Evening star. [volume] (Washington, D.C.) 1854-1972, 1944-03-28
House Approves
Bill 10 Block
Double Taxation
Measure Designed
To Avoid Multiple
Levies on Income

In a move to protect Government
workers against multiple applica-
ton of income taxes against their
salaries. the House late yesterday
passed and sent to the Senate the
O'Hara bill which makes such sala-
ries subject to local taxation only
in the State where the worker Is
"domiciled."
The District. as well as Alaska
and Hawaii. are considered States
for the purposes of the bill. Dis
trict officials were uncertain last
night as to just what effect the bill
would have on District revenues
since the District income tax law
already is limited to those found
domiciled here.
Representative O'Hara, Republic
can, of Minnesota, told the House
it was Shocking" to find that many
Government workers, who had
changed their places of residence
to enter Federal service had been
billed by more than one State.
Stuuy II. ~. EucCt LdteTs
Representative Stefan, Republi-
can, of Nebraska asked how ap-
proval of the bill would affect the
District treasury and whether it
would warrant an increase in the
Sc, 900, 900 Federal payment now be-
ing made toward expenses of the
National Capital. Mr.. O'Hara sug-
|gested that question could be taken
up at a more appropriate time.
Representatives D'Alesandro and
Sasscer, Democrat, of Maryland
and Representative Ellison, Repub-
lican, of Maryland led an unsuc-
cessful fight for inclusion of a pro-
vision to the effect that a State
might tax the salary of a Govern
ment worker employed or living in
the State, if the employe were not
subject to such tax in the State
declared to be his domicile.
Mr.. D'Alesandro argued that
people who live and work in Mary
land for years, receive the same
benefits of its schools, roads, police
and fire protection and other serv-
ices, and should pay their share
of the costs as much as any other
citizen. If their income is not SUBJ
ject to tax in the State of their
domicile, it should be taxed in the
State where they work and live"
Much Double Taxation.
Representative Gwynne, Republi-
can, of Iowa agreed there was
much double taxation" but
asserted the solution rested, not
with Congress, but with the States
Relief should be found, he said,
not merely for Government workers,
but for all citizens. Declaring the
measure had an unsound constitu-
tional basis, he predicted the at
torneys general of many States
would challenge its operation.
Chairman Summers Of the House
Judiciary Committee, Mr.. OHara,
Representative Lanham, Democrat,
og Texas and Representative
Springer, Republican. Of Indiana,
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Mr.. O'Hara said he was aware
of the argument that the bill would
open the door" for the Government
worker to select as the place of his
domicile the State with the lowest
income rates, but argued this was
covered by two provisions That
the Government worker shall have
acquired domicile in the (declared)
State prior to the beginning of the
annual period for which the tax
is claimed; and that his declaration
Of domicile must be in writing under
oath.
In reply to protests that some
States do not have State income
taxes, Mr. Lanham and others
argued those States raise their
revenues from other sources to
which the "domiciled" person must
contribute