Evening star., 1937-09-12


trict's new taxes raise the cost
of hving?" cross section OF
Washington business made
these composite replies yesterday:
/. Not Immediately.
2. Yes-eventually
3. The new tax law is so compli-
Gated that it's difficult to predict its
effect on the consuming public.
Most of those polled do not plan to
raise their prices right away to alb
sorb the new business privilege tax of
two-fifths of / per cent on last years
gross receipts.
And yet majority of those ques-
toned agreed that in time the public
would have to pay for the new tax
as the public always, in the end, alb
serbs taxation. 1t may be disguised
In variety of ways, they said, but
the average citizen will pay if the
new tax stays on the statute book.
Hope for Repeal or Modification.
A number OF business men expressed
hope that Congress will be prevailed
on to repeal or modify the business
privilege levy before it affects prices
here seriously. The tax will expire
after one year unless extended.
Meanwhile. they don't plan any
drastic reductions in overhead to meet
the new expense, such as cuts in per-
sonnel-in fact, most of them have
yet to figure out what they'll do about
it.
With the District assessor soon to
start collecting the new levy on nearly
every business and professional man,
the butcher, the baker and the maker
of your other necessities sum up their
average attitude thus:
We'll rock along a while and hope
Tor the best, but
And they hope they won't have 10
raise prices, but fear they will.
What of food?
Several commission merchants en-
gagged in buying and selling at whole
sale meats, vegetables, fruit and sea
foods declare they expect to raise their
prices as soon as they find out exactly
what they will have to pay on the
gross receipts they derived in 1886.
After talking of moving to Arling-
ton County, and giving that up be-
cause of the stiff taxes in Virginia
these wholesale food jobbers are
threatening to raise prices right and
left. It's their only recourse, they de-
clare.
Retailers to Absorb Tar Nov
In the face of this threat, however
retail food dealers say they have made
no plans to raise their prices. Pre-
sumably, they will absorb, at least for
the present, any increase in the prices
they have 10 pay.
An executive of large chain OF re-
tail groceries insisted his stores would
not raise their prices to the housewife
He said:
We are going to take the rap our
selves Competition is so keen here
that the added operating cost of the
tax will have to come out of profits
and cannot be passed on. Our only
chance TO recoup will be to devise some
means of selling greater volume OF
goods. We absorbed q similar tax OF
s55,000 on our stores in Maryland last
year"
A leading retail meat dealer sale
he would not increase his prices. al
least not unless the present outlook
changed materially.
A representative of one of the large
packers" this butcher explained. "iust
told me that he expected meat price,
to come down rather than increase.
"Cofn-fed steers, which make the
most choice cuts of meats. are ex.
tremely scarce and high Just now. but
will come down within so days as more
of these steers go on the market
CRASHED meat is not so high at thi,
time"
Independent grocers said they would
have to meet the prices Of the large
chains and would not raise price,
unless they did
Restaurant Men WatchfuI.
Restaurant men have made no plan,
70 raise prices-none so far.
But If food keeps going up wei
have TO-" one of them added Il dom
plan TO increase my prices because O.
this tax, however I'll Just absorl
whatever 7 have to pay on my 1885,
receipts"
No concerted increases in the mex
largest item in the family budget
housing-is in prospect. though scat
tered raises are quite likely.
Charles Rush. secretary of tn,
Washington Real Estate Board
anticipates no increase in rents be
cause of the tax. although he pointed
out that the decision must rest will
individual owners of property ant
not with real estate agents.
In his opinion, there are too man
vacancies and too much new buildint
to justify any general increase /,
rentals OF apartments or houses.
On the other hand, those who ow,
real estate and rent out their building
Is apartments or rooming houses ar
hit two ways. The realty tax. alon
With the tax on tangible propert,
was increased from $3.50 to sl.75 O.
each 500 valuation. And the owne
OF. say. an apartment house must pa