Evening star., 1937-07-20
PA[M|SAN0 SEES
TAX BILL FAILURE
AT THIS SESSION
Advises Commissioners to
"Stop Squawking," Raise
District Levies.
KENNEDY MEASURE
WILL BE TRIED AGAIN
Chairman to Try Monday to Push
Through Loan Bill. Beaten
Twice Already.
BACKGROUND

BACK kGROUND-
With large deficit looming for
District in present fiscal year, Con-
0reSs decided to impose neU tares
on local residents rather than in
crease Federal contributions to sup
port OF Nations Capital
AFTER considerable lDranOlinQ oUer
best tar program. Whole movement
1bds stalled Meanwhile, although
fiscal year had begun and funds
mere needed, House tuice has re-
fused to alloW District to BORON
from Treasury in anticipation of
tar income.
Chairman Palmisano of the House
District Committee today predicted
that Congress Will fail to enact a tax
bill at the current session, thereby
forcing the Commissioners to increase
the real estate and personal property
leVles from $50 to s220 to raise the
necessary $7000,000 to meet the an
ticlpated budget deficit.
Palmisano's forecast was based on
the already prolonged delay OF the
Senate in passing the tax bill, coupled
with the ''irritated" feeling of the
House with respect to District taxation.
Even If the Senate should pass the tax
bill before adjournment. Palmisano
believes. it will become deadlocked in
conference.
Despite Palmisanos belief. he said
he will make another effort Monday to
push through the House the Kennedy
borrow Federal funds--a measure de-
signed as a stop gap in the serious
financial plight that will confront the
municipal government August !, when
its funds will be exhausted.
Authority Refused Twice.
Twice within the past month the
House has refused to grant such au-
thority to the Commissioners. Palmi-
sano. however. believes a third attempt
will be successful.
Il believe when the House under
otdilSo VIC SCI louSlltSS vi lkle SlIudtlOIl
it will pass the bill" he said.
PalmiSano was critical of the Com
miSsioners. placing on them the blame
for the present financial dilemma. He
said their reluctance to advance the
real estate levy when it became appar-
ent the tax bill was to be tied up in
the Senate was largely responsible for
the present situation. Had the Com
miSsioners increased the real estate
tax, he said. the House proba blv would
not have twice refused to permit them
to borrow Federal funds to tide the
municipal government over the Pc
riod OF prospective insolvency from
August l until about October l when
its treasury will be replenished with
tax revenues due in September.
Mote: 1t has been emphasized
repeatedly at the District Building
that the Districts immediate need
for revenue has nothing to do with
the fate Of the pending tax bill Had
that bill been enacted a month
ago, the District would still need
advances to tide 1t over until its
own revenues. including new tax
revenues, would become availab BILE.
Had the Commissioners increased
the real estate and personal tax
rate at the beginning of the fiscal
year. the situation would remain
unchanged, for such revenues
would not be available until Sep
tember. The Commissioners have
not increased the real estate tax
rate because the tax bill was ap-
proved by the House as direct
method Of avoiding such an in
creaSeD
Raise the Tax. He Says.
II don't believe Congress will give
the District tax bill this year" said
Palmisano. Il think the best thing
the Commissioners can do is to stop
squawking about the financial situa-
ton and go ahead and raise the tax
(See d. C.. LOAN. Page A-4)