Evening star., 1940-03-10
BY DON s. WARREN.

. ANAS NA oAo Va a P4OHNoCQ JILL C0lAe
Ing for a combination sales tax and
q personal net income tax on the
higher brackets, as q substitute for
the present income levy on persons
"domiciled" In the District. has
been prepared by Corporation Coun.
sci Elwood H. Seal at the request
OF Representative Nichols, Demo.
crat. of Oklahoma. it was revealed
yesterday at the District Building.
While he did not make public the
text OF the bill, Mr., Seal said he
would take the draft tomorrow to
Mr.. Nichols, who is chairman Of
the Fiscal Affairs Subcommittee Of
the House District Committee.
Plans for such move by Mr..
Nichols were indicated recently
when protests were made in Con-
gress against MIR. Seals ruling that
the present graduated, personal, net
income tax should be applied to all
persons found to be "domiciled" in
the District, regardless of whether
they claimed legal residence back
home" IN the States or whether
they paid State income taxes.
Massachusetts, to Resist.
Meantime it developed that the
State Of Massachusetts, will resist
efforts Of the District to levy the
income tax on any inhabitants" of
Massachusetts, who may be employed
IN the Government here, but wish
to retain their legal domicue in
that State.
Representative Edith Nourse Roe.
ers, Republican, of Massachusetts
last night announced she had re-
ceived word of this from Henry F.
Long. Massachusetts, commissioner
Of corporations and taxation. Mrs.
Rogers had forwarded to Commits
stoner Long the ruling Of Mr.. Seal.
Some protests against the present
income tax program of the District
were heard recently on Capitol Hill
when Congress was considering
amendments TO permit splitting the
levy into semi-annual payments
due April Is and October Is. At tho
time. Chairman Randolph Of the
House District Committee promised
to give consideration to amend
ments that might be suggested con.
corning application Of the "domi.
cile" clause OF the present act.
Said to Follow Pond Report.
The new bill prepared at the re-
quest Of Mr.. Nichols is said to fol4.
low rather closely the principles sug.
gested Ia the Pond report, submit.
ted to Congress in January Of last
year.
The draft. 1t was said, calls for q I
per cent sales tax, which would pro-
vide exemption for food products
sold for consumption OF the prem
ises, for medicines, for products sold
to the United States Government
and except those products, such as
gasoline, on which there Is . selec-
tive sales tax.
; The companion portion Of the
combination plan, it was said, would
cali for an income tax on incomes
above $4,000. The rates would be
2 per cent on the first 81 900 of tax
able income; 3 per cent on the next
$1,000; 3 per cent on the next Sc 900;
4 per cent On the next $4,000; S per
cent on the next $4,000, 6 per cent
On tho next $4,000, and per cent
on all taxable income above 50 600.
Mr.. Seal said he would suggest
to Mr.. Nichols that the bill provide
for continuation Of present personal
net income levy 50 far as the April
and October payments were con.
cerned. since they were based on
incomes received in the calendar
year 1859, and that the proposed
new measure become effective next
January l.. applicable to incomes
received during the calendar year
1910. E-
The proposed changes would not
disturb the current nat rate S per
cent corporate income levy, although
H. Mr.. Seal has drawn the bill for
Mr.. Nichols this portion of the
present District revenue act would
be repealed but reinstated IN the
new bill.
Long Gives Opinion.
In announcing that Massachu-
sets win resist the local tax, Com.
missioner Long wrote Mrs. ROGERS:
1T ts my opinion that an in.
habttant ct Massachusetts, even
though spending the major portion
ID tbs year In the District Of Colum.
bia in the employ OF the Govern.
ment or any of its agencies, cannot
be held to be subject to the Dis
trict Of Columbia income tax"
Admitting that there may be some
doubtful cases, due to long residence
IA this city, or to- the failure Ct
(aes INCOME TAX, Page A-9.5
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