Evening star., 1946-09-15
80 D. {. Groups
ToGiveV Views
Al Tax Heariinq
Meeting Tomorrow
Will Consider Plan
To Raise $40, ,000, 900

To Raise $40, 900, 900
Washington civic organizations
were priming their guns over the
week end preparatory to turning
them on the eight tax proposals
OF the Commissioners special tax
committee at a public hearing to-
morrow at 10 am. at the District
Building.
Some 80 organizations, led by tile
Board Of Trade, are expected to
propose their solutions to a citv
fiscal problem pointed up by the
recent submission OF departmental
money requests for the coming fiscal
year totaling nearly S136, 900 900, ap-
proximately $59,000,000 above antici-
pated revenues under present taxes.
The West Committee proposed
seven taxes to feed the general fund
and cent-a-gallon increase in the
gasoline tax to aid the highway
fund, providing a total of nearly
$4,000, 900 in additional city income.
Seek Broader Income Tax.
General fund taxes recommended
included broadening the base of the
present income tax to cover in
comes earned here through elm
lnatlon of the domicile clause and
other necessary changes; a sales
tax, a 1-cent tax on each package
OF 20 cigarettes, per cent tax
on the income of unincorporated
businesses, doubling present liquor
taxes, a 2 per cent tax on utility
bills, and a 10 per cent tax on
amusement tickets.
General approval is expected on
the income tax proposal with equally
strong opposition to the sales tax
heart of the program and due to-
provide 100000 of the total. Thea
ter and liquor industry spokesmen
are expected to attack the proposed
levies on their businesses. Little OBJ
lection is seen to the gasoline tax
increase.
Meanwhile the gasoline tax in
crease was given powerful support
last night when it received the un-
eQulvocal approval of Chairman
Mcmillan of the House District
Committee.
Road Repairs Needed.
He took the position that the need
for highway improvements and re-
pairs had piled up during the war
years and the proposed increase
would not break anybody"
To raise the level to four cents
here, he added, still would leave the
District below many States. includ-
ing his native South Carolina
which has Scent tax It would put
the District on par with Maryland
put leave 1t two cents below the six
cent Virginia gasoline tax.
Mr.. Mcmillan, impressed with the
overwhelming financial problem
faced by the District, confidently
predicted great slashes would be i
mace by the Commissioners in the
estimates of department, heads.
Plans Tax Study.
He left no doubt, however, there
stu would remain the need for
heavily increased revenues for the
District in the next fiscal year. He
plans to make an intensive study of
the tax and budget structure during
November and December, after stav
IN South Carolina. If his schedule
limits, he added, he will attend the
Commissioners tax program hear
lngs tomorrow.
Chairman Mcmillan will SPONSOR
lRQ1SIQf1nf1 q
Congress to provide an increased
Federal payment toward National
Capital expenses by the adoption of
formula like that proposed by
Senators O'Mahoney. Democrat. of
wyoming and Overton, Democrat of
LOUISIANA for measuring the share
OF the United States against the
extent OF its taX-exempt land hold
ings here.
ALREADY, however, he foresees the
need OF new local taxes, even though
the original budget requests are
heavily cut.
Sales Tax Supported.
IN general comments Yesterday
he repeated his earlier solid ap-
proVal OF the proposed sales tax
levy. He would not express an
opinion as yet on the suggested
broadening of the base of the Dis
tricts personal income tax to in
clude all those who live or work
here but escape the tax because
they are not found to be legally
'oomiciled" in the District.
Ihese are technical questions, he
explained, and the only conclusion
ne now had in mind was that no
one should be required to pay their
local income taxes twice.
Mr.. Mcmillan was noncommittal
on reports showing that only a
relatively small percentage of. the
total OF employed persons in the
District is subject to the District
income tax law but expressed be-
lief that most of the South Caro-
hnians here paid the District tax
because it was lower than the tax
rates of South Carolina. Further
more, he said he had gained the
impression that many persons who
come here to work for the Govern
ment really would prefer to work
in the field. for the United States.
possibly In their home States.
On a question regarding the cost