Evening star., 1946-09-16
D. G. Taxes
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unincorporated business levy are due
to yield S2,250.00 and 5000 900, re-
spectively. This, he said, would
leave S1,850,000 to be made up in
liquor tax boosts to make the SO 9,000,-
600 total the board thinks is suffi-
cient to meet urgent District needs
during the next 10 years.
In the event that any or all of
the proposals advanced were not
acceptable to the Commissioners or
Congress, the board advanced an
alternate of further increase in the
liquor tax, general sales tax, or a
gross earnings tax on individuals
similar to that now used in Phila-
delphia, Toledo and st. Louis.
This last, if enacted, should be a
substitute for the present income
tax. Gen. McCoach explained.
He also added that only so much
of the alternate program should be
used as is necessary to equal the
yield of the unacceptable item or
items.
The Board of Trade made its case
for maximum of S9,0OO,0OO addi-
tional revenue on the forecast that
the Districts population is now
leveling off and might be assumed
to be constant at the present figure
of 100000 through the next decade.
Projecting the general rate of in
crease in cost of city operation from
1929 to 1910, the board computed an
annual increase of S750,000 which
by 1855 would bring the total to
roughly $72,O00,OOO.
The average of capital improve
ment items has been generally about
So 600 900 year, Gen. McCoach
said, but the board took cognizance
of increased costs and allocated
100000 for new construction in
its computations.
Applying the annual increase in
operating costs of $780, 900 a year TO
the 1947 or current operating costs
OF $50, ,345 1882, and adding $1,000 900
for capital improvements would set
next years general fund revenue
needs at S75,000,0O0 which would
mount to about s80,000,000 by 1855,
Gen. McCoach continued.
Figure $1,000, 600 Short.
Present taxes and the present an
nual Federal payment of $1,000 900
will produce $4,000, 900 next year, he
continued. which is $4,000 900 short
Of the s75,OO0,000 believed to be
necessary.
Gen. McCoach touched on the
s228, ,000, 900 six-yesr plan of expan-
sion of city services and facilities de-
veloped by Engineer Commissioner
Gordon r. Young and observed that
1t was under study by another Board
of Trade group. But, referring to
the cost of the plan, which would re-
quire some $16,000,000 of capital
improvements year as far as the
general fund is concerned, he told
Gen. Young:
1T is our judgment that this
amount, plus the necessary in
creased cost of operation, cannot be
levied IN taxes without detriment to
the economy of the District"
II later the Young program is
found desirable, Gen. McCoach con-
tinued, the amount of construction
allowed in the board figures would
permit its completion in IL years.
Outlines Fund Raising.
"If, however" he went on. sit
should be decided that the entire
program is desirable and if its full
completion in less than II years is
essential, then we believe the excess
financial requirements to accom-
plish this should be met by: First,
special additional Federal payment,
or. second, the Commissioners could
secure authority for loan which
could easily be repaid over a rea-
sonable time from the $4,000. 900
which We recommend be made avail
able annually for Capital improve
ments."
Such borrowing, he said, should
be rigidly controlled and limited
to the specific purpose.
The boards presentation was ac-
companied by charts illustrating its
computations. One showed COM
parative taxation per capita between
the District and II other cities.
In this connection Gen. McCoach
told the city heads:
we do not contend that Wash
ington is taxed at the highest rate
of any city in the United States.
There is no reason why it should be.
In fact, there are many reasons
why it should not be, not the least
of which is the general efficiency of
our governmental structure"
Cites Per Capita Figures.
He went on to point out that per
capita figures are reached through
the simple process of dividing total
revenues by total population. While,