Evening star., 1941-03-25
District Plans Appeal
In Income Tax RuIinu
To Guard Revenues
Dirksen Says Decision
Makes Resurvey of
D. c. Levies Necessary

With the fate of thousands of
dollars in sorely-needed tax reve-
nues hinging on the outcome, Dis
trict government attorneys today
planned to petition the Supreme
Court for a review of yesterdays
Court of Appeals rulings upholding
claims of two Federal employees on
duty mere to exemption from the
local income tax law.
Decision to seek a final determi-
nation of the scope of the income
tax levies from the high tribunal
was announced by Corporation
Counsel Richmond B. Keech as
Representative Dirksen. Republican,
of Illinois declared the appellate
courts rulings make necessary
resurvey of the whole District tax
problem.
Il have only had time to make a
rursory examination of the decis-
ION, as published in the press said
Nll LII hSCIl. VIII SpOllSOlCu NllN
local income tax law, and therefore
I am reluctant to express an opin-
ion until I have examined it care
fully.
Burden of Proof" on ID. c.
'It does seem that the court has
placed Squarely on the District the
burden of proving that Federal
worker In the District is domiciled
here. 1t seems. too, that the court
gives the Federal workers who claim
they are not domiciled here the
right to file for a refund of any
income taxes paid to the District.
In view Of such a situa ton. I
recognize there is necessity to re-
survey and re-eXamine the whole
local tax problem. Any situation
that allows a tax to be applied only
to a portion Of the people who work
here is unfair, inequitable and dis
criminatory.
Meanwhile. Representative Hun
ter, Democrat. of Ohio, chairman of
the Fiscal Affairs Subcommittee OF
the District Committee. asserted the
decision makes it even more ap-
parent that the House should pass
perfecting amendments to the in
come tax law"
Two weeks ago, bill designed to
clarity and make more equitable the
local income tax was rejected by
the House.
It expect we will try again to have
the House accept these changes in
the law in view of the appellate
courts decision" Mr.. Hunter said.
'If so, the proposed changes prob
ably will be brought in under a
special rule to give them preferred
status on the House calendar in
stead of being called up on District
day
Sees New Difficulties.
In announcing plans to appeal the
decisions, which, he said, would
make administration of the income
tax law more difficult than ever,
Mr.. Keech said:
The Court of Appeals rulings
carry a strong presumption that
persons coming here to serve the
Federal Government continue to be
domiciled in the States from which
they received their appointment.
This presumption he added,
"can only be refuted by clear and
uneuuivocal evidence of intention to
abandon the original domicile"
Mr.. Keech said the Importance
Of the cases from the standpoint
of revenue and administration of
the law makes it essential TO appeal
TO the Supreme Court.
The corporation counsel agreed
with the Commissioners and other
District officials that it would be
virtually impossible to make an
accurate estimate of the number
of Government employees who might
be affected by the appellate court S
decisions. Tax officials said they
believed it unlikely the total would
exceed 10000.
The Commissioners expressed
concern over the possible loss of
any revenue, no matter how small.
Anything they take away from
us at this stage would be serious, "
said Engineer Commissioner David
McCoach, jr.
Declaring I'VE don't know where
We stand now the city heads
agreed the adverse decisions should