Evening star., 1946-09-17

Clubs. the Federation of Business
Mems Associations, who said I'VE
don't like 1t but would approve:
the Washington Real Estate Board
lin the event (other) suggested
sources of revenue fail to provide
the necessary funds; and num-
Der of civic and other groups.
Among groups joining hands in
opposition to sales tax were: Fed
Grafton of Citizens Associations,
both CIO and AFL labor organiza-
tions, the American Veterans Com
mittee and the American Legion,
the AFL Government Employees
Council, League of Women Voters,
the Urban League, a spokesman for
the National Symphony Orchestra
and various civic groups. The Mer-
chants and Manufacturers Asso-
citation said sales tax should be
adopted only as very last re-
sort" The M. and M. held the sales
tax should not be adopted In any
manner, shape or form"
Legion Chiefs Give Stand.
William Howard Payne and James
Hill for the District Department of
the American Legion stressed that
the department unanimously had
adopted a resolution at its last con-
vention opposing the sales tax. Mr..
Payne predicted the Legion never
would withdraw its opposition. He
said cost of living items were not
excluded from the tax and argued
such a tax would divert business
to surrounding areas of Maryland
and Virginia. He suggested an in
creased Federal payment or higher
income taxes to take the place Of
sales levy.
For the American Veterans Com
mittee. Chat Paterson, national leg
islative representative, said the AVG
national policy platform adopted
last June at Des Moines, Iowa,
favored a tax program based upon
ability to pay. including the personal
income tax as the basic source OF
revenue, and elimination of re-
gressive excises and sales taxes"
AVG is convinced the United
States has failed to contribute its
fair share of the cost of the District
government, he added. The cur
rent lump sum payments have not
only been grossly inadequate but
they constitute capricious and,
therefore, wholly unsatisfactory
method of apportionment.
"It is believed imperative to es-
tablish a standard formula which
will allocate a fair share of costs
to the Federal Government and en-
able the District budget to be placed
on more scientific and predictable
basis.
The AVG also proposed broaden
ing of the income tax base to tax
nonresidents who earn incomes
here and a lowering of exemptions
and an increase in rates so that the
range would be from 2 per cent on
the first $4,000 of net taxable in
comes to 5 per cent on $4,000 or
more.
Harry S. Wender, speaking for the
Southwest Citizens Association urged
heavy cuts in the original depart
ment budget requests, increased IL
cense fees, adoption of the proposed
gas tax boost and opposed approval
of the suggested sales tax and excise
taxes on utility bills.
In his attack on the sales tax
plan, Mr.. Wender contended it
would drive business out of Wash
ington and in support of this de-
clared a multimillion dollar" busi-
ness in cigarettes had been developed
in New Jersey because of the adop-
ton of sales tax in New York City
Hits Liquor Tax Boost.
Proposed increased liquor taxes
were opposed by Mr.. Wender on the
ground that they would stimulate
.bootegging. He advocated, instead,
much higher liquor license fees
which he said the dealers would be
able to pay. He proposed higher
license fees for many other busi-
ness operations. "
Milford F. Schwartz, for the Dis
trict Wholesale Liquor Dealers Asso-
citation. suggested a so per cent in
crease in liquor license fees and q
so per cent, instead of a 100 per
cent, boost in the gallonage tax.
A more stern position was taken
by Milton S. Kronheim, wholesaler,
who contended that consideration
Of the Special Tax Committee rec
concentrations meant I'VE are play
ing with loaded pistol which will
do no one any good and which in
the end is likely to hurt some one
and. l fear, the whole District of
Columbia"
Higher Payment Urged.
For the District of Columbia
League of Women Voters, Mrs.
Ralph H. Dwan said consideration