Evening star., 1939-01-06
Token or Stamp
Undecided for
D. {. Sales Tax
Fromers Of Proposed
Program Will Ask
Chorge-Free Level
By JAMES E. CHINN.

Whether tokens or stamps would
be used as the medium for collecting
revenue derived from the proposed
2 per cent general sales tax for the
District would be problem for the
Commissioners to solve, it was dis
closed today by tax experts who
have just completed a new $5 500, ,000
tax raising program for considera-
ton of the Joint Congressional Com
mittee on Internal Revenue Tax
alton.
At the same time, it was revealed
the tax would not apply to articles
retailing below a certain amount
The exact figure was guarded with
secrecy, but the experts did volun-
teer it would be "less than so cents.
The tax experts have given con-
siderable study to a plan for COL
lecting the revenue under a sales
tax. Methods used by States which
have adopted the sales tax to raise
revenue for relief and other emer-
gency purposes have been examined
To Show Successful Plans.
Instead of making definite
recommendation on this subject, the
experts merely will point out in their
report the various methods that
have proven successful elsewhere
and let the Commissioners take their
choice If sales tax legislation is
enacted.
The most popular mediums, it was
said, are tokens and stamps. Utah
is one of the States which uses
tokens-tokens about the size of
those that fit into the fare boxes on
the street cars and buses of the
Capital Transit Co. Ohio likes the
stamp plan better.
The stamps are issued in various
denominations. One-half of the
stamp is placed on an article by the
merchant, and the other half given
\ to the purchaser as a receipt.
The token plan, it was pointed out,
places upon the consumer the re-
sponsibility of always having little
disc ready at the time of purchase.
The stamp system, however, would
make the merchant responsible.
Donovan Favors Tokens.
Maj. Daniel j. Donovan, District
auditor and budget officer, who
served as chairman of the Commits
sioners' Advisory Committee on Tax
alton, which worked with the tax
experts of the Joint Congressional
Committee on Internal Revenue
Taxation in developing the new rev.
enue-producing program, believes
the tokens would be more popular
IN Washington.
The report of the tax experts is
now at the Government Printing
Office, and as soon as it is printed.
copies will be distributed to mem
bers of the Commissioners Advisory
Committee for review. The Joint
Congressional Committee will meet
next week to pass on the report. It
then will be turned over to the Sen
ate and House District Committees.
z The proposed sales tax is one ele-
ment Of two-part combination plan
for raising revenue to meet the Dis
trict's anticipated budget deficit in
the coming fiscal year. The other
Is an income tax on salaries in ex-
cess of $4,000.
s To Test Federal Salary Tax.
s The primary object of the income
tax feature is not to raise additional
revenue, although it is expected to
yield about 100000 year, but to
ftest the constitutionality of a tax
by the District on the incomes Of
Federal employees. The tax experts
have been informed there are about
a half a dozen Government officials
learning in excess of $4,000 a year,
and they believe one of them, at
least, would contest in the courts
+ any attempts on the part of the Dis
] trict to tax his income.
! Should a tax on the income of the
Government officials be held conSti-
tutional, the path would be cleared,
! 1t was explained, for the District to
extend the levy to Government
! workers in the lower salary brackets.