Evening star., 1951-02-16
Double Taxation
Seen in
Dispersal Plan
Workers May Have
To Pay Stote Levies,
Citizens Clinic Told
By Don S. Worren

Fears that dispersal of Govern
ment agencies into Maryland and
Virginia would result in Doubt
taxation on the salaries of Federal
workers was voiced today before
the citizens clinic of the Senate
District Committee.
The question was raised by Will
liam L. Ellis. a vice president of
the Federal Bar Association.
Speaking for it's executive COM
mittee, Mr.. Ellis said the dispersal
program raised the apparently
serious problem" of double tax
alton.
He brought out that many Dis
trict residents are employed in
Government agencies now situ-
ated in the District. Their SAL
aries are subject to the District
income tax. If some of the agen-
cies are moved to dispersal areas
in the adjoining States, he said it
was probable many of the affect
ed workers would continue to re-
side in the District.
Amendment Suggested.
But with the agencies located
outside the District, he said it was
certainly to be expected that
Maryland and Virginia would levy
State income taxes on the salar-
les earned within their jurisdic-
tions and that the District would
be expected to continue it's levies
here.
Mr.. Ellis suggested that this
danger could be eliminated by
amending to Federal law to limit
the application of State or Dis
trict income levies to persons in
the jurisdiction where they are
domlciled or actually resident.
Numerous witnesses at today's
session pleased for enactment Of
the Kefauver bill for an elected
and reorganized city government.
Pleas for the home rule bill,
sounded by Herbert Leeman, for
the Federation of Citizens Asso-
Citations. brought rounds of ap-
plause. They also brought an
announcement from District Com
mittee Chairman Neely that hear
ings on the Kefauyer bill would be
opened within two weeks. This,
again, stirred applause.
Clinics to Continue.
Senator Nicely also interrupted
testimony to announce that the
series of clinics would not be
closed today. as originally sched-
uled. but would be continued next
Monday. He noted additional wit
nesseS wanted to be heard and
said the round table sessions
would be continued as long IS
any one wanted to speak.
1t. Alvin Davis. president of the
District Firemen's Association.
asked District Committee support
for a bill which would grant a
pay raise for the Police and Fire
Departments. He said the bill was
being introduced by Represent
ative Davis. Democrat of Georgia.
head of the House District Crime
Subcommittee.
Senator Nicely assured him he
would sponsor such a bill. 1t.
Davis said the departments had
their last pay raise in July, 1948.
He said the proposal was for
raises of 1911 a year for privates,
1000 for captains, $4,000 for in
spectors and $2,700 for the super
intendents, of the Police and Fire
Departments.
Asks Increase in u. S. Share.
Mr.. Leeman called for an in
crease in the Federal payment
toward District expenses. He pro-
tested that 10 per cent cut, or
dered by Congress last year, was
arbitrary and unfair"
| Because the District this fiscal
year was anticipating a surplus
of revenues over outlays, Congress
last year reduced the payment
from $12 million to $10.8 million.
| Mr.. Leeman said that in all
fairness to the District, Congress
should return to the 60-40 divi-
sion of cost between the Federal
and District governments. He
noted that the United States will
receive more income from the
people of the District than from
any of "a States.
The Kefauver home rule bill
was passed by the Senate in 1949
but was buried in the House
District Committee. Mr.. Leeman
protested that the House commit
tee had tabled the bill although
(See CITIZENS, Page A-3)