Evening star., 1938-11-29
axes
Continued From First Page.)

I. afternoon, after a luncheon recess
Mrs. Ernest w. Howard, chairman
of the department of legislators of
), the District Federation of Women S
Clubs, the first witness at today S
hearing, said her organization yes
terday unanimously reaff1rmed its
. previous Endorsement of retail
sales tax.
She pointed out the federation is
composed of delegates from 81
affiliated womens clubs, most OF
whose membership is composed of
housewives and homemakers.
Mrs. Howard said the federation
took the position that a sales tax
would be the most desirable means
of raising the additional needed
revenue. Such a tax, she said, Is
certain in time of payment, easy
to collect, and does not produce an
undue burden on industrial enter
prise.
She also pointed out that the sales
tax has been successful in num-
ber of States where citizens have
the right to vote and could discard
it if they didn't like it.
Denouncing the proposed sales
tax, Sidney R. Katz of the Mary
land and District Industrial Union
Council, a G. l. o. affiliate, recon-
mended a graduated personal income
tax.
Mr.. Katz declared a sales tai
would lower the standard OF living
and reduce commodity purchases.
He also said there were only two
"commendable" features in the ad-
visory committees four-point pro-
gram, drafted for public consldera-
ton. The first, he explained, Is
the recognition of the wisdom OF a
corporate income tax, and the second
is the recommendation for increased
revenue to meet the Districts ex-
panding needs.
Cites Roosevelt Speech.
THE proposal we have before us
for a retail sales tax" said Mr.. katz
ais in direct opposition to the view
point expressed by President Roose-
velt in a speech May q, 1888.
"A retail sales tax is IN dlrect
opposition to the interests OF all
persons who have to work Tor a
living and who barely make enough
to live on. The thousands OF small
merchants in the District also tend
to lose by a system OF retail
sales tax, for instead of spending
money for much-needed commodl-
ties, money will be spent on taxes
bv people who would otherwise pur-
chase commodities for this money
A retail sales tax lowers the stand
ard of living and reduces consump-
ton"
A proposal made before the COM
mittee Yesterday that the gasoline
tax be increased 2 cents a gallon
and the additional revenue placed
in the general fund to meet a $4,-
100000 deficit in the 1910 fiscal year
was roundly denounced by George
E. Keneipp, manager Of the Key.
stone Automobile Club. He pointed
out such a plan would constitute
diversion of the gasoline tax fund
and jeopardize Federal highway aid
Called General Problem.
IF the District is faced with a
S4.OOO,OOO deficit in the general fund
that is a general problem for the
community as a whole to solve,
declared Mr.. Keneipp.
Certainly the burden OF meeting
this deficit should not be imposed
entirely upon the Is per cent OF ou.
citizens who own automobiles. II
the obnoxious diversion practice Is
to be introduced as part OF the
Districts fiscal structure, why
should not the committee give con-
sideration to increasing the water
rent and divert the additional reve-
nue. from that source to meet the
deficit? This would at least have
the effect of spreading the burden
over the whole community where
1t belongs, rather than discriminate
ing against one-fourth of our peo-
pie.
"The suggestion may somewhat
startle the committee, yet it would
be no more impractical or unwise
to create this type of diversion than
it would to divert the gasoline tax
to the general fund. For just as the
water rent is considered service
charge the sums collected from mo-
torists are in reality service charges
for the use of the highways, bridges
grade-crossing structures, traffic
lights, stop signs, safety devices and
other things which the motorist
uses.
"The trend over the whole coun.
try is away from diversion. States
which have been guilty of the prac-
tice are now endeavoring to find 9
way out. The recent political cam
paign proved that diversion of gas.
oline tax revenue is unpopular with
a vast majority of the people. 1r
three States, California, Michigan
and New Hampshire, the voters b!
overwhelming majorities approved