Evening star., 1947-07-07
U. 5. Employees
Win Exemption
From DC. Tax
Conferees Accept
O'Huru PIun to Relieve
Those Paying at Home
By Don S. Worren

W SoH -. "OfICH
House and Senate conferees
today cleared the Districts new
$12,000,000 revenue bill for final
legislative action when they
reached agreement on the
O'Hara income tax amendment
exempting the salaries of Gov
ernment workers who are tax
able in their home States. If
enacted, the bill as it now stands
would raise immediate need for
substitute revenue amounting to
between $4,000 900 and $5,000,000.
Immediately after the agreement
was reached, Senator Cain. Repub-
lican, of Washington, head d9 the
Senate managers on the measure,
announced he would introduce
bill to repeal entirely the individual
income tax provisions of the law
effective next year.
If enacted, this would leave in
force the District income taxes on
corporations and on unincorporated
businesses.
Amendment Revised.
The O'Hara amendment to ex-
empt Government workers who sign
aff1davits that they are taxable in
their home States, was revised by
the conferees to limit the exemption
to Government salaries alone.
The language of the amendment
was the only question remaining in
dispute between the House and
Senate.
Chairman Dirksen of the House
District Committee announced he
would put conference agreement be-
fore the House later today and
would seek it's approval at the
earliest possible moment, probably
tomorrow.
Though believing the O'Hara
amendment, even as rewritten, sets
up a discrimination against a. lin
tied number of District residents
still compelled to pay the individual
income levy, Senator Cain said he
would ask the Senate to approve
tne conference report.
He took the position there was no
practical alternative to this in the
remaining brief time before Con-
gress adjourns.
With this in mind, he said it was
his intention to introduce a bill be-
| fore the end of this session so mem
bers of the fiscal subcommittee OF
the House and Senate District Com
mittees could begin consideration of
the question before Congress quits.
The substitution of sales tax,
Senator Cain said, was lone of the
obvious possibilities. He did not,
however, want to commit himself
on recommending sales tax at this
time, in advance of more thorough
study.
O'Hara Supports Dirksen.
Representative O'Hara, Republic
can, of Minnesota, who won his
fight to exempt the Government
salaries of Federal employees, said he
would support Chairman Dirksen in
seeking quick House adoption of
| tne revised language
This provides specifically that en-
ployes Of the District Government
are not to be included in the ex-
emption for Federal employees who
swear they are taxable in home
States.
| The amendment ss now written
provides that the word resident
tthose taxable) means every indi-
vidual domiciled within the Dis
trict on the last day of the taxable
year and every other individual
who maintains place OF abode
within the District for more than
seven months of the taxable year,
whether domiciled here or not.
! This is modified. however, by
exemptions for any resident twho
is an elective or appointive 0Acer
or employe of the Government OF
the United States and who is "domi-
ciled" outside the District during
the whole OF the taxable year.
There shall be excluded from the
gross income of these persons SAL
aries or wages received from the
United States. Also excluded is
income derived from sources out
side the District.
The exempting clause continues:
For the purpose of this act the
domicile of such officer or employe
for any taxable year shall be the
State which he expressly declares
to be the State of his domicile:
provided that he shall have had a
domicile in such State under the
laws of such State Immediately
prior to the beginning of the taxable
year for which the tax is claimed.
Such declaration must be made in
writing, under oath, to the assessor,
and the time for filing such declara-
tion shall expire so days after writ
ten demand to file a return shall
have been received by such officer
or employe."