Evening star., 1939-01-15
Schultz Will join
House Opponents
OF D. {. Sales Tax
Declares Proposal Hits
Very People We Are
Trying to Hell p

Representative William T. Schultz,
Democrat, of Indiana announced
last night he would join the ranks
of House members who plan to fight
the proposed 2 per cent sales tax
for the District.
I'll fight the sales tax to a bit
ter end" Mr.. Schultz declared. TT
would hit the poor man, the w. P. A.
worker and all those on relief-the
very people we are trying to help"
Meanwhile. Rufus S. Lusk, presi-
dent of the Washington Taxpayers
Association, issued statement de-
nouncing as "unsound" and illegal
the proposal of the Advisory Com
mittee on District taxes that provi-
sion be made for setting up a sur
plus in the fiscal year 1910.
Will Have Important Part.
A ranking majority member of
the House District Committee, Mr..
Schultz will have an important part
In shaping new District tax legisla-
ton which may grow out of the pro-
gram developed by tax experts work.
ing under direction of the Joint Con-
gressional Committee on Internal
Revenue Taxation.
Potential revenue that would be
lost by scrapping the sales tax, Mr,
Schultz said. could be made up
partially by lowering the $4,000
exemption in the proposed income
tax to $4,000. He suggested that
the exemption be fixed on incomes
in excess of $4,000, because if it
is placed at $4,000 "or more" it
would tap the salaries of members
of Congress.
You remember what the House
did to a proposed income tax plan
for the District that would have
applied to the salaries of the mem
bers,' he said Il am confident
Congress will not enact legislation
for the District that would apply to
their own salaries
Committee to Meet.
The Joint Congressional Commit
tee on Internal Revenue Taxation
will meet tomorrow at 10 am. to
pass on the new tax program framed
by its experts. AS soon as the
committee approves the report of
the experts, it will be formally sub
mitted to the House and Senate,
and simultaneously made public.
All the important features of the
tax program, however, already have
leaked out, despite the efforts to
clothe the work of the tax experts
in secrecy. There is a possibility,
Of course, according to Colin F. STAN,
counsel for the joint congressional
committee, that the committee itself
may make some last-minute changes
in the recommendations of the tax
experts.
Lusk Makes Statement.
In his statement insisting that
tax rates should be set to bring in
as nearly as possible the exact
amount of estimated expenditures,
Mr.. Lusk declared:
THE creation of surpluses is al
most as much of an evil as deficit.
The presence of money is a tempta-
ton for unWise expenditures. It
takes money from taxpayers when
there is no immediate need for it..
"The District has had some sad
with surpluses. At one
time we had almost $4,000, 900 extra
cash in the treasury. Because this
money was lying around, excessive
amounts were spent for parks and
enough ground was purchased for
a municipal center that would serve
a city the size of Philadelphia. Had
there been no surplus, the white
elephant down at Pennsylvania ave-
nue. and John Marshall place would
never have been acquired"
Mr.. Lusk also claimed that law
now directs the District Commits
sioners to fix the tax rates at fig
ure sufficient. to meet needs, mo
more, no less"
IF a $1.55 rate will be enough
to pay the bills in 1910 it should not
be cent higher"