Evening star., 1932-03-27
Reduction of Federal eoHtri-
button Would Offset Bene-
fit, He Says.
EFFECT OF MEASURES
ON REVENUES STUDIED
Use OF Gasoline Tax Fund to ri.
nance Bridge Improvement
Called Illegal.

The four MapeS tax bills, II enacted
Will give the District but little more
revenue than it now has If the Sc. .5oo.-
600 Federal contribution 10 the District
Is reduced to $4,000, 900, Mai. Daniel
j. Donovan. District auditor and BUDGET
oncer, told the House subcommittee on
APPROPRIATIONS at recent hearings on
Ine 1883 District appropriation bill.
Inc thlrd installment Of the trans
crlpC OF the hearings, released yester-
oay oy Chairman Cannon, showed there
was a protracted discussion over the
efiect OF the Mapes bills on District
revenues.
ID. C. Gain $515,00O.
The net increase in revenues under
the Mapes bills. Donovan pointed ont.
would amount to $4,100,000. although
tne District would receive the benefit
OF but $3,515,000 of that amount How
ever, with the loss Of $4,000, 900 in the
Federal contribution, he declared. the
District would gain only s5I5,OOO.
The MapeS Committee recommends
ed that the Federal contribution be
reduced from $9,5o0 900 to Sc 500 ,OOO,"
SAID Donovan. THE District would
lose 100000 on that basis. Under
the Mapes Committee report and un-
DER their estimates of additional reve-
nue. Tor the District of Columbia under
the four bills they propose for legisla-
tion, they claim this: Prom the estate
tax, the Mapes Committee estimated
$75O,OO0 of additional revenue. from
the gas tax an increase of $1,000, 600
over what we are now getting, from
the automobile weight tax 81 500 600.
ana from the income tax an increase
over the tax on Intangible of $3.50 900.
making a gross increase Of revenues
over revenues from present sources of
81, ,6O0,0 600. From which we deduct
SoO0,OOO through the elimination of the
personal tax on automobiles.
Gas Tax Transfer.
"Our net increase in revenues. as
proposed by the four Mapes bills. would
De $4,1OO,0O0 but the District of CO.
lumbia, as far as its general revenues
are concerned, will receive the benefit
OF but $3,515, 900 Of that amount. If
tnoSe nills were passed, the first thing
we would do would be to transfer to
tne gas tax fund an appropriation Of
$1,015,000 for repairs to streets. now
paid out OF the general revenues Of the
I'VE would have the benefit of the
estate tax In the amount of S75O,OO0;
from the weight tax on automobiles we
would obtain net increase of 81 0oo-
UOO, and the increase from the income
TAX over the intangible tax would
amount to $750,000, making a total in
crease that would be available for gem
eral expenses OF the District of S3.515-
600. The bill for increasing the gas
tax would give q net increase of 5000
0O0 Tor the gasoline tax fund over ex-
iStlng appropriations payable there
from. This fund is available for sue-
CHIC purposes; that Is, for streets and
roads and for repairs It would mean
that 100000 more. would be available
Tor street repairs and street improve
mentS, but no part Of this amount
would be available for the general ex-
pense of the District"
Discussion of the Mapes bill also re-
Vealed there was some thought ON the
part Of the committee of using the
gasoline tax fund to finance bridge i'm
although Donovan pointed
OUT such a plan would not be legal
under existing law
Bridge Items Cited.
Representative Simmons of Nebraska
former chairman of the subcommittee
caIled attention to three bridge items
IN the 1888 bill, requiring an appro-
prlation OF $5s0,000 out Of the general
1t Is my theory" Mr.. Simmons said
tnat the building of bridge Is lust as
essential In the Improvement or renair
OF street, and, possibly more so. than
iiIIlng up holes in the pavement. So IL
the MapeS bills pass and the gasoline
tax fund Is increased by $500 900, these
prldge items might properly be trans
ferred, along With the street items. to
the gasoline fund, and then you would
have benefit of $1,100,000 for the
general revenues"
Donovan agreed with the theory of
Mr.. Simmons, but explained that exist
ing law would have to be amended, be-
cause application of the gasoline tax
fund Is limited entirely to street and
road improvements and repair.
Capt. H. G. Whitehurst, director Of
highways, even went so far as to sug-
geSt that sidewalk construction be
financed out of gas tax revenues. He
said he considered sidewalks an integral
part of highway. The sidewalk item
for 1888 is estimated at 100000.
Capt. Whitehurst also declared a A.
cent tax on gasoline would practically
support the Highway Department, ex-
elusive of bridges. He agreed, however,
that bridge construction should be
financed out of the gas tax fund, be-
cause he believes bridges, like sidewalks,
are an integral part Of the highway
system.