Evening star., 1937-05-22
ID. c. HEADS PLAN
PUTS LIFE Of YEAR
ON LEVY ON SALES
Commissioners Label Pro-
gram "Stop-Gap" in Re-
porting Approval.
FUNDS TO PROVIDE
FOR SURVEY ASKED
$4,000 to Permit Study of Entire
Structure Sought-Revenue
Estimate Increased.

BACKGROUND
With District facing sS,500,0O0
dehcn in merit fiscal year under
ond0et estimates, House eliminated
items SUFFICIENT to bring SHORTAGE
to $4,000, 900. Numerous bills hare
been introduced to raise this rer-
enue, but program of District
Commissioners noU seems tauored.
Fhrfher budget reuiSions map be
made in Senate hearings.
Announcing their formal approval
OF the proposed five-point District
tax program intended to meet the
1888 budget deficit, the Commission
ers today revealed the 2 per cent
retail sales tax bill would be drawn
to provide for termination of this lew
at the end of the next fiscal year.
The Commissioners, in making pub
lie the official report of their Tax
Committee, definitely labeled the five
point program "stop-gap." which
they deemed essential to meet the
pressing emergency, and emphasized
tney are seeking appropriation of
$4,000 for survey of the entire tax
structure of the District. This would
oe concluded in time for presentation
TO the next session of Congress of q
proposed permanent new tax program.
The recommendations of the Tax
Committee, consisting OF seven Dis
tr1ct offlcials, reveal they have raised
the estimated receipts from the sales
tax from s5,0Oo,OOo to s5,3Oo,o0O.
Exemptions Under Tax.
The report states the proposed sales
tax bill would exempt only food
products and medicines. this ap-
parently indicating the Commission.
ers DO not intend to ask for exemp-
ton of clothing.
The hve-point program as a whole
Is expected to produce $1,000 900, or
$780, 900 more than was estimated
earlier this week, when the Commis.
sloners informally stated they had
adopted such a proposed emergency
plan.
The Commissioners are scheduled to
appear before the Kennedy tax sub
committee of the House District Com
mittee Tuesday. At that time, thev
will carry with them their proposed
f1ve-point program. copies of which
are expected to be made available also
to the District subcommittee of the
Senate Appropriations Committee,
headed by Senator Elmer Thomas of
Oklahoma and other congressional
leaders.
Features Of Program.
The flve-point program includes the
following:
l. Weight tax on motor vehicles, to
raise estimated 81 100000 The COM
mlttee OF District officials said, and the
Commissioners agreed. this method is
rather universally followed throughout
the States and the rates fixed are
reasonable" The revenue would go
into the general fund, not into the
special fund for highway use only.
2. Estate and inheritance tax, esti-
mated to raise 100000 The report
declares this levy to be fair"
3. Insurance premiums tax, to be
raised from Is to 2 per cent on net
premium receipts, estimated to bring
in 100000 additional. This levy
would be applied to mutual fire insur-
ance companies and to the fraternal
insurance associations, heretofore ex-
empt
4. Gasoline tax, to be increased
from 2 to cents a gallon, to raise
an additional sl,l00,000. This in
crease would not 60 to meet the gen.
eral fund deficit, since gas tax funds
(Soe TAXES pace A1ol