Evening star., 1947-06-15
Income Tax Plan
And TeacherPay
Nearing Senate
Floor Battles Likely
On D. 6. Measures
EorIy This Week
-
By Don S. Worren

py boH ,. VofISH
Lines were being drawn yesterday
for battles on the Senate floor,
probably early this week, on two
major District problems-the in
come tax section of the city reve-
nue. measure and the delayed
teachers. pay bill.
Both measures are on the Senate
desk awaiting action. 1t was not
expected either could be disposed
of during call of the consent
calendar, under the five-minute
debate rule, scheduled for tomor-
row. Motions to take them up at
an appropriate time later, however,
were in view.
Senator Cain, Republican, Of
Washington, in charge of the S13,-
100000 revenue bill, yesterday
staunchly supported the income tax
stand the Senate District Commit
tee had taken. He maintained 1t
was entirely equitable that persons
living here, using Washington's IA
cilities, should pay "a reasonable
amount" toward their costs If the
same incomes were not taxed in the
home States.
Cain Calls Bill Fair.
"It is a fair BILL" he declared. "1t
involves in no sense any question OF
double taxation. If you pay a State
income tax back home, where you
may claim legal domicile, you would
get full credits against the Districts
tax. There is only one State where
the State income tax rates are lower
than here.
"No one would be hurt. I should
think that people living here and
using Washington's facilities year
after year just the same as people
across the street would be proud
enough of their National Capital to
be willing to pay reasonable share
Of the costs"
A different view was taken by
Representative O'Hara, Republican,
of Minnesota, whose Gripping
amendment to the income tax meas
sure was approved by the House but
excluded from the revenue measure
as reported to the Senate.
"I am still in there fighting" said
Mr.. OHara. He has been doing
missionary work" among Senate
members since the Senate bill was
reported.
Counts on Aid in Senate.
His plans are to have some Sena-
tor friendly to his cause to insist
on adoption of the O'Hara amend
ment. This would exempt all Gov
ernment employees living here but
claiming domicile in some State, by
filing an affidavit they were resi-
dents of one of the States.
Mr.. OHara declined to specify
his plans but declared: Il have
hopes there are men of good heart
and good mind in the Senate who
recognize the inequities of the Cain
tax bill as reported from the Senate
District Committee"
Senator Cain said he was pre-
pared to recommend change in
the tax bill, as to its application to
the income of war veterans, to cure
technical fault that inadvertently
had developed in the drafting work.
In response to kilograms of pro-
test from several veterans groups,
calling attention to the point, he
said he would offer an amendment
to exempt from taxation interest
paid on pensions of war veterans.
Much wider exclusion of war vet
erans' benefit payments, however,
Is being demanded by veterans
spokesmen. In response to these re-
quests, Senator Cain yesterday con-
suited legal officers of the District.
Senators Increase Amount.
At his request, the Senate District
Committee has raised to $4,000 the
amount of veterans benefit pay
ments which are excluded from in
come tax. This is an increase of
$1,000 over the provisions of the
House-passed bill. Senator Cain
SOAlSluQCu ll1dl, Wlt1L 1liC DdoAC Ca
emptions provided in the bill, this
would provide a minimum $4,000
veterans exemption.
Federal exemptions are broader,
excluding all benefit payments from
taxation, veterans spokesmen told
Senator Cain.
Senator Cain, veteran of World
War II, said his plan would exempt
every penny of benefits any CT
or noncommissioned officer could
get from the Government"
The teachers pay bill was re-
ported to the Senate nearly two
weeks ago. 1t provides a general
$3.50 increase in pay for teachers
over their present temporary levels
and proposes a modified single SAL
ary scale" Teachers with masters
degrees, regardless of what classes
they teach, would start at $4,000 and
go to $4,000 and those with only a
bachelors degree would have a
range from s2.5o0 to $4,000.
A contest will develop from the
insistance of several Southern Sen
atorS to give M. A. degree pay
classification to 1876 teachers who
lack M. A. degrees. but have been
given superior ratings" under
former pay grading system the new
bill would abolish.