Evening star. [volume] (Washington, D.C.) 1854-1972, 1939-04-13
D. {. Tax Plan
Discussed at
White House
Roosevelt Shows
Interest in 7 ak
With Nichols

A keen interest in proposed new
tax legislation for the District was
reported shown by President Roose-
welt today as he discussed this topic
with Representative Nichols, Demo-
crat, of Oklahoma, chairman of the
House Fiscal Affairs Subcommittee
handling the local revenue program.
Although the President is known
to have talked over the various fea-
lures of the new tax plan, Repre-
sentative Nichols declined to indi-
cate Mr.. Roosevelt's views upon leav-
ing the White House.
Meantime, members of the House
District Committee are all set for a
battle when the new District revenue
bill comes before them for consid-
Grafton Monday.
Dirksen May Lead Move.
The fight will revolve around the
very heart of the proposed tax
legislation-a combination per cent
retail sales tax and tax on earned
income in excess of $4,000
Representative Dirksen, Republic
an, of Illinois, has threatened to lead
move to have an income tax, based
on the present Federal income tax
law, substituted for the sales tax.
Already several Republican men,
bers, including Representative Bates
of Massachusetts,, have promised to
support him.
Full committee action on the bill
has been made possible by its ap-
proval yesterday by the Fiscal At
gled for more than month with
proposed new tax program The sub
committee accepted without change
the tax program embodied in a bill
introduced Tuesday by Chairman
Nichols.
$4,000 More in Revenue.
Revising original estimates, Mr..
Nichols said the tax bill would pro-
duce about $4,000 more in revenue
than the District would need in the
coming fiscal year beginning July i
to balance its budget, if the real es-
tate tax rate is allowed to drop from
SITS to $l.50. Several days ago
Representative Nichols said his bill!
would yield about $1.OOO,O0O more
than would be needed in the coming
fiscal year, but he expected the sur
plus to be "leveled off" in several
years by the normal increase in the
operating expenses of the municipal
government
Representative Bates, member of
the Fiscal Affairs Subcommittee and
the only member who voted against
approval of Mr.. Nichols bill. said he
did not believe any new, tax legisla-
ton is necessary to keep the District
out OF the red in the coming fiscal
year if the real estate tax rate is
continued at SITS.
The $1.75 real estate tax rate is
reasonable, said Mr. Bates. IF it
is continued-and the Commits
sioners now have the power to fix
that rate without egislation-there
will be no need for this tax bill.
Wants No New Taxes
Il understand the purpose of this
new tax bill is to provide a new tax
structure that will last for seven
years. one that will avoid deficits for
that period resulting from increased
operating expenses. 1 think the
time has come to clip on capital out
lays and operating expenses. Let's
hold expenses in check and not de-
Velop new taxes"
Mr.. Bates said his study of the
District budget revealed that the
public schools, welfare, health, po-
lice and fire departments, are now
absorbing about rs per cent of the
total budget.
That leaves only Is per cent for
maintenance of all other agencies
OF the District government as we'll
as for capital expenditures. The
schools alone take one third of the
total budget"
Mr.. Bates said he had called on
6upt. Of Schools Frank w. Ballou
for a report showing the breakdown
OF school operating expenses for the
last 10 years, and added
Il think the schools have a re-
sponsibility for trying to keep down
the expenses of the District"