Evening star., 1941-03-18

very little" auditing of the individ-
ual returns, he said, because they
average about SIG.
Mr. Hunter also inquired whether
any consideration had been given
to increasing the tax rate and lower
ing the assessment base Ito overcome
the thought in the minds of men,
bers of Congress that the tax rate
here is too low"
Mr.. Dent said real estate taxes
in Washington are not low. and that
fact was brought out in the Pond
report. This report, he pointed out,
recommended SITS ceiling on real
estate taxes, the present rate.
Highest Assessed Value.
Representative McGhee, Demo-
crat Of Mississippi said he had
learned from observation that the
assessed value of property here is
higher than any other place in the
United States. The assessment, he
declared, represents more nearly the
true value, while in his home State
the assessment is about 40 per cent
of true value.
Il can't see why this subcommit-
tee can't work out a program TO
raise additional revenue without
hurting any one" he said.
Representative Hebert at this
point said he knew of no reason
why the children of non-residents
who work here are educated free in
the public schools. 1T is the most
unfair thing 1 ever heard Of he
declared.
Commissioner McCoach was asked
whether he favored an increase in
the gasoline tax. He replied that an
increase of l or cents a gallon
would be necessary to keep pace
with the ever-increasing demands
Tor highway Improvements.
Conference Called by Hunter.
Todays conference was called by
Chairman Hunter, who has esti-
mated the District will need between
$1O,O0O,000 and S15,000,0GO more a
year to provide schools. water, fire,
police and other municipal services
for the newly developed areas in
which defense workers are concen-
trating.
Mr.. Hunter is sponsoring the Over
ton plan in the House. Although it
Is estimated that its adoption would
yield the municipal government ap-
proximately 100000 more in the
coming fiscal year beginning July /.
he said, other potential sources of
revenue would have to be tapped to
finance emergency expenses.
The OvertOn plan is now ready
for Senate action. The bill in which
1t is embodied was formally reported
TO the Senate yesterday by its Dis
trict Committee with a request that
1t be passed. The Senate will not
meet again until Thursday, but on
that day it is expected to be called
up and indications are it will be
approved and sent to the House.
simultaneously with the action
OF the Senate District Committee
In placing the Overton bill on the
Senate calendar, Representative
Dirksen, Republican, of Illinois in
troduced his substitute fiscal rela-
tIons plan in the House.
The Overton formula provides
that the annual payment of the
United States to the District bear
the same ratio to the general fund
appropriations as the land owned
by the Federal Government in the
District bears to the entire land
area of the District. Applying the
formula for the next fiscal year,
the Senate committee estimated the
Federal payment would be increased
from the present $6,00O,OO0 to
SO ,389, ,84O.
The plan of Mr.. Dirksen, ranking
minority member of the House Dis
trict Committee, would base the
payment on the land values of tax
1ree Federal-owned property in the
District.
Il believe my plan will be more
flexible than the one set up in
the Overton BILL" declared Rep
resentative Dirksen. 1T will in
volve the use of relative values in
stead of acreage"