Evening star. [volume] (Washington, D.C.) 1854-1972, 1937-11-28
D. c. TAX OUTLOOK
TO Be DISCUSSED
BY FISCAL GROUP
Board of Trade Financial
Committee to Meet on
Tuesday.
Definite INDICATIONS
/ ON DESIRES EXPECTED
Study to Be Given Controversial
Income Levy Plans Along
With Other Proposals.

Convinced of the necessity FOR a re-
vised District tax program which will
spread the burden equitably and
which will provide substitute for
the widely condemned business privi-
lege tax now in effect. the Municipal
Finance Committee of the Board OF
Trade will hold an important meeting
Tuesday to discuss what tax-raisine
measures it will recommend for the
next fiscal year.
Although the committee possibly
will not take fiscal action at this time
1t Is expected to give some definite in
dlcation as to its desires with respect to
raising revenues, according to Edgar
Morris, committee chairman.
As a preliminary to the discussion
the results of an exhaustive survey
conducted recently by the board, OF
operating costs and tax programs of
other municipalities will be placed be-
fore the committee to give the men,
bers some idea as to how various forms
Of taxation have worked out in other
localities.
Since the board has not vet COM
pleted an analysis Of the tax measures
included in the extensive survey, the
results will be placed before the COM
mittee simply in the form Of a progress
report.
To Avoid Mistakes Of Others.
The board feels that the data SUD-
piled by the study will enable the COM
mittee to profit by the mistakes of
others and place it in a position to
know-or be able to estimate-how
successful other types of revenue
measures would be in Washington. 1t
also will be able to compare the op-
Grating costs of the District govern
ment with those of other cities.
From its survey, the board has in
hand digest OF every States income
tax law and the amount of revenue
derived from them. 1t also made a
STUDY OF sales taxes, liquor levies and
other forms of taxation in the States
and other cities.
Although the committee is on record
In opposition to an income tax-hold-
ing that such q levy probably would
be too limited in its scope and would
produce relatively little revenue-it
plans to give study to this along with
other forms Of taxation.
When Congress, in its last session.
vas considering the new tax program
TOR the District the committee went
on record as favoring . 2 per cent
retah sales tax which, it estimate
would produce $5,00o,o0o additional
revenue.
Questfonnaires Favor Method.
In this connection, board officials
yesterday pointed out that of the
answers received thus far on the
questionnaires sent out to the more
IMAM 1000 board members to get a
croSs-sectional view on taxes, approxi
mately 90 per cent favor a retail sales
tax.
Municipal operating costs and the
1883 budget, as submitted to the
Budget Bureau by the District Com
mlssloners. will be discussed at length
at Tuesdays meeting. The board
ALREADY is on record as opposed to any
increase in the appropriations bill
over and above that of last wear ex-
cept where such increases are un-
avoidable due to increased collections
IN the gasoline tax and water funds
In us survey of operating expenses
OF the District government over a
period OF years the board has found
mat the per capita load for sunnort
OF the municipal government has in
creased almost SIS since 1920. The
population of the city in 1920 was
437'o7l, and the budget for that fiscal
year amounted to approximately
Szo,l00,000, with total revenues
amounting to about $2l, 100000.
In that year the Federal Govern.
ment contributed approximately So
100000 toward maintenance Of tn.
District government, and the tax
payers put up about $1,000, 900 or
on tne average $25 each. Today. with
tne population estimated at approxi-
"ateiy $4,000, the budget for the
current fiscal year is SAC, 900 900. but
the Federal payment is only IS ,o0o. o00
mus the board estimates the ~.
capita cost this year will be almost
$50. "n'o''
Reorganization Group Represented.
The personnel Of the Municipal Fl.
nance Committee includes several
men who are now serving on the
Citizens Advisory Committee on Taxes
or the Citizens Advisory Committee
on Reorganization Of the District
Government, as we'll as others con-
sidered experts on municipal finance
problems.
Francis g. Addison; jr., is chair
man Of the Subcommittee on Distric,
Building Affairs; Edward F. Colladay
president Of the board, is chairman OF
the Subcommittee on Congressional
and Budget Bureau Hearings; B. M
McKelway, Subcommittee on Stats
teal Data and r. A. Van Orsdel heads
the Municipal Revenue Subcommittee
William Beall is first vice chairman
Of the whole committee, and former
Corporation Counsel E. Barrett Pref
lyman IS second vice chairman.
Tuesdays meeting will be held al
$50 pm. in the boards ofices in Thu
Star Building.
Representative Dirksen, Republican
Of Illinois, meanwhile disclosed he L
preparing to resume his fight for ar
income tax for the District as a sub.
stitute for the widely condemned bust.
ness privilege tax ,-
Mr.. Dirksen also said he would op.
pose any tax program the Commits.
sioners recommend that includes ethics
q direct or indirect sales tax He hac
particular reference to proposals under
consideration by special District Ia,
Committee for . local sales tax or
beer and tobacco.