Not everybody Is op-
posed to the income tax"
Mr.. Cooley reiterated that his pur-
pose in introducing the bill is to get
District tax legislation reviewed in
an effort to avoid possible triple tax
alton of persons who maintain a
legal residence in State and yet
are classed as residents Of the
District.
Corporation Counsel Elwood H.
Seal has held that the local income
tax should apply to all persons
"domiciled" in the District, even
though they may claim legal res
idence elsewhere.
II hope Mr.. Nichols subcommittee
will get busy soon and work out
some solution to this complicated
tax problem" said MIR. Cooley There
is q lot of confusion now"
An examination of Mr.. Cooley's
bill reveals it not only calls for re-
peal of the income tax but pro-
vides q refund within go days after
its enactment of income taxes paid
this year.
Urged to Make Returns.
Although District residents will not
be required to file their returns
and make their first payment until
April Is. under recently enacted
legislation, Mr.. Dent strongly urged
taxpayers not to wait until the last
minute to submit their returns.
In view of the fact that numerous
persons are calling at the District
Building to file their returns imme-
diately after filing their Federal
income tax returns at the Internal
Revenue Building, Mr.. Dent an.
ticipates rush period around March
IS. It was estimated that IS pei
cent of those who paid their loca
tax last week did so Immediately
after filing their Federal returns.
To those who are calling on thu
local income tax staff for help II
making out their returns Mr.. Dem
suggests that they bring with then
duplicate copy Of their Fedora
return. A staff of about Is work
ers is available to aid taxpayers u
figuring how much tax they owe, ant
It takes only about 20 minutes
on the average, for the tax expert'
TO dispose Of each return. Later
when the mad rush begins, late com
ers will have longer to wait, ON
cials pointed out.