Evening star., 1939-06-14
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bill will be made more reasonable
after study by the Senate District
Committee-as suggested even by
Representative Bates, Republican, of
Massachusetts,, one of the chief
sponsors of the plan-also were con-
sldered in the revenue calculations.
Exemptions Expected.
However, it was found that unless
the income tax rates were boosted
above those in the House bill the
prospective deficits in the general
fund revenues would not be dented
One of the changes expected to be
considered in the income tax plan in
the Senate is an allowance of ex-
emptions for married persons and
dependents in keeping with the Fed
eral income principle and those OF
many States.
If this is the only major change
made in the income levy, some tax
students said, there would be a
heavy slice taken from the $4,000, 900
revenue estimate
A further complication is added
to the struggle over the tax situa-
ton since the House and Senate
appropriations for the District are
some $2,5O0,0O0 apart, as to general
fund charges, not counting highway
and water items. Conferees from
the two branches have not yet begun
to iron out differences.
AS the House approved the 1910
budget, general fund charges
amounted to $50 1868, ,722. The
Senate raised the total to $41,917,-
305, so as to provide increased funds
for school buildings, relief and
public welfare, police, fire and
health protection. In order to per-
nit budget substantially balanced,
the Senate called for an increase in
the Federal payment from IS 900 900
to s7,750,O0O.
S1.75 Rate Leaves Surplus.
To both the House and Senate
general fund charges must be added
about $1,300,000, carried in other
appropriation measures, providing
for the Districts share of costs of
the District courts, Freedmen's
Hospital, deficiencies and supple
mentals, which raise the totals, re-
spectively, to $4O,668, 700 and $43,-
217,300. Thus, it is figured, if the
real estate and tangible personal
property tax rate were kept at SITS,
the House revenue plan, coupled
with its decisions on the budget,
would leave a surplus" in funds at
the end OF the next year of but
some $2,500,000. On the same basis.
and with a Federal payment of but
$5OOO,OOO, the Senate budget would
leave a surplus of only $2695, it
was calculated.
Ihe House plan, these finance stu
dents declared, would mean the sac
riflce of the Senate plan for re-
placement of old school buildings, q
reorganization and improvement of
the Districts child welfare program,
70 additional policemen and a larger
1und for installation of traffic lights,
and an increase of $500, 900 for re-
lief, half of which would 90 to the
needy employables, now barred from
the relief roles.
FOR all these reasons. some critics
OF the House revenue bill regarded it
as being in the nature of more STOP
gap" legislation, since the proposed
permanent" new plan supposedly
was intended to set the finance pic
ture for at least several years to
come.
$32,370, 900 General Fund,
The District Building and Board
OF Trade finance experts arrived at
substantially the same revenue esti-
mates. A general fund of $32, $40 900
was taken at the District Building as
the probable basic figure for the
next fiscal year, not counting on pros
pectlve changes in revenue meas
ures. This considers that the tax
rate would be $l.5O, as provided in
the House supply bill.
To this is added-$2 900 900 ex-
pected to result from the proposed
8 per cent corporate income tax:
$25,OO0 from the levy on parking
lots; $4,000 from the provision for
a pro-rata personal property tax on
automobiles which are bought after
the beginning of the regular license
and tax year; $500 900 from the pro-
posed revised taxes on public utili-
ties, and 100000 from the per-
sonal income tax. There is then
deducted $2,875 900 representing the