Evening star., 1936-09-13

Revenue Committee would have in
hand suggestions for additional taxes,
If they are needed, and the city heads
would be ready to propose new levies
or increased taxes If the call comes
for them. This is the present plan.
Future developments will determine
if it can be followed.
Even the proposed bedrock" pri-
mary budget, however, would leave
some vacant spots, according to sta
tistics submitted at the hearings by
Maj. Daniel J. Donovan, budget
officer.
Primary Budget Size.
For instance, the proposed $40,000,-
900 primary budget would be nearly
100000 over the net general fund
now anticipated for the next fiscal
year. The significant fact is that
maintenance and operating costs for
this year amount to $34 1852 $50. The
net general revenue fund for next year
is calculated at but $32 1886 900, leav-
ing a S2,000,000 deficit, which would
have to be made up somehow.
These estimates are subject to
change and there may be a solution in
this possibility. .--ts~r
The net general fund revenue for
next year is arrived at by making
allowances for such fixed" charges
as wiping out the deficit of 81, ,400, 900
now expected to exist at the end
of this fiscal year; repayment Of
81 100000 for the P. w. A. loans:
repayment of 100000 under the Cap
pert -Cramton park extension program;
completion of the new Police Court
Building, $500,000; completion Of the
new Petworth Branch Library,
$4,000; completion of construction at
the Vocational School for Girls, $780,
900; payment of half the cost Of
Freedmen's Hospital, $3.50, 900, and de-
ficiency items, claims and judgments,
$3.50, 900.
The public hearings on the budget
just concluded were rather overshad-
owed by intermittent talk of new
taxes. Maj. Donovan fatty suggested
adoption of a graduated-weight tax
on motor vehicles as substitute for
the present personal property levy on
cars as a means of collecting an addi-
tional 81 ,000,0o a year from automo-
bile owners.
Commissioners Hazen and Allen
both indicated by cross-examination
of several witnesses that they are con-
sidering throwing the gasoline-tax rev.
enues into the general fund. Hazen
has suggested an increase In the
gasoline tax and Allen recently men,
toned the possibility Of an income
tax. -.
If the Commissioners determine
later additional revenues are needed,
over and above whatever is decided
as to the Federal payment, present
prospects are they will be in this Or
der of preference:
An inheritance tax, which would
permit the District just as the States)
to take q credit up to 80 per cent of
what is derived from the Federal
levy on estates.
Either an automobile weight tax
or an additional cent on the gaso-
line tax,
Increased levies on utilities, or an
income tax as q substitute for the
intangible personal property levy.
Tax Rate Boost Opposed.
All District oficials insist the real
estate tax rate should not be boosted.
A number of spokesmen for Or
ganized civic bodies said at the hear
ings they would accept increased
taxes If they were found necessary
to meet Government demands. About
the same number protested there
should be no tax boosts. Many Of
them insisted that the solution lies
with an increase in the Federal pay
ment.
Among the latter was Edwin s.
Hege, president Of the Chevy Chase
Citizens Association, who yesterday
submitted written statement, urg-
ing the Commissioners to hold down
the size Of the budget and avoid q
higher real estate tax at all costs. He
declared the Federal payment should
be increased and recalled that the
now defunct Bureau of Efficiency
=.