Evening star., 1945-05-23
Tax Discrimination
Against Legislators
Charged by 0verton
BY J. A. O'LEARY.

Members of Congress would be
better off on income tax day if they
were dollar-a-year men with the
right to deduct expenses in Wash
ington than they are under present
tax rulings, Senator Overton, Demo-
crat, OF Louisiana, suggested in hear
tngs on the $4,000 annual expense
account OF Senators and Represent
atlVes IN the pending legislative bill.
The hearings, made public today,
revealed a feeling among Senators
that the income tax rules on de-
ductable expenses in connection with
carrying on trade or business have
been applied to members of Con-
gress more narrowly than to other
professional men who come to
Washington on business.
The bill, already passed by the
House, will come up for debate in
the Senate tomorrow, and may pro-
woke further debate then, since the
Appropriations Committee vote yes
terday on adoption of the expense
fund item was II to 4.
STAN Testifies on Deductions.
Colin F STAN expert of the Joint
Committee on Internal Revenue
Taxation. testified that, while the
revenue act allows deduction of
the entire amount spent for meals
and lodgings while away from
home" in the pursuit of a trade or
business, the Board of Tax Appeals
has upheld a ruling that members
of Congress are not permitted to
deduct such expenses.
Mr.. STAN explained the conflict
arises from different interpretations
placed on the phrase while away
from home" Although members Of
Congress usually retain their places
of abode in their States, it has been
held for tax purposes that their I
business lOca ton is Washington
Senator Overton called it
strained construction TO say a
Senator or Representative home is
in Washington. when, as a matter .
of fact. if he ever selects Washing
ton as his home, he will not be here
for long"
Senator Green, Democrat of Rhode
Island, pointed out that if he came
to Washington in his capacity as a
lawyer to try case, and lived at
clubs for several weeks, he could de-
duct that expense.
But as Senator YOU cannot do
the same thing" Senator Bridges.
Republican, of New Hampshire
Joined in. The discussion continued.
as follows:
Mr.. STAN. A lot of the people who
come here temporarily, during the
war, under the rulings can deduct
their expenses, because this is not
their home; their business place is
somewhere else, and they just come
here temporarily.
Senator Overton The dollar-a-
year men deduct all their expenses.
Mr.. STAN. That is probably true
under the Tax Court theory.
Senator Overton. And l under /
stand that some of them much pre-
fer to get a dollar a year and de- /
duct their expenses. which are
rather large, rather than to get q
salary.
Senator Reed. Republican. of Kan f.
SaS. I can see where they could
make that pay.
Can Deduct for Fine Homes.
Senator Overton-Yes. They can
obtain some luxurious quarters in
hotel or apartment house, or rent
fine house, and can deduct those /
expenses, can they not?
Mr.. Stam-That is right. Ger /
tainly they can deduct some of these .
expenses
Senator Overton-Sometimes I
think it would be better if Repre-
Sentatives and Senators were put
down as dollar-a-year men and then
could deduct their expenses. I think .
We would be better off that way. /
Senator Reed said he thought So !
too. Explaining that part of his
income comes from a newspaper
business and part from his salary
As a Senator, the KanSan declared
that the rules regarding deductions
for my private business are much
more liberal than the rules for
deductions in connection with my
salary as Senator"