Evening star., 1938-02-22
Bigger Lump Sum Also Ad.
vocated by Secretary of
Local Board.
SALES LEVY IS OFFERED
TO RAISE REVENUE
Other Business and Civic Repre-.
sentatives Present Plans to
House Subcommittee.
BY JAMES E. CHINN.

"A return 10 tne former 81 so real
estate tax rate and an increase IN
the Federal payment toward District
expenses were suggested to the Fiscal
Affairs Subcommittee of the House
District Committee in a statement re.
ceived today from Charles j Rush,
executive secretary of the Washington
Real Estate Board.
The 1899 revenue bill the subcon.
mlttee has under consideration pro.
poses to continue the present sl.75
real estate tax in the coming fiscal
year. 1t also proposes to impose a
nat per cent levy on the incomes
OF all persons who work in the Dis
trlct and to continue the existing
business privilege levy on gross re-
ceiptS.
The ambitious subcommittee want
ed to work on Washingtons Birthday
In an effort to expedite public hear
lngs on the revenue bill but was forced
TO take rest because only one of the
many witnesses yet to be heard de-
sired to spend the holiday on the wit
ness stand.
Tax Assessor Shows Up.
Tax Assessor Fred Allen was the
only District official to show up for
the hearing this morning.
If had known what was aoine to
happen" he said, Il would have spent
little more time in bed"
Representative Cole, Republican, of
New York was the only member of the
subcommittee who appeared
In his statement Mr.. Rush said real
estate now bears more than it's fair
share Of the cost of the municlpsl
government. and if additional rev.
enue is necessary to balance the 1889
budget it should be made up through
an increase in the Federal payment
and consumers sales tax. with ex-
emptions for food and medicine.
The recommendations of Mr.. Rush
were among the latest received by
the subcommittee in connection with
the revenue bill. Other communica-
tlons came from r. E. Mathers. rep
resentative of paper company: r.
M. Hardy, president of the Nation
Wide Service Grocers. Inc; Charles
M. Thomas, president Of the Civic
Federation of the District, and H. C.
Allen, an apartment house owner.
Favors Sales Tax.
Mr.. Mathers Endorsed a sales tax
as a safe, sound and sure revenue
producer and incidentally criticized
Chairman Nichols for telling sales
tax advocates who appeared before
his subcommittee they are wasting
their time
A business privilege tax on net re-
ceipts instead of gross receipts and a
sales tax that would exempt food and
medicine were proposed by Mr..
Thomas
The letter from Mr. Hardy con-
tanned a protest against the business
privilege tax on the ground it taxed
gross receipts of both individual stores
and the chain warehouses operated
comparatively by stores.
Mr.. Allen suggested an amendment
to the business privilege tax to tighten
the present burden on small investors.
He proposed tax Of 81 per apart
ment in apartment houses.
Hearings May End Thursday.
Chairman Nichols plans to bring
the public hearings on the revenue
bill to close Thursday after receiv-
ing recommendations of the United
Federal Workers of America. Rep
resentatives of the Washington Board
Of Trade will present their views on
the new tax program tomorrow.
1t is the aim of Mr.. Nichols to
have the bill in shape to report to
the full District Committee March 2.
Even If reported favorably by the
full committee on that date, the House
| cannot act on it before March "a.
the first so-called District day" Of
the month.