Evening star., 1947-04-02
City Heads Drop
Amusement and
Utility Bill Taxes
Young Would Settle
For Four Of Eight
District Proposals
By John W. Thompson, Jr.

py JOHH w. tHoHpSVffr ~.
The Commissioners today
dropped from their tax program
proposed levies on amusements
and utilities bills.
It had been estimated that the
two proposals yield a total Of
$1,000, 900 each annually. Thus the
Commissioners Topped $4,000. 900
from the nearly $4,000, 900 total Of
the whole program.
Disclosure came suddenly before
a Senate House Committee as the
city heads began detailed bill-by-
bill defense of their money raising
schedule
The comittee laid aside the two
measures.
Young Stresses Four Bills.
In response to question by
Chairman Cain, Commissioner John
Russell Young told the committee
he would "be happy" to obtain pas
sage of four of the eight proposed
tax bills which would feed the city
general fund and also two which
would supply the highway fund. He
listed these as the two per cent
sales tax, the proposed new income
tax, doubling of the liquor taxes.
one-cent levy per package OF
cigarettes, and one-cent increase
in the gasoline tax.
This would provide an estimated
yield of $l7,250,000.
The eighth bill included in the
revenue program calls for doubling
the 50-cent annual automobile in
spection fee and extends the inspec-
ton to trailers. This, however, is
designed to place the service more
on self-supporting basis and is
not expected to show profit to the
city.
Corporation Counsel Vernon Z.
West told the committee the 10 per
cent proposed amusement tax had
been drafted at time when it was
expected that the present wartime
amusement tax would be abandoned.
Since the Government has retained
that levy, making the present Fed
eral amusement tax 90 per cent it
was decided not to press the District
levy.
Might Set Pattern.
II suppose you consider the law OF
diminishing returns in that COM
nection," Senator Cain observed In
considering that passage of the
bill would raise the tax to 80 per
cent.
Representative Bates, Republican.
of Massachusetts, added that rails
ing the amusement tax to this level
might set a pattern for the country.
IT don't want to set that ball roll
Ing" he told the sparely attended
session.
The proposed 2 per cent levy on
utilities bills was almost unanimous
ly opposed by civic groups at
public hearing at the District Build
ing last September. A spokesman
for the telephone company also
objected.
Mr.. Young told the committee the
tax program was mot an overnight
thought" He said it received good
deal OF attention before the eight
bills were forwarded to the Capitol.
Two Big Differences.
As discussion shifted to the pro-
posed income tax, Mr.. West told the
committee the bill differs in two
main respects from the present In
come levy. These are, he said:
/. Residence for more than seven
months in each year is made the
basis of tax liability instead OF
domicile.
2. 1t includes a per cent levy
on unincorporated businesses.
The bill calls for an entirely new
income tax act rather than amend
ing the present law. It also pro-
vides for. tax credits to residents OF
other States who pay income taxes
| in those States on their earnings In
| the District. This credit, however,
is conditional on similar credit
being offered to District residents
who work in other States.
The bill would yield a total OF S3,-
10000 of which 5000, 900 would come
from the tax on unincorporated
businesses.
Congress Members Exempt.
Asked by Senator Cain whether
the tax would apply to members Of
! Congress, Mr.. West replied that
they were specifically exempted.
/ Questioned by the committee, Mr..
West described the operation of the
reciprocal credits for nonresidents.
He said such residents would file a
return in the District and take
credit on the return for the tax paid
in their home States.
| Would they have to show a tax
receipt as evidence of payment In
their home State2" asked Repre-
sentative Smith, Democrat, of Vir-
ginia. Mr.. West replied that he
thought so.
Mr.. West added that under the
| fc.a ETCTAT no~n A % : -