Evening star., 1937-06-29

she understood that was the experience
OF Maryland when it tried a similar
tax, but did not re-enact it. If there is
to be gross receipts tax, she asked
that in the case of gas filling stations
the portion of receipts representing
other forms of Federal and District
license and excise taxes be deducted.
Meanwhile the S45,9l5,OOO District
appropriation bill for the year begin
ming Thursday is on its way to the
White House for signature today, the
conference agreement having been
ratified by the House and Senate yes
terday. This bill leaves the District
with an estimated deficit of about
S7,0O0,000 which makes necessary the
tax bill now under discussion. While
the tax bill does not have to be a law
by Thursday, District officials say
they must know before the middle of
July What new revenue will be forth
coming before they can fix the real
estate tax for the year.
Sales Tax Revenue.
The District could raise S5,OOOO00
I from a 2-cent sales tax, even with
food, medicine, fuel, ice and moderate
~ priced clothing excluded, the Board
OF Trade told the committee today as
the tax hearing was resumed.
This would be more than local Off
cials expect to derive from the business
privilege tax of three-flfths of l per
cent on gross receipts, which has
aroused strong opposition.
The trade body presented the figures
In response to request from Senator
7ydings, made yesterday
On the basis of 1885 census figures
the board figured volumes of business
here as follows: Retail, S330,813.OO0;
service establishments, Sl9,363, 900;
amusements, s7915,OO0, and hotels,
$15,544,000, or total of s373, 3,635 900.
Continuing to analyZe these figures,
the boards statement read:
There are quite a number of estab-
lishments and types of business which
would, we suppose, be included under
the terms of the general retail sales
tax. Some of these businesses are
laundries, printing establishments, op-
ticians, boarding houses and of that
portion of business done by those
classified as wholesalers in the retail
field.
Census Bureau estimates are that
these figures will be 20 per cent higher
now than they were in 1885. If we
apply IS per cent increase to the
items definitely listed above, our total
becomes s412,86 900. BY including the
the fields which are not now counted
in these totals, there is apparently no
doubt that those types of business
ordinarily subject to a sales tax will
do, conservatively speaking, at least
$450.000,00O annually.
The census of business states that
IN 1885 food stores did a total of S7O,-
100000 in business. OF course, some Of
the business done by these stores is not
IN food products and would therefore
be taxable. Also some of the business
done by other stores not included in
the food groups, such as department
stores, would not be taxable. There
can be no doubt whatsoever that the
highest total we can possibly reach in
retail sales Of foods and medicines will
be less than $10o,O00,OOO. It is conse-
quently apparent that there would
remain In excess of 100000, 900 of
taxable retail sales which, at 2 Der
cent, would bring in revenue of So
100000 or more. We would conse-
quently be able to exclude from the
sales tax moderately priced clothing,
fuel and Ice, all foods and medicines
and still collect $50O0,00O or more on
= general sales tax"
Opposes Sales Tax.
In opposing the sales tax as chair
man of the Consumers Council, Mrs.
Boyle called it the cruelest levy ever
proposed. She urged instead an in
come, inheritance and land tax sys-
TEN. An inheritance levy already is
In the bill and there is believed to be
little likelihood of the Senate reopen
ing the income tax issue in view of the
opposition to it in the House.
Senator McCarran displayed inter-
est in the land tax proposal by asking
Assessor Allen to estimate what a l
per cent levy on unimproved land
would yield.
"A sales tax" Mrs. Boyle said
"taxes q poor mans crust of bread and
hungry child's glass of milk. It is
not based upon mans ability to pay
but rather upon his necessity to buy
She contended the head of a fam
ny earning from 1000 to $500 a
year spends practically all Of it on
the necessities of life, while the man
with an income of $4,000 q year