Evening star., 1937-12-10
BUDGET ESTIMATE
CUT TO CHECK TAX
RAISE DEMANDED
Kennedy Calls for Substan-
-tiaI Decrease to Relieve
D. C. Taxpayers.
TRAFFIC PROJECTS
BELIEVED INCLUDED
K Street Elevated Highway and
Circle Underpasses Reported
to Be in Sum.
By JAMES E. CHINN.

e47,800,000 to prevent any increase
in taxation. were made today by Repre-
tentative Kennedy, Democrat, of Mary
land, who served as chairman of
=. special subcommittee of the House
District Committee which framed the
current 100000 tax-raising pro-
gram.
At the same time, it was reported
the "confidentiar' budget estimates
provide funds for beginning number
of projects designed to alleviate
traffic congestion. The most important
of these is an elevated highway over
K street NV from TWenty-sixth
street to Key Bridge which would by
pass traffic through Georgetown. It's
ultimate cost is estimated at ST.
100000.
The other projects and estimate
of cost are an underpass at Dupont
Circle, $37o,00O; underpass at Thomas
Circle, $345, 900, and rearrangement
Of Scott Circle, $85,000.
The budget estimates also are
understood to contain an item of
about S450000 to be added to similar
amount to be taken out of current
Water Department funds to form the
nucleus of reserve to finance i'm
provements and expansions necessary
to meet demands on the Water De-
Rartment within the next eight years
Follows Last Years Step.
The first step to build up this
surplus was taken in the 1888 ap-
preparation act, which directed that
not more than S75o000 of current
Water Department revenues be turned
over to the Treasury Department for
investment.
Mr.. Kennedy made his demands
for reduction in the budget for
the coming year after reading news
paper reports that the estimates ap-
proved by the Budget Bureau would
to raise at least S3,100,000.
Instead of increasing the budget
by Sl,800,000 as the Budget Bureau
has DONE" declared Mr. Kennedy
there should have been a substantial
decrease to relieve the disfranchised
taxpayers who were called on this
year to bear an additional $4,000, 900
tax burden.
Compares Costs.
"All budgets can be cut. And
can't understand why it costs more
to run the District than the city of
Baltimore (Mr. Kennedy lives there,
which is larger"
AS the District Legislative Com
mittee of the House, of which Mr.
Kennedy is member will have to
pass on any tax increase program
recommended by the Commissioners
to balance the new budget, he said
he would recommend to Chairman
Galmisano that one of the members
be allowed to sit with the appropria-
tions subcommittee when it frames
the 1889 appropriation bill ito get
proper background" of the munich
pal governments financial condition.
Mr. Kennedy attended the sessions of
the Appropriations Subcommittee last
year when it worked on the current
supply bill
just what form of taxation the
Commissioners will recommend to
raise the prospective S3,100,000 in
additional revenue is still prob
lematical
The Commissioners were to meet
This afternoon with their two Tax
Committees, one consisting of three
District officials and the other of nine
representatives of the public, to con-
slider what revision in the District tax
system should be recommended to
Congress early in January. This was
expected to be one of the last meet
tngs, since the time limit on the city
work is fast approaching. However,
Maj. Daniel j. Donovan, budget officer,
said it was not likely the committees
would complete recommendations to-
day.
The Commissioners have asked for
Recommendations from the two COM
mittees as to what revisions should be
q1ade IN the tax system to meet the
next years budget.
Chairman Palmisano of the House
District Committee said today he will
- follow the recommendations of the
Commissioner Advisory Committee on
tax matters.
May Continue Expiring Taxes.
Plans under consideration include
continuation of the business privilege
tax and the present 25-cent increase
in the real and personal property levy
both OF which expire at the close OF
the current fiscal year, and a general
sales tax Any one of these proposed
taxes, it was said, would yield the
necessary S3,100000.
MIR. Palnisano said today the bust.
ness privilege tax is very unpopular
IN Congress and among the taxpayers
He characterizes the sales tax as JUS
another name for the business privi
lege tax. The result is that he favor,
an income tax without any provision
Tor taxing members of Congress ant
their Office employees.
The Appropriations Subcommittee
headed by Representative Collins
Democrat, of Mississippi, will begil
hearings on the 1899 budget estimate
Monday At that time, Mr.. Collin
indicated, consideration would
given to a proposal to abolish tn
National Training School for Girl.
scene of recent riots, and transfe
of the inmates to the Districts pens
institution for women on the work
house reservation at Occoquan, Va.
The training school property, MI
Collins suggested, could be assigne,
to the Industrial Home School fo
Boys II the girls are transferred t
OGepquan.