Evening star., 1946-07-21
Plan
Special Tax Report
Hearing September Is

The Commissioners have called a
public hearing September 16 at 10
am. to determine public sentiment |
on the recent report Of the West
Special Tax Committee calling for
new and increased taxes to raise an
estimated N7,750,000.
The l8-man committee, headed by
Corporation Counsel Vernon E. West |
and including both District officials |
and representatives Of citizen i
groups, earlier this month submitted |
a seven point program recommend
ing
/. Broadening the income tax to
cover actual residents here regard
less Of their actual legal domicile;
extending it to income earned in the
District by non-residents but with
credits for taxes paid other States
on the same income provided those
States give the same credit.
Sales Tax Asked.
2. A 2 per cent retail sales tax on
goods sold here except food bought
for consumption of the premises, :,
medicines and construction mate
risls, with discretion in the Com
missioners to except sales. under Is
cents. Coupled with this a 2 per
cent use tax on articles bought out
side the District for use within,
,whichaif ,boughtshere, would be sub
ject to sales tax Credit would be
given on any sales tax paid where
the article is bought. 1t would not
apply to sales aggregating less than
$25 in any one month nor would it
apply to articles brought in the Dis
tricU by a nonresident for his own
use.
3. A per cent tax on the income
Of unincorporated businesses.
4. Doubling the spirits, beer and
wine levies.
S. A per cent tax on utilities bills.
6. A 1-cent tax per package of
cigarettes.
7. A 10 per cent tax on the ticket
price of amusements.
The committee is counting on the
retail sales tax to produce more than
half of the total.
Merchants Oppose Levy.
This levy, however, has already
been attacked by the Merchants and
Manufacturers Association and other
civic groups are divided on the issue
Although the committee did not
recommend it, capital gains tax for
the District, similar to the FEDERAL
tax, as a means of tapping the large
profits being made in the sale of |
real property and personal property
on the present inflated and scarcity
ridden market is favored by several
prominent city officials.
Recent criticism from the Capitol
that the District is a taxpayers
paradise" based chiefly on the low
realty tax rate of SITS per hundred
has convinced other fiscal officials
that this should be increased and the
present requirement for full value
assessment removed. The higher rate
and lower assessment could then
be adjusted to keep the actual tax
paid about what it is now, but would
provide the city with an answer for
members of Congress who look only
at the rate as an index of taxation.
FavOrs S3.25 to 81 Rate.
I'm in favor of setting up a rate /
OF 1925 or 81" one official said, If
that is all they go by"
Some amusement interests are
expected to attack the proposed 10
per cent levy on ticket prices which
now carries 20 per cent Federal
levy. Their contention will prob
ably be that the total of 80 per cent
tax is excessive.
In addition to formulation of
satisfactory tax program that will
eliminate the impending operating
deficit due July. 1948, on the basis
of present income production, the
Commissioners are also planning
strong drive for enactment of the
so-called O'Mahoney formula which
fixes the ratio of Federal payment
toward District expenses. at the
percentage which Federally-owned
land here bears to the total District
area. 1t is currently estimated that
this would produce $11,000,000 if
enacted now The payment ap-
proved for fiscal year l947 was
100000.
The formula was developed by
Senator O'Mahoney of Wyoming
and has the publicly expressed sup