Evening star. [volume] (Washington, D.C.) 1854-1972, 1941-03-12
Farley Slated
ToExp|ore {.
Tax Sources
Hunter to Meet With
City Heads; Randolph
Says Sales Levy Futile

Says Sales Levy Futile
Chairman Hunter of the Fiscal
Affairs Subcommittee of the House
District Committee announced to-
day he had arranged a conference
with officials of the District govern
ment Tuesday in an effort to de-
velop some plan to raise additional
revenue to meet emergency expenses
imposed by the influx here of thou
sands of national defense workers.
At the same time Chairman RAN
dolph of the House District COM
mittee issued a statement contain
ing prediction that any move to
substitute a general sales tax for the
existing income tax would be
quickly and firmly" rejected by
Congress The statement was predi-
Gated on reports that an attempt
would be made to replace the income
tax with sales tax as a result Of
refusal of the House Monday to re-
wise the local income tax law so e
TO tap that portion of the salaries
earned here by non-residents.
Sees Attempt as Futile.
Due to the failure OF the income
tax amendments to pass the House"
the statement said. discussion has
turned again TO the possibility Of
enactment of sales tax for the
District along with other forms of
possible revenue sources.
1t IS my opinion that Congress
would quickly and firmly turn its
back on the sales tax proposal For
many years 1t has been my belief
that this form of tax was particu-
larly workable and meritorious for
Washington
1t would be futile. however. even
II such tax could be reported bv
the District Committee to bring it to
the House. Scores of members have
told me they would not allow such a
measure to pass.
The problem is more perplexing
than it has been in years. OF course,
the District Committee will attempt
to aid in the solution of the tangled
tax web"
Although Representative Hunters
conference with the municipal Of
flcialS in six days away, the Fiscal
Affairs Subcommittee of the Senate
District Committee will meet tomor-
row at II m. to consider the form
ula proposed by its chairman-Sen
ator Overton, Democrat, of LOUISE
ana-for fixing the amount of the
| annual Federal payment toward Dis
/ trict expenses. 1t has been estimated
! that adoption of the plan would in
crease the present $4,000 900 Federal
payment to 100000 in the coming
/ fiscal year beginning July /.
/ AS the Overton group prepared to
meet. Chairman Reynolds of the
Senate District Committee expressed
/ the view that the Overton formula
is Just start
Il will give my full support to any
sound proposal of this nature that
is approved by the Fiscal Affairs
Subcommittee and hope that some
action can be taken Immediately
Senator Reynolds said Congress
has just spent several weeks in con-
sidering a bill to lend financial aid
to Britain. But" he added, in the
food of this feeling We must not for
get to take care of our own Nations
Capital, which is the fountain head
of our national defense Our nation
al defense must not be crippled by
the lack of a few paltry dollars 10
run the Capital of the greatest ma
ton on earth"
To Explore All Sources.
Mr. Hunter, who is sponsoring the
Overton formula in the House, said
all potential untapped revenue
source would be explored" in his
conference with District officials. to
find a means, if possible, to raise
additional funds the District gov
eminent will need to provide schools,
police fire and other facilities for
the defense workers and their FAM
lilies who are concentrating in the
newly developed areas of the city.
He has estimated that between
$1,000 900 and 100000 in addi-
tional revenue will be needed each
year to take care of the necessary
municipal services in the expanded
sections of the District
Ever with adoption of the Over
ton formula which would boost Dis
trict revenue about 100000 a year.
Representative Hunter pointed out.
millions of dollars more will be re-
quire6 How it can be raised is the
problem" he said.
The conference will be held with
the Commissioners, Corporation
Counsel Richmond B. Keech and
Arthur R. Pilkerton, acting District
auditor. Several members of Mr..
Hunters subcommittee also plan TO
attend, including Representative
Dirksen, Republican, of Illinois.
who championed the present income
tax law for the District.