Evening star., 1935-11-20
INCREASED TAXES
FOR D. c. WEIGHED
IN BUDGET PLANS
Next Years Estimates to
Be Laid Before Bureau
Tomorrow.
S8,317,500 LUMP SUM
TO BE ASKED BY HAZEN
Capital Finds Diminishing U. S.
Help Increasing Difficulty of
Making Ends Meet.
BACKGROUND


Facing problems of increased er-
penditures for uorious parts of So
ctdl security program, District OF
Columbia officials raised issue in
closing days of last session OF Con-
greSS OF tar reforms here. Senators
McCdrrdn of NeUddd and Cdpper
of Kansas Were named to reutew
situation, action held in allegiance
tUhen District contribution require
mentS uere reduced.
Committee headed by Corpora
ton Counsel Prettyman subsequent
ty designated to study District
finances during congressional re-
cess; preliminary work done, group
prepares to press studies to con-
cluSton during coming ueekS. y,
The Commissioners Special Com
mitee on taxation today resumed study
of a wide variety of proposals for re-
vision and extension of the District
tax system, designed in part to achieve
a better balance between operation
expenses and outlays for needed capi-
tai improvements.
At the same time Commissioner
Hazen prepared strong arguments for
many important items in the proposed
1887 budget to be laid tomorrow before
the Budget Bureau in conclusion Of
hearings there on the next years
estimates.
He will plead especially for ap-
proval Of Federal payment Of S8,.
317,50O, a lump sum granted by the
Senate last session bGt slashed TO
s5,7oO,ooo, by the House.
Operation Costs Mount.
The steadily diminishing percentage
Of the costs of the National Capital
borne by the Federal Government,
District officials have stated, has ac-
centuated the difficulties of the Dis
trict to keep pace with mounting op-
Grafton expenses and capital needs
that have been piling up.
Commissioners Allen and Sultan are
expected to join Commissioner HaZen
in the special concluding presentation.
Hazen will also have in hand specially
needed items for the departments
under his direction.
The Tax Committee, headed by
Corporation Counsel E. Barrett Pretty
man, has before it data on the main
tenance and operating expenses during
the past Is years, similar data on
dwindling portions of the budget avail
able for capital improvements, such as
schools and libraries.
Permanent Needs Forecast.
A new element also is to be intro
duced in the study. officials are fore
casting sums which will be needed
during the next S, 10 or Is years for
permanent Improvements. For instance,
the expected growth of population for
such periods will be calculated and
from that figure estimates will be
drawn for additional school buildings
and other Improvements that will be
The committee also is to chart the
increasing amount of land that has
been taken out of taxation by pur-
chases by the Federal and District
Governments.
Against all this information the
committee will consider the present
known tax revenue availability. in
cluding the past records of the Fed
eral payments toward local expenses.
Tax Increases Considered.
The committee has awaiting study
many proposals for revision of the
tax system. Among them are in
creased taxes for utilities, revision Of
bank taxes, imposition of an in
creased gasoline tax, adoption Of an
inheritance or estates tax, possible
additional sales taxes. a tax on movies
and theaters, an income tax and
adoption of weight tax for automo-
biles.
Chairman prettyman said today his
group as yet had not taken up study
of tax measures. 1t is his plan to sug-
gest to the Commissioners how much
revenues might be raised by this or
that new or revised tax to meet what
they may determine to be necessary
increased revenues. 1t is his plan to
leave to the Commissioners what
changes in the tax system should be
proposed.
In addition to Prettyman, members
Of the committee are Maj. Daniel j.
Donovan, auditor and budget officer:
Tax Assessor William P. Richards,
Peoples Counsel William A. Roberts,
Richmond B. Keech, vice chairman of
the Utilities Commission, and Capt.
H. c. Whitehurst, director Of highways