Evening star., 1940-01-21
P. W. A. Debt Refund,
|nsta||ment Income
Tax Action Due
District OfficiuIs
Expected to Take
: Steps This Week

DlStr1ct OnClalS are eXeCCeQ 10
take steps this week toward achieve
ment of a considerable saving in
annual interest payments under the
Districts p. w. A. debt and for
tightening of weight of the Dis
trict's new income tax by proposal
to split the now single payment into
two parts.
Corporation Counsel Elwood H.
Seal was expected to place before
the Board of Commissioners for
action at their annual meeting Tues
day proposed amendment to the
Districts income tax measure
which would permit semi-annual
payments, one March IS and the
other September Is, without any
penalty interest for the deferred
half payment.
This plan was developed as re-
suit of protests from various busi-
ness interests that the present re-
quirement in law that the full Dis
| trict income tax bill be paid by
March Is was unnecessarily severe,
because during March District tax
payers also will be required to pay
the first installment of the Federal
income levy. the District personal
property and realty estate levies and
the District motor vehicle taxes.
Speedy Action Anticipated.
Quick action by the Budget
Bureau on this proposal is antici-
pated since Congress will have to
act with unusual speed if relief is
to be afforded District taxpayers
before the present full levy falls due
March IS.
Amendment of the Districts P.
w. A. plan was sponsored recently
by Engineer Commissioner David
McCoach, jr., when he found that a
refunding plan showed the possibii-
ties of achieving savings to the Dis
trict amounting to more than $2,-
100000 in all.
Maj. Daniel j. Donovan, District
auditor and budget officer, and Cor
poration Counsel Seal already have
had one conference with officials of
the Federal Budget Bureau on the
proposal to amend the Districts P.
w. A. plan to permit a refunding
plan contemplating interest savings.
Another conference is to be held
Wednesday. It is to be attended by
Col McCoach.
The present proposal is to suggest
legislation similar to that adopted by
Congress in 1891 to permit a similar
refunding Of then existing District
debt. That refunding was handled
through the United States Treasury.
District officials yesterday reiterated
that the plan would be restricted
definitelyto refunding of an exist
ing debt and should not be confused
with any idea Of committing the
District to any new bonded debt.
U. S. Would Advance Funds.
Under such a plan, the District
and the United States Treasury
would be authorized to enter into an
agreement under which Federal
funds would be advanced to permit
the District to pay of its debt to
the United States, thus saving Fed
eral interest payments at per cent,
and the Treasury would be author
lied, under suitable conditions, to
perfect its own refinancing.
The District p. w. A. program
totals $l8, $50, 900, of which the loan
portion amounts to So, ,982, 500. Inter-
est payments, to begin with the next
fiscal year, beginning July l, will
total $5,609, 1850 Over 25-year
period, the District now is required
to pay back q total of 1882 ,373. 60
for loan of q little less than $10,-
10000.
Belief that the District could OBJ
tain loans from banking interests
at perhaps half the Federal 4 per
cent interest charge was the basis
of Col. McCoach's suggestion for q
refunding plan.