Evening star., 1947-05-04
Work 10 Start
Soon on New Tax
Plan for District
Joint Committee
Is Leoning Toward
Few Major Levies
By John w. Thompson, Jr.

Late this week or early next, a
Senate e-House committee will begin
writing a new money-raising pro-
gram for the District.
What 1t will include is anybody's
guess now, but one thing is certain:
1t will bear no resemblance to the
8-bill $4,000. 900 program the Com
n1issioners sent up.
The city heads Topped $4,000, 600
from their schedule by abandoning
proposed taxes on amusements and
on utilities bills. Then they were
told fatty their suggested change in
the income tax was unacceptable.
They have presented new version
in hopes, at least, of changing the
basis for the tax from legal to actual
residence here.
Lean to Few Major Taxes.
In addition, members of the joint
committee have indicated generally
q leaning toward a few major taxes
to raise the necessary money rather
than number of levies of specific
impact and smaller yield.
In this group might be classed the
proposed cigarette tax, the liquor
taxes and possibly even the sug-
gested one-cent increase in the gas
oline tax.
The heart of the commissioner
program was the sales tax. But
this levy is personally unpopular
with Representative Bates, Repub-
lican, of Massachusetts,, llard-work-
ing co-chairman of the joint COM
mittee. Mr.. Bates, who in 1888
fought a sales tax here in favor
OF the present income tax, is now
sponsoring the efforts to reyamp the
tax to make it fairer and more pro-
duetive.
One other major consideration
also will govern the committee
money-raising plan, from present
indications. The members probably
will not accept the estimates of need
furnished by the commissioners who
in turn based their tax program
largely on the sos ,000,0 city
budget for 1948 now before Congress.
Hearings To Begin Soon.
Hearings on these estimates are
soon to begin and the fiscal joint
committee hopes to obtain from
the House Appropriations Subcom-
mittee some inkling of what cuts
are planned. They will then tailor
the tax program to the actual bud
get needs as far as possible.
Based on these considerations and
other expressions by the co-chair-
men, the type of program most likely
TO emerge would include:
l. Some measure to boost the an
nual Federal payment.
Q. At least a 25-cent increase in
the real estate tax rate, to 50 per
500 of assessed valuation,
3. Either a modified income tax
or a low rate sales tax.
4. A flexible gasoline tax under
which the proposed penny increase
could be withdrawn if it yields more
than necessary.
Favors Larger Federal Payment.
Both Senator Cain, the chairman
of the joint committee, and Repre-
sentative Bates have indicated
strong support for an increased
federal payment. The committee
already has before it two bills to
fix the payment. according to a
formula based on the heavy federal
land ownership here. A third less
definite proposal would relate the
federal payment to a percentage of
the federal payroll here. The two
land based formulas are the Over
neutrality-suspicious. plan and
the newer Horan plan Both would
produce about $4,000,000 more than
the present $4,000, 900 lump sum pay
ment.
Observers feel that a formula
might pass the Senate but see less
chance of its clearing the House in
its present economy mood.
MIR. Bates has said positively he
feels the real estate tax is too low
here in proportion to the city's
needs. 1t is nearly certain that a
boost Is in the cards.
In the case of the sales or income
taxes, the controlling factor prob
ably will be the amount of money
needed If the federal payment in
crease goes through, the income tax
might be modified to raise what is
needed. On the other hand, if the
formula fails, the revised income
tax would not yield enough money
unless its raises were raised sub
stantially. In such case the sales
tax might be selected.
Gas Tax Opinion Divided.
While there was powerful opposi-
ton rounded up against the gas tax
increase, a number of responsible
organizations favored it and the
Board of Trade has put forward
the flexible rate proposal.
Principal argument of the Com
nissioners tor it is that the money
is needed to take part in the Fed
eral aid matching program now in
effect. If legislation passes ex-
tending the period of Federal aid
over a few more years, the bunch
ing of highway items in the next
year or two may be eliminated and
this might influence the committee
against any gas tax boost.
Mr.. Bates spent yesterday trying
to figure out how the new teacher
pay bill should fit into the city fiscal
picture. There seems little doubt
but that the present temporary
$3.50 increase collected by the
teachers this year will be continued.
Whether the extra $3.50 proposed
by the Board of Education or the
adoption of the single salary
standard is approved is touch and
60. The chances now are against
the approval of the full amount
provided in the bill. The single
salary standard means equal pay for
equal experience and training.
B'nui Birth Head Mourned
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