Evening star., 1938-01-04
Arnold of Illinois, Newest
Member, Believes Sales
Tax Will Solve Problems.
INCREASE IN FEDERAL
PAYMENT ADVOCATED
Chairman Nichols Favors Modi.
fed Business Privilege Levy
to Increase Revenue.
By JAMES E. CHINN.

Representative Arnold, Democrat, OF
Illinois, latest addition to the Fiscal
Affairs Subcommittee of the House
District Committee-the group that
will write the new tax-increaSe legisla-
tion-revealed himself today as a
staunch advocate of a general sales
tax
"A sales tax saved Illinois, and
believe it will save the District" he
declared.
Mr.. Arnold, however, is the only sales
tax supporter on the subcommittee
Each of the other members at the
present time have different view as
to how the District should raise an
additional $4,000,000 or $5,0O0,0OO to
balance its budget in the coming
fiscal year.
For instance, Representative Mich
OILS, Democrat, of Oklahoma, the
chairman, feels the present widely
condemned business privilege tax. in
modified form, is superior to sales
tax. Moreover, he does not believe
Congress would approve sales tax,
especially after President Roosevelt
told the members yesterday that such
a levy would place the burden of
Government more on those least able
to pay and less on those most able
to pay"
Short Is Foe of Sales Tax.
Representative Short, Republican,
Of Missouri, another new addition to
the subcommittee, believes the present
SITS real estate and personal property
tax levy should be continued and the
Federal payment toward District ex-
penses increased to meet the antici-
pated budget deficit. A bitter foe of a
sale tax, Short declared:
II am amazed at the small amount
the Federal Government pays toward
the support of Washington. did not
reach that conclusion until / had
made survey of the vast amount
of property the United States has
taken from the District tax rolls.
believe other members of Congress
would form the same opinion if they
take the trouble to study the fiscal
relations situation"
The most ardent income tax sup
porter on the subcommittee is Rep
resentative Cole, Republican, of New
York He plans to fight all sales tax
proposals as we'll as an increase in the
Federal payment until the District
has an income tax.
The views of Representative Wood,
oF ofI
member of the subcommittee, are un-
known. He has not yet returned for
the new session OF Congress.
Favors s5,o0o,ooo Payment.
Mr.. Arnold, like Cole, favors an
income tax for the District and be-
lieves the Federal Governments pres
ent s5,0O0.0O0 payment is fair Above
all, however, he thinks flat sales tax
should be adopted for the period of
financial emergency.
THE sales tax is working success
fully in Illinois," said Mr.. Arnold.
THE State would not have survived
its financial dilemma growing out Of
big relief load and breakdown in
real estate taxes without 1t.
Il believe a sales tax is necessary
in Washington at this time. 1t Is
one method of forcing those who es-
cape taxation here to pay for some
of the benefits they receive"
Mr. Nichols plans to call his sub
committee together Thursday for a
preliminary meeting, at which ar
rangements will be made for an in
tensive study of the various proposals
for keeping the District out OF the
red in the coming fiscal year.