Evening star., 1947-05-18
Bates Proposes
Wider Base for
D. {. Income Tax
Levy Is Sought on
Persons Living Here
Most Of Year
By Don S. Warren

will be urged this week by Rep
resentative Bates, Republican, of
Massachusetts, co-chairman Of
the Joint Fiscal subcommittee,
with the objective of removing
inequities from the present law
and the hope of staving off pos
sibilities of a sales tax here.
The basic principle of the new
draft, he said, would be to require
all persons living here for as much
as seven months out of the year to
pay the District income levy un-
less thev can show they have paid
either State income or intangible
personal property taxes elsewhere.
Such measure would remove
many inequities that now exist in
the District law" he said. And
it would embrace great many who
pay no taxes either here or else
where"
He voiced belief such a revision
would bring thousands of additional
persons onto the District tax rolls.
Bill to Come Up Soon.
The revised bill, prepared by
Corporation Counsel Vernon E.
West and his tax assistant, Harry
L. Walker, is to be considered at
an early meeting of the Fiscal Sub
committee of the House and Senate
District Committees.
Mr.. Bates, jointly in charge OF
the revenue program with Senator
Cain, Republican of Washington,
said he had hopes a cut of $3,000,-
600 to $4,000, 900 could be made in
the pending $95,000,000 District
budget. Hearings on the supply bill
are to be started next Friday be-
fore the Horan Subcommittee of the
House Appropriations Committee.
Postponement of at least some OF
the capital improvement program,
he declared, is almost mandatory.
He said he doubted the wisdom of
Jumping large number of projects
into the program for the next two
or three years, with construction
costs still high and uncertain.
"We just can't do it" he de-
clared.
If District costs can be slashed,
he added, it might permit a drop
ping of some of the proposed new
District taxes. Regardless of this,
however, the present income levy
should be simplif1ed and made more
equitable, he declared.
He repeated his belief sales tax
is the .least desirable form of taxa
ton. It Is a key element in the
pending set of bills. 80
He protested that only some 3d.
600 District residents now are max
ing income returns to the District,
although he said he was advised
282, 900 giving Washington as their
place OF residence made Federal in
come tax returns. Probably many
of the other 100000 persons pay no
State income taxes at all" he said.
The subcommittee recently di-
rected the corporation counsel to
redraft the income bill. The Com
missioners had sought new law
even broader than the one now
awaiting consideration, but Senator
Cain and Mr.. Bates feared 1t would
fail of Congressional approval. With
few exceptions, it would have per-
mitted the District to tax incomes
earned here. This raised Congress
sional fears of double taxation
since thousands of persons living
here claim legal residence in the
States.
'Domicile" Basis Eliminated.
Mr., Bates said the substitute bill,
while also eliminating the restrictive
""domicile" basis of the present Dis
trict law, would involve no possi-
bilities of double taxation" or con-
tests with nearby States over taxa
ton of the incomes of persons work
ing in the District but living beyond
it's boundaries.
While making the levy applicable
to all actually living in the District
for seven months or more OF the
year, Mr.. Bates explained, the new
draft would exempt both those whe
can show they paid State income
tax or an intangible tax back
home
The intangible levy reaches some
of the same income sources as an in
come tax. The Districts old intangi-
BILE levy was dropped when the in
come tax was adopted.