Evening star., 1946-02-25
Possible New.
Fund Demands
On DC. Studied
House Group Opens
Budget Hearings;
Sales Tax Discussed
By Don S. Warren

Concern over possible heavy ad-
dltional demands on District reve-
nues in the next fiscal year was
raised today when subcommittee
OF the House Appropriations Com
m1ttee began executive hearings on
the Districts record-breaking 1947
budget of $81, 100000.
Mentioned in this connection were
the Federal pay bill, which would
apply to classified employees of the
District, and bills for adjustment
Of the pay and retirement provisions
Tor Washington school teachers.
Representative Coffee, Democrat,
of Washington, chairman of the
subcommittee, revealed there was
some discussion of the possibility
OF adopting sales tax for the Dis
trict and the possibility of new or
increased levies on various busi-
nesses here.
Young Outlines Budget.
AT the outset, it was reported by
MIR. Coffee a general picture of the
Districts revenue and budget pro-
gram was given by Commissioner
John Russell Young.
He explained that the pending
budget would exhaust virtually all
of the Districts financial resources,
except for relatively minor amounts
of the capital investment funds,
and told the committee that despite
"laudable" requests made by well
meaning citizens" for expansion of
muicipal social services, it was neces-
sary for the District ito cut the
garment to fit the cloth"
Mr.. Coffee said the committee had
inquired into means of stopping up
loopholes in the assessment and COL
lection of personal property taxes,
with special reference to household
effects, jewelry, coins and stamp
collections. An outline of methods |
used by the District in checking on
such holdings was given by Edward |
A. Dent, District assessor, and he
wen compliment from committee
members for thoroughness of the
activities of his office
Testimony also brought out that |
the District is losing real estate
taxes by reason of continued pur-
chase of District properties by the
Federal Government and by foreign |
nations, putting such properties on
the tax-eXempt list. There was
mention of the realty holdings pur-
chased in the past year for the Bel
glan and Peruvian Embassies.
To Get Revenue Study.
Later, the Coffee subcommittee as
well as the House District Commit
tee is to be given a report on the
revenue studies now being made by
a committee of District officials and
citizens, assigned the task by the
commissioners to seek some answer
to the impending financial crisis.
This report is expected to recon-
mend an increase in the Federal
payment as we'll as possible addi-
tlonal tax revenue sources. The
Coffee subcommittee has been ad-
vlSed basic legislation will be need
ed to increase the size of the Fed
eral payment and the District Com
mlttee is expected to take this up
IN the near future.
Others appearing before the COM
mittee at its morning session in
cluded Brig. Gen. Gordon R. Young.
Engineer Commissioner, and his as
sistant, Col. Joseph A. Arthur, jr.;
Budget Officer Walter L. Fowler and
his deputy, William G. Wilding:
Highway Director H. C. Whitehurst,
Auditor Arthur R. Pilkerton and
spokesmen for the Office of the
Collector and the corporation coun-
sell
Executive hearings are to be con-
tinued this afternoon, and probably
other days this week.