Evening star. [volume] (Washington, D.C.) 1854-1972, 1941-06-01
House 10 Study
Need for More
D. T.. Revenue
Real Estate, Personal
Property, Cos Tax
Boosts Proposed
Bv JAMES f. CHM.

The fiscal affairs subcommittee
Of the House District Committee is
expected to begin consideration this
week of the potential need of addi-
tional revenue to finance the ever
mounting expenses of municipal
government here resulting from ma
tional defense expansion.
For "deliberative purposes the
subcommittee will use proposed leg
islation designed to increase the
real estate and personal property
tax as well as the local gasoline tax.
At the request of Subcommittee
Chairman Hunter. Corporation
Counsel Richmond B. Keech and
the congressional legislative draft
ing counsel are now preparing
tentative" bill which would call
for an increase in the real estate
tax from SITS to 81 and a one-cent
boost in the gasoline tax from TO
8 cents a gallon. This measure, it
was said. will be considered to-
gether with two other bills already
pending before the subcommittee
one of which would Jump the real
estate tax to 81 80 and the other hike
the gasoline tax to cents a gallon.
Higher Federal Share Hoped.
Chairman Hunter as we'll as Rep
resentatlve DirkSen of Illinois. rank
ing minority member of the sub
committee. believe if additional rev.
enue is found necessary, and in
creased real estate and gasoline
taxes are recommended. Congress
will compensate for the greater
tax burden placed on local taxpay-
ers by raising the present lump sum
Federal payment toward municipal
expenses.
The initial move in Congress this
year to bring about a higher Fed
eral payment through the Overton
formula was rejected by the House.
This formula would have raised the
present s6.000.OOO payment to APP
proximately $4,000 900 in the fiscal
year beginning July l.
Gas Tax Use Limited.
1t is Representative Hunters goal
to have the payment increased to
either s8,500,0O0 or S8.OOOOOO if ad-
ditional taxes are saddled on local
taxpayers through higher real estate
and gasoline levies.
Roughly, it is estimated a 25-cent
increase in the real estate tax would
yield an additional s2,5O00OO in
the gasoline tax about Sl500.000
more. The additional gas tax reve-
nues would go into the special fund
used for highway Improvements and
traffic control purposes. Any higher
revenue from the real estate tax
would go into the general fund,
which supports the public schools,
the Police and Fire Departments,
the Board of Public Welfare and
various other municipal agencies.
Whitehurst Plan Gains Support.
Bills now pending before the Fis-
cal Affairs Subcommittee to in
crease the real estate and gasoline
taxes were introduced April %, the
same day the House turned down
the Senate-approved Overton fiscal
relations plan. The one designed
to fix the real estate and personal
property tax at $3.50 on 500 of as
sessed value was sponsored by Rep
resentative Rees, Republican, of
Kansas. Representative Springer.
Republican. of Indiana introduced
the bill to raise the gasoline tax to
4 cents gallon.
A 2-cent increase in the gasoline
tax has been recommended by Capt.
H. C. Whitehurst, director of high
ways. to aid in financing the pro-
posed s44,000000 highway pro-
gram. Chairman Schultz of the
Streets and Traffic Subcommittee
of the House District Committee
also has recommended 2-cent in
crease in the gas tax to carry out a
less elaborate highway improve
ment program sponsored by his
group. The latest supporter of a
higher gas tax is Chairman Mahon
of the House subcommittee now
working on the 1912 District appro-
priation bill who told newspaper
men last night:
The Whitehurst plan has definite
possibilities. I will certainly sup
port a 2-cent increase in the gaso-
line tax"