Evening star., 1937-12-17
NEW SALES TAX,
REALTY LEVY CUT
ASKED BY CITIZENS
Increase in Federal Pay.
ment to D. C. Also Urged
by Advisory Committee.
PLAN TO BE OFFERED
CITY HEADS TODAY
End of Business Privilege Assess.
ment on Gross Receipts Also
to Be Suggested.
BY DON s. WARREN,

Adoption of general sales tax, an
increase in the Federal payment and
abandonment of the 25-cent increase
in the real estate tax rate were to be
recommended to the Commissioners
this afternoon by the Citizens Ad-
visory Committee on Taxes. according
to information received today at the
District Building.
The advisory group, consisting Of
representatives of nine civic and busi-
ness organizations, was to meet at
2 pm. with the Commissioners to
submit their final recommendation
on the proposed revision Of the Dis
trict tax structure.
Meeting with them and the Com
missioners will be members of the
District Tax Committee, consisting of
District officials who are soon to make
their final recommendation on the
tax problem.
While the recommendations of the
advisory group have been closely
guarded, it was stated today at the
District Building that a mapority Of
the members have turned to a general
sales tax and an increase in the pres
ent $5,000.000 Federal payment as the
most equitable solution for the issue.
Business Privilege Tax Hit.
The group was represented as be-
ing prepared to suggest abandonment
of the hi,cipecs priyilaoa tav ~ ,ro..
receipts on all commercial and pro-
fessional activities in the District
since this emergency measure has
been found to be difficult and in
equitable in application.
There was suggestion also that
the advisory group was prepared to
make a real fight for adoption of the
sales tax If opposition developed from
members of Congress. When the
Commissioners last winter suggested 4
sales tax instead of an income tax OF
the business privilege tax. some mem
bers Of Congress Immediately declared
their opposition. In the wind-up OF
the long session, Congress invoked the
25-cent hike in the real estate tax
rate, from $3.50 to SITS, and the
2 per cent tax on gross receipts of
business and professional activities.
Each Of these was expected to pro-
duce $4,000, 900. Each was to expire
at the end Of this fiscal year, auSo-
matically.
The rate to be incorporated in the
proposed general sales tax has not
been recommended by the Advisory
Tax Committee, since the size of next
years revenue deficit may be changed
before the tax structure is revised by
Congress.
Deficit Is Predicted,
The present prospects are that the
District will come to the end of this
fiscal year with a revenue deficit of
approximately 100000, which would
be more than made up by the receipts
next fiscal year from the inheritance
and estate tax measures.
Of1icials estimate there will be q
revenue deficit at the end of the 1899
fiscal year of probably $3,4oo, 900, not
counting the revenues which may be
derived from any new tax levy which
may be invoked to replace the twn
emergency measures, which are to ex-
pire at the end of this fiscal year
the business privilege levy and the 25-
cent increase in the realty tax rate.
Members of the Advisory Committee
on Taxes are: Chairman, L. A. Car
ruthers. president of the Federation
OF Citizens Association; Edgar Morris,
representing the Board of Trade;
Rufus S. Lusk, Washington Taxpayers
Association; Prof. Charles NJ Thomas,
Federation of Civic Association; Mrs.
Harry Lee Parkinson, Voteless District
of Columbia League of Women Voters !;
Mrs. Lloyd w. Biddle, District of
Columbia Federation of Women's
Clubs; Joseph H. Bait, Federation OF
Business Mems Associations; Edward
D. Shaw, Merchants and Manufac-
turers Association, and r Eliot Mid
dleton, Washington Real Estate Board