Evening star. [volume] (Washington, D.C.) 1854-1972, 1946-07-29
Coming Up-The Sales Tax

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OF Endorsement by President Tru-
man Of a sales tax for the District
of Columbia indicate that somebody
from the District Building has asked
him about 1t before really going to
work on it.
The sales tax would be the logical
keystone of any tax program for the
District designed to yield substantial
revenues. Without it there is not
enough money in sight from tapping
a variety of revenue sources. With
a sales tax, the Commissioners are
counting possible 100000.
The sales tax is nuisance. The
greatest justification for its applica-
ton here is that it is about the only
form of tax which would collect
money from the Districts large
transient population, which by acct
dent plus design contributes nothing
in direct taxes to the expenses of the
city.
1t was originally proposed some
years ago as companion tax meas
ure with the local income tax Con-
gress killed it and changed the form
of the local income tax to make it
one of the most highly discrimina-
tory forms of tax in the whole coun-
try. One of the members of Con-
gress most responsible for killing it
was Representative Everett Dirksen
of Illinois. The following dialogue
on the House floor last Monday,
therefore, was about AS significant
as anything yet said in connection
with local sales tax
Mr.. Case. I share with the gentleman
his feeling of the need for better hos
pital facilities and lot of other i'm
provements in the city of Washington.
However, I declare have never seen a
situation which SO greatly invited the
imposition of sales tax and thereby a
simple solution to great city's revenue
problem as in the case of the city of
Washington
Mr.. Dirksen. Open confession is good
for the soul. I publicly now confess my
own sins and derelictions in that respect.
When the District Commissioners and
the special taxing committee recon-
mended a sales tax a number of years
ago, it was the gentleman from Illinois
who opposed 1t here and elsewhere and
finally kept it from being included in
balanced revenue system. 7 have tried
to make amends for my sins in that
respect, however, and I said to them
f1,v 49, ~ - L. to-
cluded. I hope that next when we
tackle the question of adequate revenues
for the District of Columbia a sales tax
feeble talent can be devoted to that
matter, it will be included In such tax
structure.
So sales tax is in the cards. Mr..
Dirksen does not underestimate his
past or his future influence in the
House on local legislation. But any
local tax program will be incomplete,
in practice and in principle, If it is
not linked by legislation with fixed
and certain method of measuring
the Federal payment. AS it is, any
substantial increase In local taxes
will make Washington one of the
highest taxed communities in the
United States. But no matter how
high the local tax burden, 1t will be
insufficient, in itself, to meet the
needs of the Federal City.
Any local tax boosting program
outlined for Congress by the Com
missioners should be considered only
as part of needed revenue program
for Washington. The other part
must be supplied by legislation fix
ing the Federal payment in some
relation to the Nations financial
obligation to It's Capital.