Evening star., 1938-01-25
By JAMES E. CHINN.

Chairman Palmisano of the House
District Committee revealed today he
proposed to make a determined fight
at the present session of Congress to
increase the Federal payment toward
support Of the municipal government
from s5,000 900 to 100000 and thus
avoid the necessity of any new tax
legislation to balance the 1889 budget.
He said he had not yet completed
his plan of strategy to raise the Fed
eral payment. but intimated it might
be initiated on the floor of the House
Thursday when the 1889 District ap-
preparation bill is called up for con-
sideration.
Meanwhile the Fiscal Affairs Sub
committee of the District Committee
met behind closed doors in an ad-
joining room to perfect the new tax
program, which. in present form, is
estimated to raise between 100000
and $4,000 900 in additional revenue.
The program contemplates an income
tax continuation of the unpopular
business privilege tax on gross re-
ceipts, as well as the current s1.75
real estate tax.
"Refinements" Are Made.
The Fiscal Affairs Subcommittee, ac-
cording to Chairman Nichols, devoted
its entire time to making refine
ments" in the present business privilege
tax law in order to remove certain
inequities Another meeting will be
held at 10 am. tomorrow.
Closeted with the subcommittee we're
Corporation Counsel Elvood H. Seal.
10 v. Morgan. assistant corporation
counsel. and Fred Allen. tax assessor.
Mr.. Palmisano declared the Federal
payment toward municipal expenses
should be raised to SO 1000, 900. the lump
sum amount in effect when he was
elected to Congress more than 10 years
ago
There is no justification for the
refusal Of Congress to appropriate less
than S9,000,000 out of the Federal
Treasury for support Of the District"
he declared. When I came to Con-
gress the figure was that amount. I
believe Congress has done the District
an injustice in cutting it to $4,000, 900.
Cites District Needs.
"Since that time the Federal Gov.
eminent has removed millions of dol
lars of property from the tax rolls. I
believe it now owns about % per cent
of all the property in the District At
the same time the cost of government
mas gone up. Washington needs more
police and many major Improvements.
The United States should contribute
to those improvements in which it will
benefit"
The first section of the 1889 appro-
priation bill, it is understood, fixes the
Federal payment in the coming fiscal
year at SIS, 1000, 900, the same amount as
for the present year. Mr.. Palmisano,
it is believed. will offer an amendment
when the bill is considered to raise the
figure to 100000.
Favors Privilege Levy.
Chairman Nichols of the Tax Com
mittee had announced earlier he
would not support proposal to scrap
the 1889 revenue bill entirely but be-
lieved that, in view of recent develop
ments, only the business privilege tax
on gross receipts should be continued.
A suggestion had been made that
the tax program be abandoned and
the anticipated deficit of S2,4o0,000
be made up by continuing the Sl.75
real estate tax for another year. which
represents 25-cent increase over the
previous year. The Commissioners,
it was pointed out. have authority
to continue that rate under existing
law.