Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-08-31
TAX INCREASE: MAY
NOT Be NECESSARY.
D. c. Officials Make State
ment in Answer to Foes
of 10-Cent Boost.

Although the Districts 1882 budget
is predicated on a s1.S0 tax rate, 1t is
possible that the Commissioners may
not be forced to raise the current $40
levy, District officials fastened to point
out yesterday, in answer to opposition
that already has developed to the pro-
posed l0-cent increase.
The tax rate will not be fixed until
next Summer, it was explained, and by
that time the Commissioners will know
definitely how much money will have
10 be raised by taxation TO support the
appropriations made by Congress for
the 1882 fiscal year. The amount
needed cannot be accurately estimated
now, since both the apron fation and
the extent OF the contribution by the
Federal Government are unknown
quantities.
The budget, as it went to the Bud
get Bureau, called for an amount in
excess of $4,000, 900. The Commits
sioners were satisfied that the current
tax rate of $l.70 would not be SUM-
cient to finance 1t, and worked out a
formula by which the necessary funds
could be raised. This provided for a
1o-cent increase in the tax levy and a
eral Government-an increase of ST.
100000 above the amount appropriated
from 1925 to 1929, and 100000 more
than allowed for the current fiscal year.
Formula Is Tentative.
This formula, however, is purely ten
tative and may be changed in two diff
ferent ways, It vas said, thus obvi-
ating the prospective tax increase. In
a ret Ia ertl1-
committee appointed to study the prob
lem Of fiscal relations between the Fed
eral and District Governments, it was
explained, may recommend a higher
contribution than the $4,000, 900 which
the Commissioners have used in their
formula. Secondly the Budget Bureau
may eliminate some Of the items In the
budget. In either case, the officials
said, 1t probably would make higher
tax rate unlikely.
No one at the District Building APP
pears to know the attitude Of the
Budget Bureau toward the large budget
recommended for 1882, In view of the
new policy adopted this year which
eliminated the submission of tentative
estimates. But If former procedure is
followed the ofIicials believe there most
likely will be a reduction in the total
amount sought.
100000 Cut From Estimates.
In past years, it was explained. the
Budget Bureau made 1t practice TO
amount sought by the Commissioners
In the tentative estimates. This is the
reason the District found itself several
years ago with more than $4,000. 600 in
accumulated revenues to its credit In
the United States Treasury. Last year
was an exception, however The Com.
Ynissioners asked for $48,3l5.620 in the
tentative estimates, and the Budget
Bureau allowed $47,S80, 220-a cut Of
only $435,4
Since the proposed 10 cent raise in
the tax rate would yield approximately
81 800 900 in additional revenue, q re-
duction Of this amount in the total
kudget figure would make it unnecessary
for the Commissioners to raise the levy.
And even though the budget officials
approve the more than 44e ,O00, 600 bud
get, 1t was said, the increase could be
obviated If the House Committee on
Fiscal Relations should recommend a
Federal contribution Of $12 900, O00-the
amount which the Senate insisted the
United States should contribute during
its battle with the House at the last
session over the 1891 appropriation bill
100000 contribution by the
United States, 1t was explained, would
be 100000 In excess Of the figure used
by the Commissioners as basis for
formulating the 1881 estimates With
this amount, the ofiicials said, the pro-
posed tax increase not only would be
unnecessary, but the budget could be
enlarged about $T0O, 900 to provide for
needed municipal improvements emitted
from the 1892 estimates.