Evening star. [volume] (Washington, D.C.) 1854-1972, 1947-06-05
Action Delayed
On Fiscal Plan
For District
Postponement Until
Tomorrow Decided On
To Study Tax Proposal

To Study Tax Proposal
After two hours discussion, the
House District Committee today
postponed until 10 am. tomorrow
action on the proposed new $780,
600 city money raising program.
b Several members urged the delay
to have more opportunity to study
the proposed new income tax from
which the city hopes to get an
additional 100000 annually.
There were no indications, how
ever, that the committee would not
eventually support the program rec
commended by it's Fiscal Subcommit-
tee Tuesday, and Chairman Dirksen
was still hopeful of bringing it to
the House floor Monday.
Agree to Delay.
Both Mr.. Dirksen and Chairman
Bates of the subcommittee had
hoped for approval this morning,
but readily agreed to the delay.
The revised tax plans call for a
broadened income tax estimated to
bring in an additional S3,100,000.
Without any change in individual
income tax rates, but with some
changes in exemptions, it would be
applied to all persons actually liv-
ing in the District for seven months
or more Of the year. Those actu-
ally paying States income taxes
back home would be given, credits
for such payments.
Second Major Change.
A second major change calls for
a boost in the District realty tax
rate from SITS to So per 500 of
assessed valuation. The additional
revenue yield is estimated at s4,-
100000. Such a real estate tax
boost might lead to higher rents,
according to Rent Administrator
Robert F. Cogswell. -
Also, there are recommended a
1-cent increase in the present g.
cents-a-gallon gasoline tax, to bring
in an extra s1,600,O00 a year, and a
Is per cert boost in water rates,
to yield another 100000.
The proposed increase from So
100000 to $12,000,0OO in the Federal
payment would earmark $1,000, 900
for the water fund to cover the
Districts costs in providing water
free to the Federal buildings here.
Mr.. Bates told the committee to-
day the proposed gasoline tax boost
was essential to carry out major city
highway projects.
He added that the proposed
financing for the water fund would
enable completion of the city's pro-
posed $40,000,000 expansion plan
without resort to Federal loans or
bond issues.
General Fund Chief Problem.
The main problem, he continued
was in the general fund, where study
of city finances in connection with
proposed expenditures during the
year beginning July l revealed an
impending deficit of $10,5o0,000.
The subcommittee chairman said
the real estate tax increase would
provide an estimated $4,000, O0C
which added to the 100000 yield
from the new income tax and the
S3,OO0,O00 to come from the Federal
payment increase would take care
of the deficit.
In addition, he said, he has asked
Chairman Koran of the House Ap-
preparations Subcommittee handling
the new $97,000,000 city budget to
trim 100000 from the estimates.
If this is done. Mr.. Bates indi-
Gated, the city will wind up the
next fiscal year with a surplus of
slightly more than $2,OOO,O 900.
Cut in New Construction.
The 100000 cut, it was said,
would be in the form of deferred
new construction.
Mr.. Bates told the committee the
District now has funds available for
100000 worth of new building
projects, and that under his plan
$6,O0O,000 would still be available in
addition in the pending budget.
This total of $13,O0O,000, he said,
when added to 100000 worth of
proposed highway construction and
$4,000, 900 in water system expansion
during the next fiscal year, would
provide a total capital outlay pro-
gram of more than $21 100000.
MIR. Bates said this was all that
could possibly be built by the city
within the next year without seri-
ously interfering with other types
OF necessary construction, according
to advice he received from former
Engineer Commissioner David Nc
Coach, jr., chairman of the Board
OF Trade. Municipal Finance Com
mittee.
Mr.. Bates warned against includ-
Ing any large school construction
program beyond what is already
pending or covered in the proposed
budget. This, he said, included
more than half of the SIS, 900 900
to be available in the general fund
for new construction.
Realty Rise Plan Defended.
Defending the plan to raise realty
rates, Mr.. Bates told his colleagues
the contention that District prop
critics are assessed at 100 per cent
docs not stand the test of actual
analysis"
He said he has figures from Dis
trict Assessor Edward A. Dent to
show that properties now were as
sessed at only about 10 per cent OF
their value.
At the same time, he continued
he emphasized he was not contend
ing that these properties should be
valued for tax purposes at the price
they would command on the pres
ent inflated market.
A plea in behalf of the lump-sum