Evening star., 1937-12-30
BY DON S. WARREN.

has proposed diversion of S765 900 of
gas tax moneys to pay the cost of
the Districts street lighting, the Com
missioners' Tax Committee today rec
commended adoption of long-range.
hve-point tax program to include a
Federal payment of 81 100000 / per
cent income levy and a l per cent
general sales tax.
The committee recommended that
the business privilege tax on gross re-
celpts, which has failed to measure
up to expectations. be abandoned June
5U and that the tax rate on reai
estate and tangible personal property
next year be reduced to the normal
base OF $3.50 per s1oo of value.
S5,000.000 More Declared Needed.
The committee estimated the Dis
trict would need about s5oOo,oOo
more in revenue next year than is to
be expected from the present normal
levies. not counting this years two
emergency measures-the tax on gross
receipts and the 25-cent hike in the
realty tax rate-and planned a long.
range program which it estimated
next year would bring in some s6,000,-
600 in new revenues.
Informed of the committees recon-
mendations the Board of Trade issued
statement declaring it could not
help but view with amazement the
fact that the committee is proposing
not only a general sales tax, but also
per cent income tax levy. in addi-
ton to retaining the Intangible tax"
Declaring a general sales tax. if
efficiently administered, would produce
the needed revenue. the board state
ment fatty asserted it is opposed to
an income tax.
Needed Revenue Seen.
We are confident that if a general
sales tax is reasonably efficiently ad-
ministered from the District Building,
1t will produce the needed revenue
without the necessity of increasing the
real estate tax or making an entering
wedge for the income tax, even though
1t be ! per cent the boards spokes-
man said.
1T is quite obvious that the in
come tax rate will be increased year
after year as spending demands of our
municipal government increase, so
that IN time the people of the Dis
trlct will find themselves hedged in
oy every conceivable type of tax which
can be originated"
L. A. Carruthers, president OF the
Federation of Citizens Associations,
VINO headed the Citizens Tax Advisory
committee. also denounced the Com
mlssloners' committee proposals. He
also voiced the opinion a l per cent
income tax would be only the first
step toward higher assessments against
incomes in future years.
The Commissioners committee had
referred to the Budget Bureau proposal |
for diversion of gas tax money because
OF Its relation to the expected deficit
at the end of the next fiscal year I'M
less new tax measures are adopted nv
congress. The committee opposed the
proposed transfer of the street light
ing cost from the general fund reye-
nues to the gas tax ard highways fund.
IN support OF its proposed revision of
the permanent tax system. the com.
mlttee stressed that if Congress re.
fuses to follow the Budget Bureau rec
concentrations on the gas tax diversion
plan, 1t would add to the Calculated
financial difficulties, and this per-
suaded the committee to recommend
the $o,O0O,O0O new revenue program.
Plan Is Abandoned.
While the committee had consid-
cred suggestion that the real estate
tax rate next year be fixed at about
$l70, in its final report. filed TODAY
with the Commissioners, it abandoned
this thought in preference for a COM
bination OF sales tax and an income
tax.
1t is believed the Commissioners
or majority of the three-are in
general agreement with the commit
tees proposal. However, Commission
ers Melvin c. Hazen and Dan I. Sui
tan said they would have no comment
until they have studied the document
and that action probably would be
taken at tomorrow's board meeting.
Commissioner George E. Allen was out
Of town today.
AS to the sales tax, the committee
proposed that Congress authorize such
levy, with rate not to exceed 2
per cent, leaving the decision on the
rate with the Commissioners. The
committee suggested that the rate be
l per cent for the next fiscal wear
estimating this would bring In about
$2.500,000. 1t suggested that later the
Commissioners might raise this rate
to 2 per cent if the need for new
revenues should develop.
The committee recommended there
should be no exemption under the
new sales tax. but said that exemp.