Evening star., 1947-05-23
House Receives
New Income Tax
Bill for District
Substitute for Earlier
Commissioners Plan
Approved by Unit

The new District income tax
bill today was introduced in the
House by Representative Bates,
Republican, of Massachusetts,.
The way was cleared for formal
introduction of the substitute for
the earlier Commissioners bill at a
brief executive session of the House
District Fiscal Affairs Subcommit-
tee late yesterday.
The bill would tax income of per-
sons living here seven months of
the year but would allow a credit
against such District tax for any
income or intangible taxes paid to
a State.
Mr.. Bates feels the new bill would
catch many persons who now avoid
the District tax by claiming legal
residence in State but actually
pay no income or intangible tax in
the State.
He has also suggested many per-
sons would elect to pay the lower
District tax.
Larger Yield Seen.
Mr.. Bates estimated the yield OF
the new tax bill would exceed the
SO, 100000 expected from the earlier
bill of the Commissioners.
The original bill would have per-
mitted the District to tax incomes of
District residents wherever earned.
1t also would have been levied
against incomes earned in the city
by nonresidents, but would have
given reciprocal credits for taxes
paid on the same income in other
States, where the States gave SINH
lar credit to District residents.
Mr.. Bates and Senator Cain, Re-
publican, of Washington told the
commissioners early in the joint tax
hearings last March that the bill
would not get through Congress
afraid of double taxation.
Inclusion in the revised bill of
the credit for intangible taxes paid
in States is designed to make the
measure more attractive to mem
bers of Congress from the II States
having no income tax which legal
residents of those States could de-
duct from or apply to any District
tax assessed on the basis of actual
residence here.
Seeks to Remedy Defects.
MIR. Bates, who personally dislikes
a sales tax, has been working with
District officials in an effort to draft
a new income tax law to remedy the
defects of the present law and still
get through Congress.
The Districts financial problems
commanded the attention all day
yesterday of the Horan Subcommit-
tee of the House Appropriations
Committee, in charge of the city's
ecord-breaking budget of $95, ,000,-
900 plus.
At the end of the day, Chairman
Horan declared the committees
ultimate actions should have some
effect on the city's welfare expendi-
lures. He repeatedly has advocated
savings in relief expenditures. Yes
terday, he cited reports of two sisters
who were said to be getting relief
payments from the District, al
though they still were the owners
of real estate.
Checkup System in Prospect.
officials said some system would
be established for a check by relief
officials against the assessors roster
for property ownership.
Chairman Horan said a discussion
of municipal finance with the Com
missioners also brought out that the
latest estimates of the Commission
ers on tax receipts in the next fiscal
year show some $3,600,000 more
revenue than had been anticipated
last winter.
But, it was stressed, the District
still would need new tax program
bringing in more than $10,000,O00
extra in the next fiscal year to bal
ance the 1948 budget.
Early action on appropriations
ICee nTSTP TCT TAXES pace o