Evening star., 1938-12-15
BY JAMES f. CHINN.

A l-cent increase in the gasoline
tax and widespread installation of
parking meters throughout the con-
gested area are two of the various
revenue producing plans given con-
sioeratlon today by the tax experts
working on a program for revamp-
ing the Districts tax structure.
AT least S1000,000 a year in ad-
dltlonal revenue would be derived
from l-cent raise in gasoline tax,
II was estimated, while the extern
slve use of parking meters would
produce another S5O00OO every u
months.
The proposal for increasing the
gas tax contemplates placing the
additional revenue from this
source into the general fund in
stead OF the special gasoline tax
iund, otherwise the money could not
De used to aid in offsetting an an
tlclpated deficit in the general fund.
Official Opinion Sought.
Fear has been expressed however.
such plan might be construed as
constituting diversion of the easo-
me tax fund and jeopardize the
Federal highway aid allotments to
the District. For that reason. the
tax experts have asked the Bureau
OF Public Roads of the. Department
OF Agriculture for an official opin-
ION before giving the proposal seri-
Gus consideration.
1t was pointed out that the Dis
trict will receive between $500
600 and 100000 a year in Federal
highway allotments and that it
would be unWise to sacrific this
revenue when the net gain from a
l-cent raise in the gasoline tax
would amount to about $500 600.
The parking meters, however, it
was said, can be counted on as sub
stantial revenue producers if they
are installed in all sections where
parking is not restricted to one and
two hours.
In considering the gasoline tax
increase and the more extensive use
OF parking meters the tax experts
have not abandoned their proposal
10 make the combination non-wage,
non salary personal income tax and
retail sales tax the heart of the
Lew tax program. This combina-
ton tax, it has been estimated,
would produce about s7.0O0.OOO a
year in additional revenue but
since its adoption would be coupled
with repeal of the tax on intangible
personal property. which Yields
about s3000.000 a year. the net gain
would be about s4O00,O0O.
Legality a Question.
! Although number of organiZa-
tions have urged graduated per-
Sonal income tax in lieu of the dual
non-Wage income and commodity
sales tax, the tax experts are not
expected to give that plan their
Endorsement. To be of any value
as revenue producer the grad
uated income tax, it was explained,
would have to include Federal en-
ployes.
First, there is serious question as
to the constitutionality of such a tax
II it should be applied to Federal
workers
Second, the tax experts believe
Congress might retaliate if the SAL
aries of Federal workers are taxed
by the District by withdrawing the
lump sum payment toward munich
pal expenses.
The present Federal payment of
$5,000,000, it was pointed out. is
about all that graduated income
tax would yield.
The tax experts, who are working
+ under the direction of Colin F.. STAN
of the joint congressional district on
internal revenue legislation, expect
to have their report ready for con-
sideration of the House and Senate
early in January. Sections of the
report already have been completed,
but the definite recommendation
will not be written until the Commits
sloners Advisory Committee on Tax
alton makes known its views on the
tax problem.