Evening star., 1937-05-22

are intended only for highway pur-
poses.
5. Sales tax, estimated to produce
s5,300,000. On this proposal the COM
mittee said:
The committee concludes, after
consideration of all the circumstances
that = sales tax is the most logical
method of raising the additional fund
necessary for balancing the budget.
Food Is Exempted.
The principal objection to this
form OF taxation is that the poor man
pays equally with the rich in the pur-
chase of necessities. This objection
however, is obviated by exempting food
from the operation of this tax, which
exemption this committee recon-
mends The purchase of other COM
modities is in fair proportion to in
come and ability to pay
The committee is informed that
during the past calendar year, retail
sales in the District amounted tc
$685., 100000, of which 100000 rep
resented sales of food This leaves ap.
proximately s265 100000 upon which 8
2-cent tax could be levied, and woulo
produce approximately $4,000, 900
Many States have enacted sales ta>
laws, one of the most successful being
California. That law was approved or
July l, 1888, and the committee un.
derstands it is working satisfactorily
In the opinion of the committee the
burden of collecting and paying tht
tax should be placed upon the re.
taller"
The committee and the Commits
sioners turned to the sales tax as {
substitute for a suggested income ia,
because Of serious doubts as to tht
constitutionality of the District taxing
the incomes of Federal workers anc
because of the argument that such {
levy would be inequitable if the man!
thousands of Government worker:
were exempt. They argued that there
was reasonable certainty as to the
amounts to be collected under the pro-
posed flve-polnt program, that none o.
the proposed new items involved thu
repeal Of existing tax laws and thai
there was ample precedent for the new
levies proposed.
Avoid Business Privilege Tax
The committee and the Commis.
sioners stated that the suggested busi
ness privilege tax had been laid asid;
for the time being because such a levy
would require time for consideration
In order to determine the treatment tt
be given peculiar classes of business
the effect of the tax on wholesaler
and retailers and the resultant effec
| on consumers or users of commoditie
or services. The proposed busines
privilege tax, as well as the existint
real estate levies and the suggested
District income tax, all would o'
studied during the recess of Congress
under the proposed survey of the Dis
trict's tax structure
The Commissioners made plain tha
they recognize there would be neet
for provision of additional personne
in the administration of the estate ans
| AAAAACA ACdAASC IdA dIlu Gllc sales LAX, ant
said 1t was possible additional per
sonnel would be needed in connection
with the motor vehicle weight tax.
One further point emphasized b,
the Commissioners was that it woult
be essential for Congress to give tn
District authority to obtain advance
from the Treasury during the mex
fiscal year, so as to avoid creation of
deficit, for the reason that under tn
new tax program much of their ex
pected new tax receipts might no
come in early enough in the year t.
meet current bills.
The report of the Commissioner,
was signed by all of the committee
Maj Daniel j. Donovan, Distric
auditor and budget officer, who wa.
chairman; Corporation Counsel Ell
wood H. Seal; his principal assistant
Vernon E. West; Highway Director H
c. Whitehurst, Richmond B. Keech
vice chairman of the Public Utilitie.
Commission; District Assessor Free
D. Allen and one of his assistants, H
D. Scantlin.