Evening star., 1941-03-09
Income Tax
Continued From Page BID

rage Dill
$4,000 individuals residing in the
District of Columbia and subject to
the provisions of the Federal income
tax law have not filed returns under
the District Act. It may be that
many or all of such persons are
not domiciled in the District. How
ever, no such determination can be
made without reviewing the facts
in each case.
THE United States Court of Ap-
peals for the District of Columbia
has held lin Sweeney VS.. District of
Columbia = } that one who
comes to the District of Columbia
and remains to render service to
the Government may elect to retain
his domicile in the State from which
he comes or may forego his State
allegiance and become domiciled in
the District.
Because of the obvious difficulties
of administration and the inequita-
BILE distribution of the tax burden
under the present provisions of the
act, it is the opinion of the COM
mittee that the act should be
amended SO as clearly to- define the
class or classes of individuals SUBJ
ject to taxation hereunder.
Aimed at Inequities.
"It is the purpose of the bill to
improve the existing revenue sys-
TEN of the District to remove in
equities and simplify administration
of the Income Tax Act"
In a summary of the principal
changes proposed in existing law,
the report declared with respect to
the income tax upon individuals:
1T is proposed to provide for i'm
position of the income tax upon both
resident and nonresident indi-
viduals at existing rates. The tax
is imposed upon the entire taxable
income of residents and upon the
income of non-residents derived from
District sources.
"a resident is defined as an indi-
vidual domiciled in the District OF
Columbia on the last day of the tax
able year and every individual who,
for more than six months of the
taxable year, maintained a place of
abode within the District. Every
individual other than resident is
deemed to be nonresident. Any
resident individual who has become
liable for income tax to State or
Territory upon income earned therein
may credit the tax paid to such
State or Territory against the Dis
trict tax.
$40 License Fee Urged.
"Any individual, either resident or
nonresident, who has become liable
for income tax to State or Terri
tory wherein he is domiciled may
credit the entire amount of the
tax paid to such Territory against
the District tax"
Another important amendment in
the bill is designed to relieve cor
porations from paying registra-
ton fee of $25 a year. The bill
proposes that hereafter these cor
porations shall pay in lieu of the
registration fee a license fee of $40
a year. Corporation Counsel Keech
has told the House District Com
mittee that while the District may
lose little revenue over this pro-
posed change, the primary purpose
of the corporation tax was intended
as a policing feature"
The District Committee will meet
tomorrow at 10 am.-two hours
before the House is scheduled to
consider revisions of the local in
come tax law. Chairman Randolph
said he would ask the committee
at that time whether to refer his
bill providing a commission to fix
and control rentals in Washington
to the full committee for considera-
ton or to the special subcommittee
on national defense. The National
Defense Subcommittee was created
last Monday. Representative Ran
dolph is head of the subcommittee
as well as the full District Com
mittee.