Evening star., 1947-04-03

hearing, the subcommittee heard
Jerome q. Mckee. representing thu
District Retail Liquor Dealers As
isociation. and Gordon NJ. Atherl1olt
OF the Northwest Council Of Citizens
I Associations.
Mr.. Atherholt declared that the
Federal payment to the District
should be $50, ,0G0, 900 or $25, ,000, ,00e
instead Of the 50 ,000, 900 received this
lyear. He described the O'Mahoney
formula as inadequate because. in
lcomputing the Federal Governments s
obligation to the District, 1t excludes
large areas of Federal property such
Ias parks, streets and alleys.
At the suggestion of Senator Cain
Mr.. Atherholt said his organization
of civic associations in Northwest
Washington would draft proposed
formula bill.
Calls Income Tax Essential.
The Northwest Council, Mr.. Ath-
erholt said, believes that the pro-
posed income tax bill is absolutely
essential" The association favors
the sales tax only if it is found
necessary after we get proper
Federal payment of the amount we
suggest"
Mr.. Atherholt declared that in
any event, the first consideration
should be given to the size and
method of the Federal payment be-
fore any final decisions can be made
about specific taxes for the District.
| Mr.. Mckee referred to a state
ment last week by Representative
Horan, chairman of the District
Fiscal subcommittee of the House
Appropriation Committee that civic
responsibility was lacking in Wash
ington. He declared that his talks
with many Washington people con-
yinced him that the general public
here Is greatly interested in taxa
ton problems.
Hearings Due to Recess Today.
you will find more people in the
District willing to pay a modified
income tax rather than any form of
sales tax" he said. Almost all of
the people have talked to, say that
the income tax is fair
This afternoon, the subcommittee
was to hear further from the Dis
trict Commissioners on the specific
tax provisions. Then the hearings
are expected to be recessed until
next Tuesday.
Civic spokesmen will have a
chance to support or oppose any of
the specific tax bills next week,
Senator Cain said 1t is expected
the committee will then go into
executive session to work out the
final drafts.
Representative Bates, Republican,
of Massachusetts,, is seriously con-
sidering boost in the real estate
tax, it was indicated yesterday.
Told to Draft New Bill.
In the case of the income tax,
however, the city heads have been
told by Mr.. Bates to draft a new
bill under which District residents,
if domiciled in another State, would
receive full credit against any. In
come tax here for income tax paid
in their State of domicile.
Under this plan. 1t was indicated,
persons living in the District more
than seven months of the year
would file District income tax re-
turn and claim full credit for the
tax paid in their home State. A
Cancelled check or other receipt
proving payment of the tax to the
State might be required, it was in
dicated. But District officials also
pointed out false claim on an In
come tax return Is subject to per-
jury charges.
If the payment in the home State
were mere than was due here, the
resident would pay no tax here. If
the tax here amounted to more, he
would pay the difference between the
payment to the State and the Dis
trict.
Principal differences between this