Evening star., 1937-12-18
FEDERAL PAYMENT
INCREASE AND TAX
ON SALES SOUGHT
Advisory Committee Pledges
Fight Tor Emergency +,
Substitute.
WOULD USE CONSUMER
LEVY TO PLUG DEFICIT
Group Hopes to Have U. s. Make
Up Deficit Between Budget
and Normal Revenues.

Members Of the Commissioners Ad-
visory Committee on Taxes prepared
today to lead determined effort to
secure adoption by Congress Of q gen.
eral sales tax to make up whatever
deficiency appears in the 1899 District
revenues.
In its formal report to the Com
missioners yesterday, this body of rep
resentatives Of nine major civic and
business organizations first called for
an increase in the present $5,0o0,o 900
Federal payment toward expenses of
the National Capital, and then offered
the sales tax plan as a substitute for
this years emergency tax measures.
Under the 1878 emergency tax
program, the two major elements, the
business privilege tax and the ascent
increase in the tax rate ON real estate
and tangible personal property. are to
expire automatically at the end OF this
fiscal year
The advisory tax group, headed by
L. A. Carruthers, who is president of
the Federation of Citizens Associa-
tions. recommended to the Commits
sioners as follows:
Il. That vigorous and concerted
effort should be made by the Com
missioners and organized groups in
the city to secure from Congress a
Federal contribution that In addition
to the $5,000,000 appropriated this
year would make up the difference
between the normal estimated income
from all sources and expenses for
the year 1899.
Tax the Alternative.
20. That If Congress does not do
this, there should be enacted o gen.
eral consumer sales tax, exempting
therefrom all food and medicine; the
Commissioners to be given power to
set the date.
"3. This committee is Of the opinion
that since there can be no question
from all available indications that the
vast majority Of the citizens of Wash
ington prefer sales tax to any other
tax, the Commissioners should make a
determined effort to see that this tax
is finally approved by Congress.
a. The committee proposes to act
as the spearhead for citizen organi-
zation in the campaign seeking enact
ment of this tax. 1t proposes to pre-
pare the necessary data to answer the
arguments that were urged against
the sales tax last year, to endeavor to
secure an active and united front
for the enactment into law Of the tax
favored by most of our citizens"
Meet With Commissioners.
Members Of the advisory group,
which met with the Commissioners
and the District Tax Committee, the
latter consisting of District officials,
were Mr.. Carruthers, Edgar Morris,
representing the Board of Trade;
Rufus S. Lusk, the Washington Tax
payers Association; Prof. Charles M.
Thomas, Federation of Civic Associa-
tions; Mrs. Harry Lee Parkinson Of
the Voteless District of Columbia
League Of Women Voters; Mrs. Lloyd
w. Biddle, District of Columbia Fed
Grafton of Women's Clubs; Joseph H.
Bait, Federation of Business Mems
Associations: Edward D. Shaw, the
Merchants and Manufacturers Asso-
ciation, and F. Eliot Middleton, the
Washington Real Estate Board.
The Commissioners are under direc-
ton from Congress to submit their
proposed revision of the District tax
system to Congress by January is.
Before the Commissioners act, they
will await report by the District
Tax Committee, consisting of various
District officials and headed by Mai.
Daniel J. Donovan, auditor and budget
officer. Other members of that group
are Corporation Counsel Elwood H.
Seal. Tax Assessor Fred D. Allen, Tax
Collector Catham M. Towers, Rich
mond B. Keech, vice chairman Of
the Public Utilities Commission, and
Capt. H. C. Whitehurst.