Evening star., 1947-02-02
Citizens Oppose
D. {. Sales Tax
Without Equity
U. S. Fiscal Relations
Should Be Adjusted
First, Federation Says

The Federation of Citizens
Association last night went on
record as opposing a sales tax
for the District as long as the
Federal Government fails to
contribute an equitable" share
toward the Districts operating
expenses.
Adopted as part of a fiscal rela-
tions program for. Washington, the
provision read: I'VE oppose re-
tan sales tax until fiscal equity has
been achieved"
Kenneth P. Armstrong, chairman
of the Federation Fiscal Relations
Committee, agreed to the fiscal
equity" provision of the sales tax
resolution inserted by the member
ship, declaring, "the sales tax should
be considered only after the Federal
Government contributes just share
and we still find that we need more
revenue to run the city"
Cigarette Tax Fought.
The federation also went on rec
ord as opposing suggested taxes on
cigarettes, amusement places and
public utility bills here.
As part of its program to raise
sorely needed additional revenue for
the District the Federation took the
following action:
/. Favored the O'Mahoney- Over
ton bill to increase Federal pay
ments toward District expenses
based on the percentage OF land
here owned by the Federal Govern
ment to the total land area of the
District.
2. Favored enactment of legisla-
ton to increase existing taxes on
alcoholic beverages.
3. Favored legislation to levy taxes
on all incomes earned in the Dis
trict, with credits to nonresidents
who pay taxes on the same income
in the State of their actual resi-
dence.
McCarran Bill Approved.
Also, the Federation approved the
McCarran bill to create a public
corporation to take over the water
supply and distribution system and
charge all public and private users
on the same basis. In addition, 1t
was decided to present to Congress
brief sketching the past fiscal
history of the District, particularly
| for the benefit of the new legtSla-
tors.
The discussion on the sales tax
question was heated and several
times President Clifford H. Newell
had to call for order in the District
Building board room.
A number of delegates took the
floor to declare that the Federal
Government should pay larger
share toward District operating ex-
penses and that the sales tax should
not be adopted unless 1t was abso-
lutely necessary.
s12,o0o,000 More Needed.
Mr.. Armstrong said that the Fed
erations revenue-raising program
would provide an additional 12,000,-
900 revenue. In this event, the
sales tax would not be needed to
offset the budget deficit, Mr.. Arm
strong declared.
Other Federation actions last
night included:
l. Recommital of proposal that
children under Is be prohibited
from playing pinball machines. The
resolution was referred back to COM
mittee with instructions that pro-
posal be considered to place tax
on all pinball machines in the Dis
trict.
Asked the Public Utilities Com
mission to undertake an immediate
study to see If rates on natural gas
can be reduced.
Received application Of the Dis
trict Optometric Society for mem
bership in the Federation. The
membership committee will consider
the application
Discussed plans for Federation's
annual dinner on March 10 at the
Hotel Statler.