Evening star., 1936-09-09
D. c. INCOME TAX
POSSIBILITY SEEN
TO MEET BUDGET
Commissioners Prepare to
Begin Public Hearings at
10 Am. Tomorrow.
ALLEN AGAINST INCREASE
IN REAL ESTATE LEVIES
20 Organizations Have Asked to
Present Views-Hope to
Conclude by Friday.

Possibility that the District will
have to seek local income tax to
provide new sources of revenue was
seen today as the Commissioners pre-
pared to begin public hearings on re-
quests for operating expenses total
ing $50, 462, ,433 for all departments of
the city government for the 1888
fiscal year.
More than 20 taxpayers organiza-
tions have asked to be heard by the
Commissioners in the hearings. ar
ranged in an effort to reduce the local
budget and scheduled to open at 10
Am. tomorrow.
The warning that the District may
have to seek an income levy came
from Commissioner George E. Allen,
who declared:
I'm not in favor of increasing the
real estate tax, but it may be neces-
sary I believe we will have to seek
an incone tax. The man who makes
money is the man who can afford to
pay for government.
Expense Rising Annually.
every year we find our expenses
rising and the additional cost must be
met.
I've considered the possibility of
feorganizing the District government,
but I have learned that by consoli-
dating bureaus and departments with
similar functions our savings will be
small. The income tax, as a substi-
tute for the present tax on intangible
property, suggests itself naturally as
perhaps the best source we will have
to tap"
Allen spoke in the presence of Maj
Daniel J. Donovan, District auditor,
who is chairman Of permanent COM
mittee to study new revenue sources
Maj. Donovan's committee already has
suggested the possibility of an income
tax, inheritance tax and automobile
weight tax and increased gasoline and
public utilities taxes. Although Dono-
van made no comment, he indicated
he would favor the proposed substi-
tuition of an income tax for the pres
ent intangible levy.
There are thousands here" said
Donovan, who avoid the Intangible
tax through ignorance of the meaning
Of the law There is nothing deliberate
about it, and they are not intentional
tax evaders. An income tax would
raise more money and would be under
stood much more easily"
May Conclude by Friday.
The Commissioners hope to conclude
the hearings Friday, but because of the
demand for time made by organized
groups they are prepared to continue
over the week end if necessary. Reser-
vations have been made for the follow
ing:
Tomorrow-Southea Citizens As
sociation, Southeast Council of Citi-
Sens' Associations, Washington Tax
payers Protective Association, District
Fire Fighters Association, Howard
Park Citizens Association, Southeast
Business Mems Association, Southwest
Citizens Association, District Phar-
maceutical Association and Northeast
Boundary Citizens Association.
Friday-Randle Highlands Citizens
Association. Rhode Island Avenue Cit
liens Association, Garfield Citizens
Association, City-wide Playground As
sociation, w. P. A. Lodge, A. F. G. E.;
international Union of Elevator Con-
structors, Council of Social Agencies,
Takoma Park Citizens Association,
Medical Society of the District of Co.
lumbia, Sixteenth Street Highlands
Citizens Association, Mid City Citi-
zens' Association. the Consumers
Council of Washington, the District
Council of Parents and Teachers,
Michigan Park Citizens Association
and Dahlgren Terrace Citizens Asso-
citation.
The estimates for the new year rep
resent an increase of s14,413,523 over
the appropriated 1887 budget which
totaled $45, 5,048,910.