Evening star., 1937-12-26
Ry JAMES E. CHINN.


Plans for reorganization of the mu-
nicipal government will be temporar-
lily sidetracked for the more urgent
tax-increase program for the coming
fiscal year, it was disclosed last night
by Chairman Nichols OF the Fiscal
Affairs Subcommittee of the House
District Committee.
I'VE are going to get the tax legis-
lation out Of the way before even con-
sidering reorganization" he declared.
According to the present program.
the Fiscal Affairs Subcommittee will
tackle the tax program as soon as
Congress convenes for the regular ses-
sion, January 3. Reorganization prob
ably will be considered in February.
Report Basis Of Study.
Mr.. Nichols explained the reorgan-
ization plan outlined in the report Of
the Citizens Committee on Efficiency
would be used as basis for the sub
committees study.
That doesn't mean the subcommit-
tee will be governed by the recon-
mendations in that report" he said.
I'm fact that report may be scrapped
entirely. I'm inclined to believe, how
ever, the subcommittee may accept
some parts of the report and discard
others.
My idea is to have the subcommit-
tee consider all proposals for reorgan-
ization. am convinced there can be
reorganization of the District gov
ernment that will save taxpayers thou
sands of dollars and at the same time
increase the efficiency Of the munich
pal services
One of the few members Of Con-
gress to remain in Washington for the
holidays, Mr. Nichols said he would
spend most of the time studying the
Districts financial situation in prepa-
ration for the hearings. He is hope
full the Commissioners will make their
recommendations for a new tax pro-
gram early this week to give him
sufficient time to analyze it in ad-
vance of the subcommittee initial
meeting.
Proposed Tax Plans.
Mr.. Nichols already has made sew
eral inquiries at the District Building
in connection with the tax program
and was told it had not been COM
pletely mapped out There have been
reports. however, the Commissioners
are seriously considering recommended
tions of the Citizens Advisory Com
mittee on Taxation for general sales
tax and an increase in the Federal
payment toward District expenses.
Since the personnel of the Fiscal AZ
fairs Subcommittee has not been COM
pleted, it is not known how sales
tax proposal would be received by the
members. Mr.. Nichols favors con-
tinuation of the business privilege tax
in modified form, largely because he
does not believe Congress would ap-
prove a direct sales tax. Representa-
tive Cole, Republican, of New York,
who will serve on the subcommittee,
is an income tax advocate. Both are
opposed to an increase in the Federal
payment at this time
Favors Present Realty Tax.
Mr. Nichols also favors retention of
the present SITS real estate tax in
the coming fiscal year. The levy auto
matically would return to the former
$3.50 rate at the close of the current
fiscal year unless continued by direc-
ton of Congress. The present busi-
ness privilege tax also is destined to
die at the same time
No figures have yet been submitted
to Mr.. Nichols as to the probable
budget deficit in the coming fiscal
year. Rough estimates, based on the
Budget Bureaus $47,800,O00 budget.
indicate that about $4,000, 900 will have
to be raised by additional taxation.