Evening star., 1946-04-03
D. {. Budget S|ashed
Nearly S9,000,000,
Sent 10 House Floor

Continued From First Page)
serve as a cushion for expected later
demands, since the proposed $751;
sos 900 budget was just about bal.
anced" before the cuts were made
Presumably much of this saving
would be kept in the $4,000, 900 cap.
ital investment fund built up during
the war. but most of which woulc
have been needed to finance the
budget as submitted in January.
The noW-pending new Federal pay
bill. however. would drain away be.
tween S3000,000 and $4,0O0000 OF
this saving to pay postwar salary
boosts for classified workers. II
similar raises were granted other
District employees the cost would be
at least double. officials said.
Making strong case for a higher
Federal payment, the Coffee Sub
committee cited increasing tax
exempt Federal holdings here, large
purchases for taX-free embassies
and legations, free water for Fed
eral buildings, free tuition for non
resident pupils and many other
extra loads"
Tax Sources Studied.
1t also directed attention to sug-
geSted means of raising more tax
revenues, developed during execu-
tive hearings, to raise assessments
on business and apartment proper
critics, to obtain legislation so as
to apply the per cent corporate
income tax to unincorporated busi-
nesSeS and to boost license fees on
recreational events requiring ex-
penSive police arrangements.
Chairman Coffee personally rec
commended the levying of business
privilege taxes against physicians
dentists. lawyers and other pro-
fessional operators. The report
/ added:
1T is becoming more evident each
year that the S6000000 Federal
contribution. which in the fiscal
year 1916 amounted to only 928
per cent Of the total appropriation.
is not a fair proportion of the
expenditures required to provide
and maintain on an appropriate
and expanding scale local govern
ment in the District.
Only Half of Area Taxable.
The percentage of taxable area
at the present time is only 49.6 per
cent of the total area. The remain
/ ing or major part OF the limited
area within the boundaries of the
District is tax exempt, being owned
by the Federal or District govern
ments. or by the embassies and pri-
vate organizations. Furthermore,
the taxable property is being re-
duced year by year as additional
property is acquired by the Federal
Government, private tax-exempt in
stitutions and foreign governments
for embassy purposes.
The question will arise as to the
propriety of saddling on District
taxpayers the expense of providing
municipal services to tax-empt prop
critics and particularly such proper
/ ties when the reason for the exemp-
! ton is based on international usage
or custom.
In such instances. the expense
has a direct national aspect, and
/ concerns each and every State,
municipality and locality in the Ma
ton, as it does the District
/ The Federal payment arguments
were buttressed by inclusion in the
hearings of excerpts from the COM
! prehensive study made public re-
Gently by Representative Stefan, Re-
publican, of Nebraska, ranking mi
nority member of the Coffee SUBJ
committee.
More From Highway Fund.
/ The District Subcommittee, as a
result of hearings, running to nearly
/ 1.l00 recorded pages, recommended
an outlay of s61,114,384 in general
fund" items. This would be more
! than Sc, 100000 below the budget re-
quests and more than $4,000, 900 be-
low appropriations so far made this
year.
! For the services financed out of
i IIle highway luIlu, tllc COIIllIlltUcc
recommended s7,542,900 or s575. 900
short of requests but nearly ST.
100000 above this year. This was
authorized largely because of the
need for matching available Fed
eral aid grants.
For the water services, financed
out of the separate water fund, the
committee proposed 1947 outlay
of s3,927725, or more than ST 600, 900
less than the sums requested but
$264.7l5 above this year.
\ The Coffee Subcommittee report
said it had approved funds for con-
tinuing essential construction in
the amount of s11,419,180, but had
denied s5,757,1 ,12O for the beginning
of new projects which had been
justified as needed but which
could be postponed
Not Good Time for Building.
The subcommittee questioned
whether this is an appropriate
time to begin a public building pro-
gram in view of the situation In
the building industry, because of the
critical housing shortage and prior