Evening star. [volume] (Washington, D.C.) 1854-1972, 1946-01-29
U. 5. Sum
For D. {. Wins
New Support
O'Horu Cites Heavy
Lood; Mcmillan for
Doubling Payment
BY DON S. WARREN.


New support developed today or
Capitol Hill for substantial boos.
in the Federal payment to enable
the District to meet mounting budg-
ct costs, as discussions of possible
additional tax revenues continued.
Viewing the $81 sos 900 budget
proposed for next year, Representa-
tive O'Hara, Republican, of Min
nesota, an active member of the
House District Committee, declared
the District faces terrific" finan-
cial problem and that the Fedora.
share OF National Capital costs
should be increased.
Mr.. O'Hara said, II think it should
be recognized that in many ways,
because this is the seat of the Fed
eral Government, the District is
loaded down with activities and
services the costs of which should
be borne in whole or in part by the
United States
Increasing land purchases here
by the United States are reducing
the taxable area within the District"
he said. TT should be remembered
also that only limited number of
persons living here are required to
pay the District income tax. MANY
are exempted because they are
domiciled elsewhere"
Mcmillan Would Double Sum.
District Committee Chairman Nc
MILAN, already recorded in favor of
a higher Federal payment, came out
f1atly for doubling of the Sc 900 900
lump-sum payment.
In a radio interview from Capitol
Hill he said he believed a boost in
taxes could be avoided if this were
done.
"Washington's population has
grown by leaps and bounds, and SO
has the cost of the District govern
ment, largely due to the tremendous
expansion of the Federal Govern
ment here" he said. "Yet Uncle
Sans contribution has remained the
same year after year. It's been
S6,00O,0 900 annually. That's less than
10 per cent of what it cost to run
the District government last year"
District Committee action on the
revenue problem, he added, is being
delayed for a report of a revenue
study being conducted by the Com
missioners.
Sales Tax Proposed.
Representative Hebert, Democrat.
OF Louisiana, meanwhile, came out
Tor sales tax for the District, while
declaring his support for a higher
Federal payment under the land
area formula proposed by Senator
O'Mahoney, Democrat, of Wyoming
chairman of the District Subconn-
mlttee OF the Senate Appropriations
Committee. This is similar to the
formula championed five years ago
by Senator Overton, Democrat. of
Louisiana.
Mr.. Hebert, chairman of the
streets, Traffic and Police and Fire
subcommittee of the House Dis
trict Committee, said he favored a
sales tax, exempting food, medi-
clnes and possibly other necessities
because he considered it the most
equitable measure available and one
that would catch the transients
trading here who make no contri-
button whatsoever to the District
revenues"
Sees $1,000, 900 Income,
The New Orleans sales tax. he
SAID, brings in about $500 900 A
year. He estimated such a tax here
would raise between $4,000, 900 and
Sc, 000,0oo -o
Speaking of a higher Federal nav.
ment, he said he did not regard the
District as something to be treated
like a stepchild, but as a national
shrine that belongs to all the peo-
pie of the United States and should
be kept as such"
Representative McGehee. Demo-
crat, of Mississippi, chairman of
the Judiciary Subcommittee of the
District group, said he was plan
ming to introduce business priv
llege tax proposal that would be
olherent from the one Congress once
adopted for the District but soon
repealed. He mentioned a sales tax
as another possibility. He said also
he favored higher Federal paw
ment.