Evening star., 1936-01-05
DISTRICT HEADS
READY TO FIGHT
BOOST IN TAXES
Only Corresponding Increase
in Federal Payments to
Change Stand.
CONFERENCES SET
TO COMPLETE PLANS
Commissioners Promise Public
Hearings on Report of Tax
Committee.
BY DON S. WARREN.

The Commissioners will fight pro-
rosals for boosts in taxation OF Dis
trict residents and are prepared to
give ground only if Congress agrees to
corresponding increase in the Federal
payment toward expenses of the Ma
tional Capital. according to plans
mapped yesterday at the District
Building.
More definite plans are to be laid
this week when the Commissioners
hold a series of conferences with Maj.
Daniel j. Donovan, District auditor
and budget officer, and Corporation
Counsel E. Barrett Prettyman, chair
man of the special District Tax Com
mittee.
The Commissioners and other Dis
trict officials have been indicating for
days their deep concern over the fiscal
situation confronting the District.
They have postponed for more than
month action on the partial report OF
their Tax Committee, which suggested
the need for larger annual sums for
permanent improvements.
Public Hearings Promised.
Public hearings on the committees
report have been promised by the
Commissioners before they presented
any possible new tax program to Con-
gress 1t had been presumed by some
the Commissioners would agree to
some forms of increased or revised
taxes, but indications yesterday were
that they would fight any proposed
tax boosts.
At the same time, Commissioner
Melvin C. Hazen prepared data to
prove the justice of the proposal of
the Commissioners for an increase in
the Federal payment. His position all
along has been that the District cam
not meet demands for further develop
ment of the Capital and meet steadily
rising municipal maintenance costs
unless Congress agrees to carry a
larger portion of the annual expenses.
The Commissioners sought Fed
eral payment of S8,317,500 in submit
ting their 1887 budget to the Budget
Bureau. For the present fiscal year,
Congress appropriated but S. 700 600.
While the Commissioners are forbid
den by the Federal administration
from disclosing any actions taken by
the Budget Bureau on District budget
proposals until they are forwarded to
Congress. it is apparent this proposal
has been Slashed to the level of the
current appropriation. The Budget
Bureau in the past has followed that
practice.
Proposed Tax Boosts.
The following specific proposals for
tax boosts, previously debated in Con-
gress, but not adopted. were consid-
cred by the District Tax Committee
at the direction of the Commissioners:
An increase in the gasoline tax,
upward revision of taxes on utilities,
an income tax, an inheritance tax
and an automobile weight tax.
The committee deferred findings
and recommendations on these pro-
posals to await reaction from the pub
lie and the Commissioners on two
questions: What are the future ne
cessities of the District as to mainte-
nance and operating expenses and
what are the future necessities as to
permanent improvements?
District officials have questioned
how they may accurately gauge the
ability of taxpayers to meet these de-
mands, whatever they may be, until
they know what Congress will appro-
pirate as the Federal share of Ma
tional Capital costs, as we'll as the size
of the District budget Congress may
adopt.
Copeland Favors Hearings.
Meanwhile, Senator Copeland, DEM
ocrat of New York, concurred yester-
day in the recent decision of the Com
nissioners to seek the views of Dis
trict residents on now much they be-
lieve the city should spend annually
during the next decade, before deter
mining how future revenue require
ments should be met.
Senator Copeland, who has taken
an active part in District legislative
matters, also emphasized his belief
that if any new forms of District tax
alton are to be proposed, 1t would be
essential to consider at the time what
the Federal share of the cost of main
tanning the Capital is to be.
He expressed the fear that If new
taxes are considered without reference
to how the city's expenses should be
spportioned between the Federal and
District Governments, the revenue de-
rived from the new taxes would pave
the way for further reduction in the
amount of the Federal payment.